Analysis of the synergies of merging multi-company transportation needs

In this paper, the cost savings that different companies may achieve when they merge their transportation requirements are studied. The cost savings mainly come from the increased possibilities of connecting trips and the use of larger vehicles, in addition to cheaper transport rates due to increased negotiation power. To evaluate these cost savings, a mixed-integer linear programming model is presented allowing the estimation of the synergies among different partners. Then, a simple formula to evaluate an a priori index (based on the transportation demands of the participating companies) is proposed and experimentally validated against the optimal solution of the MILP model. This a priori index has the advantage of identifying the best partnership without having to solve any optimisation model. An analysis of the factors that have influence on the cost savings has also been performed. Apart from the transport rate reduction factor for bundling transportation requirements, the number of companies that cooperate and the degree of commonality between their distribution networks have a significant effect on the cost savings attainable.