Aligning the purchase of green logistics practices between shippers and logistics service providers

This paper explores shippers’ (i.e. logistics buyers) and logistics service providers’ (LSPs) perceptions of green concerns under diverse contractual settings during the key phases of the logistics purchasing process: request for proposal, negotiations, contracting and execution. Accordingly, it derives recommendations that could increase the actors’ inter- and- intra-organisational alignment on green targets throughout these phases. Empirical data are obtained from eight individual cases of three shippers and five LSPs, representing the buyer/seller roles within logistics arrangements. Contrary to previous literature holding the view that setting more green demands by shippers would guarantee green outcomes, the findings show that shippers’ green demands may hinder green logistics applications due to impediments to LSPs’ asset-sharing strategies. Also, a deadlock situation is revealed in the negotiations phase, where both actors await each other to introduce additional demands/offers—calling for further regulatory intervention to release this deadlock. Moreover, this paper shows how a mismatch of interests in contractual periods between shippers and LSPs can obstruct green investments—signalling that the green criterion is not the decisive factor in shaping shippers’ outsourcing strategies. The findings also stress a lack of follow-up efforts by shippers on green measures that were specified pre-contract, attributing this to contrasting intra-organisational objectives within shippers’ firms. This paper contributes to the green logistics purchasing literature by revealing how different contractual settings play an important role in shaping shippers’/LSPs’ perceptions of green concerns during the logistics purchasing process. Further, it is one of the first studies to provide phase-specific recommendations to increase the actors’ alignment on green targets.