Cross-Chain Collaboration in Logistics: Looking Back and Ahead

159 Pages·2020·4.068 MB·English

by  Frans Cruijssen

International Series in
Operations Research & Management Science
Frans Cruijssen
Cross-Chain
Collaboration
in Logistics
Looking Back and Ahead
International Series in Operations Research
& Management Science
Volume 297
Series Editor
Camille C. Price
Department of Computer Science, Stephen F. Austin State University,
Nacogdoches, TX, USA
Associate Editor
Joe Zhu
Foisie Business School, Worcester Polytechnic Institute, Worcester, MA, USA
Founding Editor
Frederick S. Hillier
Stanford University, Stanford, CA, USA
More information about this series at http://www.springer.com/series/6161
Frans Cruijssen
Cross-Chain Collaboration
in Logistics
Looking Back and Ahead
Frans Cruijssen
Warandelaan 2
Tilburg University
Tilburg, The Netherlands
ISSN 0884-8289 ISSN 2214-7934 (electronic)
International Series in Operations Research & Management Science
ISBN 978-3-030-57092-7 ISBN 978-3-030-57093-4 (eBook)
https://doi.org/10.1007/978-3-030-57093-4
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Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Synthesis Study on Horizontal Collaboration and 4C . . . . . . . . . . . 1
1.2 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2.1 Situation Around 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2.2 The Birth of 4C: Supply Chain Control
and Collaboration as a Conscious Strategy . . . . . . . . . . . . . 5
1.2.3 Meanwhile in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.3 Outline of the Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2 Broad Developments Impacting Supply Chain Collaboration . . . . . . 9
2.1 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.2 Digitization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.2.1 Big Data Analytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.2.2 Industry 4.0 and the Internet of Things . . . . . . . . . . . . . . . . 17
2.2.3 Robotics and Artificial Intelligence . . . . . . . . . . . . . . . . . . . 18
2.3 Optimization Capability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2.3.1 Computing Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2.3.2 Real-Time Optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.3.3 Digital Twins and Simulation . . . . . . . . . . . . . . . . . . . . . . . 22
2.3.4 Optimization Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.4 Globalization, (Political) Instability, and the Corona Pandemic . . . 27
3 Logistics Developments Impacting Horizontal Collaboration . . . . . . 29
3.1 Standardization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.2 Labor Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.3 Urbanization and City Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.4 Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
3.5 E-Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3.6 Autonomous Vehicles and Platooning . . . . . . . . . . . . . . . . . . . . . . . 35
3.7 Physical Internet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
3.8 Logistics Marketplaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.9 Sharing Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
vii
viii Contents
4 Collaboration in Other Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.1 Chemical Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.2 Aviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
4.3 Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.4 The International Space Station (ISS) . . . . . . . . . . . . . . . . . . . . . . . 44
4.5 Humanitarian Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.6 Discussion: Innovation and Absorptive Capacity in Logistics. . . . . 47
5 Literature Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
5.1 Collaborative Logistics Terminology . . . . . . . . . . . . . . . . . . . . . . . . 50
5.2 Horizontal Collaboration in Operations Research . . . . . . . . . . . . . . 51
5.3 Trust and Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.4 Collaboration Actors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5.5 Data Sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
5.5.1 Operational Data Sharing and Blockchain . . . . . . . . . . . . . . 57
5.5.2 Tactical/Strategic Data Sharing . . . . . . . . . . . . . . . . . . . . . . 58
5.6 Gain Sharing and Cost Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . 60
5.6.1 Proportional Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
5.6.2 Game Theoretical Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
5.6.3 Stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
5.7 Legal and Regulatory Considerations . . . . . . . . . . . . . . . . . . . . . . . 63
5.7.1 Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5.7.2 Competition Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5.8 Synchromodality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
6 Cross-Chain Collaboration Typology . . . . . . . . . . . . . . . . . . . . . . . . . . 67
6.1 Review of Existing Horizontal Collaboration Typologies . . . . . . . . 67
6.1.1 Lambert et al. (1999) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
6.1.2 Cruijssen (2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
6.1.3 Leitner et al. (2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
6.1.4 Schmoltzi and Wallenburg (2011) . . . . . . . . . . . . . . . . . . . . 71
6.1.5 Pomponi et al. (2013) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
6.1.6 Martin et al. (2018) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
6.1.7 Palmer et al. (2019) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
6.2 Selected Dimensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
6.2.1 Number of Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
6.2.2 Shipper- or Carrier-led . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
6.2.3 Government Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
6.2.4 Partner Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
6.2.5 Industry Specificity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
6.2.6 Collaboration Experience. . . . . . . . . . . . . . . . . . . . . . . . . . . 78
6.3 An Extended Horizontal Logistics Collaboration Typology . . . . . . 78
6.4 Collaboration Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
6.4.1 Verstrepen et al. (2009) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
6.4.2 Nextrust Protocol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
6.4.3 Dinalog Supply Chain Collaboration Tool . . . . . . . . . . . . . . 81
Contents ix
6.5 Qualitative Collaboration Insights and Advices . . . . . . . . . . . . . . . . 83
6.5.1 Gaming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
6.5.2 Qualitative Critical Success Factors. . . . . . . . . . . . . . . . . . . 88
7 Applications of Cross-Chain Collaboration . . . . . . . . . . . . . . . . . . . . . 91
7.1 Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
7.2 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
7.3 European Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
7.3.1 CO3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
7.3.2 Nextrust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
7.3.3 SELIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
7.3.4 AEOLIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
7.3.5 Clusters 2.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
7.3.6 LOGISTAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
7.3.7 Other Related EU Sponsored Projects . . . . . . . . . . . . . . . . . 102
7.3.8 Reflection on European Supply Chain Collaboration
Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
7.4 Some Recent Commercial Initiatives . . . . . . . . . . . . . . . . . . . . . . . . 104
8 Case Study: The Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
8.1 Early Dutch Collaboration Initiatives . . . . . . . . . . . . . . . . . . . . . . . 108
8.2 The Top-Sector Logistics (TSL) . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
8.3 The Cross Chain Control Centers (4C) Action Agenda . . . . . . . . . . 111
8.4 4C Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
8.4.1 Project 4C4More . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
8.4.2 Project 4C4D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
8.4.3 Project DaVinc3i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
8.4.4 Project 4C4Chem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
8.4.5 Project Construction Logistics (CL4C) . . . . . . . . . . . . . . . . 117
8.4.6 Project Next Level in Logistics Collaboration . . . . . . . . . . . 118
8.4.7 Project COMPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
9 Synthesis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
10 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
11 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
11.1 For Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
11.2 For Academics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
11.3 For Policy Makers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Chapter 1
Introduction
1.1 Synthesis Study on Horizontal Collaboration and 4C
Transport is fundamental to our economy and society. This is especially so for the
open economy of the Netherlands, which is heavily depending on international
trade. CBS (2019) calculates that in 2017 export accounted for 34% (or roughly 250
billion euro’s) of the Dutch GDP. Sixty-one percent of this is created by the export
of physical goods produced in the Netherlands (119 billion euro’s) and re-exports
(33 billion euro’s).
So, logistics is a big deal. And at the same time, it is a challenging industry. Profit
margins are usually thin, roads are more and more congested, long-distance inter-
modal transport is difficult because of the different infrastructures in European
countries, and the logistics workforce is decreasing. Therefore, the Dutch govern-
ment and the logistics industry are keen to keep logistics profitable in the long run,
by stimulating relevant applied academic research and innovative business models
that reduce inefficiency in transport and logistics and strengthen the position of the
Dutch logistics industry in the years to come.
A prominent topic in logistics innovation is horizontal collaboration. To remain
competitive in the long run, logistics companies have an incentive to form horizon-
tal collaborations that pool their capacities and as such increase their overall effi-
ciency (Cruijssen et al. 2007a; Gansterer and Hartl 2018). To study and promote
horizontal collaboration, the Dutch government has launched a support program in
2010 that is called Cross Chain Control Centers (or: 4C). This program has run for
about 10 years and will now transition into a new program that is more directly
oriented to the societal goal of a sustainable economy, instead of the industry-
focused approach of improving logistics functions in the Netherlands. After a
decade of investment in research and commercial initiatives in the area of 4C, it is
time to look back on the program, both its achievements and the areas where the
program did not deliver what was expected.
© The Editor(s) (if applicable) and The Author(s), under exclusive license to 1
Springer Nature Switzerland AG 2020
F. Cruijssen, Cross-Chain Collaboration in Logistics, International Series in
Operations Research & Management Science 297,
https://doi.org/10.1007/978-3-030-57093-4_1