Authors: Leif-Magnus Jensen; Susanne Hertz
ABSTRACT
Third-party logistics providers (TPLs) and their connections with customers have been
described in different ways in the literature. In this article we consider three important
aspects TPLs interactions with their customers.
First, TPLs can be usefully analyzed in terms of the different economies that they achieve,
and how they can coordinate differing demands from their customers to achieve efficiency.
The second aspect of TPL interaction with customers is the relation between one TPL and a
specific customer, with the TPL providing services of superior quality or low cost. The third
aspect of TPL interaction with customers is the relation between the customers themselves.
We know from previous studies that TPL firms have few customers and deep relationships in
most cases (Andersson, 1997). The consequences for the buyer of the TPL losing or gaining
a big customer can then influence the economies of scale and scope extensively.
The IMP literature has a great deal to say about interaction between industrial actors and we
propose to connect this study to IMP writings on interaction and network effects rather than
just the effects between a TPL and single customer. The position of a service provider such
as a TPL can usefully be studied by considering IMP dimensions of actors, activities and
resources (Håkansson & Snehota, 1995).
We report on the initial interviews of a study to explore the relations between TPLs and their
buyers, with particular focus on how coordination of services is handled. Initial results show
that the points from the interviews really touch upon two levels. There is one level to do with
the physical network and logistics operations, and another which deals with the actors and the
way they interact. We suggest that the Johansson & Matsson (1992) model of the network
and production system can explain how these two levels interact and propose to employ it
more extensively.
KEY WORDS
Third-party logistics, purchasing logistics services, buyer coordination
Journal: ( – )
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Conference: Glasgow, Scotland (2011)