One of ArgusI’s key services is the design and support of horizontal logistics cooperation projects. Examples are: shippers that collaboratively source their transport services, logistics service providers that exchange transport orders to jointly optimize route planning, shippers that share warehousing capacities, etc. As long as savings can be created by logistics cooperation, ArgusI can help out. Building on both academic research and experiences in past cases, we have learned that the most important impediment for a successful and lasting cooperation is a fair distribution method for the savings, costs and risks involved in the project. Unfortunately, this issue if often approached too pragmatically in practice and simple rules of thumb are still the most widely used basis for gain sharing. An example is a joint routing project where the participating carriers share the synergetic savings based on the respective kilometers driven, pallets transported, number of clients served etc. Although these rules are intuitively appealing, they almost never capture the true contribution of a partner to the overall success of the cooperation. To achieve this we need to take a somewhat more sophisticated approach, which can be found in a branch of mathematics called Cooperative Game Theory. This field offers a number of very sound and fair allocation mechanisms, the most well-known of which are the Shapley Value, the Nucleolus, and the Compromise value. The picture below shows how the game theoretic models perform against a number of rules of thumb that we tested in one of our projects on bundled deliveries in the Health care industry. It is apparent that the rules of thumb give very instable results, whereas the game theoretical methods show strong concensus on the true contribution to the synergy of every individual player.