Horizontal collaboration between logistics service providers (LSP) in Australia: examining the structure opportunities and impediments

Abstract

This research investigated horizontal collaboration among logistics service providers (LSPs) in Australia. The study examined the extent to which this exists and is being adopted, and the forms of any horizontal collaboration among LSPs in Australia.

Using a qualitative methodology from an interpretivist-constructivist perspective, the research process used semi-structured interviews to collect responses from a broad range of individuals from Australian logistics providers, logistics authorities and associations.

The study found that horizontal collaboration is not being adopted by LSPs as the primary type of relationship to interact with each other in Australia. Their focus is the use of both vertical and lateral collaboration models, with vertical collaboration as the dominant type. The data also show that the extent of direct involvement in developing horizontal collaboration activities in the Australian logistics context seems to be to remain largely at arm's length and enter operational relationships. The participants, however, anticipated that the level of horizontal collaboration would grow in the future. The data revealed that LSPs consider horizontal collaboration to be a promising concept. There is clear enthusiasm and interest in the thinking of the logistics industry about horizontal collaboration, its possibilities, potential structures and the areas where this type of collaboration could be implemented and employed.

Potential opportunities and drivers of horizontal collaboration among LSPs were identified in the research. These were for LSPs seeking to reduce costs; improve productivity and market positioning; provide better customer service; and create better capability and capacity. The research found that the adoption of horizontal collaboration is impeded in the Australian logistics industry by difficulties with partner selection; problems with the partnership process and how economic benefits are determined and divided; and uncertainty about how to overcome difficulties with both business coordination and with information and communication technology. The research also identified that collaboration adoption is significantly negatively affected by the nature and structure of the Australian logistics industry, the attitude of large LSPs, fear of mergers and acquisitions in the industry and the role of government authorities and regulations in the Australian commercial context. The most significant effect of impediments to collaboration is that LSPs are reluctant or unable to build long-term successful horizontal collaborations with others in the Australian logistics industry.

This thesis uses the results of the data analysis and the existing research frameworks on collaboration in logistics to develop a theoretical model for understanding the development and effective application of horizontal collaboration. It proposes a comprehensive horizontal logistics collaboration model and evaluates its applicability in the Australian logistics context.