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Using fourth-party logistics management to improve horizontal collaboration among grocery retailers

Hingley, Martin, Lindgreen, Adam ORCID: https://orcid.org/0000-0001-7881-7350, Grant, David B. and Kane, Charles 2011. Using fourth-party logistics management to improve horizontal collaboration among grocery retailers. Supply Chain Management : An International Journal 16 (5) , pp. 316-327. 10.1108/13598541111155839

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Abstract

Purpose – There is a paucity of literature considering horizontal collaboration among grocery retailers, suppliers, and third-party logistics (3PL) providers. This paper seeks to investigate benefits of and barriers to the use of fourth-party logistics (4PL) management as a catalyst for horizontal collaboration. Design/methodology/approach – Three suppliers, three logistics service providers (LSPs), and one grocery retailer participated in semi-structured interviews for this exploratory qualitative study. Findings – Large LSPs can establish 4PL management but the significant investment required to do so is a deterrent. Interviewees believed 4PL would negatively influence the grocery retailer-supplier dynamic but simultaneously would provide key potential benefits. Retaining supply chain control means more to grocery retailers than cost efficiencies realised through horizontal collaboration. Research limitations/implications – Fierce competition among major grocery chains means that most are unwilling to participate in studies of their systems, which restricts the research scope. Practical implications – Some stakeholders want deeper integration into grocery supply networks, and the 4PL model could apply to diverse sectors and circumstances. This study shows that barriers to such integration are created by power plays among lead stakeholders in grocery retailing that inhibit horizontal collaboration regardless of cost or other benefits. Originality/value – The study investigates an under-researched aspect of horizontal supply chain collaboration in the highly relevant retail grocery sector: a high volume, mass market industry that requires an enormous logistics infrastructure and highly embedded networks of relationships.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
Uncontrolled Keywords: Distribution management ; Food industry ; Retailers
Publisher: Emerald
ISSN: 1359-8546
Date of First Compliant Deposit: 30 March 2016
Last Modified: 05 May 2023 15:43
URI: https://orca.cardiff.ac.uk/id/eprint/22257

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