Cooperation and competition in last mile and freight consolidation
Fabio Mercurio explores how cooperation and competition among delivery companies shape consolidation strategies in the supply chain and the last mile. His work addresses pressing challenges created by the rapid growth of e-commerce.
E-commerce
Ph.D. researcher gets inspiration from how e-commerce has fundamentally reshaped the way consumers access and purchase goods. Orders are typically smaller in size, sent to a larger number of dispersed destinations, and must often be fulfilled within short timeframes and narrow delivery windows, often resulting in inefficient delivery (e.g., less filled trucks). Delivery companies are anticipating this by developing new so-called consolidation strategies.
Competition on collection point location
A key part of the study focuses on parcel collection points. These locations appear to be a promising way to avoid the negative impact of home delivery, yet companies often choose their placement from a competitive viewpoint rather than societal efficiency. Using game theoretic models, Mercurio demonstrates that competing firms tend to choose locations close to one another, leading to overlap and reducing the overall benefits for the city. His analysis shows that municipalities can help bridge this gap by encouraging coordinated placement or setting location conditions.
Shared networks
In light of these results, there are also delivery companies that are willing to open a shared parcel locker network. Inspired by such initiatives, Fabio investigated how the costs of opening such a network, as well as the revenues generated by it, should be allocated in a way that ensures that all delivery companies are willing to remain part of the network.
To address this issue, Fabio applied cooperative game theory. Fabio explains: 鈥淥ur methodology shows that there are almost always ways to distribute the costs and revenues that can keep all parties satisfied. This provides a good starting point for cooperation and for making better use of shared networks.鈥�
Freight consolidation
Fabio applies the same methodology to another form of consolidation: freight consolidation higher up in the supply chain. In such shared networks, parcels are transported by vehicles from multiple delivery companies, and so coordination between these parties is essential. This requires significant investment in advanced IT systems to enable information sharing and operational alignment. Using cooperative game theory, Fabio demonstrates that there is also strong potential in this context to design reasonable cost-sharing mechanisms that can stimulate and sustain cooperation between companies.
Broader understanding
Together, the insights from the thesis offer a deeper understanding of both the possibilities and the limitations of new consolidation strategies. Fabio contributed to both the study of novel consolidation practices in last-mile delivery and freight logistics, as well as the development of tailored game theoretical models allowing to gain both theoretical and practical insights in this area.
Fabio Mercurio defended his thesis on March 2, 2026.
Thesis title:
Supervisors: Tom van Woensel, Loe Schlicher, Sonja Rohmer