Risk trade-off linked to temporary storage function in road transports

Abstract

Today’s demand on high supply chain performance requires higher awareness about supply chain risks and uncertainty. The purpose of this paper is to analyse the role of temporary storage in the transport network in a supply chain perspective. The primary research question concerns the purpose or role of temporary storage and whether management of temporary storage can contribute to reducing risks and uncertainty in the supply chain. The research is based on a system-theoretical approach, which emphasizes a holistic view instead of the characteristics of the different parts. The research method used in this paper is abductive. Existing theories are used to formulate a framework which leads to a conceptual model description of the temporary storage function. This model is then supported and verified by two case studies. The temporary storage function will act as a supply chain disturbance neutralizer, thereby reducing risks and uncertainty within the supply chain. The use of temporary storage also means exposing the transport more for antagonistic threats, i.e. primarily a larger theft risk. To avoid both supply chain disturbance and increased theft risk there are three types of solutions; improved and more exact scheduling of delivery time, availability of secure parking spaces whenever a resource needs to make a temporary stop, and utilizing tracking and tracing systems. This paper illuminates the purpose and the drawbacks of temporary stops in the flow of goods within the transport network. The conditions for temporary storage in transit, related to controlling different types of risk and uncertainty in the supply chain, have been scarcely analyzed in previous research.