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The Effect of Third-Party SaaS-Based Logistics Platforms on Power within Supply Chain Relationships

Dam, A.M. ten (2018) The Effect of Third-Party SaaS-Based Logistics Platforms on Power within Supply Chain Relationships.

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Abstract:In nowadays dynamic environment, supply chain collaboration and integration are crucial. In the logistics sector, third-party SaaS-based logistics platforms, an Industry 4.0 solution, are springing up and are enabling the move towards a connected, efficient and smart supply chain ecosystem. Those platforms are likely to influence supply chain relationships, for example by shifting the coordinative role to the platform and changing connections between supply chain actors. This raises the question whether those platforms will affect power within supply chain relationships. A case study based on a theoretical framework has been conducted to investigate the effect of third-party SaaS-based logistics platforms on power within supply chain relationships. Twelve business representatives, representing shippers, platforms, carriers and external supply chain organisations, have been interviewed to examine the effect of third-party SaaS-based logistics platforms on the four power components of the theoretical framework, namely structural power, perceived power, behavioural power and realised power. This study shows that the advent of third-party SaaS-based logistics platforms has influenced all four power components. Because of the introduction of those platforms, shippers are getting a stronger power position with respect to carriers. Furthermore, the competition between carriers has been intensified, strengthening the horizontal position of digitally fit carriers. Moreover, shippers and carriers are losing some power towards the platforms. Although the platforms are not aiming for it, they are getting a vertical power position due to their increased value to the supply chain which makes shippers and carriers dependent on them. Even though the advent of third-party SaaS-based logistics platforms decreases the power of shippers and carriers to a greater or lesser extent, generally all supply chain actors are (potentially) benefiting from this new phenomenon in their journey towards becoming a connected, efficient and smart supply chain ecosystem.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/75433
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