The Missed Chance to Cut Logistics Costs

Abstract

The purpose of this paper is to analyse the current characteristics of the distribution logistics sector, assess the current status of logistic collaborations, as well as the readiness of the industry for horizontal shipper collaboration. Reviewed case studies prove that these collaborations can cut logistics costs. The data was collected from 158 shippers via an online survey. The research uses structural empirical methods to analyse the data. Practical case studies show the benefits of horizontal shipper collaboration. The focus of the research is to identify the current status of collaborations in distribution logistics and show with case studies that horizontal shipper collaboration is possible. Even though supply chain collaboration is widely discussed in the literature, it does not address horizontal shipper collaboration in distribution logistics adequately. The results educate managers to understand that horizontal shipper collaboration is an effective alternative to cut costs in distribution logistics.