Study On Profit Allocation Of Express Service Chain Based On Terminal Common Distribution Mode

With the rapid development of e-commerce in recent years, the number of express-package business has been exploding. At the same time, the terminal distribution of express-delivery faces increasingly prominent dilemmas. In order to alleviate problems and improve services in the terminal part of delivery chain, there emerges a new distribution pattern, which is common distribution applied in the terminal distribution of express-delivery.However, this emerging pattern is facing many problems in its infancy, and a big one of them is how to distribute profits between two partners of the express service chain. Under this background, the paper studies the profit allocation problem based on this emerging common distribution pattern in terminal distribution of express-delivery, in order to provide some help for decision-making in profit allocation problem, and then support the development of this new pattern.The paper starts with the analysis of how this new pattern works. There is a separate logistics company, here called distribution company, which specialises in terminal distribution and undertakes tasks from several express companies in order to provide distribution service collectively for express customers within a certain area. Under this pattern, express company cooperates with distribution company to provide express service, and the express service chain is formed by express company, distribution company and express customers.The paper focuses on the profit allocation mode of the express service chain. Firstly, The paper analyzes the status quo of profit allocation in express service chain based on common distribution pattern, and points out that the two current allocation modes are unreasonable,which are fixed-payment mode and quantity-based mode. Next, the paper puts forward two other profit allocation modes, which are service-compensation mode, profit-sharing and cost-compensation mode. Then, through qualitative analyses of interest relationships of both partners, influence factors of profit allocation, and principles in decision-making, the paper establishes profit allocation models and then separately calculates the optimal profit of above four profit allocation modes, which aims at selecting a relatively better mode that can coordinate the whole express service chain, and in further validating the irrationality of the two current allocation modes. By comparison, profit-sharing and cost-compensation mode isthe most appropriate profit allocation mode. At last, from the lens of overall efficiency and express-service quality, the paper gives some suggestions for the development of this emerging common distribution pattern in terminal distribution of express-delivery.