Collaborative Logistics Networks

🚚 New Publication on Collaboration in City Logistics I’m excited to share our new publication in the European Journal of Operational Research (VHB: A): “A two-step large neighborhood search for a collaborative two-tier city logistics system.” Together with Johannes Gückel from WFI - Ingolstadt School of Management and Teodor Gabriel Crainic, we explore how logistics service providers (LSPs) can collaborate in two-tier city logistics systems to make urban freight transport more efficient, fair, and sustainable. 🔍 What we did We developed a mixed-integer linear programming model that integrates first-tier service network design with second-tier vehicle routing. To handle large instances, we designed an Integrative Two-Step Large Neighborhood Search (I2S-LNS) that efficiently links both tiers. 📊 Key insights • 🤝 Collaboration leads to average cost savings of 26.9%, mainly from first-tier cooperation. • ⚖️ We analyze fair cost allocation using both proportional and game-theoretical methods. • 🌍 Smaller LSPs often benefit relatively more — emphasizing the importance of transparent cost allocation for stable collaboration. 💡 Why this matters Our findings show that collaboration between LSPs is both economically beneficial and environmentally sustainable — a true win-win for cities and businesses alike. 📖 Read the full article for free: https://lnkd.in/dh4vBCzC #ku #wfi #citylogistics #urbanlogistics #orms

HORIZONTAL COLLABORATION IN LOGISTICS – THE BEAUTY OF THE “CUBIC METER” Logistics is a synergistic network where collaboration is the driver of the value creation. Its “JOINT VALUE CREATION” substance (within a "commodity" perspective) meets PRIVATE INTERESTS of the market players (within a "differentiation" perspective), and the design of this interaction determines the level of the final output. The collaboration is, in most cases, orchestrated by logistics service providers of different kinds who collaborate in both vertical and horizontal dimension. Despite this, there is still a high level of underutilization, and some new developments might be, therefore, very difficult. The reasons are, even if we speak about general cargo: - Different operational requirements of shippers - Unaligned time perspectives within the network - Different expectation on performance How can a HORIZONTAL COLLABORATION (shipper-shipper) support the journey towards waste-free logistics? With the focus on complex cases OUT OF SINGLE PAIR OF HANDS and reaching out to the likeminded shippers who are willing to put their “cubic meters” together and try to find new ways to collaborate for a COMMONLY SHARED PURPOSE, the following achievements have been proven as achievable: 1. MORE VOLUMES SHIFTED TO RAIL 2. FASTER ELECTRIFICATION OF SHORT ROAD DISTANCES And the main practical learnings? 1. COLLABORATIVE sentiment: willingness to “give and take”, and stick to what we agreed 2. Basic STANDARDIZATION: commonly used equipment type, operational expectations incl. lead-times, performance expectations 3. EASY collaboration model (only few shippers, orchestration by the carrier, etc.) which is CLEAR from the beginning Do you want to know more?

Logistics Industry Shake-Up. Collaboration is the New Innovation Who would’ve imagined competitors teaming up to deliver your packages? In today’s logistics world, change is the only constant. Case in point: Amazon just expanded its fulfillment service to handle orders from Walmart, Shopify, and even Shein. Yes, the e-commerce giant is now helping its rivals deliver goods. Why? Because customer demand for speed and convenience is forcing everyone to think outside the box. We’re seeing innovation everywhere in supply chain. FedEx, for example, is launching a specialized air cargo route just for healthcare shipments to shave off a full day in transit. Major railroads are considering mergers to simplify freight routes. Tech startups and 3PLs are experimenting with flexible warehousing and AI-powered planning. The line between “partner” and “competitor” is blurring if it means a more resilient, efficient supply chain. After 20+ years in this industry, I’ve never been more excited. At ATA, we embraced a digital-first approach early on, and now the whole sector is catching up. The logistics leaders of tomorrow will be those who adapt fast and collaborate boldly. It’s an adventurous time - the old playbooks don’t apply. What trend in logistics has surprised you recently? The rise of unlikely partnerships, new tech, or something else? I’d love to hear what you’re seeing on the ground. 

How 3PLs Can Maximize Opportunities with the Expansion of 4PL Networks Fourth-party logistics (4PL) is rapidly becoming a transformative force in the logistics sector. As major retailers integrate 3PL services into their operations and large 3PLs develop their own 4PL networks, the industry landscape is growing increasingly competitive. This shift might seem challenging for smaller and regional 3PLs, but it also opens up significant opportunities. The emergence of 4PL networks provides a strategic advantage, allowing 3PLs to collaborate effectively and thrive despite the consolidation trends among larger players. According to industry reports, the global 4PL market is anticipated to expand from $64.1 billion in 2023 to approximately $87,2 billion by 2027. This robust growth highlights the potential for 3PLs to establish their own 4PL networks. With advancements in technology simplifying the creation and management of these networks, 3PLs can enjoy benefits such as quicker and more cost-effective delivery, a smaller carbon footprint, improved customer satisfaction, higher profitability, and expanded service offerings into new areas of expertise. Here’s how 3PLs can leverage this trend to create value: 🎯 Align with Client Objectives: To fully leverage a 4PL network, discuss your partnerships with clients and show how they align with their business goals. With 90% of 3PL users and 95% of 3PL providers recognizing the shift towards intricate supply chain networks, aligning with your clients' goals can expedite your transition into 4PL networks. Address the growing expectations of shippers for advanced logistics solutions and position yourself effectively in the evolving market. 🔗 Embrace Partnerships: Even if you don’t control a 4PL network, forming alliances with other 3PLs can enhance your reach and operational efficiency. Work together to distribute inventory and share resources. Although the competitive logistics environment might make partnership proposals seem risky, engaging with 4PLs can lead to mutual growth. If no offers have come your way, proactively seek out potential partners to build a stronger network. 🔄 Ensure Mutual Advantage: It’s vital that partnerships within a 4PL network are advantageous for all involved. Be cautious of agreements that disproportionately benefit one side, especially those that compromise your control over customer relationships. Ensure that you and your 4PL partners have clear visibility, control, and effective communication to create a successful and rewarding collaboration. By adopting and leveraging 4PL networks, 3PLs can unlock new avenues for growth, foster valuable collaborations, and enhance client satisfaction. Let’s embrace the future of logistics together! #Logistics #SupplyChain #3PL #4PL #Partnerships #BusinessGrowth #ClientSuccess #Innovation