Int. J. of Shipping and Transport Logistics   »   2017 Vol.9, No.2

 

 

Title: Cooperation between two logistics service providers with different distribution ranges

 

Authors: Feng Yang; Mingming Yang; Qiong Xia; Liang Liang

 

Addresses:
School of Management, University of Science and Technology of China, No. 96 Jinzhai Road, Hefei 230026, Anhui Province, China
School of Management, University of Science and Technology of China, No. 96 Jinzhai Road, Hefei 230026, Anhui Province, China
School of Economics, Hefei University of Technology, No. 193 Tunxi Road, Hefei 230009, Anhui Province, China
School of Management, University of Science and Technology of China, No. 96 Jinzhai Road, Hefei 230026, Anhui Province, China

 

Abstract: This paper focuses on the cooperation between two logistics service providers (LSPs) with different distribution ranges. Taking a business express (BE) and a state-owned LSP, i.e., China Post (CP) as examples, the cooperation situation between them and the non-cooperation situation are considered separately, and the two resulting profits are compared with each other. The results show that: 1) there is a complementation between the service advantages of BEs and the delivery range advantages of CP; 2) the proposed way of cooperation is conditionally able to save more manpower costs and increase profits; 3) the incremental profit has positive correlation with the demand from remote areas. Finally, a feasible consignment contract is also provided.

 

Keywords: horizontal cooperation; logistics service provides; LSPs; China; LSP cooperation; distribution ranges; manpower costs; profitability; incremental profit; remote areas; consignment contracts.

 

DOI: 10.1504/IJSTL.2017.10001585

 

Int. J. of Shipping and Transport Logistics, 2017 Vol.9, No.2, pp.186 - 201

 

Available online: 14 Jan 2017

 

 

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