A quantitative assessment of the collaborative logistics benefits

Purpose: The purpose of this analysis is to study the Collaborative Logistics process, its implementation within the Consumer Electronics and Household Appliances Supply Chain and to assess the benefits stemming from it. Methodology: To achieve the objectives the Activity-Based-Cost logic has been used. Each single defined activity has been associated to its most appropriate cost drivers. Moreover, an analytic simulation model has been built and implemented through a simplified representation of the Supply Chain composed of three actors: a retailer, a logistics operator and a manufacturer. Findings: The benefits stemming from the Collaborative Logistics project are equal to 35.51%. The majority of Supply Chain benefits comes from the reduction in Stock- Out costs and Inventory Management costs. Originality: The analytical model has been developed to foster the diffusion of this process by showing the potential benefits achievable through its implementation.