Horizontal Collaboration In Logistics Research Articles

Horizontal logistics collaboration success factors: expectations versus reality

PurposeThis study aims to compare the expectations of non-collaborating professionals and the actual opinions of collaborating professionals regarding success factors of horizontal logistics collaboration (HLC) and investigates the reasons behind the observed differences.Design/methodology/approachThis study employs a mixed-method approach. First, a survey is conducted to collect data from two samples representing collaborating and non-collaborating industry professionals. Second, confirmatory factor analysis (CFA) is used to compare the measurement models from the two samples and identify their similarities and differences. Third, a Delphi study is conducted to identify factors limiting collaborative behavior.FindingsThe results show that collaborating professionals exhibit lower levels of joint relationship efforts and trust than expected. This is primarily due to inadequate information sharing, poor collaboration formalization and the absence of a clear costs and benefits allocation mechanism.Practical implicationsThe findings indicate that, in HLC, managers should give high importance to facilitating timely and complete information exchange, putting in place an acceptable costs/benefits allocation mechanism, formalizing the collaboration and prioritizing integrity over competency when selecting partners.Originality/valueTo the best of the authors’ knowledge, this is the first study that shows the existence of differences between industry professionals' pre-collaboration expectations and the actual experiences in HLC. This is also the first study that points to the exact HLC enablers that fail in practice and the barriers responsible for it.

What drives horizontal logistics collaboration? A grounded theory analysis of Chinese logistics service providers.

Horizontal logistics collaboration is characterized by the highly professional cooperation of logistics service providers at the same level of the supply chain, which is an effective way to optimize the development and sustainability of modern logistics. Conducting a coding analysis of data from 41 in-depth interviews, this study constructs a theoretical framework of the driving force of horizontal logistics collaboration among Chinese logistics service providers to synchronously improve service, market, efficiency, and emergency competitiveness through cooperation with peer competitors to enhance sustainable comprehensive competitiveness. The four driving forces encourage logistics service providers to adjust their thoughts in the planning stage, change their behavior in the implementation stage, and transform their strategy in the evaluation stage. The results also indicate differences between China and other countries in the driving force, effective utilization of logistics workers, cross-institutional collaboration of state-owned enterprises, and integration of artificial intelligence technology. Finally, we propose relevant recommendations for managers.

Pengaruh Pandemi Covid-19 Pada Niat Kolaborasi Horizontal Logistik Klaster UMKM Di Indonesia

In recent years, horizontal collaboration in logistics is believed to positively impact business performance by reducing cost and increasing fulfillment rates. However, the implementation of horizontal collaborative logistics in MSME clusters in Indonesia still scarce. This research aims to determine the factors that affect the acceptance of industrial clusters to determine the possibility of implementing the concept of collaborative logistics. By combining equality of benefits, competences equity, leadership, trust, competition, cluster’s roles, perceived benefits, and COVID-19 pandemic, a conceptual framework for studying the influencing factors of cooperation intentions is proposed. Partial least squares path modeling (PLS-PM) was conducted on 102 respondents (31 pilots and 71 full research) from business owners or operation managers of six MSME clusters. The results show that the role of trust and clusters has significantly promoted MSME's intention to carry out horizontal logistics collaboration. In addition, the changing business conditions caused by the COVID-19 pandemic proved to be one of the influencing factors.
 Keywords : Horizontal Collaboration, Logistic, MSME Cluster, Covid-19

Random Serial Dictatorship for horizontal collaboration in logistics

In this paper, we propose the application of matching mechanisms to handle horizontal collaboration in logistics. Based on the requirements of a real-life setting, we introduce a new variation of matching under preferences. We provide a Random Serial Dictatorship (RSD) mechanism for finding a solution that incorporates Pareto optimality, incentive compatibility and fairness, which are desired properties for enabling collaboration between antagonistic participants. Further, we present an extensive experimental analysis that is twofold. We compare the proposed RSD mechanism to two well-known matching mechanisms, namely Maximising Cardinal Utilities (MAXCU) and Bundled Probabilistic Serial (BPS). We compare these mechanisms with respect to cardinal efficiency and envy, and highlight the complementarity between them for handling different settings. Most importantly, we show that RSD is the most appropriate choice for settings similar to the one motivating our study. Moreover, we examine the effect of randomisation of RSD to fairness. Finally, we discuss how our matching mechanism was applied in the real-life context of four 3rd Party Logistics providers. Results show that the proposed approach creates significant potential for synergies and may be used to support horizontal collaboration in logistics.

Tragedy of the facilitated commons: A multiple‐case study of failure in systematic horizontal logistics collaboration

AbstractHorizontal logistics collaboration can increase environmental sustainability and reduce shipping costs. Given these benefits—and the fact that few shippers actually opt to collaborate—public sector agencies and industry associations have attempted to sponsor and support the facilitation of horizontal logistics collaboration projects over the past 20 years. The literature, however, has yet to reveal the fact that these efforts have largely failed. Here, we introduce systematic horizontal logistics collaboration and apply Ostrom's theory of the commons and agency theory to extract antecedents on why these projects failed. We present a multiple‐case study on unsuccessful horizontal logistics collaboration projects in Great Britain, Germany, Sweden, and Denmark. We address a gap in supply chain literature with regard to systematic collaboration; we also demonstrate the utility of commons theory in the supply chain domain and contribute to the literature on supply chain collaboration with facilitators. Finally, we discuss managerial implications, both for the practitioners attempting systematic horizontal logistics collaboration and for the policymakers seeking to promote it.

Antecedents of horizontal logistics collaboration in agri-food supply chains

PurposeThis study investigates the impact of agri-food supply chains (AFSCs) characteristics on the antecedents of horizontal logistics collaboration (HLC). Specifically, the study compares the relationship between collaboration activities and outcomes for companies in and outside AFSCs.Design/methodology/approachFirst, a survey was used to collect data from different industries. Second, confirmatory factor analysis and structural equation modeling were applied to compare the measurement and structural models from different industry categories.FindingsThe results support the premise that collaboration improves trust and commitment in the relationship, which in turn enhance satisfaction. The results also show the existence of a minor influence of AFSCs characteristics on HLC antecedents, in the form of an indirect impact of dedicated investments on commitment.Practical implicationsThe factors having a significant influence on the collaboration outcomes and their respective effects are generally similar across food and nonfood supply chains, providing opportunities for interdisciplinary and collaboration experiences.Originality/valueThis research contributes to the body of knowledge on interfirm collaboration by considering the specificities of HLC. It also highlights the importance of conducting contingency research on collaborative experiences, as firms from different industry contexts operate under distinct operational conditions.

A typology of horizontal logistics collaboration concepts: an illustrative case study from agri-food supply chains

PurposeThe purpose of this paper is to develop a comprehensive model for horizontal logistics collaboration (HLC), including the collaboration types, enablers, context influence and performance indicators.Design/methodology/approachFirst, this study discusses the currently available typologies and their limitations and defines relevant collaboration classification dimensions. Then, a detailed analysis of each dimension is conducted, including the identification of resulting collaboration types. Next, collaboration enablers and the context influence are discussed, as well as their implications on the logistics system, with a specific focus on agri-food supply chains (AFSCs). Additionally, adequate key performance indicators (KPIs) are selected to evaluate collaboration outcomes. Finally, the horizontal logistics collaboration concept (HLCC) is applied to an illustrative case study from AFSCs.FindingsThe results show that HLC is a complex strategy where several elements intervene in the creation of the collaboration scenario. The research also shows that the specific characteristics of AFSCs influence the partners' selection process and increase the importance of partners' similarity and information exchange.Practical implicationsThe results provide managers with practical insights into the dynamic nature of HLC both at the operational and relational levels.Originality/valueThis paper provides a theoretical contribution by introducing a new comprehensive model for HLC and a practical typology that allows a deeper understanding of the mechanisms governing different HLC scenarios.

A triple‐win scenario for horizontal collaboration in logistics: Determining enabling and key success factors

AbstractHorizontal collaborations emerged as a new strategic option in the logistics sector during the last decade. However, successful implementation of horizontal collaborations is far from a developed issue due to several barriers that exist or emerge when setting up such collaborative projects. This study aims at identifying the enabling factors supporting successful implementation of horizontal collaborations in the logistics sector, and in identifying key success factors that logistics service providers (LSPs) should consider. Results from a within‐ and cross‐case analysis of two horizontal collaboration projects in the contract logistics sector support the proposed theoretical framework, highlighting both enabling and key success factors of horizontal collaborations. The former refers to factors that are related to LSPs, customers, and industries, whereas the latter results in a triple‐win scenario characterised by LSP competences, trust, and environmental management orientation of successful horizontal collaboration projects.

The impact of information sharing on the performance of horizontal logistics collaboration: A simulation study in an agri-food supply chain

In this paper, we study the value of horizontal logistics collaboration (HLC) for a case of Dutch horticultural supply chain. In order to deliver products on time, and hence, reach the desired service level, growers tend to carry out many trips in one day with low truck utilization. This situation can result in higher transportation cost, more pollution as well as low asset utilization. Collaborative logistics can be a potential strategy to cope with this situation. A simulation model is developed and the potential influencing factors the performance of HLC are studied. The results show that higher information sharing frequency can improve the performance by reducing the travel distance and improving service level and truck utilization. Moreover, the comparison of the performance with and without collaboration shows that that the growers with higher order frequency would potentially benefit more from an HLC setting © 2019 IFAC.

A survey on obstacles and difficulties of practical implementation of horizontal collaboration in logistics

AbstractDuring recent years, horizontal collaboration in logistics has gained attention because of achieved potential benefits such as cost reduction, an increase in fulfillment rates, and a decrease in CO2 emissions owing to reductions in traveled distances. Successful real‐world cases, however, are rare since horizontal cooperation in logistics is not usually sustainable. This paper pays attention to this paradox of the lack of cases and discusses 16 identified practical issues that could explain this phenomenon. We propose a taxonomy composed of four categories categorizing the practical issues according to a value chain approach: design, planning and operations, market/business, and behaviors. Furthermore, we propose and discuss some measures to mitigate these problems.

Horizontal collaboration in logistics: decision framework and typology

Logistics service providers become increasingly aware of the need to collaborate to face challenges such as globalization and the heightened expectations of customers. This paper focuses on horizontal cooperation between logistics service providers in road transportation and introduces two novel conceptual models. Firstly, a decision framework for the development and management of horizontal logistics alliances is presented. This framework provides support to logistics service providers considering horizontal collaboration and allows for the analysis of the decision process underlying horizontal logistics alliances. The cyclical framework consists of five stages and attributes a central position to continuous evaluation. Secondly, an easy-to-use typology is proposed which defines six horizontal collaboration types based on their activity scope and degree of structural intertwinement. The typology provides logistics service providers with insights in the various horizontal collaboration types, including some key management questions. Both models are validated by knowledgeable practitioners and are applied to two real-life case studies.

Horizontal logistics collaboration for enhanced supply chain performance: an international retail perspective

Purpose– The paper aims to develop a supply chain-driven model horizontal logistics collaboration (HLC). HLC initiatives can fail. To improve the chance of success, a thorough consideration of the potential issues involved, such as seeking supply chain partners’ support, ensuring access to information/data security and assessing whether an HLC model could bring improvements to a wide range of supply chain metrics rather than reductions in distribution costs only, needs to be understood before deciding to proceed with such an initiative.Design/methodology/approach– A two-stage methodology is deployed. As part of Stage 1, a series of 20 semi-structured interviews with senior managers from retailers, retailers’ suppliers and logistics service providers were undertaken. Subsequently, in Stage 2, a focus group with practitioners from retailers and logistics service providers was run to verify the findings gathered during Stage 1. Four elements of a new HLC project being considered are investigated by supply chain champions across the UK Fast-Moving Costumer Goods industry, namely, consideration factors, required synergies, enablers and anticipated output metrics.Findings– When considering whether to embark on an HLC project, the supply chain requirements need to be taken into account and potential supply chain performance benefits projected. The paper identified several consideration factors; synergies and enablers that support the development of HLC projects are identified, such as legislation, trust among partners, common suppliers and delivery bases, capable third party logistics (3PL) and an effective commercial model, including a fair sharing of benefits.Research limitations/implications– The research provides new understanding in accounting for the needs of the supply chain when considering an HLC initiative involving leading players from the retail sector.Practical implications– The importance of taking a supply chain approach when evaluating the feasibility of HLC is demonstrated. HLC arrangements among competing supply chains need to be designed and run by taking account of all supply chain partners, namely, suppliers, 3PLs and customers (in this case, retailers).Originality/value– The contribution is threefold: identification of outset consideration factors, ideal required synergies, actioning enablers and wider supply chain metrics of HLC; development of a supply chain-driven model for HLC, which includes in the decision-making whether or not to adopt a horizontal logistics collaboration model, wide supply chain metrics such as stock levels of finished products and shelf availability, inventory, working and fixed capital, and product waste in addition to distribution costs; and, the proposal of a new definition for HLC which challenges published definitions.

Trust development and horizontal collaboration in logistics: a theory based evolutionary framework

Purpose– The purpose of this article is to provide academicians and practitioners alike with a theory-based framework regarding horizontal collaboration in logistics. The proposed tool is based on an incremental perspective, according to two main dimensions: mutual trust among partners and the extent of the cooperation.Design/methodology/approach– This study used a “synthesising” approach to gauge potential contributions previously spread across different streams of research and disciplines that are now integrated into the framework. We conduct a deep literature review to characterise the horizontal collaboration phenomenon along two levels of analysis. In doing so, we examined relevant literature in the field of horizontal cooperation in logistics to critically appraise aims of, impediments to and existing models for horizontal collaboration. Additionally, we reviewed seminal literature of four organisational theories to assess their potential to contribute to the theoretical foundations of the growing topic of horizontal collaboration. Transaction Cost Economics, Social Exchange, Resource Dependence and Social Dilemma represent the theoretical foundations to cast light to how to design and implement inter-organisational horizontal initiatives.Findings– The proposed tool organises horizontal collaborations within three steps for each of the two levels of classification: trust and extent of the cooperation. The organisational theories reviewed play different roles to help in different stages of the horizontal collaboration. Additionally, for each combination of trust/extent of the cooperation coherent pairs of aims of the collaboration and assets that are to be shared are defined.Research limitations/implications– The article represents the first attempt to analyse horizontal collaboration from within the discipline itself and from the wider field of SCM through other well-established theoretical lenses. The proposed tool has shed some light into the black box of (un)successful horizontal collaboration, but it is theory based – which represents its main limitations – thus, requiring further testing of the research streams suggested in the paper.Practical implications– The article not only gives insights into theoretical challenges of horizontal collaborations that needs further investigation but is also useful to companies involved in horizontal collaborations by helping define coherent assets that are to be shared to achieve specific goals. In its more theoretical underpinning, the framework can also inspire the partnership philosophy and help sketch a collaborative evolutionary path.Originality/value– The lack of a theoretically robust landmark that could help understand, design and implement horizontal collaborations has been defined as a major theoretical and practical shortcoming. The article represents the first contribution aimed at filling that gap.

Horizontal logistics collaboration: decreasing costs through flexibility and an adequate cost allocation strategy

When entering a horizontal logistics alliance, companies can expect a significant cost decrease. In this paper, we show that when the partners in an alliance adopt a flexible attitude (i.e. allow changes to the terms of their deliveries), the total cost can be further decreased. We argue that the method used to allocate the total cost to the different partners should therefore encourage such flexibility. A case study of three companies in Belgium achieves a 25.83% decrease in transportation costs. Allocating this collaborative gain with the Shapley value, the individual gains range from 19.01% to 37.56%. By allowing changes to delivery dates and allowing large orders to be split into several deliveries, the partners in the alliance can increase the collaborative gain and their individual gains. The Shapley value is found to encourage flexibility.

Collaborative Logistics from the Perspective of Road Transportation Companies

ABSTRACTTo survive under the ever increasing competitive and global pressures to operate more efficiently, transportation companies are obliged to adopt a collaborative focus. Various types of cooperative supply chain relationships have been discussed in both professional and academic literature over the last decades. However, research on horizontal cooperation in logistics remains scarce and scattered across various research domains. Companies operating at the same level of the supply chain and performing comparable logistics functions may cooperate horizontally to increase their productivity, improve their service level and enhance their market position. In this paper, the focus is on the operational planning of horizontal cooperations between road transportation carriers. Following a scientific literature review, a distinction may be made between two operational approaches to horizontal logistics collaboration: order sharing and capacity sharing. For both research streams, a detailed overview of solution techniques proposed in literature is presented. Moreover, some interesting opportunities for future research are identified.

Horizontal collaboration in logistics: a feasible task for group purchasing

Current attention to the argument of collaborative procurement has been investigated by both academia and industry practitioners as the concept of group purchasing. This paper first reviews the literature on horizontal collaboration in purchasing task and recognises the interface between purchasing progress and the logistical point of view of supply as the accomplishing task of the procurement cycle. Secondly, it examines the effects of a successful horizontal collaboration in logistics activities among a group of small and medium sized food enterprises (SMEs) which have participated in a purchasing consortium. ‘Homo-regional firms’ are introduced as a logistics concept illustrating the potentiality in establishing horizontal collaboration in logistics activities in order to gain a competitive advantage. Methodology consists of data collection through quantitative questionnaires in direct contact with the firms. The results show a reduction of 10% to 30% in outbound logistics cost in comparison to the time period in which the firms were undergoing procurement by themselves.