An effects analysis of logistics collaboration: The case of pharmaceutical supplies in Seoul

Abstract

This paper estimates the environmental, social and financial effects of logistics collaboration of the existing logistics companies in Seoul, Korea. The truck routing models for collaborative and non-collaborative deliveries are proposed to estimate the collaboration effects. Findings show that both major and minor companies can benefit from logistics collaboration by saving delivery costs and time through economies of scale. The results from the study further indicate that logistics collaboration can mitigate negative environmental impacts resulting from urban logistics by reducing the number of delivery trucks, and shortening delivery times and travel distances. Discussion of related challenges that must be addressed during the implementation of logistic collaboration is included as well.