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Collaborative distribution - application to the city of Yogyakarta, Indonesia

Increasing of population leads to escalation of demand needs which results in busier logistics activities. Collaborative strategy has become an alternative to manage these activities, depending on the conditions in a certain location. This paper applied collaborative distribution model to Yogyakarta city, in order to see whether the collaboration is beneficial. The performance of collaborative distribution model is limited to the efficiency of capital and transportation cost based on optimum routing selection. In general, collaborative strategy showed more savings in total cost than that for the non-collaborative one. However, building and land investment should be an important consideration especially if collaborative strategy requires distribution center's expansion.