Creating logistics service value in construction – a quest of coordinating modules in a loosely coupled system

Logistics plays a crucial role in the construction industry due to its numerous actors, frequent transportation needs, significant community impact, and high level of variability. However, there is a lack of awareness among actors regarding the importance of logistics and how it can create value. The purpose of this paper is to increase the understanding of the logistics service value co-creation process in construction. Methodologically, the study uses interviews involving third-party logistics (TPL) providers, main contractors, and subcontractors. Service blueprinting is employed to visualise logistics services within a construction logistics setup (CLS). It was found that in a loosely coupled system like construction, value co-creation is driven by trust and commitment, allowing the necessary time for learning. Service blueprinting helps visualise the connection between service design and the value of different service modules. However, risks include delayed actor involvement downstream the supply chain and potential lack of coordination between service modules, especially with multiple TPL providers. A contribution to the logistics service literature is that modularisation makes it easier to design the service content; however, the number of actors may increase. Hence, the modularisation simplifies the service content but not the service value creation or the value co-creation process.