Examining German road supply chain triads with subcontractors - A sender’s perspective
(2019) SMMM20 20191Department of Service Studies
- Abstract
- Purpose – The road freight industry is becoming more and more complex. An increasing number of
actors participating in the transport process has been highlighted. Simultaneously, transport
constellations become more fragmented. With transport as feature of the product-offer, sending
companies face new challenges. While transport has as part of the product offer influence on the
customer satisfaction, it becomes harder for sending companies to manage the increasing complexity
within the road supply chains. Considering the inclusion of subcontractors along with Logistics
Service Providers (LSP) or Logistics Service Intermediaries (LSI), a road supply chain triad emerges.
However, academia and existing research is so far coming short... (More) - Purpose – The road freight industry is becoming more and more complex. An increasing number of
actors participating in the transport process has been highlighted. Simultaneously, transport
constellations become more fragmented. With transport as feature of the product-offer, sending
companies face new challenges. While transport has as part of the product offer influence on the
customer satisfaction, it becomes harder for sending companies to manage the increasing complexity
within the road supply chains. Considering the inclusion of subcontractors along with Logistics
Service Providers (LSP) or Logistics Service Intermediaries (LSI), a road supply chain triad emerges.
However, academia and existing research is so far coming short in providing insights on the
management of these logistics triads. Consequently, the purpose of the study is to explore road supply
chain triads with subcontractors and with that, gain an understanding of the phenomenon.
Design/Methodology/Approach – The notion of Principal-Agent Theory (PAT) is used as
theoretical lens to narrow research focus down. 14 semi-structured interviews with German sending
companies were conducted in order to collected empirical data. Emphasis was laid on the selection
procedure, the relationship management approach as well as discovering the role of the LSP/LSI and
the role of the subcontractor from a sending company’s perspective.
Findings – First insights on road supply chain triads were gained. The triad is characterised by a
double-agency role of the first-tier agent, the LSP/LSI. The selection procedure as well as relationship
activities of the sending companies are focused on the direct logistics partners, while the
subcontractors are left unconsidered. Perceiving the LSP/LSI as middleman, responsibility for
selecting and managing the subcontractors is cascaded down to the first-tier agent. Presence of
subcontractors are acknowledged but considered as irrelevant from a sender’s perspective.
Contributions - The applicability of PAT on road supply chain triads was demonstrated. Existing
white spots on the selection procedure as well as the role of LSP/LSI and subcontractors within road
triads were closed by gaining first insights. Additional information contributing to existing theoretical
knowledge on the the relationship management was found. Relationships are managed with help of
the governing systems contracts, monitoring and incentives. If companies pursue a partnership
approach with their logistics partners, additional motives such as interlocking, trainings and regular
meetings are implemented to further strengthen the relationship. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8984015
- author
- Wohlmuth, Benedikt LU
- supervisor
- organization
- course
- SMMM20 20191
- year
- 2019
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Road supply chain triad, PAT, selection, relationship management, LSP/LSI, subcontractor
- language
- English
- id
- 8984015
- date added to LUP
- 2020-11-20 11:08:05
- date last changed
- 2020-11-20 11:08:05
@misc{8984015,
abstract = {{Purpose – The road freight industry is becoming more and more complex. An increasing number of
actors participating in the transport process has been highlighted. Simultaneously, transport
constellations become more fragmented. With transport as feature of the product-offer, sending
companies face new challenges. While transport has as part of the product offer influence on the
customer satisfaction, it becomes harder for sending companies to manage the increasing complexity
within the road supply chains. Considering the inclusion of subcontractors along with Logistics
Service Providers (LSP) or Logistics Service Intermediaries (LSI), a road supply chain triad emerges.
However, academia and existing research is so far coming short in providing insights on the
management of these logistics triads. Consequently, the purpose of the study is to explore road supply
chain triads with subcontractors and with that, gain an understanding of the phenomenon.
Design/Methodology/Approach – The notion of Principal-Agent Theory (PAT) is used as
theoretical lens to narrow research focus down. 14 semi-structured interviews with German sending
companies were conducted in order to collected empirical data. Emphasis was laid on the selection
procedure, the relationship management approach as well as discovering the role of the LSP/LSI and
the role of the subcontractor from a sending company’s perspective.
Findings – First insights on road supply chain triads were gained. The triad is characterised by a
double-agency role of the first-tier agent, the LSP/LSI. The selection procedure as well as relationship
activities of the sending companies are focused on the direct logistics partners, while the
subcontractors are left unconsidered. Perceiving the LSP/LSI as middleman, responsibility for
selecting and managing the subcontractors is cascaded down to the first-tier agent. Presence of
subcontractors are acknowledged but considered as irrelevant from a sender’s perspective.
Contributions - The applicability of PAT on road supply chain triads was demonstrated. Existing
white spots on the selection procedure as well as the role of LSP/LSI and subcontractors within road
triads were closed by gaining first insights. Additional information contributing to existing theoretical
knowledge on the the relationship management was found. Relationships are managed with help of
the governing systems contracts, monitoring and incentives. If companies pursue a partnership
approach with their logistics partners, additional motives such as interlocking, trainings and regular
meetings are implemented to further strengthen the relationship.}},
author = {{Wohlmuth, Benedikt}},
language = {{eng}},
note = {{Student Paper}},
title = {{Examining German road supply chain triads with subcontractors - A sender’s perspective}},
year = {{2019}},
}