Pooling Supply Chain: Literature Review of Collaborative Strategies
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paper_title: Combining vertical and horizontal collaboration for transport optimisation

paper_content:

Purpose – The purpose of this paper is to focuss on customer driven supply chains and what this means for the management of freight transport, a key process in the supply chain as it acts as a physical link between customers and suppliers. It aims to assess whether some of the new collaborative models for transport management are delivering better optimised solutions. ::: ::: Design/methodology/approach – The paper is based on a multi-dimensional methodological approach, which includes empirical, model building, opinion and archival evidence. Much of the thinking and findings in this paper have been derived from a series of quasi-delphi discussion sessions with logistics industry experts from three sectors, steel, grocery and construction and experienced academics in the fields of logistics and supply chain management. ::: ::: Findings – The paper sets out to argue that new innovative solutions are emerging for better transport optimisation, that exploit the competitive power of collaboration, both vertically with supply chain partners and horizontally with other logistics service providers (LSPs). ::: ::: Research limitations/implications – The research was largely focused on the road freight transport industry in the UK and Europe. However, it is felt that similar thinking can be deployed in other settings for alternative transport modes and other geographical regions. From an academic perspective the paper contributes to the notion that supply chain management as well as focussing on vertical coordination and process integration also needs to incorporate the potential considerable power of horizontal collaboration. ::: ::: Originality/value – In particular it is original in that it highlights how important it is to combine vertical collaboration with horizontal collaboration if better optimised transport solutions are to be achieved. This is of considerable value and interest both to practitioner and academic communities. ::: ::: ::: ::: ::: Document Options: ::: Content access ::: View HTML ::: View PDF (324kb) ::: References ::: References (75) ::: Further reading ::: Related items ::: Key readings ::: Marked list ::: Add to: ::: Session ::: Reprints & permissions ::: Request
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paper_title: Cooperation among the Competitors in International Cargo Transportation Sector: Key Factors to Success

paper_content:

The purpose of this paper is to explore how coopera-tion with competing companies can be achieved success-fully. Although international cargo transport sector is chosen, guidelines should be applicable to other indus-tries as well, because they are based on psychological factors, which are universal. The paper is scientifically novel because it: (1) focuses on horizontal alliances; (2) looks at international transport industry sector; (3) evaluates specifics of developing (Lithuanian) market; (4) looks at multi-company cooperation. The costs and management challenges in building successful cooperative projects are often much higher than anticipated. For example Bergquist et al. (1995), studied 75 diverse alliances in the United States, found that about 1 out of 3 had either failed outright, had to be radically restructured, or survived only because the part-ners could not extricate themselves. Research confirms that difficulties in creating suc-cessful alliances in part can be attributed to differences between three strategic viewpoints that dominate world of business strategy: (1) Competitive paradigm, whereby companies gain competitive advantages in one of two ways – (a) by achieving advantageous position in an indus-try; (b) by developing and using core competences to offer better products and services (Prahalad, Hammel 1990; Wernerfelt, 1984; Porter, 1985). (2) Cooperative paradigm, whereby companies exist in a network of interdependent relationships fu-eled by desire of companies to gain collaborative advantages through strategic collaboration (Contractor, Lorange 1998; Hamel, Doz, Praha-lad 1989; Kanter, 1994; Nielsen, 1988). (3) Syncretic paradigm, whereby competitive and cooperative strategies should be pursued simul-taneously to achieve above average performance (Lado, Boyd, Hanlon, 1997). Managers subscribing to competitive paradigm, fail to notice benefits provided by cooperative or syncretic paradigms. Such view prevents them from cooperating altogether. Literature lists following key factors that influence the success of collaborations: (1) Membership; (2) Pur-pose and objectives; (3) Structure; (4) Process; (5) Communications; (6) Resources (Mattesich, Monsey, 1992). First hand research collaborated these findings by indicating that following areas have to be addressed for cooperation to be successful: (a) trustworthiness/depen-dability; (b) alignment of goals and interests; (c) active participation in the projects; (d) careful selection of members for cooperation; (e) detailed definition of coop-eration ahead of time; (f) mechanisms to ensure compli-ance to previously made commitments. Research showed that most cooperative project in the past experienced following major problems: (a) Failing to follow through with commitments; (b) Inability to find compromises; (c) Lack of initiative; (d) Lack of coordina-tion with alliance members. Suggestions how to overcome the roadblocks and difficulties to cooperate: (a) Selecting members of cooperation; (b) Active leadership of the pro-ject;(c) To look at cooperation from a business perspec-tive; (d) A detailed definition of cooperation ahead of time; (e) Ensuring compliance. The paper concludes that difficulties associated with setting up and running cooperative ventures are resolvable and provides specific suggestions that have to be ad-dressed in any cooperative venture for it to be successful.
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paper_title: Horizontal cooperation in transport and logistics

paper_content:

This thesis deals with horizontal cooperation in transport and logistics. It contains a comprehensive discussion of the available academic literature on this topic, many practical examples, and an empirical investigation of opportunities and impediments. Furthermore, three enabling concepts for horizontal cooperation in transport and logistics are developed. The analysis is practice oriented in the sense that most of the results are based on real-life datasets. In case studies conducted, the most important goal is to learn lessons that are also applicable to other cases or industries. By contrast, in chapters that have a more theoretical point of departure, efforts are made to draw conclusions that are directly applicable in practice. Many different research techniques are used in this thesis. They include case study analysis, surveys, exploratory factor analysis, regression, game theory, vehicle routing heuristics, and facility location heuristics.
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paper_title: Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies

paper_content:

Chapter 1: Introduction Chapter 2: Inventory Management and Risk Pooling Chapter 3: Network planning Chapter 4: Supply contracts Chapter 5: The Value of information Chapter 6: Supply Chain integration Chapter 7: Distribution strategies Chapter 8: Strategic alliances Chapter 9: Procurement and Outsourcing Strategies Chapter 10: Global Logistics and Risk Management Chapter 11: Coordinated product and supply chain design Chapter 12: Customer Value Chapter 13: Smart Pricing Chapter 14: Information Technology and Business Processes Chapter 15: Technology standards Appendix A: Computerized Beer Game Appendix B: Risk Pool Game Appendix C: Supply Contract Spreadsheet Appendix D: Bidding Game
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paper_title: Combining vertical and horizontal collaboration for transport optimisation

paper_content:

Purpose – The purpose of this paper is to focuss on customer driven supply chains and what this means for the management of freight transport, a key process in the supply chain as it acts as a physical link between customers and suppliers. It aims to assess whether some of the new collaborative models for transport management are delivering better optimised solutions. ::: ::: Design/methodology/approach – The paper is based on a multi-dimensional methodological approach, which includes empirical, model building, opinion and archival evidence. Much of the thinking and findings in this paper have been derived from a series of quasi-delphi discussion sessions with logistics industry experts from three sectors, steel, grocery and construction and experienced academics in the fields of logistics and supply chain management. ::: ::: Findings – The paper sets out to argue that new innovative solutions are emerging for better transport optimisation, that exploit the competitive power of collaboration, both vertically with supply chain partners and horizontally with other logistics service providers (LSPs). ::: ::: Research limitations/implications – The research was largely focused on the road freight transport industry in the UK and Europe. However, it is felt that similar thinking can be deployed in other settings for alternative transport modes and other geographical regions. From an academic perspective the paper contributes to the notion that supply chain management as well as focussing on vertical coordination and process integration also needs to incorporate the potential considerable power of horizontal collaboration. ::: ::: Originality/value – In particular it is original in that it highlights how important it is to combine vertical collaboration with horizontal collaboration if better optimised transport solutions are to be achieved. This is of considerable value and interest both to practitioner and academic communities. ::: ::: ::: ::: ::: Document Options: ::: Content access ::: View HTML ::: View PDF (324kb) ::: References ::: References (75) ::: Further reading ::: Related items ::: Key readings ::: Marked list ::: Add to: ::: Session ::: Reprints & permissions ::: Request
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paper_title: Horizontal collaboration in semiconductor manufacturing industry supply chain: An evaluation of collaboration intensity index

paper_content:

This paper aims to provide a generic quantitative model to comprehensively assess the degree of collaboration with individual horizontal collaboration initiatives with a view to check feasibility for satisfying the customer requirements. The analytic hierarchy process-fuzzy logic model (AHP-FLM) approach is chosen for developing the model, a method that is often used to tackle complex strategic decision making that calls for subjective judgment based on well-established logical reasoning, rather than on simple feeling and intuition. In the process, the complex and unstructured problem for 'compatibility test' is broken down into elements, and then a customized hierarchy structure is set up to demonstrate the relationship between different hierarchy levels and among these elements. Each element may have a different level of importance for the horizontal collaboration. A fuzzy rule based collaboration intensity index (CII) is developed to build up the relationships among these evaluation attributes. Synthesizing the generic relative importance and the forecasted degree of collaboration, the proposed approach can determine the success of the collaboration initiative. An illustrative example of a semiconductor industry supply chain (SSC) member that intends to partner with a potential and competing candidate enterprise is developed to demonstrate the applicability of the proposed fuzzy strategic alliance selection framework and to measure the effectiveness of a horizontal collaboration initiative.
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paper_title: Horizontal cooperation in transport and logistics

paper_content:

This thesis deals with horizontal cooperation in transport and logistics. It contains a comprehensive discussion of the available academic literature on this topic, many practical examples, and an empirical investigation of opportunities and impediments. Furthermore, three enabling concepts for horizontal cooperation in transport and logistics are developed. The analysis is practice oriented in the sense that most of the results are based on real-life datasets. In case studies conducted, the most important goal is to learn lessons that are also applicable to other cases or industries. By contrast, in chapters that have a more theoretical point of departure, efforts are made to draw conclusions that are directly applicable in practice. Many different research techniques are used in this thesis. They include case study analysis, surveys, exploratory factor analysis, regression, game theory, vehicle routing heuristics, and facility location heuristics.
---
paper_title: Horizontal cooperation in transport and logistics

paper_content:

This thesis deals with horizontal cooperation in transport and logistics. It contains a comprehensive discussion of the available academic literature on this topic, many practical examples, and an empirical investigation of opportunities and impediments. Furthermore, three enabling concepts for horizontal cooperation in transport and logistics are developed. The analysis is practice oriented in the sense that most of the results are based on real-life datasets. In case studies conducted, the most important goal is to learn lessons that are also applicable to other cases or industries. By contrast, in chapters that have a more theoretical point of departure, efforts are made to draw conclusions that are directly applicable in practice. Many different research techniques are used in this thesis. They include case study analysis, surveys, exploratory factor analysis, regression, game theory, vehicle routing heuristics, and facility location heuristics.
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paper_title: Dare to care: Shipment consolidation reduces not only costs, but also environmental damage

paper_content:

Abstract Companies interested in greening their supply chains quickly realize that carbon and energy waste represents an expense, and thus minimizing this expense not only brings in truckloads of money, but also helps save the environment. This paper demonstrates that shipment consolidation, a powerful logistics strategy that combines two or more small shipments into an aggregate load to be dispatched on the same vehicle, can help mitigate carbon and energy waste. Specifically, a Discrete-Time Based Shipment ConsoLidation (DTB-SCL) policy and a new method to calculate CO2 emissions associated with the dispatch of a vehicle are introduced. In addition, an optimization model with the objective of maximizing combined economic and environmental savings is developed in this study. It is shown that, among other benefits, the higher use of transportation capacity decreases environmental damage, one goal of the DTB-SCL policy. The mechanics of the mathematical models are illustrated by numerical examples, and sensitivity analyses are conducted to provide managerial insights that might help companies come to better decisions that are environmentally responsible.
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paper_title: The need for co-distribution in rural areas--a study of Pajala in Sweden

paper_content:

Abstract To be a part of a supply chain network a company competing on the global market must mostly show short lead times and deliver at the right time. Is this really possible for a company placed in a rural or sparsely populated area? Pajala, a village and a municipality in the north of Sweden, has 7500 inhabitants in an area of 7900 km2 which means one inhabitant per km2. The number of inhabitants in the municipality of Pajala is decreasing. To stop this problem, Pajala needs more work opportunities and therefore they need more successful companies. Approximately 20 different conveyers/suppliers transport goods to and from companies in Pajala. But most of the conveyers/suppliers transport goods only once a week. Companies in Pajala, to be able to compete and be a part in a supply chain and a chain that competes with other supply chains, should have the opportunity to send and receive goods any day they want for shortening the delivery times to customers. One solution to this may be co-distribution. Co-distribution means that different conveyers/suppliers transport their goods in only one truck that goes for example in this case to and from Pajala. A preliminary study has been performed in Pajala to investigate if co-distribution has any benefits in rural areas. We find that the companies receive and distribute goods with a low frequency and that the trucks carrying loads to and from Pajala are often loaded less than 50%. This implies that to lower transportation costs and increase delivery services some sort of co-distribution is necessary to strengthen the capability of competing for the companies in Pajala. We have here studied specifically Pajala but we are convinced we would find almost the same result if we had studied other municipalities in rural areas of Sweden.
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paper_title: Horizontal Cooperation in Logistics: Opportunities and Impediments

paper_content:

This paper presents the results of a large-scale survey on the potential benefits of and impediments for horizontal cooperation in Flanders. The main findings are that in general Logistics Service Providers strongly believe in the potential benefits of horizontal cooperation to increase their profitability or to improve the quality of their services. The impediments for cooperation that are perceived or expected by the non-cooperating Logistics Service Providers prove to be experienced by the cooperating Logistics Service Providers. Finding a reliable party to lead the cooperation and constructing a fair allocation mechanism for the benefits are the impediments that respondents agree with most.
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paper_title: Towards collaborative, intermodal hub networks. A case study in the fast moving consumer goods market

paper_content:

Collaborative hub networks can provide an answer to the need to decrease logistics cost and maintain logistics service levels by shifting consolidated flows to modes that are better suited for handling large volumes (rail, barge, coastal shipping), so economies of scale can be obtained. This necessity has been increased by the tendency of globalization of industries, smaller shipments sizes, high frequencies, and the fragmentation of flows. Through collaboration the necessary synchronization between expensive but fast and flexible means of transport and inexpensive, but slow and inflexible means can be combined in an intermodal hub network. This paper shows the rationale behind these collaborative hub networks, based on the literature on the design of many-to-many hub networks. The resulting methodology is explained through presenting the results of the design and implementation of collaborative hub network for the distribution of fast moving consumer goods using a combination of trucking and inland barges. This concept, first proposed by Vermunt [Vermunt, A.J.M., 1999. Multilognet, the intelligent multimodal logistics network, an important node in the worldwide logistics net, Vermunt Logistiek Advies v.o.f., working paper (in Dutch)], won the European Intermodal Award of the European Intermodal Association in 2003, and after extensive research was launched in The Netherlands as a commercial pilot by logistics service provider Vos Logistics and barge operator Riverhopper in January 2004.
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paper_title: Analyzing private communities on Internet-based collaborative transportation networks

paper_content:

The establishment of private communities on Internet-based transportation networks is a relatively new trend that has met with mixed success. Within industry, there has been uncertainty over the costs and benefits of these communities to shippers and carriers. Through a theoretical model based on assumptions derived from industry executives, this paper suggests that shippers may indeed benefit by establishing private communities. Further, the results show that in high-trust relationships carriers may be no worse off by cooperating with shippers in their private communities.
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paper_title: Collaboration among small shippers in a transportation market

paper_content:

Intense competition in markets is pushing companies to increase their operational efficiency. One possible way to achieve increased efficiency is through cooperation with other companies. We study the coalition formation among small shippers in a transportation market characterized by uncertain demand. We analyze the decisions taken by the coalition and study the effect of shipper characteristics on the benefit of collaboration. Analysis shows that the shippers always benefit from the coalition, but when the benefits are to be allocated, the coalition may not always guarantee the budget balance, which is elementary for sustainability of any coalition. Using a game theoretical approach this study proposes saving allocation mechanisms and discusses the conditions that lead to a balanced budget.
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paper_title: B2B relationship management: a framework to explore the impact of collaboration

paper_content:

This article aims to propose an integrated framework, based on two levels, able to characterise collaborative relation between two or more partners in a supply chain, evaluating their related performances. In the first level, related to the context point of view, the most common parameters, identified from a literature review, characterising a relationship between two partners, have been used to build an integrated analysis framework. The second level is related to the performance side and has been achieved through two main attributes: the perceived satisfaction of the relation and its perceived effectiveness. The implementation of the approach has been achieved through a survey of different companies, so as to propose a first analysis on how the characteristics of a relation impact its performance. A new dashboard is considered as an operative tool of the proposed approach, which allows to follow all the attributes which best characterise each relation type, as well as the sensitivity of the perceived pe...
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paper_title: Horizontal cooperation in transport and logistics

paper_content:

This thesis deals with horizontal cooperation in transport and logistics. It contains a comprehensive discussion of the available academic literature on this topic, many practical examples, and an empirical investigation of opportunities and impediments. Furthermore, three enabling concepts for horizontal cooperation in transport and logistics are developed. The analysis is practice oriented in the sense that most of the results are based on real-life datasets. In case studies conducted, the most important goal is to learn lessons that are also applicable to other cases or industries. By contrast, in chapters that have a more theoretical point of departure, efforts are made to draw conclusions that are directly applicable in practice. Many different research techniques are used in this thesis. They include case study analysis, surveys, exploratory factor analysis, regression, game theory, vehicle routing heuristics, and facility location heuristics.
---
paper_title: Horizontal collaboration in semiconductor manufacturing industry supply chain: An evaluation of collaboration intensity index

paper_content:

This paper aims to provide a generic quantitative model to comprehensively assess the degree of collaboration with individual horizontal collaboration initiatives with a view to check feasibility for satisfying the customer requirements. The analytic hierarchy process-fuzzy logic model (AHP-FLM) approach is chosen for developing the model, a method that is often used to tackle complex strategic decision making that calls for subjective judgment based on well-established logical reasoning, rather than on simple feeling and intuition. In the process, the complex and unstructured problem for 'compatibility test' is broken down into elements, and then a customized hierarchy structure is set up to demonstrate the relationship between different hierarchy levels and among these elements. Each element may have a different level of importance for the horizontal collaboration. A fuzzy rule based collaboration intensity index (CII) is developed to build up the relationships among these evaluation attributes. Synthesizing the generic relative importance and the forecasted degree of collaboration, the proposed approach can determine the success of the collaboration initiative. An illustrative example of a semiconductor industry supply chain (SSC) member that intends to partner with a potential and competing candidate enterprise is developed to demonstrate the applicability of the proposed fuzzy strategic alliance selection framework and to measure the effectiveness of a horizontal collaboration initiative.
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paper_title: A swift response framework for measuring the strategic fit for a horizontal collaborative initiative

paper_content:

Companies operate globally and face increasing competition. Collaboration between companies could be a critical factor to remain competitive. Extensive academic research addressed the collaboration inside a supply chain (vertical collaboration). Despite persuasive research, a literature survey indicates some major theoretical shortcomings, as presented in this paper. A major theoretical and practical shortcoming is the lack of a strategic decision support framework for the implementation of horizontal collaboration (collaboration between different supply chains). An appropriate collaboration-feasibility test is needed here. Two companies strategically ready to work together should first test if no insurmountable practices inhibit the collaboration. If such practices are present, initiating a collaborative strategy will be probably a waste of time and effort. This paper starts with determining the key elements influencing feasibility based on a literature study and in-depth interviews in different companies. The Supply Chain Operations Reference (SCOR) model is used. These quantitative elements are hierarchically classified and are combined in a feasibility-test model. At the same time, lower-level hierarchical qualitative elements such as company characteristics are aggregated using the analytic hierarchy process as a method of multi-criteria decision-making and are integrated in the model in order to evaluate the different collaboration-types. The model is validated by means of several case studies of which one is presented in this paper.
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paper_title: Horizontal cooperation in transport and logistics

paper_content:

This thesis deals with horizontal cooperation in transport and logistics. It contains a comprehensive discussion of the available academic literature on this topic, many practical examples, and an empirical investigation of opportunities and impediments. Furthermore, three enabling concepts for horizontal cooperation in transport and logistics are developed. The analysis is practice oriented in the sense that most of the results are based on real-life datasets. In case studies conducted, the most important goal is to learn lessons that are also applicable to other cases or industries. By contrast, in chapters that have a more theoretical point of departure, efforts are made to draw conclusions that are directly applicable in practice. Many different research techniques are used in this thesis. They include case study analysis, surveys, exploratory factor analysis, regression, game theory, vehicle routing heuristics, and facility location heuristics.
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paper_title: Structural concepts for horizontal cooperation to increase efficiency in logistics

paper_content:

Abstract Business networking strategies and especially cooperation in logistics are gaining momentum for individual companies in order to survive in competitive markets. As horizontal logistics cooperation among shippers is a new and powerful approach to optimize cost structures, this publication deals with the conceptual design and the organizational aspects of horizontal cooperation. With regard to the variety of influencing factors and parameters of cooperation a framework is presented that supports the selection of possible cooperation forms. Special attention is further dedicated to the design of cooperative logistics models as well as to the specifications of cooperation models, which are both considered as key factors to ensure a successful and sustainable cooperation. Based on the identified structural concepts the great potential of horizontal logistics cooperation is demonstrated on the example of two case studies.
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paper_title: Charge the relationships and gain loyalty effects: Turning the supply link alert to IT opportunities

paper_content:

Abstract The main purpose of this paper is to explore and analyze interconnected effects related to the use of IT, and in so doing, provide an understanding of integrative logistics operations in a supply chain link. We take a theoretical point of departure in the three factors of relationship investments, formalization and trust. Thereafter we will expand and elaborate these factors by discussing embedded elements and mechanisms, related to relationships and loyalty, which result in an outlined model for empirical research focused on operational and strategic partnerships. Based on an empirical analysis we propose that the use of IT, expressed as digitization, can be seen as a driving force for bridging a gap between the actual and potential pattern of integrative logistics operations in a supply chain link. Digitization activates mechanisms in trust, commitment, and solidarity, which are related to loyalty and simultaneously enable heterogeneous influences in relationship characteristics.
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Title: Pooling Supply Chain: Literature Review of Collaborative Strategies

Section 1: Introduction
Description 1: Provide an overview of the current market dynamics, globalization effects on customer demands, and the increasing significance of logistics and collaborative strategies in supply chains.

Section 2: Concepts and Definitions: Pooling SC
Description 2: Define the concept of pooling in the context of supply chains and explain the need for collaborative logistics strategies.

Section 3: Different Types of Collaborative Logistics
Description 3: Describe the various types of collaborative logistics, including vertical and horizontal collaboration, and discuss their respective benefits and practices.

Section 4: Definition of Pooling SC
Description 4: Provide a detailed definition of the pooling supply chain and its objectives, highlighting the collaborative efforts and shared resources involved.

Section 5: Pooling SC & Sustainable Development
Description 5: Explain the role of pooling supply chains in sustainable development, including economic, ecological, and societal benefits.

Section 6: Literature Review: Pooling SC
Description 6: Provide a review of relevant literature on pooling supply chains, focusing on key studies and findings.

Section 7: Related Concepts
Description 7: Discuss concepts related to pooling supply chains, such as flow consolidation, horizontal collaboration, and urban mutualization.

Section 8: Characteristics of Pooling SC Strategy
Description 8: Outline the characteristics of a successful pooling supply chain strategy, including benefits, disadvantages, and impediments.

Section 9: Partners
Description 9: Describe the stages and activities necessary for implementing a pooling supply chain strategy, emphasizing the role of partners and coordination.

Section 10: Conclusion
Description 10: Summarize the importance of collaborative logistics and pooling supply chains, highlighting the need for further research to develop a comprehensive framework for implementation.