Cooperative planning in express carrier networks — An empirical study on the effectiveness of a real-time Decision Support System

Abstract

For small transportation firms cooperation in a carrier network is a proper mean to overcome the inefficiencies from deadheading. To be successful, such a network has to secure two different but equally important aspects: the partners have to be aware of specific consolidation potentials through order exchange which is an optimization and communication problem, and, the partners have to experience incentives to contribute actively to the network which is the problem of finding a fair cost/profit allocation schema for order exchanges. In this paper we discuss the experience with the development of a Decision Support System for a specific express carrier network. We illustrate how the consolidation potentials in such a network with autonomously planning carriers can be exploited and cost effectiveness can be improved substantially through the use of a suitable distributed Decision Support System if the two success factors awareness and fairness are addressed properly.