Evaluating the impact of horizontal collaboration in logistics systems: a simulation-based study

Abstract

Horizontal collaboration is a critical issue in logistics networks to improve efficiency and sustainability. However, implementing collaborative systems faces significant challenges such as the lack of trust among potential participants and fear of losing competitiveness. To address this challenge, we propose a simulation model of a logistics network that assesses the impact of horizontal collaboration on individual Logistics Service Providers. Our results show that while collaboration generates benefits for the system as a whole, these gains are not evenly distributed among all players, and some may even face losses in certain situations. Our proposed model helps visualise these disparities and can be used to design compensation schemes that encourage Logistics Service Providers to participate in collaborative systems. Overall, the proposed model provides insights into the benefits and challenges of horizontal collaboration in logistics networks, and can be useful for designing more equitable and sustainable logistics systems.