Economics at your fingertips  

The Impact of GIS/GPS Network Information Systems on the Logistics Distribution Cost of Tobacco Enterprises

Yan Chen, Zhenhua Huang, Hongshan Ai, Xingkun Guo and Fan Luo

Transportation Research Part E: Logistics and Transportation Review, 2021, vol. 149, issue C

Abstract: The improvement of logistics operation management for many tobacco companies highly depends on the reduction of distribution costs. In order to optimize routes, cigarettes are delivered through online real-time distribution system equipped with GIS/GPS. These network information technologies are crucial to creating and maintaining an efficient distribution system. Considering the applicability and flexibility of GIS/GPS network information system, this paper assesses the impact of its implementation on the logistics distribution cost from both overall and household levels. Specifically, DID and pseudo-DID models were adopted and monthly panel data of 14 prefecture-level branches of Hunan Tobacco Company during 2016-2019 were used for regression.We find that the implementation of GIS/GPS network information systems increased the total distribution cost. However, the average distribution cost was significantly reduced at per household level as the customer base expanded. A series of robustness and sensitivity tests supported above results. Furthermore, the implementation of GIS/GPS network information system is beneficial to service quality and employee performance. In addition, more time and logistics costs were saved when drivers chose “dynamic + fixed optimization” route model.

Keywords: Distribution cost; GIS; GPS; Tobacco enterprise; Network information system (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2021.102299

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2023-09-20
Handle: RePEc:eee:transe:v:149:y:2021:i:c:s1366554521000739