{"title":"Logistics outsourcing strategy with online freight platforms","authors":"Chenchen Yang , Junsong Bian , Xiaolong Guo , Wenwen Jiang","doi":"10.1016/j.omega.2024.103042","DOIUrl":null,"url":null,"abstract":"<div><p>Online Freight Platforms (OFPs) are emerging and developing rapidly based on the Internet of Things and big data technologies. They provide professional logistics services by aggregating the scattered transportation capabilities of individual truck drivers. OFPs have become increasingly popular compared to Traditional Logistics Service Providers (TLSPs), and OFPs have integrated more than 20% of the truck drivers in China. In this paper, we study a manufacturer’s production, distribution, and transportation of a product in bulk to a downstream firm via two transportation channels: TLSP and OFP. The two channels offer different operational modes, service levels, and contract prices. We develop a game-theoretical model to analyze the strategic interactions among the manufacturer, transportation service provider, and downstream firm. Our study highlights the implications for the manufacturer’s logistics outsourcing strategy with OFP and TLSP operations. We find that when an OFP is available, differences in transportation service levels and prices significantly affect the equilibrium decisions of the manufacturer and TLSP. Surprisingly, the emergence of OFPs does not necessarily threaten TLSP operations. This study provides guidance to manufacturers about their selection of shipping outsourcing strategies and new guidance for TLSP operations considering the emergence of OFPs.</p></div>","PeriodicalId":19529,"journal":{"name":"Omega-international Journal of Management Science","volume":null,"pages":null},"PeriodicalIF":6.7000,"publicationDate":"2024-02-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Omega-international Journal of Management Science","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0305048324000094","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Online Freight Platforms (OFPs) are emerging and developing rapidly based on the Internet of Things and big data technologies. They provide professional logistics services by aggregating the scattered transportation capabilities of individual truck drivers. OFPs have become increasingly popular compared to Traditional Logistics Service Providers (TLSPs), and OFPs have integrated more than 20% of the truck drivers in China. In this paper, we study a manufacturer’s production, distribution, and transportation of a product in bulk to a downstream firm via two transportation channels: TLSP and OFP. The two channels offer different operational modes, service levels, and contract prices. We develop a game-theoretical model to analyze the strategic interactions among the manufacturer, transportation service provider, and downstream firm. Our study highlights the implications for the manufacturer’s logistics outsourcing strategy with OFP and TLSP operations. We find that when an OFP is available, differences in transportation service levels and prices significantly affect the equilibrium decisions of the manufacturer and TLSP. Surprisingly, the emergence of OFPs does not necessarily threaten TLSP operations. This study provides guidance to manufacturers about their selection of shipping outsourcing strategies and new guidance for TLSP operations considering the emergence of OFPs.
期刊介绍:
Omega reports on developments in management, including the latest research results and applications. Original contributions and review articles describe the state of the art in specific fields or functions of management, while there are shorter critical assessments of particular management techniques. Other features of the journal are the "Memoranda" section for short communications and "Feedback", a correspondence column. Omega is both stimulating reading and an important source for practising managers, specialists in management services, operational research workers and management scientists, management consultants, academics, students and research personnel throughout the world. The material published is of high quality and relevance, written in a manner which makes it accessible to all of this wide-ranging readership. Preference will be given to papers with implications to the practice of management. Submissions of purely theoretical papers are discouraged. The review of material for publication in the journal reflects this aim.