Multi-attribute Inter-enterprise Exchange of Logistics Services

Abstract

The exchange of inter-enterprise and intraenterprise logistics services in the transport logistics sector has recently become more important. Nevertheless, only a few approaches are able to take into consideration the synergy effects between the customer orders in the case of the outsourcing process and the preferences of customers. In this article, an approach is introduced which offers a solution based on combinatorial auctions and multi-attribute bid formation, considers tradeoffs between an optimum allocation of customer orders and a maximum fulfillment of customer preferences in accordance with the strategy of the enterprise, and provides a customer satisfaction index in order to optimize a strategy of logistics service providers in terms of customer loyalty. The simulation results show that the consideration of customer preferences has a significant influence on savings, and that it is also possible to increase the number of fulfilled customer preferences without a significant reduction of savings. I. INTRODUCTIONIncreasing competitive pressure and cost pressure demand new strategies of logistics service providers (or enterprises). On the one hand, the delivery costs have to be reduced, on the other hand, customer preferences have to be met in order to achieve customer loyalty and to hold market position. To solve this problem, logistics service providers participate in various electronic exchanges in order to exchange unfavorable delivery orders and to reduce delivery costs. Only a few approaches are able to take into consideration the synergy effects between the customer delivery orders in case of the outsourcing process and the preferences of the customers. In this article, an approach is introduced which offers a solution based on combinatorial auctions and multi-attribute bid formation, and concentrates on finding the trade-off between an optimum allocation of customer delivery orders and a maximum allowance of customer preferences in accordance with the strategy of logistics service providers. The optimal allocation of delivery tasks helps the logistics services providers to reduce their delivery costs, whereas customer satisfaction indirectly helps to maximize the logistics services providers' return by increasing customer loyalty. The appropriate combination of these two factors is crucial to the exchange model presented here.The paper is organized as follows: In section II, an overview of the literature on multi-attribute auctions and combinatorial auctions is presented. In section III, an overview of the functional principle of ComEx exchange, the interaction between

Multi-objective optimization matching for one-shot multi-attribute exchanges with quantity discounts in E-brokerage

“…They also use heuristic algorithms and CPLEX software techniques to solve the models. Gujo (2008) introduces an approach for multi-attribute interenterprise exchange of logistics services, which based on combinatorial auction and multi-attribute bid formation.…”

Towards sustainable urban logistics: The evolution of digital marketplace

“…In an urban city scenario with daily outsourcing of delivery orders (DOs) to carrier companies for transporting [20][21][22][23], a multi-actor auctioning system can be used for allocation of orders through bidding in a group of companies accredited with the auctioning system of the logistic company. In fact, it is not unusual that the company that accepts the transportation order doesn't own transportation capacity (i.e.…”

“…Their overall scope is on reducing the total cost of transportation of the logistics company, owning all the terminals and carrier vehicles, through reduction of direct delivery costs. In an extension, gujo [23] considers a multi-attribute inter-enterprise solution, hence a multi-actor perspective, where the main objective is not only reduction of delivery costs but also meeting customer preferences, thus maintaining customer loyalty and holding market position.…”