Moving Across Boundaries to Next Level CI: a case study on Continuous Improvement in a Logistics Service Provider-context

Moving Across Boundaries to Next Level CI: a case study on Continuous

Improvement in a Logistics Service Provider-context

Master thesis, MscBA, scpecialization Supply Chain Management University of Groningen, Faculty of Economics and Business

January 26, 2015 SIMON NIJLAND Studentnummer: 2033631 e-mail: s.a.nijland@student.rug.nl Supervisor/ university J. Veldman Co-assessor/ university W.H.M. Alsem Supervisor/ Field of Study

E. Doornbos

Wijnne & Barends Logistics BV

Acknowledgements:

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Abstract:

This paper involves the application of the Continuous Improvement (CI)-model of Bessant & Caffyn (1997) to a Logistics Service Provider (LSP), namely 'Wijnne Barends' to gain insight into the process of developing CI in a LSP context. As the LSP-context is very different from other service providers, applying the model provides insight into behaviors which are specific for CI in this context and the structures that enable CI-evolution for this specific context. Continuous

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Table of Contents

2.4 The Bessant & Caffyn Model …...8

2.5 CI-Enablers ……….... ...12 2.6 Theoretical Framework …...15 3. Methodology …...17 3.1 Research Design …...17 3.2 Data Collection …...17 3.3 Measurement/ Instruments …...19 3.4 Data Analysis …...29 4. Results ……….……….……..30 4.1.1 Business Conditions ………...……….…… 30 4.1.2 Process Description ………..………..….32

4.1.3 Characteristics of the Process ……….37

4.2 CI-behavior within the Process ………..………38

4.3 CI-Enablers within the Process ………46

4.4 Analysis CI-behavior and CI Enablers………..54

4.5 Contradicting findings………57

Discussion………...……….60

Conclusions, Limitations & Recommendations…….……….64

References………..……….68

APPENDIX A: QUESTIONNAIRE………..70

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1. Introduction

External forces like high customer demands, competition and possible future project involvements constantly drive Logistics Service Providers (LSPs) to come up with new and innovative solutions and improvement of delivered services over time (Langley et al., 2005). A way for LSPs realize this, is to apply continuous improvement (CI). Continuous improvement involves a bundle of behavioral abilities which can help an organization improve what it currently does (Bessant, Caffyn and Callagher, 2001). By having these abilities, organizations are able to increase efficiency and performance by gradually improving their processes ((Panayides, 2007) (Yu, Ellinger and Haozhe, 2010), (Hyland, Soosay & Sloan, 2003)). When applying Continuous Improvement, strategic advantage is not only obtained from the possession of assets or from a particular product or market position, but also from abilities which are built up over time. By having embedded these abilities, a competitive edge is achieved or maintained in an uncertain and rapidly changing environment (Bessant & Francis, 1999).

CI is of considerable relevance for LSPs as CI allows LSPs to be customer oriented. By being to a high degree customer oriented, LSPs can differentiate themselves as they are able to meet customers' demands precisely (Panayides, 2007). Value for customers is therefore created by offering service variety, service quality and supply chain integration often based on long term endurable relationships. Especially in the LSP environment where the unpredictability of customer requirements is increasing and where market pressures force to expand service offerings, the ability to respond to the unexpected is critical (Yu, Ellinger and Haozhe, 2010). CI provides abilities for doing this. Consequently, having CI-capability is of significant importance for LSPs (Yu, Ellinger and Haozhe, 2010).

A way for organizations to develop CI-abilities is to apply CI- models. CI-models enable organizations to get insight in their current CI-capability and allow organizations to specify a desired state of CI-capability (Bessant, Caffyn & Gallagher, 2001). As CI-models specify general CI- abilities that consist of specific CI-behaviors, organizations can get insight in to which degree they have certain abilities of Continuous Improvement. The degree in which organizations have such abilities is indicated by CI-specific behavior that occurs within the organization. Next to providing organizations insight in their current CI-capability, CI-models can also provide organizations with a road map for evolving CI to a desired future state as CI-models allow to define a desired future state of CI-capability.

Bessant and Caffyn's CI-Model (1997) identifies five different levels in the evolution of Continuous Improvement with corresponding CI-abilities and corresponding CI-behavior. In addition to Bessant and Caffyn’s model, Garcia-Sabater, Marin-Garcia & Perello-Marin (2012) have identified certain structures that enable this CI-behavior at a specific level. Structures that facilitate in embedding and evolving CI-behavior, are referred to as ‘enablers’. Examples of such structures are; having CI prioritized in the company's strategy, having measurements for measuring process performance and the training of employees for improving their skills. Regarding CI-behaviors and the enablers that occur within the organization, the current CI-capability can be identified. Furthermore it can be identified what enablers to embed to trigger desired behavior and therefore evolve CI-capability.

4 fact that the internal and external context is different for every organization individually, which causes the requirement for different structures to facilitate Continuous Improvement. Although the model is designed for evolving Continuous Improvement in any organization, research is lacking on the enablers that are required for Continuous Improvement for specific organizational circumstances (Kerrin, 1999).

The characteristics of LSPs and the characteristics of their environment are highly specific and very different from other service providers (Busse, 2011). LSPs are characterized by a high customer closeness as customers demand industry-specific solutions and often have a role in the logistic process. As a result LSPs tend to react to customer wishes (Carbone & Stone, 2005; Flint & Stone, 2005). Being close to customers requires a decentralized organization characterized by

geographical dispersion and peripheral decision making (Andersson & Norman, 2002). The tasks that LSPs perform to a high degree standardized which makes them easy to execute (Langley et al., 2006). Consequently, the work is low skilled and based on following orders (Ellinger et al., 2002; Lin, 2006). As Logistic activities concern low skilled work that is based on following orders, the LSP culture is classified as reactive and down to earth (Langley et al., 2006). Furthermore are LSPs characterized by focussing rather on their current customer base than on acquiring new customers as they have a high closeness to customers and the ease of following requirements. As a result the LSP's focus is not on improving processes and innovation to acquire new customers. Consequently, their innovation activity differs significantly from other service providers (Busse, 2011). The

organizational characteristics are considered specific to a high degree, so that a LSP-specific approach to continuous improvement is required (Busse, 2011). Busse (2011) therefore requests for case studies on improvement and innovation in a LSP-context.

Both in response to Kerrin (1999) and Busse (2011) this paper involves a single case study applying Bessant and Caffyn's model to a process of LSP 'Wijnne Barends'. As CI is of significant relevance for LSPs and since LSPs have highly specific organizational characteristics, researching the

structures that enable Continuous Improvement is legitimized. Performing a case study provides insight into how the Bessant and Caffyn's model (1997) applies to a specific LSP-context and therefore gives insight into what CI-behavior is specific to this context and what structures enable CI-behavior. The theoretical goal is therefore the application of the model in the LSP-context which gives insight into what CI-behavior occurs within the organization and what enablers are relevant for developing CI in the logistic context. The practical goal is to give logistics managers insight into what CI-behavior and CI-enablers are relevant for improving a logistics processes. The main

question that this paper therefore aims to answer are; How is Continuous Improvement developed in a LSP-context? For answering this question it is assessed what CI-behavior occurs within the logistic process and what structures are present to enable them. Subsequently it is discussed whether the behavior and enablers also apply for other organizations in the LSP-context.

Before doing this, first literature on Continuous Improvement, CI in a LSP setting, the LSP-context Bessant & Caffyn's model and enablers is analyzed. Based on the literature, a theoretical

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2. Theoretical background

2.1 Continuous Improvement

Continuous improvement is considered as an organization-wide process of focused and sustained incremental innovation including mechanisms whereby a high proportion of the organization can become involved in its innovation and learning process (Bessant & Francis, 1999). Additionally Fryer et al. (2007) consider a continuous improvement culture as “one where all members of the organization work together on an ongoing basis improving processes and reducing errors to improve overall performance for the customer. This implies that CI is more than the application of tools and techniques as it requires an organizational culture that encourages and supports

improvements (Webster, 1999; Bessant et al. 2001). In this culture mistakes are viewed as opportunity for improvement by having a formalized problem solving process (Fryer et al. 2013). Sustained incremental innovation involves a dynamic capability where strategic advantage not only is gained from the possession of assets or product or market position, but also from abilities that are built up over time (Bessant & Francis, 1999). Abilities involve specific behaviors that repeat and return over time and do therefore not involve a single activity. These behaviors are highly firm-specific and form the basis for achieving and/-or maintaining a competitive edge in an uncertain rapidly changing environment (Bessant & Francis, 1999). Furthermore, strategic advantage is created as these abilities take time to institutionalize and therefore are hard to copy by

6 aiming at establishing the same patterns of behavior. However, as every organization is different regarding its organization and its environment, embedding those patterns requires a approach that is specific to that organization. Embedding CI-behavior is enabled by resources of all kinds called ´enablers´. Enablers are therefore defined as 'resources and aids of all kinds that facilitate in the development of CI-behavior' (Bessant & Francis, 1999). Enablers are further elaborated in section 2.4. As CI involves behaviors and structures that gradually must be embedded in the organization and since many employees are involved, its implementation is not easy, must be managed,

requires time and resources and must be supported by management (Hackett, 2003).

Processes are particularly relevant for CI as it involves the improvement of processes within a company on a permanent basis. Processes are a bundle of firm-specific behavioral routines. Basically they represent the way things are done in the organization. Consequently, processes also describe the organization’s approach on innovation, learning and renewal. Therefore the focus of the CI-approach is on organizations’ processes (Bessant & Francis, 1999).

A changing environment is often the main driver for CI-implementation (Busse, 2011; Panayides, 2007). Examples are; CI implementation forced by competition (Tersine, 2004), CI implementation forced by customers' demands (Yu, Ellinger and Haozhe, 2010) or CI implementations in order to maintain profitable in times of economic distress (Bessant & Francis, 1999). As Continuous Improvement is integrated gradually amongst the organization, performance will increase over time. Performance improvements will appear throughout the whole organization as well as on a local level both operational and strategic (Bessant, Caffyn & Gallagher, 2001).

2.2 LSP-Context

A Logistics Service Provider is a provider of industrial logistics services that performs logistics functions on behalf of their clients (Panayides, 2007; Delfmann et al., 2002). Logistics services are therefore at the very core of the LSPs. The environment in which LSPs operate is characterized by the phenomenon of logistics outsourcing (Boumole et al. 2007; Knemeyer et al, 2003). As a result LSPs get in touch with either the material flows of their customers, those of their customers’ customers and the material flow of suppliers. Furthermore, the logistics function has a central position in the supply chain. Consequently, LSPs are characterized by a high closeness to their customers and suppliers (Carbone and Stone, 2005; Flint et al., 2005). The ability of LSPs to continuously improve their processes is therefore important for more parties than only the LSP itself.

Organizational characteristics

As LSPs are characterized by a high closeness to customers, LSPs are mainly focused on their current customer base instead of being focused on other potential customers on other markets. Therefore are LSPs characterized by the ease of reacting to expressed customer wishes. The LSP-market requires industry-specific solutions which strengthens the individual customers’

importance (Langley et al., 2005). As a result the skill to follow requirements is required (Ellinger et al, 2002; Evangaelista and Sweeney, 2006; Lai et al., 2005; Lin, 2006). This makes it for LSPs

7 although customers increasingly expect new and innovative solutions from their LSPs and

improvement of delivered service over time (Flint et al., 2005). Through the closeness with

customers, LSPs are tend to have decentralized organizations. Employees are therefore distributed across multiple geographically dispersed sites (Andersson & Norman, 2002). As a result, the nature of decision making is merely peripheral and the intra-organizational transfer of knowledge is relatively more difficult for LSPs than for other service providers. (Carbone and Stone, 2005). As tasks within the LSP-context are to a high degree standarized, are often easy to execute and

involve the skill of following orders, the company culture of LSPs is characterized as 'down to earth' and reactive ( Langley et al., 2006).

Environmental characteristics

The basic offerings of LSPs are transportation and warehousing. However, market pressure forces LSPs to upgrade and expand service offerings (Yu, Ellinger and Haozhe, 2010). More sophisticated services requires the ability to be more innovative (Langley et al., 2006; Lieb, 2005). Furthermore globalization increases competitive pressure and the need to be innovative (Capacino and Britt, 1991; Langley et al., 2005; Semeijn, 1995). Deregulation increases competition for cost and quality an therefore the pressure and possibility to be innovative particularly in a setting of time

compression (Allen, 2005; Jensen & Stelling, 2007; Lewis et al., 2001). Competition increased through penetration of logistics market, concentration in the market is low. Focusing on existing customer and sustaining business is therefore an effective strategy as it cheaper than acquiring new customers (Kalwani and Narayandas, 1995). Table 1 gives an overview of the organizational and environmental characteristics of LSPs.

2.3 CI and LSPs

8 improvement (Yu, Ellinger and Haozhe, 2010). Therefore CI is considered as being a key element in improving firm logistics improvement. LSPs with a strong customer orientation are able to create significant value for customers through superior execution on key elements of logistics service. Regarding the trends within the environment, LSPs can differentiate by offering service variety, service quality and integrating with their customers (supply chain integration). Due to an

increasing unpredictability of customer requirements, it is harder to standardize processes which makes the ability to respond to the unexpected critical (Christopher and Gattorna, 2005). When the market environment is dynamic, LSPs can ensure high levels of service by adjusting and adapting their operational processes on a regular basis. Furthermore enables continuous adaptation LSPs to anticipate on new market conditions and customer requirements (Flint & Menzer, 2000). To ensure a continuous creation and delivery of superior value for customers, LSPs must constantly evaluate and improve their current operations and markets to identify

improvement areas (Yu, Ellinger and Haozhe, 2010). Without continuous response to changing customer needs, businesses have little hope of long-term customer retention (Flint & Mentzer, 2000).

The acknowledgement for different performance objectives than the traditional ones is confirmed by many authors. Hertz & Alfredsson (2003) state that differentiation and competitive advantage is no longer determined by improving traditional logistics performance objectives like cost reduction and lead time reduction (Hertz & Alfredsson, 2003). Moreover competitive differentiation and the strategic edge of LSPs is increasingly determined by the ability to develop and manage customer relationships and the level of service quality that is offered. For improving client relationships and service quality, specific knowledge is required related to the organization’s ability to learn (Hertz and Alfredsson, 2003). CI is therefore considered as a strategy for creating competitive advantage. Furthermore CI enhances customer satisfaction, and gradually leads to higher firm performance (Panayides, 2007; Wallenburg, 2009).

Panayides (2007) mentions that organizational learning contributes to higher performance in the LSP-client relationship. This is caused by both improvements in relationship orientation and logistics service quality caused by organizational learning. The ability to manage customer

relationships better by being more relationship oriented improves service quality since customers’ interests are served better. A better understanding of customers’ interests improves trust, empathy and bonding which gradually enhances improvement in reliability and responsiveness to

customers’ requirements. As the LSP sector faces increasing competitive pressure in a highly fragmented, high grow market, LSPs should emphasize the development of organizational learning and relational capabilities (Panayides, 2007).

2.4 The Bessant and Caffyn model

Bessant & Caffyn (1997) have developed a CI-model for the purpose of improving the understanding of the CI-evolution process and how it can successfully be managed through enabling and sustaining routines (Kerrin, 1999). The model considers different elements respectively; CI-capability, CI-abilities and CI-behaviors.

9 involved in Continuous Improvement, for example 'the ability to understand CI'. The Bessant and Caffyn model identifies eight different types of abilities. Whether an organization possesses specific CI-abilities is derived from specific CI-behavior that occurs within the organization. Whether an organization has ‘the ability to understand CI’ is for example inferred by behavior where ‘people at all levels demonstrate a shared belief in the value of small steps and that everyone can contribute, by themselves being actively involved in making and recognizing incremental improvements’.

The capability model established by Bessant & Caffyn (1997) identifies five different levels of CI-capability respectively level 1 till level 5. Table 2 shows which abilities are characteristic for which level and their constituent behaviors. Progressing from one stage to another involves maturing in particular abilities by developing current CI-behavior and adding new behaviors to the core set (Bessant, Caffyn & Gallagher, 2001). Similar to the abilities that occur at different levels of CI-capability, also specific CI enabling structures occur at the different levels. Garcia-Sabater, Marin-Garcia & Perello-Marin, (2012) identified several principal structures that occur at the specific levels of CI-capability. Presence of those structures enable the ability to continuously improve processes and are called enablers. However, when presence of these structures is lacking, process improvement (Bessant & Francis, 1999). In the next section enablers are discussed.

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2.5 CI-Enablers

CI-behavior is enabled by structures that occur within an organization. In this study these

structures are referred to as enablers. Enablers are defined as resources and aids of all kinds that facilitate in the development of CI-behavior (Bessant & Francis, 1999). The presence of enablers within a company may offer a catalyzing effect, thereby promoting the development of Continuous Improvement (Garcia-Sabater, Marin-Garcia & Perello-Marin, 2012). Each structure enables

Continuous Improvement within the organization, however absence of enablers or

underdevelopment of them hampers Continuous Improvement. Leadership for example enhances the evolution of CI when the right type of leadership is brought to practice. However, poor

leadership can hamper the process of developing CI-capability.

Based on the CI-model identified by Bessant and Caffyn (1997), Garcia-Sabater, Marin-Garcia & Perello-Marin, (2012) have identified 10 principal enablers that enhance CI-Capability within an organization and linked these to the different levels of CI-Capability. These enablers are referred to as principal enablers as they are required for evolving CI in any context. Table 3 shows the 10 principal enablers and the corresponding CI-capability levels for which they are required to create desired CI-behavior. The enablers are reffered to as the key factors for the sustainability of

Continuous Improvement systems (Jaca, Viles, Mateo & Santos, 2012). Each element is discussed briefly.

Level Enablers 1 - Management Involvement & Strategy

- Metrics

- Training & Abilities - Employee Involvement 2 - Resources - Leadership Management - Selection of CI Projects 3 - Customer Involvement - Stakeholder Focus - Objectives

4 - Clarification of New Structures Methods for expanding CI 5 -

Management Involvement & Strategy

By various authors management involvement is considered as the most important factor in evolving CI-capabilities. Strategy in this context concerns the extent to which Continuous Improvement is prioritized within the company's strategy. Strategy allows the business to

concentrate on those activities linked to improvement (Upton, 1996). Management support and CI-strategy are closely related since a company's strategy is determined by the management. Within a company where CI is supported by the management, it is assumable that CI is prioritized within the company's strategy.

Objectives & Metrics

Next to management involvement & strategy, setting objectives and the need for metrics is also considered as one of the key enablers for evolving CI-capability (Morgan and Avergun, 1997). Objectives and metrics are essential for monitoring improvement processes and assessing the outcomes. Assessing outcomes of improvement projects can only can be realized when outcomes can be assessed against objectives that have been set. Objectives should be established based on reliable measurements, centered on results, and congruent with the aims of other areas of the firm (Kaye & Andersson, 1999). Agreements on objectives should be known and agreed upon by

13 team leaders (Lawler, Mohrman & Ledford, 1992).

Leadership Management

Leadership management involves the guidance of the improvement process by a middle

management-manager who specifically focuses on evolving continuous improvement within the company (Garcia-Sabater, Marin-Garcia & Perello-Marin, 2012). Such a manager is involved in designing, implementing and supporting in CI.

Worker/employee Involvement

Also worker/employee involvement is considered as key in realizing continuous improvement. Continuous Improvement is based on the involvement of employees within the improvement process. The basic principle of CI involves the philosophy that assumes that every person has to a certain extent the ability to solve problems. All employees can deliver input in terms of ideas, help in developing and executing proposals and implement improvements (Jorgensen et al., 2003). Resources

Although CI is a relatively low cost solution for improving processes, certain resources are required. Financial resources are needed to enable employees to devote time on continuous improvement practices. As soon as CI is embedded within the organization, the CI-activities should be considered as a part of the daily routine instead of one time activities. As a result as substantion amount resources must be allocated to CI-activities on an ongoing basis.

Clarification and Creation of New Structures

As Continuous Improvement can be cross functional, improvements can concerns different departments like logistics, production or quality. Therefore a specific structure must be created to facilitate the continuous improvement program. This structure should thus involve employees from different separate departments. Such a structure concerns a team supervised by a tier of higher-level team capable of clearing any potential obstacle encountered or monitoring the action plans proposed by the lower CI-groups (Garcia-Arca & Prado-Prado, 2008). Leaders and coordinators should be selected based on their knowledge of the process and of the tools necessary to resolve the problem as a group (Bessant et al., 1994).

Methods for Expanding CI

For creating sustainable CI it is important to have methods that enable the expansion of CI throughout the whole company. This requires a manual of good practices that allow the a

standardization of improvements and their application, not only in other departments, but also in areas of future expansion (Garcia-Sabater and Marin-Garcia, 2008).

Selection of CI-projects

Since it is important to be successful in the first improvement projects (Bessant et al., 1994; Dale et al., 1997), it is important to select the right projects, especially when beginning implementing CI. Therefore it is recommendable that the first CI-project is a focused project where goals are set by the company's directors and assigned to different groups of workers. This ensures that the first CI-project receives enough attention to be successful.

Cultural Aspects

14 with older workers that have spent many year within the company with a traditional culture

greater effort is necessary to deploy (Dale et al., 1997). Training & Abilities

Training skills is essential in acquiring the ability to solve problems. Training concerns both training in problem solving skills as well as training in skills concerning tasks within the process.

As mentioned before, Garcia-Sabater, Marin-Garcia & Perello-Marin (2012) have linked the different enablers to the levels of CI-capability identified by Bessant & Caffyn (1997). This enables the identification of a company's CI-capability level. By looking at the enablers that occur within the organization, its CI-capability level can be derived. Three enablers identified by Garcia-Sabater, Marin-Garcia & Perello-Marin (2012) could not be assigned to a specific level: (i) management support (ii) the availability of resources and (iii) cultural aspects. This is caused by the fact that those elements should be present at all CI-capability levels. Table X shows which enablers are assigned to which levels. Next to the enablers identified by Garcia-Sabater, Marin-Garcia & Perello-Marin (2012), it is expected that some enablers especially apply to LSPs. Enablers that are

specifically apply to LSPs are; Communication, Customer involvement and Stakeholder focus. For all enablers it is discussed why it is expected that especially those enablers specifically are important for enabling CI in the LSP-context.

Communication

Especially for LSPs is communication key in enabling Continuous Improvement. This is due to that fact that LSP organizations are characterized by a decentralized organization and geographical dispersion which complicates the intra-organizational transfer of knowledge which on its turn increases the need for communication. Moreover are LSPs characterized by a high closeness to either customer and suppliers which likely requires involvement of them in improvement activities which increases the need for communication. Communication is considered as cement that hold the bricks together (Baidoun, 2003). Therefore it is expected that effective inter- and intra-organizational communication is required, especially for evolving CI in the LSP-context. Consequently it is expected that communication is important for enabling CI at all levels of CI-capability.

Customer Involvement

Due to the demand for industry-specific solutions and sometimes involvement of the customer in the process LSPs are characterized by high customer closeness. For enhancing customer

satisfaction, information about the customer and feedback is required in the service design characteristics of the process (Sushil, 2013). Therefore is customer involvement required for evolving CI in the LSP-context (Baidoun, 2003). It is expected that customer involvement corresponds to a level-3 CI-capability as this level is characterized by CI-projects that are taking place in collaboration with customers.

Stakeholder focus

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2.6 Theoretical framework

Embedding and evolving CI-behavior is facilitated by enablers like resources and measurements. This implies a relationship where the degree in which enablers are present, positively correlates to the degree in which CI-capability is possessed. Consequently a positive relationship is implied between enablers and CI-capability. Figure 2 represents the theoretical model that is adopted for this study.

For LSPs is having CI-capability important be able to respond to a market which increasingly

demands flexibility and logistic performance (Christopher and Gattorna, 2005). However, originally LSPs do not possess this ability as they are mainly focused on their current customer base. As LSPs’ organizational and environmental characteristics are very different from other service providers, a LSP-specific approach to continuous improvement is required (Busse, 2011). Wallenburg (2009) suggests that improvement at LSPs offers potential that has been neglected in both theory and practice.

For the purpose of identifying LSP-specific behavior and CI for Continuous Improvement, a single case study is performed to the LSP, namely ‘Wijnne Barends’. This case study involves the

assessment of its capability using Bessant & Caffyn’s (1997) model. It is aimed to identify the CI-capability within a specific logistic-process which involves the identification of CI-behavior which occurs and the identification of the CI-enablers which enable this behavior.

The process which is assessed concerns the process of B-Wood transshipment which involves the transshipment of B-Wood (wood chips) to the Eneco Power plant. As CI-capability is derived from CI-behaviors and CI-abilities that occur within the process, the question that needs to be answered is to determine CI-capability is:

16 Furthermore can CI-capability be determined by looking at the enablers that occur within the process of the transshipment of B-Wood. Following the classification of Garcia-Sabater, Marin-Garcia & Perello-Marin (2012), the presence of enablers indicates a specific level of CI-capability. Therefore the following question is answered:

RQ2 – What enablers are present within the process of B-Wood transshipment of Wijnne Barends and what is the derived CI-capability?

Moreover findings concerning CI-behaviors and CI-enablers might be done which are not expected to be found on beforehand. This legitimizes RQ3.

RQ3- What additions to the CI-model should be made considering the findings regarding the improvement of the B-wood transshipment process

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3. Methodology

In the methodology section the choice for a single case study is motivated. Furthermore, insight is given in the data collection. Subsequently a description of the measurements and instruments are given including the constraints. Finally, this section involves a description of the data analysis and validation.

3.1 Research design

In this section the research design of this study is motivated and described. The choice for a single case study was based on the main purpose of this study. The main purpose of this study is to examine how Bessant’s general CI-model applies to the LSP-context. As the model generally

describes how the concept of CI is developed within an organization, the question that needs to be answered is: How is Continuous Improvement developed in a LSP-context? Consequently it is assessed how the generally specified behaviors associated with the concept of CI, apply to a process in the LSP-context. Therefore it was examined what particular improvement behaviors occurred and how they were shaped. Also it was assessed why these particular improvement behaviors were shaped, the way that they were shaped. Therefore it was identified what factors determined the shape of improvement behavior associated with the concept of CI.

Moreover, this study aims to identify particular enablers which facilitate behavior associated with the concept of Continuous Improvement in the LSP-context. Consequently it is assessed how behavior associated with the concept of CI is enabled in the LSP-context. Also it is examined why particular enablers are particularly required for enabling CI in the LSP-context.

Summarizing, this study aims to give insight in how the Continuous Improvement is developed in the LSP context by examining a logistic process on particular improvement behaviors and particular enablers for enabling this behavior. Moreover it is examined why particular behaviors occur and why they are shaped the way they are shaped. Also it is examined why particular structures required for enabling CI in the LSP-context. Regarding this, a single case study fits the purpose of this study. This because of the fact that case studies are particularly suitable for answering how and why questions in order to explore unexplored issues (Yin, 2003).

3.2 Data collection

The case study which was conducted, was conducted at ‘Wijnne Barends Logistics’. As the aim of this research is to explore on Continuous Improvement in the LSP-context, it was required to select a case that enabled to extend the emergent theory. The case selection is therefore classified as theoretical sampling. Moreover is was required that the case concerned a company that had as core business performing logistic activities. ‘Wijnne Barends Logistics’ was therefore suitable for performing the case study. Performing a case study at 'Wijnne Barends Logistics' provided insight in process improvement in the LSP-context.

Due to the single case-character of this study, no comparison between cases was made. The results found in this study are therefore not generalizable for all LSPs. However, as the nature of this research is exploratory, this is not required. Despites, it is aimed to determine in what degree the results found in this study, also apply to other LSPs. Therefore the findings of this study are

18 regarding this case also are expected to apply on other LSPs.

The case study shows the improvement approach of a LSP ‘Wijnne Barends Logistics’ regarding a specific process, the B-wood transshipment process. This gives LSP-managers insight in what elements might play a role in evolving CI in their organization. The results obtained from this study can be used for further validation. As it appeared that CI had not completely been evolved within the process, it was impossible to draw conclusions about all CI-behaviors behaviors and enablers. This therefore concerns one of the limitations of this study.

Nature of data

The data was collected by a single data collector who for 1,5 month carried out its activities from the Logistics and Agency department of ‘Wijnne Barends’. Therefore he was closely involved in the daily operations. Being in close distance with the daily operations, provided detailed information about process improvement and problem solving within the B-Wood transshipment process as improvement behavior was observed in its natural setting. The nature of the data was both primary and secondary. Primary data involved data obtained from interviews, data obtained from surveys and data obtained by observing daily operations. Also secondary data was used. This involved documents in which the process was described both in terms of procedures and flow charts. Also a document was analyzed which involved data about the unloading process. Data source

Data was obtained by conducting interviews, conducting surveys, analyzing documents and observing the process. The interviews involved managers and employees of Wijnne Barends Logistics and Wijnne Barends Agency. Information was gathered from 2 senior logistics managers, 2 junior logistics managers and 2 agency employees. Interviews were recorded and trans scripted. The interviews involved questions about the CI-specific behavior according to Bessant’s Model. Also involved the interview questions related to the CI-enabler classifications as specified by Garcia-Sabater, Marin-Garcia & Perello-Marin, (2012). Outside of the interview, the data collector had the opportunity to ask additional questions regarding problem solving and process

improvement.

19 Reliability and triangulation

Recording and trans scripting the interviews ensured reliability of the data. However, also data was collected outside of the interviews. As the data collector was in close distance to the daily

operations, he had the opportunity to verify data. As surveys were conducted personally, better understanding Conducting the surveys personally gave a better understanding of the data and enabled a better interpretation of the data collected by survey.

To ensure triangulation people from different parties with different functions were interviewed or surveyed. It involved people on senior management level, junior management level, agency employees and people on operational level. Consequently a holistic view on problem solving and process improvement was obtained. Also was triangulation ensured by using multiple sources of data respectively interview, survey, observation and document analysis.

3.3 Measurements/instruments

The instruments applied for this study were interviews and surveys. The instruments were based on;

- the classification of CI-capability, CI-abilities and CI-behaviors specified by Bessant, Caffyn & Gallagher (2001),

- the classification of CI-enablers specified by Garcia-Sabater, Marin-Garcia & Perello-Marin (2012),

- 'LSP-specific' CI-enablers identified by literature and

- organizational and environmental characteristics identified by literature CI-abilities

RQ1 concerns the identification of the overall CI-capability within the B-Wood transshipment process. As mentioned before in section 2.1, the overall CI-capability is determined by the extent in which particular CI-abilities are possessed. For measuring the overall CI-capability of the B-wood transshipment process, those CI-abilities were measured. CI-abilities are operationalized by particular measurable CI-behaviors. Consequently, it was measured what CI-behaviors occurred within the B-wood transshipment process. The CI-behaviors as specified by Bessant, Caffyn & Gallagher (2001), were therefore used for making questions for the interviews and surveys. Interview

The approach used for conducting interviews to collect data about CI-abilities, is clarified by taking 'the ability of shared problem solving' for an example. Among others, the overall CI-capability is determined by 'the ability of shared problem solving'. Since 'the ability of shared problem solving' is measured by particular CI-behaviors, it was examined whether those CI-behaviors occurred within the B-wood transshipment process. As 'the ability of shared problem solving' amongs others is determined by people who are sharing a holistic view, the interviewee was asked whether the people involved in the process shared a holistic view. Subsequently, the interviewee was asked why the people involved in the process did or did not share a holistic view and what factors were

20 view on which CI-abilities were possessed, to which extent they were possessed and what had influenced the possession of CI-abilities.

Survey

Also surveys were applied for gathering data on CI-abilities. Surveys were applied for gathering data from operational workers. The main reason for using surveys was the limited time which was available for conducting interviews on operational workers. The surveys were conducted

personally. The surveys concerned several propositions concerning CI-behavior. The proposition could be answered on a 1 to 5 likert scale. This provided insight in the extent to which a specific CI-behavior occurred.

This approach is clarified by an example. The questionnaire involved the following proposition: 'When I give a suggestion for an improvement, the management of Wijnne Barends Logistics is responding to this suggestion'. This proposal was questioned to an operational worker, either a truck driver, crane operator or bobcat driver. The worker rated this proposition with a score in or between 1 and 5. Additionally the data collector asked the question why the operational worker had rated the proposal with a particular score which gave insight in the deeper cause. Looking at the score it was determined to which degree the specific behavior occurred within the

organization. Also insight was gained in the cause of this score. Not for identifying all CI-behaviors survey was an appropriate method. For example, it was unnecessary to involve a question about the use of a problem finding and solving cycle in the questionnaire as it was easier to identify this behavior through interviews with the management.

Summary data gathering CI-abilities

21 Research Question Variable Sub-Variable Operationalization Data Gathering Method Data Source RQ 1 CI-Capability ‘the ability to understand CI’

- people at all levels demonstrate a shared belief in the value of small steps and that everyone can contribute, by themselves being actively involved in making and recognizing incremental improvements - when something goes wrong the natural reaction of people at all levels is to look for reasons why, rather than to blame individuals

- people make use of some formal problem-finding and solving cycle

Interview/ Survey (question 10) Interview/ Survey (question 12) Interview Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators Elzinga, Bobcat driver

Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators Elzinga, Bobcat driver Management WB ‘the ability

to get the habit of CI’

- people use appropriate tools and techniques to support CI

- people use measurement to shape the improvement process

-people initiate and carry through CI activities, they participate in the process

-ideas are responded to in a clearly defined an timely fashion Interview/ Document Analysis Interview/ Document Analysis Interview Interview/ Survey (question 15) Management WB Management WB Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators Elzinga, Bobcat driver Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators Elzinga, Bobcat driver ‘the ability

to lead the way in CI’

- managers support the CI process through allocation of time, money, space and other resources

- managers recognize in formal ways the contribution of employees to CI

- managers lead by example, becoming actively involved in design and implementation of CI - managers support experiment by not punishing mistakes but by encouraging learning from them

Interview Interview Interview Interview Management WB Logistics Management WB Logistics Management WB Logistics Management WB Logistics, Employees WB Agency ‘the ability to focus CI’

- individuals and groups use the organization’s strategic goals and objectives to focus and prioritize improvement, everyone understands what the company’s or department’s strategy, goals and objectives are

- individuals and groups assess their proposed changes against departmental or company objectives to ensure they are consistent with them - individuals and groups monitor/measure the results of their improvement activity and the impact it has on strategic or departmental objectives

- CI activities are an integral part of the individuals or groups work, not a parallel activity

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Research Question Variable Sub-Variable Operationalization Data Gathering Method Data Source ‘the ability of shared problem solving’

- people cooperate across internal divisions in CI as well as working in their own areas

- people understand an share a holistic view

- People are oriented towards internal and external customer in their CI activity - specific CI projects with outside agencies, customers and suppliers

Interview Interview, survey (open question) Interview Interview Management WB Logistics, Employees WB Agency Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators Elzinga, Bobcat driver Management WB, Employees WB Agency Management WB, Employees WB Agency ‘the ability to align CI’

- ongoing assessment ensures that the organization’s structure and infrastructure and the system consistently support and reinforce each other

- the individual or group responsible for designing the CI system design it to fit within the current structure and infrastructure - individuals with responsibility for particular company processes or systems hold ongoing reviews to assess whether these processes or systems and the CI system remain compatible

Interview Interview Interview Management WB Logistics Management WB Logistics Management WB Logistics ‘the ability to continuously improve CI’

- the CI system is continually monitored and developed, as designed individual or group monitors the CI system and measures the incidence of CI activity and the results of CI activity

- there is a cyclical planning process whereby the CI system is regularly reviewed and if necessary amended

- the is periodic review of the CI system in relation to the organization as a whole which may lead to major regeneration

- senior management make available sufficient resources to support the ongoing development of the CI-system

Interview Interview Interview Interview Management WB Management WB Management WB Management WB ‘the learning organization’

- people learn from their experience, both positive and negative

- individuals seek out opportunities for learning and personal development - individuals and groups at all levels share their learning from all work experiences

- the organization articulates an consolidates the learning of individuals and groups - managers accept and where necessary act on all the learning that is taking place

23

- people and teams ensure that their learning is captured by making use of mechanisms provided for doing so

- designated individuals use organizational mechanisms to deploy the learning that is captured across the organization

Interview

Interview

Management WB Logistics, Employees Wijnne Barends Agency Management WB Logistics

Management WB Logistics

CI-enablers

Answering RQ2 concerned the assessment of CI-capability based on the CI-enablers which occur within the B-wood transshipment process. As Garcia-Sabater, Marin-Garcia & Perello-Marin, (2012) have linked particular CI-enablers to particular CI-capability levels, the identification of the overall CI-capability level is enabled. Also is the process tested on enablers that are expected to apply particularly in the LSP-context. The presence of enablers is derived by looking whether and to which extent particular elements, associated with a particular enabler, occurred. The elements by which the presence of all particular enablers were operationalized is as follows. First, for each enabler it was assessed whether the importance of the particular enabler was acknowledged. Next, it was assessed whether a particular enabler occurred within the organization.

Interview

The approach used for conducting interviews to collect data about CI-enablers, is clarified by taking the enabler 'Customer Involvement' for an example. First the interviewee was asked whether and why he or she considered 'Customer Involvement' important for enabling improvement activities. Subsequently the interviewee was asked if 'Customer Involvement' occurred in improving the B-wood transshipment process and how the customer was involved in improving the process. Finally, it was asked why the customer was involved in improving the process, the particular way that the customer was involved. Also it was asked what was determinant in involving the customer in improving the process that particular way. As a result, insight was gained in whether and how a particular enabler occurred within the organization. Also insight was gained in why an enabler had a particular shape and what determined its shape. Moreover insight was gained in the importance of a particular enabler and why the particular enabler was or was not important for enabling improvement activities.

Survey

Also surveys were applied for gathering data on CI-enablers. Surveys were applied for gathering data from operational workers. The surveys concerned several propositions concerning CI-enablers. The proposition could be answered on a 1 to 5 likert scale. This provided insight in the extent to which a specific CI-enabler occurred. The way the survey was conducted was similar to the survey for identifying CI-behavior. Similar to the survey for identifying CI-behavior, not for identifying all CI-behaviors survey was an appropriate method.

Summary data gathering CI-abilities

Table XX gives an overall insight in how data was gathered regarding the identification of the CI-enablers. The table shows how the different variables are operationalized. Also it shows how and from who data was gathered. The first column shows the research question which is answered. The second column shows the overall variable (overall presence of CI-enablers). This is followed by the third column which concerns the sub-variable (presence of each individual enabler). The column afterwards shows how each CI-ability is operationalized which involves listing the

24 particular elements which are associated with the presence of a particular enabler. In the

25

Research Question Variable Sub-Variable Operationalization Data Gathering Method Data Source RQ 1 Overall presence of enablers Management involvement & Strategy - Acknowledgement Importance CI - Introduction of CI - CI in strategy

- Management support for CI

Interview Interview Interview Interview Management WB Logistics Management WB Logistics Management WB Logistics Management WB Logistics Objectives & Metrics - Acknowledgement importance objectives & metrics

- Use of measures

- Setting objectives concerning process performance - Setting objectives concerning improvements Interview Interview/ document analysis Interview Interview Management WB Logistics Management WB Logistics Management WB Logistics Management WB Logistics Training & Abilities - Acknowledgement

importance training - Training operational skills

- Training problem solving/ improvement skills - Abilities operational practices

- Abilities of problem solving/ improvement Interview, Interview, survey (question 20) Interview Interview, survey (question 19) Interview

Management Wijnne Barends Logistics

Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators

Elzinga, Bobcat driver Managers Wijnne Barends Logistics, Employees Wijnne Barends Agency

Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators

Elzinga, Bobcat driver Managers WB Logistics, Employees WB Agency ‘Resources’ - Acknowledgement

importance resources for improvement activities - Fixed amount of time available for improvement activities

- Budget available for improvement activities - Other resources available for improvement activities Interview Interview Interview Interview Management WB Logistics Management WB Logistics Management WB Logistics Management WB Logistics ‘Leadership Management’ -Acknowledgement importance leadership management - Guidance improvement projects - CI-guide Interview Interview Interview Managment WB Logistics, Employees WB Agency Management WB Logistics, Employees WB Agency Management WB Logistics

26

Research Question Variable Sub-Variable Operationalization Data Gathering Method Data Source RQ 1 ‘Worker/Employee Involvement’ - Acknowledgement importance employee involvement - Employees involved in improvements - Involvement employees from different levels

Interview, Interview, survey (question 11) Interview, survey Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators

Elzinga, Bobcat driver Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators

Elzinga, Bobcat driver Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators

Elzinga, Bobcat driver ‘Selection of CI-Projects’ - Acknowledgement

importance selecting CI-projects

- CI-projects selection

- CI-project selection criteria

Interview Interview interview Managment WB Logistics Management WB Logistics Management WB Logistics ‘Customer Involvement’ - Acknowledgement

importance customer involvement - Customer involvement in process - Customer involvement in improvement Interview Interview Interview Management WB Logistics Management WB Logistics Management WB Logistics

‘Stakeholder Focus’ - Acknowledgement importance stakeholder involvement - Stakeholder involvement in process - Stakeholder involvement in CI Interview Interview Interview Management WB Logistics Management WB Logisics Managment WB Logistics ‘Clarification and Creation of (new) Structures’ - Acknowledgement importance structures - Clear organizational structure/hierarchy

- Fixed CI-tasks for employees

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Research Question Variable Sub-Variable Operationalization Data Gathering Method

Data Source

RQ 1 ‘Methods for

Expanding CI’

- Acknowledgement importance methods for expanding CI

- Presence CI-Procedures

- Methods used for expanding CI Interview Interview/ document analysis Interview Management WB Logistics Management WB Logistics Management WB Logistics

‘Cultural Aspects’ - Acknowledgement influence of cultural aspects on CI - Beneficially nature of culture for CI - Beneficially educational background for CI - Employee mentality Interview Interview, observation Interview Interview, observation Managment WB Logistics Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators Elzinga, Bobcat driver

Management WB Logistics

Management WB Logistics, Employees WB Agency Truckers Koning & Drenth, Crane Operators Elzinga, Bobcat driver

28 Business conditions

In order to determine the extent to which the findings of this study also apply to other LSPs, insight is given into the business conditions of the process. In order to do so, either the business

conditions of Wijnne Barends Logistics and the characteristics of the B-wood transshipment process are elaborated. Based on literature, several organizational and environmental

characteristics were identified which are characteristic for LSPs in general. Those characteristics were compared with the organizational and environmental characteristics of Wijnne Barends Logstics. For gathering data on those characteristics, managers were interviewed. The

organizational and environmental characteristics which are characteristic for LSPs in general are according to the following table XX.

LSP Characteristics Characteristic

Organizational - high closeness to customers

- high closeness to suppliers - central role in the supply chain - main focus on current customers - skill of following requirements - not innovative

- decentralized organization - geographically dispersed - peripheral decision making

- intra organizational transfer of knowledge relatively difficult - standardized easy to execute tasks

- ‘down to earth’ and reactive culture

Environmental - demand for industry specific solutions

- low market concentration - globalization

- deregulation

- setting of time compression

Constraints

As this study involves a single case study, a constraint is that the findings of this study are not generalizable for all LSPs since the findings were not tested on other cases. Therefore the main goal of this study is to explore on LSP-specific behavior and LSP-specific enablers for enabling CI-behavior.

Moreover in this study models are tested on one particular process. Constraint is therefore that some structures for enabling CI could not be tested as testing them requires more processes. This for example concerned methods for expanding CI to other processes. Therefore hardly any findings were done regarding those enablers.

Another constraint involves the degree to which CI is evolved. When CI the a low degree is evolved, some CI-behaviors and CI-enablers do not occur. Consequently little data is found on behaviors and enablers associated with high levels of CI-capability. Therefore little is explored regarding CI-abilities and CI-enablers associated with higher levels of CI-capability.

This study also involves a constraint due to the use of the existing model of Garcia-Sabater, Marin-Garcia & Perello-Marin, (2012) for identifying CI-enablers. As a result of using this model, the process only was assessed on the pre-defined CI-enablers. Consequently the process was not assessed on CI-enablers that were not addressed by the model. Although the model is

complemented with particular enablers which were expected to apply particularly to CI in the LSP-context, some enablers for CI might be overlooked by applying this approach. The choice for using a pre-defined model was made due to time constraints. As the study was performed in a relatively

29 short time span, the amount of time was insufficient to first explore LSP-specific enablers and then apply them on the B-wood transshipment process.

Applying surveys for gathering data causes the constraint that the gathered data is superficial and does not provide information about the deeper cause of the outcomes. Applying surveys were mainly useful for testing whether particular behavior and enablers appeared instead of examining the deeper cause. Although in this study the surveys were conducted personally which provided the data collector the possibility to ask additional questions, the data was still rather superficial. The choice for surveys was based on the limited time that was available for gathering information from operational workers. As it was required to keep the operations running, the only method for gathering data was to apply surveys.

3.4 Data analysis

For this study data was gathered from several sources. For each data source it is discussed what type of data was gathered and how the raw data was processed.

Interviews

After the interviews had been conducted, they were trans scripted. The trans scripted interviews were used as basis for answering the research questions. As the questions of the interviews directly linked to a particular operationalization regarding either a CI-ability or CI-enabler, it was easy to analyze the data so that either the presence of CI-abilities and CI-enablers could be determined. Moreover enabled the data from the interviews to get deeper insight in the cause of the presence or absence of enablers and the shape of the enablers. As the data collector for 1,5 months was is close distance with the daily operations, data regarding the interviews could be clarified and verified.

Survey

The survey was analyzed using excel. All outcomes were put in an excel document. As the propositions were on a 1 to 5 likert scale, the average score per proposition could easily be derived. The average score of a proposition gave insight in how strong a particular behavior occurred. Due to the fact that the answers of truck drivers, crane operators and bobcat drivers were analyzed separately, insight was gained in the differences between those groups. The excel document also contained the answers on additional questions that were asked by the data collector.

Document analysis

Furthermore, several documents with regard to the process were analyzed. These documents involved a schematic review of the process, a document with the formalized procedures of the process and an excel document which was used for monitoring process performance. The

documents gave insight in how the process was performed in theory and how performance of the process was measured. Therefore those documents gave insight in particular behavior and CI-enablers.

Observation

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4. Results

In this section the results are discussed. In the first sections (4.1.1 and 4.1.2) the context of this study is elaborated. This both involves the organizational context of Wijnne Barends (Business Conditions 4.1.1 ) as well as the context of the B-Wood transshipment process (Process Description 4.1.2). By elaborating the business conditions an image is created of the context in which the study was conducted. Having an image of the context allows to identify whether the results of this study might also apply to other LSPs. In section 4.4.1 the organizational characteristics of Wijnne Barends Logistics are compared with organizational characteristics of LSPs in general based on literature. Managers were asked about the characteristics provided by literature. Subsequently it was assessed whether the organizational characteristics of Wijnne Barends Logistics corresponded. In section 4.4.1 the process is described. The process is described based on documents provided by Wijnne Barends Logistics in which the process was described both visually (flow chart) and in words (procedures). Additional information was asked from managers to get a more clarified picture of the process. Also several were sites visited to speak with the workers who were doing the operational work which enriched the image of the process.

4.1 Business Conditions

Wijnne Barends Logistics is a LSP operating in the maritime business. It has locations in Delfzijl, Eemshaven and Farmsum. Its activities are the planning logistics activities, supporting logistic activities and executing logistic activities. The planning activities concern the planning of resources and activities for the transportation and transshipment of a certain load. Supporting logistic

activities involves managing customers, managing suppliers, managing terminals facilities and monitoring operations. The logistics activities concern loading and unloading ships and the storage of load. Load that is transshipped concerns containers, bulk load and project load of all kinds. Although Wijnne Barends is capable of handling almost anything, its specialties are handling containers, paper rolls, packages of wood and wood chips. Wijnne Barends customer base is therefore partly fixed, but it is certainly aspired to serve customer outside this customer base. As often the same logistic activities are performed, tasks are mainly standardized and easy to execute which is characteristic of logistic processes. However, the project on the other hand often requires a specialized approach. An example of a project load concerns the shipment of windmill parts. Wijnne Barends aims to is arrange its activities at the lowest possible costs according to specific customer demands and is therefore used to follow customer requirements. Furthermore it is aimed to carry out processes as efficient as possible. Applying the concept of Continuous Improvement through employee involvement might help in realizing this. However in it was not formally attempted to implement CI.

In many operations Wijnne Barends Logistics works in close cooperation with Wijnne Barends Agency. Wijnne Barends Agency exclusively performs are the agency of vessels. The role of Wijnne Barends agency involves an intermediate role between the shipper and other parties like the stevedoring company, the customs and other facilitating parties. Agency activities involve

arranging all the documents that are required for a ship to enter and leave the port, 'guiding' the ship in and out of the harbor and arranging products or services for the shipper if he requests it, for example medical drugs or a tugboat.

Wijnne Barends Logistics has in multiple aspects characteristics that are considered as typical for LSPs. The closeness to customers is a high as logistics services must be arranged in close

cooperation with customers due to specific customer demands. This is demonstrated by the process of B-wood shipment which is exclusively designed for one specific customer, Eneco.

31 weighing loads of B-Wood which also implies a high closeness to the customer. The planning of Eneco mainly determines the planning of Wijnne Barends Logistics within this process.

Next to having close ties with customers, Wijnne Barends has also close relationships with their suppliers. Such suppliers often concern other LSPs carrying out activities on behalf of Wijnne Barends Logistics. Again this is demonstrated by the process of B-Wood transshipment. The physical unloading and the transportation of B-Woods in not done by Wijnne Barends Logistics itself, but it is delegated to sub-contractors Elzinga and Koning & Drenth. Wijnne Barends fulfills an intermediate role by planning activities and communicating between all parties involved. Wijnne Barends Logistics therefore also has a central role in the supply chain.

Furthermore is the structure of Wijnne Barends Logistic characterized by a decentralized organization which is considered typical for LSPs. As Wijnne Barends’ has a flat thin layered organizational structure, the management is highly visible and accessible throughout the organization. All terminals have their own manager. Management that is located at the office in Delfzijl is visiting the terminals on a daily basis. Due to the close involvement in daily operations, the management is to a high degree aware of what happens throughout the organization. Also are Wijnne Barends’ employees distributed across multiple geographically dispersed sites. Wijnne Barends has multiple terminals on different locations respectively in Delfzijl, Farmsum and in Eemshaven. The related problem of difficult intra-organizational transfer of knowledge also occurs. A manager stated that there was little communication within terminals which caused that at all terminals similar processes were executed differently and decision making was peripheral. As at all terminals processes are executed differently, there is the risk of becoming dependent on specific employees since employees only have knowledge about how processes are executed at one specific terminal.

Furthermore can the company culture of Wijnne Barends be characterized as LSPs-typical, ‘down to earth’ and reactive. Employees speak of a no-nonsense constructive working atmosphere where people help each other. However, a gap is experienced between employees at the office and employees at the working floor. Anyhow, this gap is considered as ‘normal’ and it is believed that it must be ensured that this gap should be made as small as possible by equalizing appreciations for people working at the terminals and people working at the office.

Within the LSP-context market pressure forces LSPs to upgrade and expand service offerings. This also applies to Wijnne Barends Logistics where customers demanding smaller transshipments on a more frequent basis as they are desiring to keep less stock. A more frequent and timely delivery is demanded. Furthermore, the variety of the products that are shipped has evolved. From mainly shipping wood packages in the past, it is now demanded to ship highly specific project loads from windmill parts to luxury yachts.

Moreover are competitive pressure and the need to be innovative increased by globalization within the LSP-context. Deregulation increases competition for cost and quality an therefore the pressure and possibility to be innovative particularly in a setting of time compression. The need for adapting to environmental changes was highly stressed by the senior management of Wijnne Barends Logistics as economic developments have a large impact on the type of business Wijnne Barends Logistics gets involved in. Not adapting to environmental changes would lead to a

32 Also is according to literature the LSP-environment characterized by a low market concentration. A low market concentration concerns a situation in which a relatively large number of companies have a low share of the total market. In case of Wijnne Barends this partly applies. For some type of loads, Wijnne Barends Logistics is the only LSP capable of handling such loads. Wijnne Barends Logistics is for example the only company capable of handling containers in the region. This implies a high market concentration for that specific load. The region Delfzijl in which Wijnne Barends Logistics operates, is characterized by stevedoring companies that have all their specialties in shipping load. However, some can be shipped by multiple stevedoring companies which implies that market concentration for these companies is low.

Table x involves an overview of the different LSP-characteristics and their ratings. Overall are Wijnne Barends’ organizational and environmental characteristics quite similar to the LSP-characteristics defined in literature.

4.1.2 Process description

Although Wijnne Barends Logistics performs logistic activities for multiple different customers where multiple different goods are shipped, this study focuses on a single process. The process that was assessed concerns the transshipment of B-Wood. B-Wood is used by Eneco's energy plant as source for generating energy. B-Wood is bought by Eneco from different suppliers all over Europe. The wood is transported from the suppliers by boats, either a lighter (smaller boat) or a coaster (bigger boat), to the harbor in Delfzijl. At the dock in Delfzijl, the B-wood is transshipped by cranes of LSP 'Elzinga' from the ship into trucks of LSP 'Koning & Drenth'. These trucks transport the B-wood to the Eneco power plant. At the powerplant the load is weighed, whereupon it is delivered. The logistic process is planned and coördinated by Wijnne Barends. The planning must either be coördinated with Eneco, the ship owners, Trucking LSP 'Koning & Drenth', LSP 'Elzinga' responsible for the crane and in case of a coaster Wijnne Barends Agency. Furthermore a dock must be arranged in coordination with Groningen Seaports.