The role of the logistics service provider in VMI operations

Jukka Hemilä, Erno Salmela, Ari Happonen

    Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review


    Industrial manufacturers today are outsourcing their logistic functions to logistics service provider (LSP) companies. At the same time, LSPs are developing their services to add more value to customer processes. Recent research projects in Finland have focused on logistics outsourcing and especially on inbound logistics from the manufacturers’ point of view. Development actions are focusing today on purchasing issues and inbound material flows. LSPs are assuming a more important role within traditional supplier-customer relationships. This paper concerns a research project focused on industrial Vendor Managed Inventory (VMI) in the case of low-cost items in manufacturing. We have analysed six material suppliers, how they use LSPs today, and the kind of potential they have to use LSPs in future. Logistics outsourcing to LSPs is not a simple topic. The paper discusses the LSPs’ perspective and what role they could take in VMI operations in manufacturing industries.
    Original languageEnglish
    Title of host publicationDeveloping Sustainable Collaborative Supply Chains
    Subtitle of host publicationProceedings of the 12th International Symposium on Logistics, 12th ISL
    EditorsKulwant S. Pawar
    PublisherCentre for Concurrent Enterprise (CCE)
    ISBN (Print)978-0-85358-218-2
    Publication statusPublished - 2007
    MoE publication typeA4 Article in a conference publication
    Event12th International Symposium on Logistics - Budapest, Hungary
    Duration: 8 Jul 200710 Jul 2007


    Conference12th International Symposium on Logistics


    • VMI
    • Vendor Managed Inventory
    • LSP
    • Logistics Service Provider


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