Logistics service outsourcing choices in a retailer-led supply chain

Yaqi Lou, Lipan Feng, Shuguang He, Zhen He and Xiukun Zhao

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 141, issue C

Abstract: Motivated by the practice, we investigate logistics service outsourcing choices in a retailer-led supply chain where the retailer offers logistics service by itself or outsources it to a third party logistics service provider. Results show that offering logistics service by the retailer is not always the optimal choice although it alleviates the double marginalization effect. Regarding the value of cost-sharing contracts in such a supply chain, we find that a variable cost sharing contract benefits the retailer but hurts the logistics service provider. When a part of fixed cost is shared by the retailer, a win–win outcome will be achieved.

Keywords: Retailer-led supply chain; Logistics service outsourcing; Cost-sharing contract; Game theory (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (35)

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DOI: 10.1016/j.tre.2020.101944

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