On the drivers of demand for innovative freight transportation services

Masoud Khakdaman, Jafar Rezaei, Lorant Tavasszy

Research output: Contribution to journalArticleScientificpeer-review

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Abstract

Contemporary innovations in freight transportation and logistics are instrumental in achieving more integrated, efficient, and sustainable services in the global market. While much attention is going to how contemporary innovations, including technology-enabled and management innovations, change the supply of services, little work is done on depicting their changing relationship with freight transportation demand. We present findings from a comprehensive study among Global Fortune 500 companies aimed at understanding what drives the demand for modern transportation services. We investigate the importance of three key service attributes that are growing in importance, i.e., operational control of transport mode, service flexibility and ancillary value-added services. We measure the influence of contextual factors on the choice of service, including supply chain strategy, demand volatility, internal flexibility and industry type. This leads to recommendations for shippers on how they can adjust their supply chains in the future to benefit from new freight services. Our findings also stress the need for the logistics industry to adopt modern service choice approaches.
Original languageEnglish
Pages (from-to)1-27
Number of pages27
JournalIEEE Engineering Management Review
DOIs
Publication statusPublished - 2022

Bibliographical note

Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

Keywords

  • Companies
  • Costs
  • Freight transportation demand
  • Industries
  • Logistics integration
  • Logistics services
  • Supply chains
  • Synchronization
  • Technological innovation
  • Transportation
  • Transportation flexibility
  • Transportation strategy

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