Investigation of risks and value with services used by transporters : A case study within the road freight transportation industry

Abstract: The transportation industry is a rapidly changing business. As a result of the increased demand for transportation and the tougher demands on transportation companies’ performance, it is important that they have good and reliable processes that are able to live up to those demands in a highly competitive market. Increased performance is important for transportation companies in order to create value for its customers and steps that can help them to achieve this can be seen as valuable. In Sweden, vehicle manufacturers offer extended services in order to respond to the changes on the transportation market. However, there is a knowledge gap about the experiences of using a product together with extended services that has a more service dominant logic compared to buying and using only the product. This research is conducted as a multiple-case study with five companies within the freight transportation industry to investigate their experiences of using extended services regarding risk and value concepts. To be able to conduct this research, literature and empirical study has been conducted through the collection of secondary- and primary data such as face-to- face interviews. The result of this study shows that there are several determining factors, which the case companies consider when determining how to resolve the issues of extended services such as financial aspects, location of workshop, flexibility, size of transporter, and control. Fur- thermore was advantages of using extended services offered by vehicle manufacturers found that related to financial advantages, increased customer service levels, assurance that best service will be provided, and increased up-time. In addition to that it was found that these services could help transportation companies to reduce some risks related to the financial- and goods/physical risk categories. In contrast were advantages of not using extended services offered by vehicle manufacturers found such as financial benefits, possibilities to cooperate, flexibility, increased up-time as a result of location, and control. The loss of control was a risk found that could be decreased if not using vehicle manufacturers extended services.