Document

Supplier Involvement in Purchasing Logistics Services

Overview

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Description

ABSTRACT
Purpose of this paper
This paper aims to study different aspects of a logistics purchasing process from both the buyer's and supplier's perspective to compare literature and practice.

Design/methodology/approach
A multiple case study approach is chosen based on the exploratory character of the study. Seven recent logistics purchasing projects are studied by means of semi-structured interviews and company documents.

Findings
Literature review makes clear that the complexity of outsourced logistics services increased. As a result, buyers of these services should adapt their purchasing process to thoroughly think through its purchasing processes before going on the market, and to fully benefit from the expertise of service providers. Nevertheless, the cases show that most buyers still follow a traditional purchasing approach and process where service providers are not involved in defining the specifications of the logistics services. As a result shippers do not fully benefit from the expertise and possibilities of the service providers.

Research limitations/implications
The research is qualitative in nature and therefore limited to making theoretical propositions and to generalizing the findings to the total population. This must be accomplished through additional empirical verification.

Practical implications
The paper shows that both shippers and logistics service providers could improve their competitive position by changing the purchasing process and approach for logistics services.

What is original/value of paper
Our research differs from existing publications on logistics outsourcing for two reasons:
1) Existing publications do not primarily focus on the aspect of supplier involvement in purchasing logistics services.
2) Our study involves both the buyer's and the supplier's perspective.


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