Summary Project objectives This study fits into a larger research project on logistics collaboration and outsourcing decisions. The final objective of this larger project is to analyze the logistics collaboration decision in more detail to identify thresholds in these decisions. To reach the overall objectives, the first step is to get a clearer picture on the chemical and logistics service providers industry, sectors of our study, and on logistics collaboration in these sectors. The results of this first phase are presented in this report. Project Approach The study consists of two parts: literature review and five case studies within the chemical industry. The literature covers three topics: logistics collaboration, logistics outsourcing and purchasing of logistics services. The five case studies are used to refine the theoretical findings of the literature review. Conclusions Main observations during the case studies can be summarized as follows: Most analyzed collaborative relationships between shippers and logistics service providers in the chemical industry are still focused on operational execution of logistics activities with a short term horizon. Supply management design and control are often retained by the shippers. Despite the time and cost intensive character of a logistics service buying process, shippers tendering on a very regular basis. The decision to start a new tender project should more often be based on an integral approach that includes all tender related costs. A lower frequency of tendering could create more stability in supply chains. Beside, it will give both, shippers and LSPs, the possibility to improve the quality of the remaining projects. Price is still a dominating decision criterion in selecting a LSP. This is not an issue as long as the comparison of costs is based on an integral approach, and when shippers balance the cost criterion within their total set of criteria for sourcing logistics services. At the shippers' side there is an increased awareness of the need of more solid collaboration with logistics service providers. Nevertheless, in many cases this increased awareness does not actually result in the required actions to establish more intensive collaboration. Over the last years the logistics service providers industry was characterized by low profit margins, strong fragmentation and price competition. Nowadays, the market for LSPs is changing, because of an increasing demand for logistics services. To benefit from this situation a more pro-active role of the service providers is required in building stronger relationships with their customers. They should pay more attention on mid and long term possibilities in a collaborative relation, in stead of only be focused on running the daily operation.
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from the article: "Abstract The way in which construction logistics is organised has considerable impact on production flow, transportation efficiency, greenhouse gas emissions and congestion, particularly in urban areas such as city centres. In cities such as London and Amsterdam municipalities have issued new legislation and stricter conditions for vehicles to be able to access cities and city centres in particular. Considerate clients, public as well private, have started developing tender policies to encourage contractors to reduce the environmental impact of construction projects. This paper reports on an ongoing research project applying and assessing developments in the field of construction logistics in the Netherlands. The cases include contractors and third party logistics providers applying consolidation centres and dedicated software solutions to increase transportation efficiency. The case show various results of JIT logistics management applied to urban construction projects leading to higher transportation efficiencies, and reduced environmental impact and increased production efficiency on site. The data collections included to-site en on-site observations, measurement and interviews. The research has shown considerable reductions of vehicles to deliver goods and to transport workers to site. In addition the research has shown increased production flow and less waste such as inventory, waiting and unnecessary motion on site."
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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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