Dynamic integration in SCM- the role of TPL

Abstract:         Introduction:     Companies are facing an environment with fierce competition therefore to respond to the customers' needs and to deliver on time at a competitive cost is becoming more and more important. Integration between the actors in the SC is increasing in importance and is seen as a core competitive strategy to respond to the customers' demands. SCI can be achieved through efficient linkages among various supply chain activities however internal excellence is not enough and SCM seeks to integrate internal functions with external operations of suppliers, customer and other SC members. In SCI the TPL firms are said to play an important role because of their expertise and knowledge. Problem: Previous researchers have identified gaps in the SCI literature which does not consider the role of the TPL firm. Similar gaps have been found in the TPL literature which does not put emphasis on SCI. Nevertheless the importance of TPL firms in SCI has been pointed out as significant. Therefore this thesis will study the role of the TPL firm in SCI to improve the knowledge and create a better understanding. Purpose: The purpose of this thesis is to study and uncover the role of the TPL firm Schenker Logistics AB Nässjö in supporting SCI with its customer Relacom and its supplier Nexans to gain a deeper understanding of the phenomenon. By analyzing the drivers, barriers and outcomes of the SCI for each firm, the paper pursues the notion that SCI is a dynamic process and TPL firm plays an important role. Method: This thesis is based on a qualitative approach where interviews with key persons are the main approach to gathering information. The qualitative approach has its strengths is being able to obtain rich nuances in the information which fits our purpose to go deeper in a phenomenon. Conclusions: By analyzing the drivers, barriers and outcomes of SCI we have reached the conclusion that the role of the TPL firm is to achieve benefits through the three C's (the company, its customers and its competitors). The TPL firm also smooths out the friction between other members of the SC and help to create a better, faster, cheaper, smarter and greener SCI. Since the factors influencing SCI are constantly changing, all actors continuously have to keep updated to react to the pressures from the market.