Value-Added Service for Fashion Product Supply Chain with Overseas Warehouse Logistics Outsourcing

Abstract

To quickly respond to consumer demand, more and more fashion product cross-border e-commerce (CBEC) retailers outsource international logistics to an integrated overseas warehouse logistics provider (OWLP). Due to the scarcity of integrated OWLP, this paper investigates the effect of the Stackelberg game, where the OWLP dominated the supply chain, and the cooperative game where the retailer and the OWLP are consistent with the interests, on pricing, and the comprehensive value-added service (VAS) strategy for a fashion product and explores the effect of demand coefficient factors on decision-making policy and supply chain performance through sensitivity analysis. It is found that the VAS level increases in the decrease of price coefficient a and the service cost coefficient k, in the increase of the service level coefficient b, and sales cycle coefficient T. By adopting the VAS cost-sharing contract, and not only the total profit of the cooperative game is greater than that of the Stackelberg game but also the win-win cooperation between e-commerce retailer and OWLP is realized.