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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Most existing models in supply chain management literature proving the potential of a vertical logistics collaboration decision see individual decision makers as fully rational agents. Nevertheless, literature review makes clear individuals are usually reluctant to change and in consequence they do not always respond to relative differences in a rational manner. The conducted Stated Preference experiment confirms this statement and shows that shippers leave beneficial collaboration opportunities unexploited because they have a certain level of resistance to intensify collaboration with their LSP. This inertia level is measured in terms of costs.
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The Physical Internet (PI) is probably the most ambitious and visionary concept towards efficiency and sustainability in transport logistics. PI proposes a full consolidation of logistics flows from independent shippers using vertical and horizontal collaboration. The objective of this paper is to evaluate where the implementation of the Physical Internet concept stands in the practice of city logistics. From our research, it can be concluded that Hubs, Networks, and Extended Inter-networks are developing sufficiently. Access and Adoption, as well as Governance of platforms, seem still to be too complex for big steps on the roadmap.
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Abstract Although organizations, both shippers and logistics service providers, are convinced of the potential of collaboration, it is still not successful in many cases. Therefore, collaboration in logistics is chosen as central theme for this paper. The contribution to this topic is twofold. First, the paper classifies different types of collaboration. This makes clear that collaboration between organizations differ in scope, objective, horizon and dimension. Secondly, the paper provides a framework that can be used to understand collaboration decisions. In this framework four base elements of collaboration are distinguished: drivers, objectives, variables and actions. The framework shows that there is a strong cohesion between these elements, and that collaboration is a continuous process. A deeper analysis of the third element (variables) results in the proposition that a lot of variables influence a collaboration decision, and that these variables are interrelated. These two observations deepen the complex character of collaboration. The analysis also identifies trust and commitment as dominant variables.
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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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This paper studies the factors that drive distribution structure design (DSD), which includes the spatial layout of distribution channels and location choice of logistics facilities. We build on a generic framework from existing literature, which we validate and elaborate using interviews among industry practitioners. Empirical evidence was collected from 18 logistics experts and 33 decision-makers affiliated to shippers and logistics service providers from the fashion, consumer electronics and online retail sectors. It turns out that interviewees share similar rankings of main factors across industries, and even confirm factor weights from earlier research established using multi-criteria decision analysis, which would indicate that the framework is sector- neutral at the highest level. The importance attached to subfactors varies between sectors according to our expectations. We were able to identify 20 possible new influencing subfactors. The results may support managers in their decision-making process, and regional policy-makers with regard to spatial planning and regional marketing. The framework is a basis for researchers to help improve further quantitative DSD support models.
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The Dutch government decided to implement a road pricing system called, 'paying differently for mobility'. The main idea is that road users have to pay for using the road infrastructure instead of for owning a car. In the future, the price per kilometre will also depend on the time of the day and the location of the travel. Crowded locations and peak hours will be charged at a higher price per kilometre. In this study we examine the expected effect of the proposed road pricing scheme on logistics decisions to supply stores in urban areas based on in-depth interviews with carriers. Based on the revealed logistics reaction to current developments, such as the German LKW Maut, increasing congestion and the high fuel prices in 2008 and the stated reaction to the proposed road pricing scheme, we derive the expected impact of the scheme for urban goods transport in the Netherlands. The expected reactions differ between for-hire carries, shippers and private carriers. In the short term, carriers try to limit logistics changes by passing on extra costs or absorbing the extra costs in their margins. In the longer term, logistics changes are to be expected.
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