Coordination

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Coordination is defined as the organization of the different elements of a complex body or activity so as to enable them to work together effectively.

In city logistics tactical decisions are made about the coordination between logistics service providers (LSPs) and retailers. Alliances between LSPs can be studied, and for this the allocation between transportation requests and residual logistics capacities and the allocation of profit between collaborators should be determined. More coordination is possible between retailers which are located relatively close to each other. From a transport consolidation point of view the inventory ordering process among different retailers should be studied to try to match the delivery schedules with the different inventory policies of the retailers.

In the current situation the settlement of orders takes place between the shipper and the carrier. The receiver (retailer) is an independent third party. A contractual relationship between the carrier and receiver is often lacking. The consequence of this is that the receiver has no incentives to order optimally (delivery time, frequency). By using financial incentives the receiver becomes more aware of the external logistic effects of his ordering behavior and the logistics will become more efficient.[1]

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References

  1. Ambassadeur Stedelijke Distributie, (2010). Knelpuntenanalyse Achtergrondstudie actieprogramma stedelijke distributie.
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