Creating Shared Value from Collaborative Logistics Systems : The Cases of ES3 and Flexe

Abstract

Shared value enhances the competitiveness of a company while simultaneously reducing societal burdens. By allowing companies to share their resources, collaborative logistics systems provide companies with an opportunity to create shared value, namely, not only economic value by enhancing the utilization of resources, but also social value by reducing energy consumptions and greenhouse gas emissions associated with logistics and transportation. Emerging businesses, such as ES3 and Flexe, have recently demonstrated how they created shared value through collaborative logistics services, for example, ES3’s collaborative warehousing and direct- to-store (D2S) program, and Flexe’s on-demand warehousing platform. However, the development of collaborative logistics systems is currently at a nascent stage. There are quite a few socio-technical barriers to overcome for sharing resources (data as well as infrastructure). Drawing on the socio-technical approach, this research examines how companies create both economic and social value from collaborative logistics systems. We highlight socio-technical barriers, particularly one set of social barriers, that is, competition-oriented conservatism prevalent among companies. Using the case study methodology and interview data, we closely investigate ES3 and Flexe, which provide collaborative logistics services, and demonstrate how technical and social barriers are addressed to create shared value from collaborative logistics systems.