Decisions and Coordination in E-Commerce Supply Chain under Logistics Outsourcing and Altruistic Preferences

Yuyan Wang,Runjie Fan,Rongyun Tang,Zhaoqing Yu,Liang Shen

doi:10.3390/math9030253

Abstract

Considering the peculiarities of logistics in the electronic commerce (e-commerce) supply chain (ESC) and e-commerce platform’s altruistic preferences, a model including an e-commerce platform, third-party logistics service provider, and manufacturer is constructed. Based on this, three decision models are proposed and equilibrium solutions are obtained by the Stackelberg game. Then, an “altruistic preference joint fixed-cost” contract is proposed to maximize system efficiency. Finally, numerical analysis is used to validate the findings of the paper. The article not only analyzes and compares the optimal decisions under different ESC models, but also explores the intrinsic factors affecting the decisions. This paper finds that the conclusions of dual-channel supply chains or traditional supply chains do not necessarily apply to ESC, and that the effect of altruistic behavior under ESC is influenced by consumer preferences. Moreover, there is a multiparty win–win state for ESC, and this state can be achieved through the “altruistic preference joint fixed-cost” contract. Therefore, the findings of this paper contribute to the development of an e-commerce market and the cooperation of ESC members.

Highlights

Accepted: 25 January 2021Currently, with the tremendous advances in Internet technology, online shopping has become increasingly popular among consumers
Many manufacturers have entered electronic commerce (e-commerce) platforms [1], and entrusted logistics operators to deliver their products to consumers, which has promoted the emergence of the electronic commerce supply chain (ESC) consisting of e-platforms, manufacturers, and logistics operators
This study finds that improved consumer preference for the sales promotion service level can make ESC members more profitable, but increased consumer preference for logistics services prices can decrease profits

Summary

Introduction

Accepted: 25 January 2021Currently, with the tremendous advances in Internet technology, online shopping has become increasingly popular among consumers. Many manufacturers have entered electronic commerce (e-commerce) platforms (as e-platforms) [1], and entrusted logistics operators to deliver their products to consumers, which has promoted the emergence of the electronic commerce supply chain (ESC) consisting of e-platforms, manufacturers, and logistics operators. Compared to the traditional supply chain, the ESC breaks through the limitations of time and geography, which makes the ESC more convenient for consumers [2]. The ESC eliminates the intermediate steps and transaction costs [3], making the online products more price competitive and the ESC more competitive than the traditional supply chain [4]. Unlike shopping in brick-and-mortar stores, there is often a spatial separation between consumers and products in online shopping, which makes logistics necessary in ESC [5]. Many e-commerce companies regard logistics as an Published: 27 January 2021

Methods

Results

Discussion

Conclusion