Role of Logistics Service Provider in Supply Chain Between Manufacturer and Subcontractor

This research focused on studying role of logistics service provider in a Finnish machinery industry supply chain between a manufacturer and a subcontractor. This research was started by searching arguments and industry driven needs for utilizing the service provider in the studied supply chain. Based on the results of the first research phase, a logistics service provider role model was generated. The model includes six different roles for the service provider: improver of operational logistics efficiency, operational decision maker, value-adder, production maker, supply chain manager and developer, and enabler of business growth. The developed role model was tested by four logistics service providers´ client relationships. In general, the studied service providers worked on operational tasks between the manufacturer and the subcontractor. This means that they can be placed at the first of two roles mentioned above. One studied service provider made an exception to this general line by operating with some clients as the production maker, the supply chain manager and developer, and even as the enabler of business growth. This indicates that there is potential market demand for service providers even in strategic supply chain management role.