Issue |
RAIRO-Oper. Res.
Volume 58, Number 5, September-October 2024
|
|
---|---|---|
Page(s) | 3923 - 3945 | |
DOI | https://doi.org/10.1051/ro/2024167 | |
Published online | 24 September 2024 |
Strategic logistics service choices for online platforms: self-operated, third-party or agency logistics?
1
College of Management and Economics, Tianjin University, Tianjin 300072, P.R. China
2
School of Management, Tianjin University of Technology, Tianjin 300384, P.R. China
3
Faculty of Business, Lingnan University, Tuen Mun, Hong Kong
* Corresponding author: czhou@tju.edu.cn
Received:
2
October
2022
Accepted:
11
August
2024
Self-operated and third-party products in platform retailing can be delivered by self-operated or third-party physical distribution. However, how choosing the best logistics service mode represents a difficult problem for online platforms and sellers in practice. This paper analyzes the strategic logistics service mode choices for retail sales on an online platform. Equilibrium strategies are derived by solving game models considering three logistics service modes: self-operated, third-party and agency. The results show that the platform has an incentive to provide self-operated physical distribution to the seller when the distribution commission exceeds a threshold. More specifically, it achieves a win–win situation with the seller in the self-operated logistics service mode when the distribution commission falls within a moderate range. The platform is unwilling to provide any logistics services with a sufficient low distribution commission. Except in the case of high distribution commission and low self-operated distribution quality, the seller would prefer to accept the platform’s self-operated physical distribution. In addition, the third-party physical distribution company generally prefers the agency logistics service mode unless the self-operated distribution quality and commission are high.
Mathematics Subject Classification: 91A35 / 91A80
Key words: Supply chain management / logistics/physical distribution / service mode / online platform / retailing
© The authors. Published by EDP Sciences, ROADEF, SMAI 2024
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.