The Freight Transport Market: Buyer‐Seller Relationships and Selection Criteria

Abstract

In the UK the last decade has been a period in which the supply of freight transport services has generally exceeded demand, while both the characteristics of the transport managers, who are the industry′s customers, and organizational variables, which affect their behaviour, have changed. Examines how these changes have altered the duration of relationships with hauliers, the factors which determine haulier selection and the relative importance of the different aspects of service provided by hauliers. Shows that, although buyers value long‐term relationships, they are more active in the market than they were, dropping many and taking on new hauliers where appropriate. While service remains the most important selection determinant, price has become a factor of major importance. Furthermore, the relative importance of the different aspects of service has changed, with “flexibility” and “understanding of problems” ranking above some of the more traditional variables. While buyers perceive themselves as demanding customers, they attempt to manage their relationships with suppliers by creating an atmosphere which emphasizes collaboration. Concludes with recommendations for suppliers and with a discussion of the relevance of the IMP Group′s Interaction Model to the freight transport market.