Article: Conditions for viable horizontal collaborative transport: insights from a stylised model Journal: International Journal of Industrial and Systems Engineering (IJISE) 2024 Vol.47 No.5 pp.1 - 35 Abstract: Recent developments such as increased volatility and sustainability requirements, lead to added pressure on supply chain performance. This is frequently considered a reason for firms to engage in collaboration. However, in practice the level of collaboration lags behind the expectations. To contribute to closing this gap between theory and practice, in this paper, the conditions for establishing a viable horizontal transport collaboration are studied. To this end, a stylised quantitative model of two supply chains, each comprising a single buyer and a single supplier located in different geographical regions is modelled. A horizontal logistics collaboration (HLC) scenario is investigated. It is demonstrated that due to hidden coordination costs in terms of inventory and warehousing costs, forming a viable HLC is not straightforward. This adds to the literature in the sense that in evaluating the viability of HLCs hardly ever trade-offs between different organisational functions are addressed. Inderscience Publishers - linking academia, business and industry through research

Title: Conditions for viable horizontal collaborative transport: insights from a stylised model

Authors: Taher Ahmadi; Jack A.A. van der Veen; V. Venugopal; Mehdi A. Kamran

Addresses: Center for Marketing & Supply Chain Management, Nyenrode Business Universiteit, P.O. Box 130, 3620 AC Breukelen, The Netherlands; Department of Industrial Engineering and Innovation Sciences, Eindhoven University of Technology (TU/e), P.O. Box 513, 5600 MB Eindhoven, The Netherlands ' Center for Marketing & Supply Chain Management, Nyenrode Business Universiteit, P.O. Box 130, 3620 AC Breukelen, The Netherlands ' Center for Marketing & Supply Chain Management, Nyenrode Business Universiteit, P.O. Box 130, 3620 AC Breukelen, The Netherlands ' Department of Logistics, Tourism, and Services Management, German University of Technology in Oman, P.O. Box 1816, PC 130, Muscat, Oman

Abstract: Recent developments such as increased volatility and sustainability requirements, lead to added pressure on supply chain performance. This is frequently considered a reason for firms to engage in collaboration. However, in practice the level of collaboration lags behind the expectations. To contribute to closing this gap between theory and practice, in this paper, the conditions for establishing a viable horizontal transport collaboration are studied. To this end, a stylised quantitative model of two supply chains, each comprising a single buyer and a single supplier located in different geographical regions is modelled. A horizontal logistics collaboration (HLC) scenario is investigated. It is demonstrated that due to hidden coordination costs in terms of inventory and warehousing costs, forming a viable HLC is not straightforward. This adds to the literature in the sense that in evaluating the viability of HLCs hardly ever trade-offs between different organisational functions are addressed.

Keywords: emission tax policy; greenhouse gas emissions; horizontal logistics collaboration; HLC; joint inventory; transport planning.

DOI: 10.1504/IJISE.2024.139945

International Journal of Industrial and Systems Engineering, 2024 Vol.47 No.5, pp.1 - 35

Received: 13 Jan 2024
Accepted: 26 Jan 2024
Published online: 12 Jul 2024 *

Title: Conditions for viable horizontal collaborative transport: insights from a stylised model

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