Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach

<i>Background</i>: The growth of parcel volumes in urban areas, largely driven by e-commerce, has increased the complexity of pickup and delivery operations. To meet demands for cost efficiency, flexibility, and sustainability, CEP (Courier, Express, and Parcel) operators increasingly ou...

وصف كامل

التفاصيل البيبلوغرافية
الحاوية / القاعدة:Logistics
المؤلفون الرئيسيون: Ermin Muharemović, Amel Kosovac, Muhamed Begović, Snežana Tadić, Mladen Krstić
التنسيق: مقال
اللغة:الإنجليزية
منشور في: MDPI AG 2025-07-01
الموضوعات:
الوصول للمادة أونلاين:https://www.mdpi.com/2305-6290/9/3/96
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author Ermin Muharemović
Amel Kosovac
Muhamed Begović
Snežana Tadić
Mladen Krstić
author_facet Ermin Muharemović
Amel Kosovac
Muhamed Begović
Snežana Tadić
Mladen Krstić
author_sort Ermin Muharemović
collection DOAJ
container_title Logistics
description <i>Background</i>: The growth of parcel volumes in urban areas, largely driven by e-commerce, has increased the complexity of pickup and delivery operations. To meet demands for cost efficiency, flexibility, and sustainability, CEP (Courier, Express, and Parcel) operators increasingly outsource segments of their last-mile networks. <i>Methods</i>: This study proposes a novel multidimensional cost model for outsourcing, integrating five key variables: transport unit type (parcel/pallet), service phase (pickup/delivery), vehicle category, powertrain type, and delivery point type. The model applies correction coefficients based on internal operational costs, further adjusted for location and service quality using a bonus/malus mechanism. <i>Results</i>: Each cost component is calculated independently, enabling full transparency and route-level cost tracking. A real-world case study was conducted using operational data from a CEP operator in Bosnia and Herzegovina. The model demonstrated improved accuracy and fairness in cost allocation, with measurable savings of up to 7% compared to existing fixed-price models. <i>Conclusions</i>: The proposed model supports data-driven outsourcing decisions, allows tailored cost structuring based on operational realities, and aligns with sustainable last-mile delivery strategies. It offers a scalable and adaptable tool for CEP operators seeking to enhance cost control and service efficiency in complex urban environments.
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spelling doaj-art-efe009d4c4ce423aba6dc06e88c23b6d2025-09-26T14:54:44ZengMDPI AGLogistics2305-62902025-07-01939610.3390/logistics9030096Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional ApproachErmin Muharemović0Amel Kosovac1Muhamed Begović2Snežana Tadić3Mladen Krstić4Faculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and HerzegovinaFaculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and HerzegovinaFaculty of Traffic and Communications, University of Sarajevo, 71000 Sarajevo, Bosnia and HerzegovinaFaculty of Transport and Traffic Engineering, University of Belgrade, 11000 Beograd, SerbiaFaculty of Transport and Traffic Engineering, University of Belgrade, 11000 Beograd, Serbia<i>Background</i>: The growth of parcel volumes in urban areas, largely driven by e-commerce, has increased the complexity of pickup and delivery operations. To meet demands for cost efficiency, flexibility, and sustainability, CEP (Courier, Express, and Parcel) operators increasingly outsource segments of their last-mile networks. <i>Methods</i>: This study proposes a novel multidimensional cost model for outsourcing, integrating five key variables: transport unit type (parcel/pallet), service phase (pickup/delivery), vehicle category, powertrain type, and delivery point type. The model applies correction coefficients based on internal operational costs, further adjusted for location and service quality using a bonus/malus mechanism. <i>Results</i>: Each cost component is calculated independently, enabling full transparency and route-level cost tracking. A real-world case study was conducted using operational data from a CEP operator in Bosnia and Herzegovina. The model demonstrated improved accuracy and fairness in cost allocation, with measurable savings of up to 7% compared to existing fixed-price models. <i>Conclusions</i>: The proposed model supports data-driven outsourcing decisions, allows tailored cost structuring based on operational realities, and aligns with sustainable last-mile delivery strategies. It offers a scalable and adaptable tool for CEP operators seeking to enhance cost control and service efficiency in complex urban environments.https://www.mdpi.com/2305-6290/9/3/96multidimensional cost modelingcost allocation modelurban delivery optimizationlast-mile deliverycost transparency
spellingShingle Ermin Muharemović
Amel Kosovac
Muhamed Begović
Snežana Tadić
Mladen Krstić
Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach
multidimensional cost modeling
cost allocation model
urban delivery optimization
last-mile delivery
cost transparency
title Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach
title_full Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach
title_fullStr Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach
title_full_unstemmed Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach
title_short Cost Modeling for Pickup and Delivery Outsourcing in CEP Operations: A Multidimensional Approach
title_sort cost modeling for pickup and delivery outsourcing in cep operations a multidimensional approach
topic multidimensional cost modeling
cost allocation model
urban delivery optimization
last-mile delivery
cost transparency
url https://www.mdpi.com/2305-6290/9/3/96
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