The Logistics Triad: Survey and Case Study Results

Abstract

The report examines logistics triads, made up of buyers, suppliers and logistics service providers, which are proliferating with the growth of information technology, on-time pickup and delivery and closer relationships between buyers and suppliers. It draws on a survey of Danish logistics service providers. The study found that triads can improve customer satisfaction while keeping inventory costs down, but they require close collaboration among all three legs of the triad to succeed. Questions remain about whether there is a threshold volume before triads are feasible and whether the formation of triads is affected by seasonality of demand and changing economic forces such as interest rates and fuel prices. Barriers to triad formation include lack of coordination, lack of technological capabilities and power imbalances among the parties.

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