The Strategic Analysis of Collection Delivery Points Network’s Upstream Encroachment

Leiting Li; Min Huang; Xingwei Wang

doi:10.1007/s11518-025-5686-4

Journal of Systems Science and Systems Engineering ›› :1 -23. DOI: 10.1007/s11518-025-5686-4

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The Strategic Analysis of Collection Delivery Points Network’s Upstream Encroachment

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¹ College of Information Science and Engineering, Northeastern University, 110819, Shenyang, China

² College of Computer Science and Engineering, Northeastern University, 110819, Shenyang, China

Corresponding author:

^a mhuang@mail.neu.edu.cn

Leiting Li is a doctoral student at the School of Information Science and Engineering, Northeastern University. He obtained his Master’s degree in Management from the School of Business Administration at Northeastern University and his Bachelor’s degree in Management from the School of Management at China University of Mining and Technology. His research interests include logistics and supply chain management, and game theory.

Min Huang is a professor and doctoral supervisor at Northeastern University. Dr. Huang has published more than 200 SCI papers, authored 5 books, and received multiple awards. Her research focuses on logistics and supply chain management, intelligent manufacturing, and digital twins.

Xingwei Wang is a professor and doctoral supervisor. He has published over 100 academic papers in renowned journals such as IEEE Trans and prestigious conferences like IEEE INFOCOM, with over 100 papers indexed by SCI. He has authored nine academic books and holds 27 national invention patents. Professor Wang Xingwei has long been engaged in research in the fields of the Internet, cloud computing, and cybersecurity.

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Abstract

Collection delivery points (CDP) delivery is an effective method that saves more cost in last-mile logistics. CDP networks have become the important partners of express firms in last-mile logistics and some of them have grown into large brand enterprises. In this context, the large brand CDP network is no longer satisfied with merely supporting the incumbent express firm and has incentives to encroach on the express market by building their express business. As a response, the incumbent express firm will stop cooperating with the large brand CDP network and switch to an alternative small brand CDP network to counter the encroachment. We build a game model to examine the encroachment strategy of the large brand CDP network and whether the incumbent express firm should switch to an alternative small brand CDP network considering the encroachment. Interestingly, when CDP delivery can’t save the logistics cost largely and the profit space of express business is relatively small, the large brand CDP network will still encroach on the express business. Furthermore, we find that switching to an alternative small brand CDP network is not always an effective strategy against the encroachment. This study provides managerial insights for CDP networks with options to encroach on the express market.

Keywords

Last-mile logistics / collection delivery point / market encroachment / co-opetition / game theory

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Leiting Li, Min Huang, Xingwei Wang. The Strategic Analysis of Collection Delivery Points Network’s Upstream Encroachment. Journal of Systems Science and Systems Engineering 1-23 DOI:10.1007/s11518-025-5686-4

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