Impact of Benefit Sharing Among Companies in the Implantation of a Collaborative Transportation System - An Application in the Furniture Industry

Transportation has become an increasingly important part of the Canadian furniture industry supply chain. Even when different furniture companies ship to the same regions, the same cities and/or the same furniture retailers, coordination between two or more companies is rare. Recently, interest in collaborative transportation planning to support coordination has intensified as important potential benefits (e.g. cost and delivery time reductions) have been identified. Even though substantial benefits can be realized, the methods for sharing benefits among companies as well as the leadership of the collaboration implementation are key issues in deciding on a logistics scenario for the collaboration. In this paper, the impacts of these two key issues are illustrated using an industrial case study of four Canadian furniture companies shipping to the United-States.