The impact of product characteristics and innovativeness on the benefits of collaboration
International Transactions in Operational Research (2022)
Thomas Hacardiaux, Jean‐Sébastien Tancrez, Christof Defryn, Lotte Verdonck
Horizontal collaboration is a promising avenue to improve the efficiency of logistical operations. However, the benefits strongly depend on the degree of fit between partners. In this paper, we analyze the impact of the partners’ product characteristics on those benefits, focusing on their innovativeness. Companies supplying functional versus innovative products have different requirements in supply chain efficiency and responsiveness, which impacts the benefits that can be reached with a given partner. To assess the collaborative benefits, we use a location–inventory model accounting for the partners’ individual interests and the costs revealing the responsiveness level of the supply chain (facilities, transportation, cycle inventory, safety stocks and stock-outs). The model offers a set of Pareto-optimal solutions balancing the partners’ costs to support the selection and negotiation process. Finally, we perform numerical experiments in which the partners supply products with identical or different levels of innovativeness and with various demand volumes, leading to valuable managerial insights on the impact of product characteristics on collaborative benefits.
Assessing the environmental benefits of horizontal cooperation using a location-inventory model
Central European Journal of Operations Research (2020)
Thomas Hacardiaux, Jean-Sébastien Tancrez
As customers are aware of the climate change, eco-friendly strategies have become a competitive advantage for companies. In particular, they are aiming to reduce their carbon footprint along their supply chain. In this context, substantial CO2 emissions reductions can be reached by horizontal cooperation, i.e. the collaboration of companies that work at the same level of the supply chain. In this paper, we evaluate these reductions using a location-inventory model which minimizes facility opening, transportation, cycle inventory, ordering and safety stock costs. To understand the impact of different market and partners characteristics on the CO2 emissions reductions, we compute a large set of numerical experiments, varying several key parameters (vehicles capacity, facility opening cost, inventory holding cost, order cost, demand variability and distances). Results show that horizontal cooperation reduces CO2 emissions by 16% on average. Moreover, horizontal cooperation is more effective in decreasing the carbon footprint of companies with low facility opening costs and low order costs, carrying expensive products (high unit holding cost) on a market with a high demand variability and a vast market area.