Variety in freight transport service procurement approaches

Journal article, 2017

Freight transport is featured by complexity owing to interdependences within supply networks. The aim of this paper is to explore the variety in freight transport service procurement approaches and how these impact on vehicle utilization. The paper relies empirically on a case study featuring different conditions for, and approaches to, transport services from the perspectives of buyers and suppliers of transport services. Three particular dimensions are identified; (1) the nature of the transport needs, (2) the buying firms share of and influence on the utilization of vehicles, and (3) the division of labor with regard to how the firms handle their needs for transport services. The paper concludes that the variety of transport service procurement approaches impacts heavily on the conditions for vehicle utilization.