Abstract
Purpose– This paper aims to examine a strategic alliance between a large shipper and a freight forwarder to provide an intermodal service to and from the port of Gothenburg. The supply chain literature discusses various models of supply chain collaboration and integration. When applied to logistics, each has been shown to exhibit different levels of success depending on particular factors.Design/methodology/approach– The methodology is a single in-depth case paper based on action research, interviews and document analysis.Findings– According to this innovative model, a new entity is not set up but an open-book basis is established, long-term contracts with other parties are signed, risks and profits are shared and the shipper makes several investments specific to the service. Thus, the benefits of a joint venture are obtained without needing to establish a new organisation, thereby sacrificing flexibility and independence.Research limitations/implications– A limitation of this study is that it is based on a single case of best practice; it may be difficult to replicate the high levels of trust in other situations. Nevertheless, the evident success of this “virtual joint venture” suggests that some elements are transferable to other cases, and the model may be refined through additional case analysis.Practical implications– Results indicate several advantages of this “virtual joint venture” model, including risk sharing, knowledge development, long-term service stability and diversification of activities, which all contribute to facilitating the shift of a large customer from road haulage to intermodal transport. Potential challenges mainly relate to contractual complexity.Originality/value– This paper identifies an innovative business model for logistics integration that can be used in future in other cases to make modal shift more attractive and successful, which is a key aim of government policy in many countries.
Highlights
The supply chain and logistics literature contains many studies of horizontal and vertical integration and collaboration, whether that be in the supply chain or in the provision of logistics services
This paper identifies an innovative business model for logistics integration that can be used in future in other cases to make modal shift more attractive and successful, which is a key aim of government policy in many countries
Building on previous work in the transport literature, where consolidation of flows and the “co-location” of logistics services at transport hubs have been considered ways to support intermodal transport services (Rodrigue et al, 2010; Monios, 2014), this paper examines the potential of a specific type of strategic alliance, a “virtual joint venture”, as a governance form for transport services
Summary
The supply chain and logistics literature contains many studies of horizontal and vertical integration and collaboration, whether that be in the supply chain or in the provision of logistics services. Chain integration is covered more frequently, including integrating the ownership or processes of suppliers, producers, and so on, up and down the vertical supply chain, or horizontal integration or collaboration among partners at the same level (e.g. suppliers joining a cooperative). A subset of supply chain integration is logistics integration. The customer for the logistics process may have any kind of supply chain strategy, but in this paper the focus is on the provision of logistics services, mostly transport. The focus of this paper is on the business model adopted rather than on the operational aspects of modal shift (for which see Woodburn, 2003; Eng-Larsson and Kohn, 2012; Monios, 2015)
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