Logistics Service Providers Going Green : A Framework for Developing Green Service Offerings

Abstract

Environmental impact has increasingly become a "buzzword" and an important topic. This topic has been integrated into the agenda of many companies worldwide, and this dissertation focuses on the transportation and logistics industry. Environmental concerns have gained increased attention among many logistic service providers (LSPs) due to the environmental impact from their operations, and they have been identified of having a significant role in reducing the environmental burden in the supply chain. An environmental approach of the LSPs' business has also been identified as a way to achieve competitive advantage and provide market opportunities where the development and marketing of new products and services associated with green issues are suggested as important aspects for future growth. However, considering the scarcity of research regarding this topic, a study that reveals potential aspects in the development of green service offerings can bridge the knowledge gap and provide opportunities for further research within this field. The purpose of this dissertation is therefore to develop and explain a framework for LSPs' development of green service offerings. The purpose is addressed by first investigating LSPs' service development from a general perspective in order to, in a second stage, reach a better understanding of the implications when integrating green aspects in LSPs' service development efforts.Theoretically, this dissertation departed from service marketing literature or more specifically new service development (NSD) research. This resulted in a conceptual framework including key dimensions and aspects regarding a company's NSD efforts and activities. From this foundation, the theoretical framework was developed further based on research regarding LSPs' service development and innovation management. Finally the framework was extended with green logistics literature as well as research regarding LSPs' green development and influences on their service offerings.Empirically, this research is mainly based on qualitative data from an in-depth case study on a large LSP active on the Swedish market. In addition, empirical data from a multiple case study and a questionnaire survey conducted for the Licentiate thesis were used in order to enrich the analysis regarding the LSPs' development of green service offerings. The analysis followed a stepwise approach where literature and empirical data were analysed.One of the main results in this dissertation is the framework for LSPs' new service development, consisting of five dimensions: NSD culture, NSD strategy, NSD process focus, IT use and expertise and NSD knowledge and skills. The NSD framework presents a holistic view of the LSPs' NSD efforts by revealing different dimensions, their roles and relations to each other as well as the pre-requisites to take into consideration in the development of new services. Thus, the different NSD dimensions should not solely be viewed as isolated dimensions; instead, there is a need for LSPs to have a holistic v...

Environmental practices as offerings and requirements on the logistics market

“…The negative environmental impact associated with the transport industry and logistics industry is likely to have an impact on the visibility of the industry which in turn is suggested to have an impact on a company's stakeholder consideration [17,47]. With regard to LSPs, several stakeholders have been identified as influencers of LSPs' environmental practices [21,30,34] and home pages could be a way for LSPs to include the interest of several types of stakeholders simultaneously.…”

“…Freeman [18] originally presented eleven different stakeholders (owners, customers, employees, suppliers, competitors, governments, consumer advocates, environmentalists, special interest groups, media, and local community organisations). Indeed several authors have identified a variety of stakeholder influences on LSPs' environmental practises, such as from customers, competitors, and governments [21,30,34].…”

Environmental alignment between logistics service providers and shippers – a supply chain perspective

“…On the other hand, the study of Perotti et al (2015) indicates that the relatively low level of interest in green products and services by customers and suppliers represents the main barrier to LSP adoption of green initiatives. Some researchers suggest that a possible inhibitor to the development of greener logistics services is the low degree of alignment between LSPs and their customers, which spans a wide range of areas (see, for example: Eng-Larsson, 2014; Isaksson, 2014;Martinsen, 2014). This is not surprising given the different roles that LSPs and their customers play in the supply chain, as well as the attendant differences that pertain in relation to strategic priorities, business models, corporate cultures, operational processes and myriad other issues (see, for example: Huge-Brodin et al 2013).…”

Sustainable Timber Transport—Economic Aspects of Aerodynamic Reconfiguration

“…In general, road carriers, as well as other logistics service providers (LSPs), have been quite slow and reactive in adopting various green initiatives [14]. Important drivers for adopting green initiatives among LSPs include top management engagement [15], customer demands, legislation and the engagement among employees [14]. Barriers to adopting green initiatives include lack of customer demands, lack of knowledge and insecure investments [16].…”

“…Both on a company and a societal level, a sustainability assessment can be valid. While economic sustainability is important for the road carriers, they can also benefit from standing out as environmentally prominent [14,16]. In addition, by reducing the cost from lower fuel consumption, the economic sustainability for the companies will improve and therefore also the sustainability for the employees and drivers.…”