Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach

Ermin Muharemović (), Amel Kosovac, Muhamed Begović, Snežana Tadić and Mladen Krstić
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Ermin Muharemović: Faculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and Herzegovina
Amel Kosovac: Faculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and Herzegovina
Muhamed Begović: Faculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and Herzegovina
Snežana Tadić: Faculty of Transport and Traffic Engineering, University of Belgrade, 11000 Beograd, Serbia
Mladen Krstić: Faculty of Transport and Traffic Engineering, University of Belgrade, 11000 Beograd, Serbia

Logistics, 2025, vol. 9, issue 3, 1-26

Abstract: Background : The growth of parcel volumes in urban areas, largely driven by e-commerce, has increased the complexity of pickup and delivery operations. To meet demands for cost efficiency, flexibility, and sustainability, CEP (Courier, Express, and Parcel) operators increasingly outsource segments of their last-mile networks. Methods : This study proposes a novel multidimensional cost model for outsourcing, integrating five key variables: transport unit type (parcel/pallet), service phase (pickup/delivery), vehicle category, powertrain type, and delivery point type. The model applies correction coefficients based on internal operational costs, further adjusted for location and service quality using a bonus/malus mechanism . Results : Each cost component is calculated independently, enabling full transparency and route-level cost tracking. A real-world case study was conducted using operational data from a CEP operator in Bosnia and Herzegovina. The model demonstrated improved accuracy and fairness in cost allocation, with measurable savings of up to 7% compared to existing fixed-price models. Conclusions : The proposed model supports data-driven outsourcing decisions, allows tailored cost structuring based on operational realities, and aligns with sustainable last-mile delivery strategies. It offers a scalable and adaptable tool for CEP operators seeking to enhance cost control and service efficiency in complex urban environments.

Keywords: multidimensional cost modeling; cost allocation model; urban delivery optimization; last-mile delivery; cost transparency (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2025
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