An Algorithm for Consolidating Small Shipments to Reduce Costs in International Logistics for E-commerce Businesses
DOI:
https://doi.org/10.47941/ijscl.2336Keywords:
Shipment Consolidation, Cost Optimization, E-Commerce Logistics, International Freight, Cluster-Based Algorithms, Supply Chain Efficiency, Container Utilization, Cross-Docking.Abstract
Purpose: This article presents an algorithm designed to optimize the consolidation of small shipments, aiming to reduce costs and improve efficiency in international logistics for e-commerce businesses. The research focuses on the highly trafficked route between China and the USA, particularly the corridor from Shenzhen to Los Angeles.
Methodology: By employing a cluster-based optimization model, the algorithm consolidates goods from multiple e-commerce companies into single containers, maximizing space utilization and minimizing transportation costs.
Findings: Experimental data reveals a 40% reduction in costs and a 10-day decrease in delivery times compared to traditional methods.
Unique Contribution to Theory, Practice and Policy: The algorithm has the potential as a scalable solution for global supply chain logistics.
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Copyright (c) 2024 Igor Tovstolis
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
