Sustainability as criteria for logistics services procurement decisions : perspective of purchasing organizations and logistics service providers

Abstract

Logistics outsourcing has become a norm in a highly competitive global business environment and procurement of logistics services has become a strategic task for purchasing organizations. Growing environmental concerns and the focus on logistics' contribution to global climate change requires companies assume responsibility for procuring sustainable and green logistics services to pursue their own sustainability goals. This study aims to understand the mechanisms behind the effective implementation of sustainability strategies in procuring logistics services.

Through qualitative research employing a multiple case design, insights were gained from semi-structured interviews with four companies, comprising two purchasing organizations and two logistics service providers. Findings stress the significance of establishing clear purchasing goals encompassing sustainability dimensions and translating them throughout the procurement process. Collaboration with suppliers during specification stage aids in articulating expectations and refining criteria for supplier selection, pivotal for aligning sustainability values within organizations. The tactical stages of procurement emerge as critical, necessitating transparent processes for evaluating suppliers based on environmental and social sustainability alongside economic factors. Negotiation and contracting stages demand precise alignment of requirements with sustainability priorities to achieve sustainable outcomes. Although ordering and expediting stages often prioritize short-term costs, continuous monitoring and proactive measures can mitigate barriers, facilitating the optimization of logistics carbon footprint. Ultimately, organizational commitment, collaboration, and strategic alignment emerge as cornerstones for embedding sustainability in logistics services procurement.