From Dependence to Dominance: How Resource Challenges Are Empowering Logistics Providers in Europe

ABSTRACT The interplay among actors in European global value chains (GVC) is evolving due to increased interactions with logistics service providers (LSP). This research explores the characteristics of the emerging business relationships between logistics and manufacturing companies in Europe. Qualitative insights from 16 automotive logistics experts reveal transformations in GVC dynamics, manufacturer dependency, and driving factors. The analysis shows a growing influence of LSP, marked by extended contracts, tariff setting, facility locations, and operational design. This shift reduces traditional power asymmetries, enhancing logistics firms' strategic leverage, as workforce and logistics resource shortages empower logistics providers in the automotive sector GVCs.