A framework for an efficient implementation of logistics collaborations

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Abstract

In order to beat the competition, access new markets, and respect operational, social, and environmental constraints, enterprises establish collaborations with many other business entities. Furthermore, with costs and information sharing, organizations have the opportunity to optimize their logistics activities. However, each enterprise has its own objectives and typically makes its own planning decisions to meet these objectives. Therefore, it becomes crucial to determine how business entities will work together as well as the value of the collaboration. Specifically, it is necessary to identify how logistics activities will be planned and executed, who will take the leadership of the collaboration, and how benefits will be shared. In this article, we explain how to efficiently build and manage inter-firm relationships. Moreover, we propose five coordination mechanisms that contribute to ensure information sharing, the coordination of logistics activities, and the sharing of benefits. Case studies are used to demonstrate the utility of the framework.

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