HMS 2016 Proceeding

Assessing service quality improvement through horizontal cooperation in last-mile distribution

Authors:   A. Serrano-Hernandez, P. Hirsch, J. Faulin, C. Fikar


Horizontal cooperation is a relevant strategy that logistic service providers can follow in order to achieve greater efficiency. While literature has mainly focused on economic benefits, this article discusses the impact of horizontal cooperation on service quality in last-mile distribution. An agent-based simulation model is introduced to assess savings in lead times due to various horizontal cooperation agreements under consideration of trust related factors. Results of computational experiments show that cooperation enables companies to reduce lead times substantially, which increases service quality and competitiveness.

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