Modelling individual preferences of goods receivers for a Receiver-led delivery consolidation service

Khalid Aljohani and Russell G. Thompson

Transportation Research Part A: Policy and Practice, 2021, vol. 150, issue C, 74-94

Abstract: There have been various initiatives to consolidate freight deliveries. Researchers have been primarily concerned with assessing the impact upon freight carriers. This study addresses a subject that has received limited attention: Receiver-led delivery consolidation (RLC) policy. The study aims to characterise freight receivers’ preferences for a RLC service and delve more deeply into the most preferred RLC policy variables that could induce receivers’ propensity towards choosing a RLC service. This study estimates behavioural responses of businesses in Melbourne’s CBD, Australia using a mixed logit model a latent-class logit mode with respect to receivers’ preferences for the RLC service as well as quantifying the willingness to pay (WTP) for a RLC delivery service. The modelling results show that the time-window of consolidated delivery and availability of relevant value-added services significantly influence receivers’ preferences. The study findings reveal high preferences for versions of a RLC service that maintain current delivery practices. The results of the WTP calculation suggest that while there might be a net benefit for receivers to pay for services, delivery characteristics of receivers, such as their sub-industry type, highly influence WTP. Future freight consolidation should be optimised by sub-industry and should accommodate as closely as possible the current delivery practices that businesses use. Accordingly, this study proposes suitable configurations of a RLC service based on the individual-level preferences of the most willing sub-industries.

Keywords: Goods Receivers; Receiver-Led Delivery Consolidation; Freight Consolidation; Freight Demand Management; Stated Preferences; Discrete Choice Model (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.tra.2021.06.004

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