The Rise of Crowd Logistics: A New Way to Co‐Create Logistics Value

Patterned on crowdsourcing and crowdfunding, a new crowd practice has emerged in recent years: crowd logistics. In this paper, we propose a first conceptualization of this growing phenomenon. Crowd logistics is a novel way of providing logistics services that taps into the dormant logistics resources and capabilities of individuals, using mobile applications and web-based platforms. Although crowd logistics has been widely discussed in the business world, it has not yet been the subject of any academic publication. Following an exploratory case study approach, we review the websites of 57 crowd logistics initiatives around the world and highlight the main distinctive characteristics of crowd logistics, as compared to traditional business logistics. We introduce a segmented analysis in which crowd logistics solutions are classified according to four types of service offered. Finally, we introduce six theoretical propositions on the future development of crowd logistics. At a theoretical level, our findings contribute to enriching the service-dominant logic perspective in the logistics field by conceptualizing the crowd as a co-creator of logistics value. At a managerial level, our findings contribute to identifying which types of crowd logistics services are more likely to threaten or disrupt traditional business.

[1]  G. Kovács,et al.  The sustainable agenda and energy efficiency , 2010 .

[2]  R. Yin Case Study Research: Design and Methods , 1984 .

[3]  Kent L. Granzin,et al.  End-User Contribution to Logistics Value Co-Creation: A Series of Exploratory Studies , 2015 .

[4]  Niels Bjørn-Andersen,et al.  Organizational Learning with Crowdsourcing: The Revelatory Case of LEGO , 2014, J. Assoc. Inf. Syst..

[5]  Marianne W. Lewis Iterative triangulation: a theory development process using existing case studies , 1998 .

[6]  E. Rabinovich,et al.  Expanding Horizons and Deepening Understanding via the Use of Secondary Data Sources , 2011 .

[7]  Thomas A. Weber Intermediation in a Sharing Economy: Insurance, Moral Hazard, and Rent Extraction , 2014, J. Manag. Inf. Syst..

[8]  GEORGIOS ZERVAS,et al.  The Impact of the Sharing Economy on the Hotel Industry: Evidence from Airbnb's Entry Into the Texas Market , 2015, EC.

[9]  S. Fawcett,et al.  The Quest for Societal ROI in the Midst of the Perfect Storm: Can SCM Set the Standard for Twenty‐First Century Business Education? , 2015 .

[10]  David R. Thomas,et al.  A General Inductive Approach for Analyzing Qualitative Evaluation Data , 2006 .

[11]  P. Berthon,et al.  Ad Lib: When Customers Create the Ad , 2008 .

[12]  Christoph Teller,et al.  The relevance of shopper logistics for consumers of store-based retail formats , 2012 .

[13]  R. Belk You are what you can access: Sharing and collaborative consumption online , 2014 .

[14]  Martin Schader,et al.  Managing the Crowd: Towards a Taxonomy of Crowdsourcing Processes , 2011, AMCIS.

[15]  P. K. Kannan,et al.  Value co‐creation: theoretical approaches and practical implications , 2013 .

[16]  Rachel Botsman,et al.  What's Mine Is Yours: The Rise of Collaborative Consumption , 2010 .

[17]  S. Seuring,et al.  Conducting content‐analysis based literature reviews in supply chain management , 2012 .

[18]  Carl Marcus Wallenburg INNOVATION IN LOGISTICS OUTSOURCING RELATIONSHIPS: PROACTIVE IMPROVEMENT BY LOGISTICS SERVICE PROVIDERS AS A DRIVER OF CUSTOMER LOYALTY , 2009 .

[19]  Sascha Albers,et al.  The impact of electronic commerce on logistics service providers , 2002 .

[20]  Ellyn E Erving The Sharing Economy: Exploring the Intersection of Collaborative Consumption and Capitalism , 2014 .

[21]  Zach G. Zacharia,et al.  DEFINING SUPPLY CHAIN MANAGEMENT , 2001 .

[22]  Xavier Lecocq,et al.  Competing with ordinary resources , 2015 .

[23]  Göran Persson,et al.  Growth Strategies for Logistics Service Providers: A Case Study , 2001 .

[24]  S. Hertz,et al.  Strategic development of third party logistics providers , 2003 .

[25]  P. David Clio and the Economics of QWERTY , 1985 .

[26]  R. Lusch REFRAMING SUPPLY CHAIN MANAGEMENT: A SERVICE‐DOMINANT LOGIC PERSPECTIVE , 2011 .

[27]  S. Fawcett,et al.  Cinderella in the C-Suite: Conducting Influential Research to Advance the Logistics and Supply Chain Disciplines , 2011 .

[28]  Kenneth K. Boyer,et al.  THE LAST MILE CHALLENGE: EVALUATING THE EFFECTS OF CUSTOMER DENSITY AND DELIVERY WINDOW PATTERNS , 2009 .

[29]  Maria Fernanda Hijjar,et al.  Logistics sophistication, manufacturing segments and the choice of logistics providers , 2007 .

[30]  Alexander E. Ellinger,et al.  B-TO-B E-COMMERCE: A CONTENT ANALYTICAL ASSESSMENT OF MOTOR CARRIER WEBSITES , 2003 .

[31]  Stephen L. Vargo,et al.  Service, value networks and learning , 2010 .

[32]  Chee Yew Wong,et al.  Explaining the competitive advantage of logistics service providers: A resource-based view approach , 2010 .

[33]  Christopher A. Voss,et al.  Case research in operations management , 2002 .

[34]  Kenneth D. Bahn,et al.  An Empirical Test of Households' Participation in the Distribution Supply Chain Process , 2005 .

[35]  Stephen L. Vargo,et al.  Service-dominant logic: continuing the evolution , 2008 .

[36]  Kathleen M. Eisenhardt,et al.  Theory Building From Cases: Opportunities And Challenges , 2007 .

[37]  Thomas Y. Choi,et al.  Renaissance of case research as a scientific method , 2014 .

[38]  R. Belk Sharing: Table 1 , 2010 .

[39]  Kent L. Granzin,et al.  Consumer logistics: Conceptualization, pertinent issues and a proposed program for research , 1989 .

[40]  E. F. Schumacher,et al.  Small is Beautiful: A Study of Economics as if People Mattered , 1974 .

[41]  Koustuv Dasgupta,et al.  TRACCS: Trajectory-Aware Coordinated Urban Crowd-Sourcing , 2014 .

[42]  A. Parasuraman,et al.  Crowd-Funding: Transforming Customers into Investors through Innovative Service Platforms , 2011 .

[43]  Dag Naslund,et al.  Supply Chain Integration: Barriers and Driving Forces in an Action Research-Based Industry Intervention , 2008 .

[44]  Nathalie Fabbe-Costes,et al.  Supply Chain Integration and Performance - A Review of the Evidence , 2008 .

[45]  Alexandra Collm,et al.  Managing Crowd Innovation in Public Administration , 2012 .

[46]  R. Kozinets The Field behind the Screen: Using Netnography for Marketing Research in Online Communities , 2002 .

[47]  David F. Pyke,et al.  A FRAMEWORK FOR TEACHING SUPPLY CHAIN MANAGEMENT , 2000 .

[48]  Karim R Lakhani,et al.  Using the crowd as an innovation partner. , 2013, Harvard business review.

[49]  Thomas Y. Choi,et al.  Toward the Theory of the Supply Chain , 2015 .

[50]  Alexander H. Hübner,et al.  Last mile fulfilment and distribution in omni-channel grocery retailing: a strategic planning framework , 2016 .

[51]  S. Hielscher,et al.  Transition towards 'New Economies'? A Transformative Social Innovation Perspective , 2015 .

[52]  É. Monnot,et al.  Recycling household waste: A classification of the logistics used by consumers , 2014 .

[53]  Scot Burton,et al.  THE LAST MILE: AN EXAMINATION OF EFFECTS OF ONLINE RETAIL DELIVERY STRATEGIES ON CONSUMERS , 2003 .

[54]  R. Lusch,et al.  Drawing on service-dominant logic to expand the frontier of physical distribution and logistics management , 2014 .

[55]  Ethan Mollick The Dynamics of Crowdfunding: An Exploratory Study , 2014 .

[56]  Stephen L. Vargo,et al.  Service-dominant logic: reactions, reflections and refinements , 2006 .

[57]  C. Prahalad,et al.  The Future of Competition: Co-Creating Unique Value With Customers , 2004 .

[58]  Gregory M. Magnan,et al.  The rhetoric and reality of supply chain integration , 2002 .

[59]  Alexander E. Ellinger,et al.  THE EMPOWERMENT OF FRONTLINE SERVICE STAFF IN 3PL COMPANIES , 2010 .

[60]  C. Grönroos,et al.  Service as business logic: implications for value creation and marketing , 2011 .

[61]  Frank Teuteberg,et al.  Crowd Logistics − A Literature Review and Maturity Model , 2015 .

[62]  Carl Marcus Wallenburg,et al.  The Role of External Relationships for LSP Innovativeness: A Contingency Approach , 2013 .

[63]  Thomas Kohler,et al.  Crowdsourcing-Based Business Models: How to Create and Capture Value , 2015 .

[64]  G. Standing The Precariat: The New Dangerous Class , 2011 .

[65]  Paul Belleflamme,et al.  Crowdfunding: Tapping the Right Crowd , 2013, SSRN Electronic Journal.

[66]  Nada R. Sanders,et al.  The Emerging Role of the Third‐Party Logistics Provider (3PL) as an Orchestrator , 2011 .

[67]  S. Hertz,et al.  Networks and capabilities as characteristics of logistics firms , 2011 .

[68]  Eric Schenk,et al.  Towards a characterization of crowdsourcing practices , 2011 .

[69]  A. Sundararajan The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism , 2016 .

[70]  Kent L. Granzin,et al.  Consumer logistics as a basis for segmenting retail markets , 1997 .

[71]  THE RELATIVE IMPORTANCE OF LOGISTICS AND MARKETING CUSTOMER SERVICE: A STRATEGIC PERSPECTIVE. , 1998 .

[72]  J. Byers,et al.  The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry , 2017 .

[73]  Wendy L. Tate,et al.  Green, lean, and global supply chains , 2010 .

[74]  Christoph Teller,et al.  The consumer direct services revolution in grocery retailing: an exploratory investigation , 2005 .

[75]  Souad Djelassi,et al.  Customers' participation in product development through crowdsourcing: Issues and implications , 2013 .

[76]  Stephen L. Vargo,et al.  Evolving to a New Dominant Logic for Marketing , 2004 .

[77]  Kaiyin Huang,et al.  The impact of electronic commerce , 1997, SIGCPR '97.

[78]  S. Pires,et al.  Collaboration and Competition between 4PL and 3PL: A study of a fast-food supply chain , 2008 .

[79]  Roger J. Calantone,et al.  INTRODUCTION TO THE SPECIAL TOPIC FORUM: USING ARCHIVAL AND SECONDARY DATA SOURCES IN SUPPLY CHAIN MANAGEMENT RESEARCH , 2010 .

[80]  Scott E. Sampson,et al.  Customer Roles in Service Supply Chains and Opportunities for Innovation , 2012 .

[81]  Christine Bauer,et al.  Crowdsourcing in logistics: concepts and applications using the social crowd , 2015, iiWAS.

[82]  Lisa Gansky,et al.  The Mesh: Why the Future of Business Is Sharing , 2010 .

[83]  David Murillo,et al.  When the sharing economy becomes neoliberalism on steroids: Unravelling the controversies , 2017 .

[84]  A. Cox Supply Chains, Markets and Power: Managing Buyer and Supplier Power Regimes , 2001 .

[85]  Donald C. Sweeney,et al.  Teaching supply chain and logistics management through commercial software , 2010 .

[86]  Valentina Carbone,et al.  Growth and Relational Strategies Used by the European Logistics Service Providers: Rationale and Outcomes , 2005 .

[87]  G. Stevens Integrating the Supply Chain , 1989 .

[88]  Scott E. Sampson Customer‐supplier duality and bidirectional supply chains in service organizations , 2000 .

[89]  Fernando González-Ladrón-de-Guevara,et al.  Towards an integrated crowdsourcing definition , 2012, J. Inf. Sci..

[90]  M. Christopher Logistics and supply chain management , 2011 .