Empirical Study: Order Sharing Between Transportation Companies may Result in Cost Reductions Between 5 to 15 Percent

Abstract

In the traditional situation, all transportation companies had their own clients and their own set of transportation orders.In a situation with order sharing, transportation companies mutually share their data on transportation orders.This enables a much better allocation of orders to the transportation companies than in the traditional situation.In this paper we discuss the economic and other consequences of order sharing.The conclusions in this paper are based on both a real-life case and a simulation study.The simulation study shows that due to order sharing transportation costs may decrease by 5 to 15 percent, and sometimes even more.transport industry;cooperation;simulation