scholarly journals Sustainability-related risk management in buying logistics services

2017 ◽  
Vol 28 (4) ◽  
pp. 1351-1367 ◽  
Author(s):  
Sirpa Multaharju ◽  
Katrina Lintukangas ◽  
Jukka Hallikas ◽  
Anni-Kaisa Kähkönen

Purpose Sustainability-related risk management of logistics service providers (LSPs) is an essential part of sustainability performance of focal companies, as logistics services touch the entire supply chain (SC) – from raw material sources to end-customers. The purpose of this paper, draws on resource-based view and stakeholder theory in exploring how companies can manage environmental and social sustainability-related risks from logistics service suppliers. This kind of capability is essential in order to maintain reputation in the eyes of stakeholders, and to maintain long-term financial performance. Design/methodology/approach The data of this multiple-case study were collected from semi-structured interviews in eight case-companies in Finland. Five of the cases are primary logistics buyers, and three represent LSP companies. Findings The cross-case analysis showed that primary buyers of logistics services use their sustainability criteria as a prerequisite for LSP candidates, and when the level is adequate and equal, other factors, e.g. price and capacity, are decisive. Based on the analysis, large LSPs are preparing for the future competition, and act in a more sustainable manner than their customers (buyers) expect at the moment, while small LSPs strictly comply with the regulation. However, buyers’ requirements for sustainable logistics services are increasing as the stakeholder expectations for comprehensively sustainable SCs are growing. Originality/value Only little research has been conducted on sustainable logistics from the buyer company’s risk management perspective. This paper adds the knowledge of sustainability-related risk management in purchasing of logistics services and in the logistics industry.

2017 ◽  
Vol 9 (3/4) ◽  
pp. 269-291 ◽  
Author(s):  
Alessandra Cozzolino ◽  
Ewa Wankowicz ◽  
Enrico Massaroni

Purpose The purpose of this paper is to explore the contribution of logistics service providers’ (LSPs) initiatives to disaster relief and how LSPs are engaged with humanitarian sector. In recent years, the importance of logistics services in disaster relief operations and the capacity of LSPs to improve humanitarian supply chain management have become an increasingly interesting topic for both professionals and academics. Design/methodology/approach This research follows a qualitative approach based on multiple case studies. Findings The current research, after considering the differences and similarities among collaboration, cooperation and coordination and underlining how crucial these mechanisms are in the humanitarian context, explains the contribution of LSPs to relief operations alongside humanitarians. Research limitations/implications There has been increased interest in humanitarian logistics on the part of international academic and professional communities. This study constitutes a first exploratory step in the research to build a platform for benchmarking analysis of logistics services that aims to ensure the effective implementation of social responsibility principles. Practical implications The managerial implications arising from the research offer a range of current responsible actions from which strategic and operative directions to contribute can be derived. Originality/value Humanitarian logistics represents a crucial field in logistics management. This paper addresses the innovative socially responsible initiatives undertaken by the main international LSPs in the area of humanitarian logistics.


2020 ◽  
Vol 31 (3) ◽  
pp. 575-605
Author(s):  
Maria Huge-Brodin ◽  
Edward Sweeney ◽  
Pietro Evangelista

PurposeVarious suggested paths for greening logistics and supply chains often address the specific perspectives of single supply chain actors. Drawing on stakeholder theory, the purpose of this paper is to develop a deeper understanding of the alignment between logistics service providers (LSPs) and shippers in the context of adopting more environmentally sustainable logistics practices.Design/methodology/approachWith a case study approach, a dual perspective is taken in which both LSPs and shippers were researched. The cases comprise eight LSPs and six shipper companies in Sweden, Italy and Ireland. Information was first analysed in relation to levels of environmental awareness, customer requirements and provider offerings and critical success factors (CSFs) and inhibitors. In a second step, the findings were analysed using stakeholder theory.FindingsLSPs demonstrate higher ambition levels and more concrete offerings compared to shippers' requirements for green logistics services. Paradoxically, customers are an important CSF and also an inhibitor for both LSPs and shippers. Both LSPs and shippers perceive financial factors and senior management priorities as important CSFs. The application of stakeholder theory helps to illuminate the importance of the many secondary stakeholders vs that of one or a relatively small number of primary stakeholders.Originality/valueThe three-dimensional analysis of environmental alignment between LSPs and shippers reinforces existing knowledge and provides new insights. A novel use of stakeholder theory in a supply chain context underlines its usefulness in research of this kind.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jessica Wehner ◽  
Ceren Altuntas Vural ◽  
Árni Halldórsson

PurposeService modularity promotes efficiency at the provider end of the supply chain and customisation at the customer end. The purpose of this paper is to investigate how logistics service modularity contributes to sustainable development through the means of energy efficiency. This is analysed in the context of logistics services for household waste collection.Design/methodology/approachA single case study methodology with embedded units is adopted where semi-structured interviews were conducted with a waste service provider (WSP) and buyers (municipalities) in Sweden, focussing on five types of logistics services for waste collection: collection of food and residual waste at apartments and one-family houses, as well as collection of gardening waste. Service modules are identified and analysed by blueprinting the service.FindingsThe findings show different service modules – standardised or customised – and their contribution to sustainable development operationalised through energy efficiency. Principles for an energy-centric service design are proposed.Research limitations/implicationsThe research is limited to Swedish household waste collection setting. Promising efficiency through standardisation, logistics service modularity has a potential to improve energy efficiency as well. This neglected link between sustainability and service modularity offers fruitful research avenues.Practical implicationsThis research is of practical relevance to waste logistics service providers and the municipality by suggesting principles for energy-centric service design. The service blueprint enables using logistics service modularity for improving energy efficiency in different logistics service settings.Originality/valueThis research incorporates an environmentally sustainable development perspective into logistics service modularity and contributes to the literature by exploring how energy efficiency is improved by modular design of logistics services. Furthermore, the study is one of the first to use service blueprinting to analyse logistics service modularity, providing a methodological contribution to that field in general and logistics in particular.


Author(s):  
Kostas Selviaridis ◽  
Andreas Norrman

Purpose – The purpose of this paper is to explore key challenges of adopting, designing and managing performance-based contracts (PBC) for advanced logistics services, as seen by providers. The shift toward performance-based solutions has proved challenging since providers often struggle to link performance to their payment. Despite such managerial challenges, empirical research in this area has been limited. Design/methodology/approach – A multi-case design was adopted. Three cases of logistics service providers were selected based on purposive sampling. Data were collected through 38 semi-structured interviews and review of 43 documents such as contracts and customer target letters. Findings – Key PBC adoption challenges include customer and provider intention to align their goals and incentives as well as their views on risk and reward sharing. Contract design challenges center around performance metric definition and weighting, designing performance monitoring systems that consider service co-production effects and help improve customer relationship and designing incentives with appropriate intensity levels. Contract management challenges include fostering provider pro-activity, provider changes in terms of processes and resource investments, perceived fairness of designed incentives and contract re-design to allow for win-win relationship outcomes. Research limitations/implications – The study empirically contributes to extant logistics service provider literature by identifying specific challenges that extend also beyond PBC adoption and design and cover contract management (and potential contract re-design). It also unpacks the notion of performance attributability by analyzing its role also in terms of contract and performance management as well as its potential effects on customer relationship management. Practical implications – The study presents implications for logistics provider managers regarding how the observed PBC challenges can be overcome. Originality/value – The study unearths several challenges of PBC for advanced logistics services, particularly in connection to contract management and re-design.


2019 ◽  
Vol 30 (1) ◽  
pp. 174-194 ◽  
Author(s):  
Timo Pohjosenperä ◽  
Päivi Kekkonen ◽  
Saara Pekkarinen ◽  
Jari Juga

PurposeThe purpose of this paper is to examine how modularity is used for enabling value creation in managing healthcare logistics services.Design/methodology/approachMaterial logistics of four different kinds of hospitals is examined through a qualitative case study. The theoretical framework builds on the literature on healthcare logistics, service modularity and value creation.FindingsThe case hospitals have developed their material logistics independently from others when looking at the modularity of offerings, processes and organisations. Services, such as assortment management, shelving and developing an information platform, have been performed in-house partly by the care personnel, but steps towards modularised and standardised solutions are now being taken in the case hospitals, including ideas about outsourcing some of the services.Research limitations/implicationsThis paper proposes seven modularity components for healthcare logistics management: segmentation, categorisation and unitisation of offerings, differentiation and decoupling of processes, and centralisation and specialisation of organisations. Thus, this study clarifies the three-dimensional concept of modularity as a cognitive frame for managing logistics services with heterogeneous customer needs in a rapidly changing healthcare environment.Practical implicationsModularity offers a tool for developing logistics services inside the hospital and increases possibilities to consider also external logistics service providers.Social implicationsManaging healthcare logistics services through modularity has potential social implications in developing healthcare processes and changing the usage of health services. On a wider scale, modularity is helping healthcare systems reaching their goals in terms of service quality and cost.Originality/valueThis paper shows the context-specific antecedents of service modularity and the usage of modular thinking in managing healthcare logistics.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jessica Wehner ◽  
Naghmeh Taghavi Nejad Deilami ◽  
Ceren Altuntas Vural ◽  
Árni Halldórsson

PurposeThis paper discusses logistics service providers' (LSPs’) energy efficiency initiatives for sustainable development, both from an evolutionary perspective and based on a framework consisting of actions, processes (i.e. at the operations interface) and services (i.e. at the customer interface).Design/methodology/approachFollowing a qualitative research design, semi-structured interviews were conducted with sustainability managers at LSPs and the data were analysed via inductive coding. Based on the results and the literature, the authors developed a maturity model for LSPs' transitions to environmental sustainability.FindingsLSPs' sustainable development occurs via operational processes, services at the customer interface, and actions that support those processes and services. Energy efficiency efforts are characterised by process depth that helps LSPs to align with their customers' energy efficiency improvement processes. While services related to energy efficiency connect LSPs and their customers, actions in support vary depending on the logistics activities in which LSPs participate.Research limitations/implicationsFurther research is needed to test and verify the maturity model and to clarify the interdependency of its three dimensions.Practical implicationsBy categorising energy efficiency initiatives and proposing a maturity model for LSPs' sustainable development via energy efficiency, the authors have developed a tool for logistics actors to assess their progress towards improved sustainability.Originality/valueThe paper contributes to the literature by providing a three-pillar framework to understand the sustainability transitions of LSPs through energy efficiency. Developing a maturity model using this framework also contributes to the literature with an approach to assess sustainability advancement in the logistics industry.


Author(s):  
Árni Halldórsson ◽  
Ceren Altuntas Vural ◽  
Jessica Wehner

Purpose The purpose of this paper is to explore the sustainability of waste supply chains regarding the energy efficiency of first-mile waste collection systems and quality of waste. Roles of actors in the waste service triad are considered, particularly focusing on households. Design/methodology/approach Primary data are collected from respondents including municipality officers, waste service providers (WSPs) and households through brainstorming sessions, semi-structured interviews, site visits and a focus group. Secondary data are collected from official reports for validation. Findings Findings reveal tension between the energy efficiency of waste collection logistics and the quality of waste collected. Households are co-producers of logistic services providing important inputs in the form of sorting and moving waste and raw materials into new cycles of goods circulating in logistics systems. Other actors in the logistics service triad are the municipality as regulator and the WSP acting as a reverse-logistics service provider. Practical implications This study provides principles for policymakers and practitioners to evaluate the energy efficiency of waste management options, considering the quality of waste. Also, “logistics services” and “quality of waste” as concepts might provoke new thoughts on how to involve the consumer in resource recovery. Originality/value Few studies have focused on the end-consumer’s role in waste supply chains. By considering waste as a resource and the consumer as the supplier of this input, this study provides a new way to think about logistics services for waste collection.


2019 ◽  
Vol 14 (4) ◽  
pp. 872-895 ◽  
Author(s):  
Balan Sundarakani ◽  
Yin Sian Lai ◽  
Mark Goh ◽  
Robert de Souza

Purpose In this Industry 4.0 era, third-party logistics (3PL) industries face huge cost pressure to deliver their service. With increase in competition among the players, constant mergers and acquisitions (M&A) have been taking place to sustain competitive advantage. Therefore, this study aims to investigate the growth dynamics among the 3PL service providers. Design/methodology/approach In this research, the system dynamics methodology was applied to the study of the growth of 3PL industry in Singapore. A population growth model incorporating the predator–prey interaction is developed to account for growth through M&As among 3PLs and their interaction phenomenon are modeled through modified Lotka–Volterra method. The two-species system model consisting of small and medium logistics service providers (SMLSPs as the prey) and the lead logistics providers (LLPs as the predator) are gauged according to the firm size. Findings Results from the baseline model indicates that Singapore’s logistics industry looks very optimistic for SMLSPs for another 6 years from 2018, while the LLP population will achieve a peak at about 12 years from 2018. Further sensitivity analysis through macroeconomic and microeconomic changes reveals increase in trend of M&As. By varying competitive pressures between firms, results indicate that the LLP population experiences a decreasing rate of increasing SMLSP population falls. Research limitations/implications The research provides guidance for logistics and supply chain managers to better understand the critical factors that impact and determine competitive dynamics. The paper further recommends managers to build sustainable logistics strategies to retain competitive advantages. Originality/value The research contributes to both economic and social dimensions of logistics sustainability of how resilient the industries are during uncertain conditions. Some of the limitations of this research include the geographic coverage of the study region and other methodological aspects. The research value thus helps policymakers for developing strategic policies for sustainable industrial growth.


2014 ◽  
Vol 25 (1) ◽  
pp. 54-84 ◽  
Author(s):  
Jens Tacken ◽  
Vasco Sanchez Rodrigues ◽  
Robert Mason

Purpose – The purpose of this paper is to assess the extent to which the measures outlined in frameworks for guiding CO2e emissions reduction in road freight transport in the academic literature are actually being realised at a practical level. Design/methodology/approach – A qualitative evaluation is carried out of the transport-related CO2e measurement and reduction initiatives in the German logistics sector through ten case study logistics service providers. For each, senior managers are interviewed with the findings synthesised through content-analysis. The initiatives are evaluated against an accepted leading framework model used to categorise CO2e emissions reduction initiatives. Findings – The investigated firms, although at different evolutionary stages, understand that logistics and ecology do not, for the most part, contradict each other and both need to be considered in their companies’ long-term planning. The framework used to categorise CO2e emissions reduction initiatives in logistics provision is largely confirmed, but also refined. Research limitations/implications – The research reaffirms and refines frameworks developed to encourage and assess green logistics practice, in a specific country's (Germany) logistics industry. Practical implications – The analysis shows strong evidence that the options identified in theory are also valid for the German logistics service provider companies that were investigated. Most of the participating companies apply many of the operational options to reduce the environmental impact, although no one company is pursuing all the possible initiatives. Originality/value – There is a lack of empirical studies which assess the application of green logistics initiatives identified in academic literature to practice. This paper contributes to filling this gap.


2015 ◽  
Vol 26 (2) ◽  
pp. 275-295 ◽  
Author(s):  
Patricija Bajec ◽  
Danijela Tuljak-Suban ◽  
Evelin Krmac

Purpose – The purpose of this paper is to investigate the prevalence of the application of standards and their positive influence on the efficiency and competitiveness of Slovenian logistics service providers. Moreover, an analysis was also done on the relationship between the adoption of the environmental standard and greater concern for the environment. Design/methodology/approach – A small sample analysis was done using a combination of statistical methods and an abductive approach. A χ2 analysis was utilized to test the hypotheses. Findings – Many benefits were indicated. However, a positive relationship between quality standards and efficiency, as well as competitiveness, was not confirmed. In addition, the implementation of ISO 14001 quality standards was found to have no effect on the higher investment in environmental protection. Research limitations/implications – This study is limited by its local aspect (Slovenia), small sample size and its focus on just quality standards and their external factors. Future studies should be extended to the countries of eastern Europe and should further examine the relationship of internal factors as well as the relationship between the adoption of quality standards and the supply chain. Practical implications – A survey is essential not just for the Slovenian industry but also for the wider logistics industry as well as for government authorities and standards providers. Originality/value – This is one of the first papers written to analyse the effects of quality standards on international logistics service providers and the first paper that has explored the impact of standards on Slovenian logistics service providers.


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