Project description

In recent years, the importance of sustainable and resilient supply chains has become increasingly important due to the growing concerns over energy crises, environmental pollution, and supply chain disruptions. Amidst these challenges, battery electric vehicles (BEVs) have emerged as a promising solution as they offer several key advantages that contribute to sustainable and resilient supply chains. BEVs have the potential to significantly reduce greenhouse gas (GHG) emissions in the logistics sector, thereby helping companies meet their sustainability goals and mitigate their environmental impact. Moreover, BEVs can enhance supply chain resiliency by reducing reliance on volatile fossil fuel markets and providing a more stable and predictable energy source for transportation. However, the BEV technology is still evolving, and the significant initial investment required for BEV adoption remains a deterrent, particularly among small companies. To address this challenge, we propose a cooperative mechanism for BEV adoption among multiple small companies in a horizontal supply chain. We specifically focus on the logistics sector, where a set of firms deliver their products to their customers through a shared distribution center using a BEV fleet. Such collaborative shipment of products through BEVs would directly contribute to the reduction of carbon emission and dependency on fossil fuels. Additionally, this approach promotes better vehicle utilization, as the shared fleet is used more efficiently across participating companies. This, in turn, will lead to reduced congestion and fewer vehicle miles traveled (VMT), further contributing to the sustainability and operational efficiency in the logistics sector.