Trust building in logistics cooperations

A conceptual model for the design of a trust?building control tower strategy in multi?company cooperations in logistics

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Abstract

High inefficiencies in transport networks due to low utilization of transport modes, incurring unnecessary costs and burdens on the environment, are motivating companies to increasingly cooperate in logistics with companies from the same or another value chain. Although multi-company cooperations are likely to create benefits for the cooperating companies, more than half of all cooperations in logistics fail. Trust has been identified as a central success factor for the start and preservation of a cooperation. A conceptual model has been developed that is based on multi-actor risk management and enables decision makers to regain the ability to act in the otherwise complex and multifaceted subject of trust building. The model aims at building up trust by mitigating perceived risks of partners in a cooperation. The suitability for practical use of the presented model is proven on the basis of a case study in the Dutch building industry which resulted into recommendations for certain risk counter strategies .