Article
A Framework For Purchasing Transport Services in Small And Medium Size Enterprises
Abstract
Purpose – The purpose of this paper is to present a framework for purchasing transport services to
enable small and medium size enterprises (SMEs) to improve relationships with logistics service
providers (LSPs) and enhance their own competitive advantage and profitability. Many SMEs lack
competence in purchasing transport services and a subsequent lack of “purchasing power” may cause
SMEs to be treated as “order takers” rather than “order makers” by LSPs, who have more leverage in
the purchasing process.
Design/methodology/approach – This research stemmed from a knowledge transfer research
project between the focal company and a university comprising a longitudinal single case study using
action research for developing and implementing the framework.
Findings – A framework using several tools for purchasing transport services and improving
transport performance has emerged from this research. Benefits from using this framework were
enjoyed by both the focal company and its LSPs and the focal company improved the relationship
power balance.
Research limitations/implications – The research and resulting framework are based on a single
case study and have not been tested in other firms or markets. However, the proposed framework may
be applied in other contexts, entirely or in parts.
Practical implications – The research offers practical insights to a frequently-encountered logistics
issue for SMEs through developing and applying specific processes for practical transport purchasing.
Originality/value – The paper contributes by synthesising the literature relating to the transport
purchasing process generally and in SMEs. It also provides a framework for SMEs to improve their
transport purchasing efforts, thereby enhancing economic and operational efficiency.
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