Estimating collaborative profits under varying partner characteristics and strategies

Horizontal logistic collaboration leads to large prots when the right coalition is formed. Most of the previous research however explains the profit differences using market conditions on coalitional level. We show that the level of profit is highly dependent on finding a correct combination of partners. By estimating a model using the average order size, number of orders and maximal delay of each partner separately, as well as the interaction effects of these parameters, the possible number of profitable situations that can be identified significantly increases. Finally, it is demonstrated that cost allocation plays an important role when selecting a partner to collaborate with.