Utilizing Excess Capacity in Last Mile Using 4th Party Milk Run

It is of interest to companies to reduce their high last mile transportation cost by consolidating deliveries from different companies. One propose solution is to Ieverage on last mile excess capacity from a company to conduct deliveries. We refer to this concept as 4
^th
party milk run. In this paper, we investigate the feasibility, desirability and viability of the concept by (1) developing a model to demonstrate the potential cost reduction and (2) conducting field study with the stakeholders.