Shipper-carrier integration Overcoming the transparency problem through trust and collaboration

Purpose -This paper aims to report on the efforts of a wholesaler in overcoming one of the main barriers to successful marketing channels namely the "transparency problem". Design/methodology/approach - A decision-support tool that is capable of providing detailed cost-analysis of transportation arrangements is developed and applied within the context of an action research project set up to improve information exchange of sensitive information between a shipper and two carriers in a Norwegian grocery supply chain. Findings - The study finds that the application of the decision-support tool is associated with: a transition from arm's-length transactional relationships to integrated collaborative relationships; enhanced communication and trust between the parties; and substantial savings in distribution costs. Research limitations/implications - Action research methodology confined to a single shipper and two carriers limits the confidence with which the findings can be generalised; future studies should formally test the effects of communication and trust on integration. Practical implications - The study provides practical suggestions for achieving mutual benefits from closer collaboration between buyers and suppliers of transportation services. Originality/value - The study extends knowledge of how to achieve integrated supply-chain relationships in practice through the utilisation of a new and comprehensive decision-support tool.