Towards greener supply chains: Inclusion of environmental activities in relationships between logistics service providers and shippers

It is well-recognised that companies are under pressure to take responsibility for the environmental impact of their operations. Logistics service providers (LSPs), who through their transport and logistics operations have a large negative impact on the environment, are one type of supply chain actor that is under such pressure. However, in order for LSPs to be able to lower their environmental impact sufficiently, their customers, the shippers, also need to take responsibility. This thesis takes its starting point in the relationships between LSPs and shippers and argues that in order for LSPsâ environmental activities to reach their full potential, the shippers must be included in the activities. The purpose of this thesis is to describe and explain how supply chain actors, with a specific focus on logistics service providers and shippers, can include environmental activities in their relationships with each other. This comprises identifying those environmental activities that are relevant for relationships between LSPs and shippers, as well as describing the extent to which environmental activities are included in such relationships. By means of the theoretical perspective of power between supply chain actors, the thesis also sets out to further understand how power balances between LSPs and shippers can influence the extent to which they include environmental activities in their relationships with each other. Finally, the use of the theoretical perspective of coordination aims, through the analysis of coordination mechanisms, to shed light on how environmental activities are included in LSP-shipper relationships. The research in this thesis has mainly descriptive and explanatory aims, although due to the novelty of research into LSPshipper relationships in an environmental context, the research process as such is mainly exploratory. Following an abductive approach, the insights from literature are combined with empirical data from two cases studies, a homepage scan, a survey and a study of city logistics projects. Most of the applied research methods take a dual perspective of relationships between supply chain actors and thus include both LSPs and shippers. One conclusion from the research conducted for this thesis comprises the identification of environmental activities as well as a suggestion for a classification based on the activitiesâ role in the business between LSPs and shippers. With a starting point in the identified activities, a comparison of a market perspective and a relationship perspective of environmental activities in LSP-shipper relationships indicates that LSPs are able to fulfil the requirements set by shippers and that shippersâ requirement thus are met. The research does, however, point to a passiveness among LSPs in their relationships with shippers, who in turn would like the LSPs to be more proactive. Further, based on an analysis of power balances in LSP-shipper relationships, it is suggested that in an LSP-shipper relationship in which the shipper has a power advantage, the shipperâs environmental ambitions for logistics sets the agenda for the environmental activities in that relationship. An analysis of coordination of environmental activities in LSP-shipper relationships indicates that the mechanisms of direct supervision, which is when one actor tells the other actor in the relationship what to do, and mutual adjustment can be chosen to be used in order to include environmental activities in LSP-shipper relationships. While direct supervision is suggested to be a coordination mechanism that is easy for shippers to apply, mutual adjustment appears to hold greater potential for the development of environmental activities. Finally, these findings in combination are suggested to have implications for the coordination of environmental activities in LSP-shipper relationships. More specifically, this thesis offers a categorisation of different types of LSP-shipper relationships and the involved actorsâ environmental ambition. Depending on whether the environmental ambition of the LSP and shipper in a specific relationship is high or low appears to have implications for the possibility to work towards greener supply chains for each type of relationship. MÃ¥nga företag känner av pressen av agera för att minska sin miljöpÃ¥verkan. Flera företag har ocksÃ¥ insett att ett sÃ¥dant agerande även har affärsmässiga fördelar. När det gäller miljöpÃ¥verkan sÃ¥ tillhör logistikföretagen, till stor del pÃ¥ grund av sina transporter, de företag som insett att nÃ¥got mÃ¥ste göras. Möjligheten för dessa företag att göra olika miljöåtgärder pÃ¥verkas av varuägarna som köper logistikföretagens tjänster. Som en följd av detta blir länken mellan dessa företag â relationen â viktig för att möjliggöra förbättringar när det gäller pÃ¥verkan frÃ¥n logistiken. Denna avhandling har som syfte att beskriva och förklara hur aktörer i försörjningskedjan, med ett speciellt fokus pÃ¥ relationer mellan logistikföretag och varuägare, kan inkludera miljöåtgärder i sina relationer med varandra. För att över huvud taget kunna diskutera miljöåtgärder i relationer mellan logistikföretag och varuägare sÃ¥ är det viktigt att veta vad för typer av miljöåtgärder detta kan röra sig om. Första forskningsfrÃ¥gan i avhandlingen behandlar detta och i avhandlingen identifieras ett antal sÃ¥dana Ã¥tgärder. Det kan röra sig om relativt tekniska Ã¥tgärder sÃ¥ som alternativa bränslen, olika typer av fordon och energieffektiv körning, till Ã¥tgärder som handlar om styrning av logistiken, sÃ¥ som design av logistiksystemen, till Ã¥tgärder som är väldigt relationsspecifika som exempelvis specifika projekt eller miljögrupper. Med avstamp i de identifierade Ã¥tgärderna analyseras sedan relationerna mellan logistikföretag och varuägare i nÃ¥gra olika steg. En jämförelse mellan logistikföretagens och varuägarnas perspektiv pÃ¥ de miljöåtgärder som erbjuds, efterfrÃ¥gas samt ingÃ¥r i relationerna dem emellan visar att logistikföretagen ofta kan tillgodose sina kunders önskemÃ¥l. Samtidigt som detta visar att varuägarnas önskemÃ¥l verkar vara uppfyllda, sÃ¥ finns det en frustration frÃ¥n varuägarnas sida över att logistikföretagen inte är mer proaktiva. En av anledningarna till detta kan vara maktbalansen mellan logistikföretag och varuägare. Resultaten i avhandlingen pekar nämligen pÃ¥ att varuägarna oftast har makten över logistikföretagen, vilket verkar leda till att varuägarens ambitioner gällande miljö ofta är det som sätter agendan för vilka miljöåtgärder som inkluderas i relationen mellan dessa företag. Vidare sÃ¥ kan de miljöåtgärder som ingÃ¥r i en relation mellan logistikföretag och varuägare koordineras pÃ¥ olika sätt och flera sÃ¥dana tas upp i avhandlingen. Resultaten pekar även pÃ¥ att maktbalansen i relationerna pÃ¥verkar i vilken grad miljöåtgärder inkluderas i relationer mellan logistikföretag och varuägare samt hur dessa koordineras. En matris, som bygger pÃ¥ logistikföretagets och varuägarens ambitioner gällande miljö för en specifik relation, sammanfattar resultaten i avhandlingen. Beroende pÃ¥ om denna ambition är hög eller lÃ¥g för de bÃ¥da aktörerna pÃ¥verkar i sin tur möjligheten för varje typ av relation att arbeta mot gröna försörjningskedjor

Green Supply and Demand on the Logistics Market

A well-known concept, both in practice and in literature is the logistics market. This market is a place where shippers’ demand for logistics services meets Logistics Service Providers’ (LSPs’) supply of such services. Although this market has been given much attention in previous research, focus has been on shippers, while the LSP perspective has to a large extent been neglected. Several logistics related trends indicate that there is an increasing need for strong relationships between LSPs and supply chains, and one such trend is the “greening” of companies and supply chains. Although it is widely recognised that transports and  logistics are a major cause of greenhouse gas emissions, environmental logistics literature has only focused on the interaction between LSPs and their customers to a very limited extent. This is despite the fact that LSPs could include so-called green categories in their offerings, just as shippers could include green categories in their demands and that this interaction could in turn contribute to a decrease of greenhouse gas emissions. The purpose of this thesis is to describe the extent to which green categories are taken into account in the logistics market and suggest explanations. This includes identifying those green categories that are relevant for the logistics market, as well as a description of matches and mismatches with regard to these green categories. The matches and mismatches are studied from both a general market perspective and a relationship perspective. Initial explanations for the matches and mismatches in the relationship perspective contribute to the final part of the purpose. There are two basic theoretical starting-points in this thesis. Firstly, it is recognised that the logistics market is important to the purpose and different ways to view this market are therefore discussed. Secondly, general environmental logistics literature provides a basis for the research into green categories that can be offered or demanded on the logistics market. In the exploratoryresearch conducted for the thesis, the insights from literature are combined with empirical datafrom a survey, a homepage scan and four case studies of buyer-supplier relationships. One main contribution of this thesis is the large number of green categories that are identified as relevant for LSPs and shippers on the logistics market. These green categories range from environmental management systems, vehicle technologies and CO2 reports, to reviews of sustainability reports, relationship specific green projects and general desires among shippers to decrease CO2 emissions. A comparison of the supply of and demand for the green categories indicates that from a general market perspective, there appear to be clear mismatches between green supply and green demand. The same comparison made from a relationship perspective also indicates severalmismatches between green supply and green demand, but the buyer-supplier relationships studied show matches between green offerings and green demands to a greater extent than the market perspective does. Interestingly, the LSPs seem to include more in their offerings than the shippers appear to include in their demands for almost all mismatches in both the market perspective and the relationship perspective. Seven propositions are made to account for the matches and mismatches between green categories in buyer-supplier relationships. Three of these propositions are related to the characteristics of those green categories that are found in the relationships. It is suggested that the tangibility level of green categories influences the occurrence of matches and mismatches in the relationships and the more tangible a green category is, the higher is the likelihood of a match between supply and demand in that relationship. The opposite is also suggested, as well as the idea that the more relationship specific green categories are, the fewer the mismatches that appear in that relationship. The remaining four propositions relate to the potential connection between the type of relationship between LSPs and shippers and green matches and mismatches in their relationships. It is suggested that the closer a business relationship is, 1) the greater the number of green categories it has 2) the better green categories are communicated 3) the greater the number of matches compared to mismatches of green categories and 4) the higher the level of green category collaboration is

Environmental Work in Relationships between Logistics Service providers and Shippers

This report comprises a description of a case study which includes four dyadic relationships between logistics service providers (LSPs) and shippers. The case study has been conducted during the Vinnova‐financed research project “Competitive Business Models to meet Future Demands on Sustainable Logistics Systems” and focus in the report is on environmental (or green) work in relationships between LSPs and shippers. More specifically, the purpose of the report is to increase the understanding of such work in relationships between LSPs and shippers. Before the cases are described, the process of selecting the cases as well as collecting the data will be elaborated on.Konkurrenskraftiga affärsmodeller för att möta framtidens krav på hållbara logistiksyste

A study of environmental and other sustainable activities in supply chain relationships at Clas Ohlson

This report is the result of a case study conducted at the Swedish retail company Clas Ohlson. The study has been conducted as one step in the PhD process of the author of this report and is financed by the Swedish Energy Agency (Energimyndigheten). In this first chapter, some background information to the case study is given: the aim of the study, the rationale behind choosing Clas Ohlson as the case company and data collection methods. Finally, the structure of the remaining parts of the report is presented. The aim of this case study is to illustrate how environmental work can be conducted in different types of supply chain relationships, seen from the perspective of one focal shipper in a supply chain. The relationships include both upstream (such as suppliers and inbound logistics service providers) and downstream (such as outbound logistics service providers and stores in a city logistics context) parts of the supply chain. As these examples illustrate, the supply chain relationships can include shippers as well as logistics service providers (LSPs).Effektivare citylogistik - en nödvändighet för både industri och samhäll

Environmental Work in Relationships between Logistics Service providers and Shippers

This report comprises a description of a case study which includes four dyadic relationships between logistics service providers (LSPs) and shippers. The case study has been conducted during the Vinnova‐financed research project “Competitive Business Models to meet Future Demands on Sustainable Logistics Systems” and focus in the report is on environmental (or green) work in relationships between LSPs and shippers. More specifically, the purpose of the report is to increase the understanding of such work in relationships between LSPs and shippers. Before the cases are described, the process of selecting the cases as well as collecting the data will be elaborated on.Konkurrenskraftiga affärsmodeller för att möta framtidens krav på hållbara logistiksyste

Green Supply and Demand on the Logistics Market

A well-known concept, both in practice and in literature is the logistics market. This market is a place where shippers’ demand for logistics services meets Logistics Service Providers’ (LSPs’) supply of such services. Although this market has been given much attention in previous research, focus has been on shippers, while the LSP perspective has to a large extent been neglected. Several logistics related trends indicate that there is an increasing need for strong relationships between LSPs and supply chains, and one such trend is the “greening” of companies and supply chains. Although it is widely recognised that transports and  logistics are a major cause of greenhouse gas emissions, environmental logistics literature has only focused on the interaction between LSPs and their customers to a very limited extent. This is despite the fact that LSPs could include so-called green categories in their offerings, just as shippers could include green categories in their demands and that this interaction could in turn contribute to a decrease of greenhouse gas emissions. The purpose of this thesis is to describe the extent to which green categories are taken into account in the logistics market and suggest explanations. This includes identifying those green categories that are relevant for the logistics market, as well as a description of matches and mismatches with regard to these green categories. The matches and mismatches are studied from both a general market perspective and a relationship perspective. Initial explanations for the matches and mismatches in the relationship perspective contribute to the final part of the purpose. There are two basic theoretical starting-points in this thesis. Firstly, it is recognised that the logistics market is important to the purpose and different ways to view this market are therefore discussed. Secondly, general environmental logistics literature provides a basis for the research into green categories that can be offered or demanded on the logistics market. In the exploratoryresearch conducted for the thesis, the insights from literature are combined with empirical datafrom a survey, a homepage scan and four case studies of buyer-supplier relationships. One main contribution of this thesis is the large number of green categories that are identified as relevant for LSPs and shippers on the logistics market. These green categories range from environmental management systems, vehicle technologies and CO2 reports, to reviews of sustainability reports, relationship specific green projects and general desires among shippers to decrease CO2 emissions. A comparison of the supply of and demand for the green categories indicates that from a general market perspective, there appear to be clear mismatches between green supply and green demand. The same comparison made from a relationship perspective also indicates severalmismatches between green supply and green demand, but the buyer-supplier relationships studied show matches between green offerings and green demands to a greater extent than the market perspective does. Interestingly, the LSPs seem to include more in their offerings than the shippers appear to include in their demands for almost all mismatches in both the market perspective and the relationship perspective. Seven propositions are made to account for the matches and mismatches between green categories in buyer-supplier relationships. Three of these propositions are related to the characteristics of those green categories that are found in the relationships. It is suggested that the tangibility level of green categories influences the occurrence of matches and mismatches in the relationships and the more tangible a green category is, the higher is the likelihood of a match between supply and demand in that relationship. The opposite is also suggested, as well as the idea that the more relationship specific green categories are, the fewer the mismatches that appear in that relationship. The remaining four propositions relate to the potential connection between the type of relationship between LSPs and shippers and green matches and mismatches in their relationships. It is suggested that the closer a business relationship is, 1) the greater the number of green categories it has 2) the better green categories are communicated 3) the greater the number of matches compared to mismatches of green categories and 4) the higher the level of green category collaboration is

Environmental Work in Relationships between Logistics Service providers and Shippers

This report comprises a description of a case study which includes four dyadic relationships between logistics service providers (LSPs) and shippers. The case study has been conducted during the Vinnova‐financed research project “Competitive Business Models to meet Future Demands on Sustainable Logistics Systems” and focus in the report is on environmental (or green) work in relationships between LSPs and shippers. More specifically, the purpose of the report is to increase the understanding of such work in relationships between LSPs and shippers. Before the cases are described, the process of selecting the cases as well as collecting the data will be elaborated on.Konkurrenskraftiga affärsmodeller för att möta framtidens krav på hållbara logistiksyste

A study of environmental and other sustainable activities in supply chain relationships at Clas Ohlson

This report is the result of a case study conducted at the Swedish retail company Clas Ohlson. The study has been conducted as one step in the PhD process of the author of this report and is financed by the Swedish Energy Agency (Energimyndigheten). In this first chapter, some background information to the case study is given: the aim of the study, the rationale behind choosing Clas Ohlson as the case company and data collection methods. Finally, the structure of the remaining parts of the report is presented. The aim of this case study is to illustrate how environmental work can be conducted in different types of supply chain relationships, seen from the perspective of one focal shipper in a supply chain. The relationships include both upstream (such as suppliers and inbound logistics service providers) and downstream (such as outbound logistics service providers and stores in a city logistics context) parts of the supply chain. As these examples illustrate, the supply chain relationships can include shippers as well as logistics service providers (LSPs).Effektivare citylogistik - en nödvändighet för både industri och samhäll