Parcel-locker-sharing model for e-commerce logistics service providers

Abstract

In the e-commerce last-mile delivery process, the asset operators (logistics service providers who own parcel locker facilities) support their delivery service with parcel lockers, while the non-asset operators (logistics service providers without parcel lockers) perform door-to-door delivery. Due to demand fluctuation, asset operators’ parcel-locker slots may be left vacant, while non-asset operators are stuck with the high-cost door-to-door service. The exclusiveness of parcel-locker usage reduces resource utilization and service efficiency in last-mile delivery. Therefore, this paper proposes a parcel-locker-sharing model in which these two parties share the parcel-locker capacity in last-mile delivery. The asset operator rents the unused parcel lockers to the non-asset operator by charging a rental fee,while the non-asset operator rents the parcel lockers for delivery to save logistics costs. The motivation of this alliance is to increase the profits of both parties and that of the total supply chain. This study establishes the supply-chain profit model for the parcel-locker-sharing framework and finds that the profit or loss depends on the comparison of the operation cost savings and delivery-cost savings. A numerical analysis is conducted to validate the final result. The research further suggests the optimal rental quantity and price interval. This paper is the first to study the operational mechanism of sharing the parcel locker between two distinct types of logistics service providers and to offer recommendations for industrial application.