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Purchasing of logistical services: A new view of LSPs’ proactive strategies

Author

Listed:
  • François Fulconis

    (AU - Avignon Université, CRET-LOG - Centre de Recherche sur le Transport et la Logistique - AMU - Aix Marseille Université)

  • Nollet Jean

    (HEC Montréal - HEC Montréal)

  • Paché Gilles

    (CRET-LOG - Centre de Recherche sur le Transport et la Logistique - AMU - Aix Marseille Université, AMU - Aix Marseille Université)

Abstract

Purpose – The purpose of this viewpoint is to analyze the emergence of a modified equilibrium in the relationship between buyers ("shippers") and suppliers ("providers") of logistical services. In the 1990s, the logistical service providers (LSPs) had relatively little power and were often asked to perform basic operations. The situation has evolved as a result of proactive strategies implemented by some forward-thinking LSPs. In this viewpoint, the emphasis is on the strategies developed by shippers which the authors labeled the "ramp effect". Design/methodology/approach – The authors discuss the impact of the ramp effect on LSPs' innovation processes. This viewpoint is based on the authors' experience in the field, on a literature review focused on the logistics industry and on the purchasing strategies applied to logistical services. Findings – The authors show that the buyers of logistical services have lost some of their power because of two main factors: LSPs' embeddedness in the shipper's supply chain and the transformation of LSPs into orchestrators (labeled fourth-party logistics). This viewpoint discusses the relational disequilibrium between shippers and LSPs rather than the cooperative relationships between them. Originality/value – The ramp effect as a source of innovation and proactive strategies for LSPs has never been covered in the management literature. This viewpoint provides both academics and practitioners with a different perspective of the relational disequilibrium between buyers and sellers of logistical services.

Suggested Citation

  • François Fulconis & Nollet Jean & Paché Gilles, 2016. "Purchasing of logistical services: A new view of LSPs’ proactive strategies," Post-Print hal-01430557, HAL.
    • Handle: RePEc:hal:journl:hal-01430557
    DOI: 10.1108/EBR-06-2015-0054
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    Citations

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    Cited by:

    1. Hans-Joachim Schramm & Carolin Nicole Czaja & Michael Dittrich & Matthias Mentschel, 2019. "Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future," Logistics, MDPI, vol. 3(1), pages 1-17, February.
    2. Gilles Paché, 2023. "La Distribution Digitalisée À La Croisée Des Chemins," Post-Print hal-04341643, HAL.
    3. Erik Hofmann & Joël Henri Brunner & Elmar Holschbach, 2020. "Research in business service purchasing: current status and directions for the future," Management Review Quarterly, Springer, vol. 70(3), pages 421-460, August.
    4. Sara Rogerson & Vendela Santén & Uni Sallnäs, 2021. "The Influence of Power and Trust on the Initiation and Duration of Modal Shift Solutions," Sustainability, MDPI, vol. 13(7), pages 1-19, March.

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