Using a “virtual joint venture” to facilitate the adoption of intermodal transport
Abstract
Purpose
This paper aims to examine a strategic alliance between a large shipper and a freight forwarder to provide an intermodal service to and from the port of Gothenburg. The supply chain literature discusses various models of supply chain collaboration and integration. When applied to logistics, each has been shown to exhibit different levels of success depending on particular factors.
Design/methodology/approach
The methodology is a single in-depth case paper based on action research, interviews and document analysis.
Findings
According to this innovative model, a new entity is not set up but an open-book basis is established, long-term contracts with other parties are signed, risks and profits are shared and the shipper makes several investments specific to the service. Thus, the benefits of a joint venture are obtained without needing to establish a new organisation, thereby sacrificing flexibility and independence.
Research limitations/implications
A limitation of this study is that it is based on a single case of best practice; it may be difficult to replicate the high levels of trust in other situations. Nevertheless, the evident success of this “virtual joint venture” suggests that some elements are transferable to other cases, and the model may be refined through additional case analysis.
Practical implications
Results indicate several advantages of this “virtual joint venture” model, including risk sharing, knowledge development, long-term service stability and diversification of activities, which all contribute to facilitating the shift of a large customer from road haulage to intermodal transport. Potential challenges mainly relate to contractual complexity.
Originality/value
This paper identifies an innovative business model for logistics integration that can be used in future in other cases to make modal shift more attractive and successful, which is a key aim of government policy in many countries.
Keywords
Acknowledgements
The authors would like to thank the representatives from Jula and Schenker who shared their time and knowledge throughout the course of this research. The research for this paper was undertaken with the financial support of the GreCOR project funded by the European Union through the ERDF Interreg IVB programme, The Swedish Transport Administration and The Sustainable Transport Initiative financed through the Swedish Government.
Citation
Monios, J. and Bergqvist, R. (2015), "Using a “virtual joint venture” to facilitate the adoption of intermodal transport", Supply Chain Management, Vol. 20 No. 5, pp. 534-548. https://doi.org/10.1108/SCM-02-2015-0051
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited