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Proactive Order Consolidation in Global Sourcing

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Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 181))

Abstract

This chapter discusses Proactive Order Consolidation (POC), a recently-proposed strategy for wholesalers acquiring goods according to global supply policies. The strategy aims to group orders before they are communicated to suppliers in such a way that the total cost of transportation and inventory of the firm is minimized. We briefly review processes and practices relative to procurement and order management, as well as consolidation activities in logistics. We then detail the POC concept and issues focusing on the associated information and decision systems and processes. Experimental results on data from an actual case study illustrate the interest of the POC strategy.

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Authors and Affiliations

  1. School of Management, University of Quebec at Montreal, Interuniversity Research Centre on Enterprise Networks, Logistics and Transportation (CIRRELT), Montreal, Canada

    T. G. Crainic, S. Marcotte & W. Rei

  2. School of Commerce and Administration, Faculty of Management, Laurentian University, Sudbury, ON, Canada

    P. M. Takouda

Authors
  1. T. G. Crainic
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  2. S. Marcotte
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  3. W. Rei
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  4. P. M. Takouda
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Corresponding author

Correspondence to T. G. Crainic .

Editor information

Editors and Affiliations

  1. Department of Management Sciences, University of Waterloo, Waterloo, N2L 3G1, Ontario, Canada

    James H. Bookbinder

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Crainic, T.G., Marcotte, S., Rei, W., Takouda, P.M. (2013). Proactive Order Consolidation in Global Sourcing. In: Bookbinder, J. (eds) Handbook of Global Logistics. International Series in Operations Research & Management Science, vol 181. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-6132-7_20

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