Framework of Horizontal Collaboration Implementation in the Indonesian Courier, Express, and Parcel Industry

Abstract

Horizontal collaboration could generate mutual benefits for competing companies through complementing each companies’ capabilities. However, the implementation of this strategy is limited among the Courier, Express, and Parcel (CEP) companies in Indonesia and has not much been discussed yet. This research aims to develop a framework that is based on 3 case studies of CEP companies in Indonesia, which identify the important consideration toward the implementation of horizontal collaboration, which includes different factors that act as the drivers, enablers, and barriers of horizontal collaboration, as well as to figure out the suitable model of horizontal collaboration to be implemented. The framework in this study indicates that the potential benefit to increase the number of orders significantly and strengthen market position in a shorter period become the main driver to conduct collaboration. Furthermore, it is suggested for the collaboration to be implemented directly by 2 companies that have an equal position within the collaboration; willing to share their asset and exchange orders to create a mutual benefit; and have the readiness in technology for the collaboration process.

Keywords: Courier Express and Parcel Service, Framework Development, Horizontal Collaboration