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Cost benefit sharing-based coordination in logistics networks

: Riha, I.V.; Radermacher, B.


International journal of information technology and management : IJITM 8 (2009), No.2, pp.161-177
ISSN: 1461-4111
Journal Article
Fraunhofer IML ()
supply chain collaboration; profit sharing; network management; incentive

We present a comprehensive approach for an incentive system in logistics networks based on network-wide evaluation and reallocation of costs and benefits. We show that alternative allocations of resources based on sharing costs and benefits can give an incentive to the network-partners: Cost Benefit Sharing (CBS). It enables activity dependent reallocation of individual effects that reflect the costs and benefits of each party and systematically considers qualitative factors. A case study of a sourcing process concludes this paper.