Shipper‐carrier integration

Abstract

Purpose This paper aims to report on the efforts of a wholesaler in overcoming one of the main barriers to successful marketing channels – namely the “transparency problem”. Design/methodology/approach A decision‐support tool that is capable of providing detailed cost‐analysis of transportation arrangements is developed and applied within the context of an action research project set up to improve information exchange of sensitive information between a shipper and two carriers in a Norwegian grocery supply chain. Findings The study finds that the application of the decision‐support tool is associated with: a transition from arm's‐length transactional relationships to integrated collaborative relationships; enhanced communication and trust between the parties; and substantial savings in distribution costs. Research limitations/implications Action research methodology confined to a single shipper and two carriers limits the confidence with which the findings can be generalised; future studies should formally test the effects of communication and trust on integration. Practical implications The study provides practical suggestions for achieving mutual benefits from closer collaboration between buyers and suppliers of transportation services. Originality/value The study extends knowledge of how to achieve integrated supply‐chain relationships in practice through the utilisation of a new and comprehensive decision‐support tool.

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