Applications: Collaborative Transportation and Consolidation in Global Third Party Logistics

Abstract

This chapter introduces the applications of collaborative transportation and consolidation management in global third-party logistics. These practices are driven by the quest to improve service and reduce cost simultaneously under an e-commerce model of global supply chain management. The detailed development and elements of collaborative transportation and consolidation models are discussed along with case illustrations. Furthermore, a quantitative model using mathematical programming is developed to examine various consolidation policies in a global third-party logistics provider. A case using collaborative consolidation management is presented, and the results show a 6.6% and 18.2% improvement for service and cost comparing with existing practice. The collaborative principles and developed consolidation model can be a useful reference for similar applications.