Shipper-Carrier Integration

Shipper-carrier integration – overcoming the transparency problem through trust and collaboration

Research paper Abstract

Purpose: This paper reports on the efforts of a wholesaler for overcoming one of the main barriers to successful marketing channels – namely to overcome the ‘transparency problem’. Methodology: A decision-support tool that is capable of providing detailed costanalysis 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: (i) a transition from arm’s-length transactional relationships to integrated collaborative relationships; (ii) enhanced communication and trust between the parties; and (iii) substantial savings in distribution costs. Research limitations and 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: This study extends knowledge of how to achieve integrated supplychain relationships in practice through the utilisation of a new and comprehensive decision-support tool. Keywords: shipper–carrier relationships, integration, distribution management, risk, transparency.

1. Introduction

The movement of goods among the members of a supply chain is obviously crucial to the essential purpose of the chain (Stern et al., 2006). However, despite distribution fulfilling an essential function in supply chains, and despite it having the potential to play a positive valueadding role...