Applying Decoupling Thinking in Logistics Service Providers : How the material flows of B2B Logistics Service Providers can be improved by using decoupling thinking constructs

This study investigates how the Customer Order Decoupling Point (CODP) concept, long established in manufacturing, can be used by Logistics Service Providers (LSPs) to improve their material flows in a business-to-business (B2B) context. Addressing a gap in the CODP literature, the thesis tackles three questions: it first identifies what are the critical activities in the material flows of B2B Logistics Service Providers for fulfilling customer demands, then examines how can the decoupling thinking constructs be applied in the material flows of B2B Logistics Service Providers and finally explores how can the material flows in the critical activities of B2B Logistics Service Providers be improved by using the decoupling thinking constructs. This empirical study employed semi-structured interviews and passive on-site observations at four LSPs operating in Sweden between March and April 2025. Data were analysed through a hybrid deductive and inductive coding scheme and triangulated across cases, thereby strengthening reliability while safeguarding internal validity. This qualitative approach yielded a rich dataset of more than five hours of interview recordings and fifteen hours of field observations. The analysis shows that Decoupling thinking constructs can be directly mapped onto the four macro-processes that characterise B2B logistics (Inbound, Warehousing, Order Management and Outbound) without altering their conceptual integrity. Although none of the organisations use the label CODP, they already exploit postponement levers such as dynamic order cut-off times, late pallet configuration and contingent transport capacity. Formalising these levers as Decoupling thinking constructs makes their strategic intent explicit and reveals improvement opportunities: pushing demand-information and supply-information decoupling points upstream stabilises forecasts, introducing a floating physical CODP, aligns capacity with real-time demand, and locating the Customer Adaptation Decoupling Point as far downstream as contractual windows permit, thereby expanding customisation without jeopardising throughput. Together, these shifts improve service quality and dependability while cutting premium-freight and buffer-inventory costs. By extending CODP theory into the LSPs context, the thesis provides a practical framework that helps managers distinguish speculative from order-driven activities and offers a roadmap for achieving cumulative gains in quality, dependability, speed, flexibility and cost. Future research should test the framework quantitatively across broader geographic and sectoral settings to refine causal links and enhance generalisability.