Win-win Cooperation Model between Shipper and Logistics Service Providers in Korea based on the Fair Trade

Abstract

Influenced by recent global recession, the business environment and profitability of many firms are getting worse. Therefore, rather than struggling to win power over their supply chain participants and maximize their own goals using such power, many firms need to cooperate with their supply chain members and grow together. Because most competition these days are between supply chains rather than individual companies. This paper analyzes the structural problems of the logistics market through literature review and questionnaire analysis regarding the common practices of transaction between the shippers and logistics service providers and also between large logistics companies and subcontractors. And it studies problems and successes in collaboration between and among such supply chain participants through interviews and case studies. Based on such analyses, the cooperation model between shipper and logistics service provider and between large logistics firms and subcontractors is developed and finally practical guidelines for fair trade are developed.