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Information Systems and e-Business Management
Published in: Information Systems and e-Business Management 4/2009

01-09-2009 | Original Article

A combinatorial intra-enterprise exchange for logistics services

Authors: Michael Schwind, Oleg Gujo, Jens Vykoukal

Published in: Information Systems and e-Business Management | Issue 4/2009

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Abstract

The exchange of cargo capacities is a well established approach in logistics. However, only few logistics marketplaces are able to take into consideration synergies that can be generated by combining different transportation routes of different logistics carrierps. In order to exploit these synergies, we designed and implemented the combinatorial exchange mechanism ComEx for the intra-enterprise exchange of delivery orders in a logistics company organized in a profit center structure. Each profit center is able to release delivery orders to an adjacent profit center if the geographic locations of the customers allow for a reduced-cost delivery by the adjacent profit center. We demonstrate that by using the ComEx mechanism, the total cost of transportation of our logistics company can be reduced by up to 14%. Since our iterative auction mechanism is very complex and therefore resource-intensive, we reduce the complexity by applying a convex hull approach combined with a distance-based cost estimator.
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Footnotes
2
In this article, the terms ‘insourcing’ and ‘outsourcing’ are used to describe the exchange of delivery orders between the carriers of a logistics enterprise that is organized in a profit center structure. This use of the terms ‘insourcing’ and ‘outsourcing’ does not exactly correspond with the common definition in IS literature. In order to illustratively describe the exchange mechanism these terms are used in an ‘innovative’ way.
 
3
A cost calculation for a single cluster of delivery orders triggers two complete route calculations including and excluding the cluster in the current delivery tour.
 
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Metadata
Title
A combinatorial intra-enterprise exchange for logistics services
Authors
Michael Schwind
Oleg Gujo
Jens Vykoukal
Publication date
01-09-2009
Publisher
Springer-Verlag
Published in
Information Systems and e-Business Management / Issue 4/2009
Print ISSN: 1617-9846
Electronic ISSN: 1617-9854
DOI
https://doi.org/10.1007/s10257-008-0102-4

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