Title: Coordinate to enhance third party logistics relationships

Authors: Dan Andersson, Magnus Pruth, Jakob Rehme

Addresses: Department of Management and Economics, Linkopings Universitet, SE-581 83 Linkoping, Sweden. ' Industrial and Financial Economics, Goteborg University, School of Business, Economics and Law, Box 610, SE 40530 Gothenburg, Sweden. ' Department of Management and Economics, Linkopings Universitet, SE-581 83 Linkoping, Sweden

Abstract: This article emphasises the importance of coordination in Third Party Logistics (TPL) and describes how coordination can be managed. This is inspired by Key Account Management (KAM) literature and supported by empirical evidence. Buyers of TPL services currently perceive KAM as focusing on making sales and on negotiating contracts. This article proposes that KAM may have a material impact on TPL relationships and that this function can be developed further, primarily by having a coordination role. The article contains a coordination model based on both internal and external coordination of activities within a dyad, divided into operational, functional, geographic, and development coordination. The model explains how these types of coordination can integrate functions and contents in different alliance phases to build successful TPL relationships.

Keywords: buyer-supplier relationship; coordination management; key account management; KAM; relationship management; third party logistics; 3PL.

DOI: 10.1504/IJISM.2007.011450

International Journal of Integrated Supply Management, 2007 Vol.3 No.1, pp.69 - 85

Available online: 30 Nov 2006 *

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