Abstract
This paper introduces the FreightShare Lab Platform (FSLP) and its embedded business model, aiming to facilitate and encourage horizontal collaboration in freight logistics. The idea of the FSLP is to create collaborating clusters of freight operators, and corresponding collaborative operational plans, via specialised decision support algorithms and multi-fleet optimisation. Further, a gain-sharing business model embedded within the FSLP algorithms ensures that participants, mainly logistics service providers and freight operators, can retain their own profit margins and fairly share the efficiency gains from collaboration. A case study is presented, centred on a large UK freight operator, to evaluate the key FSLP algorithms in a realistic context. The results evidence the potential for significant financial and environmental benefits for industry and society.
Highlights
Horizontal collaboration in the logistics industry has the potential to generate sustainable benefits for society, the environment and the economy
The FreightShare Lab Platform (FSLP) embeds the collaboration process by using two algorithms: The first algorithm facilitates the creation of clusters based around operational compatibility, and the second is a feature-rich fleet planning and optimization algorithm based on an operating commercial planning platform, which has been adapted to handle additional features related to inter-fleet sharing and a gain-share business model
Collaboration in the logistics industry has the capability to generate significant benefits for society, the environment and the economy, as it already has in many other sectors that are ahead with regards to collaboration
Summary
Horizontal collaboration in the logistics industry has the potential to generate sustainable benefits for society, the environment and the economy. The FSLP embeds the collaboration process by using two algorithms: The first algorithm facilitates the creation of clusters based around operational compatibility, and the second is a feature-rich fleet planning and optimization algorithm based on an operating commercial planning platform, which has been adapted to handle additional features related to inter-fleet sharing and a gain-share business model. The latter algorithm seeks a joint itinerary that can fulfil contracts at a lower price and with lower emissions by exploiting the combination of assets available to the FSLP [1].
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