The Logistics Service Mode Selection for Last Mile Delivery Considering Delivery Service Cost and Capability

Feng Li, Zhi-Ping Fan, Bing-Bing Cao and Hai-Mei Lv
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Feng Li: Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China
Zhi-Ping Fan: Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China
Bing-Bing Cao: School of Management, Guangzhou University, Guangzhou 510006, China
Hai-Mei Lv: Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China

Sustainability, 2020, vol. 12, issue 19, 1-17

Abstract: The last mile delivery service is an important part in the logistics service process of express enterprises. How to select a suitable logistics service mode for last mile delivery to maximize the delivery service capacity and minimize delivery service cost is a noteworthy problem, but studies on this problem are still lacking. In this paper, we first analyze three potential logistics service modes for last mile delivery, i.e., self-run mode, outsourcing mode, and alliance mode, and then propose a selection framework of logistics service mode for last mile delivery based on a two-dimensional matrix decision model according to the two dimensions of delivery service cost advantage and delivery service capability advantage. Next, we give the calculation formulas for the delivery service cost and delivery service capability. Furthermore, we propose a method for logistics service mode selection for last mile delivery according to delivery service costs and delivery service capabilities of three potential logistics service mode. Finally, we show the feasibility and effectiveness of the proposed method by a case analysis.

Keywords: logistics service mode; last mile delivery; delivery service cost; delivery service capability; mode selection (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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