Logistics service provider as a business growth raiser of small and medium sized companies

This study focuses on a company network that develops, produces, markets, sells and delivers windmills for consumers. The hub company of the network has concentrated on R&D, marketing, and its subcontractors and logistics service provider performs other functions. The company had outsourced exclusively of its operational and tactical level operations and its ICT systems (e.g. financial administration, logistics operations and item assembly set management systems) and support processes for logistics operators responsibility. This study examined this network business model, focusing on operator supported ICT and functional solutions for total management of supply chain. The service model provided by the logistics operator is considered quite new concept on field of high tech industries in Finland. The research was conducted as a qualitative study of one case. The study revealed new operational, business arrangements and financial aspects, which are administered by the operator that have been traditionally kept inside organization. This new model can give small company a completely new potential to grow rapidly as part of traditional financial limitations do not apply to this case. The case is considered a good example how high tech industry isnt limited only for large size companies and how its possible for small company to grow with the logistics operator and subcontractors. The operator was identified as an enabler of growth and a demand and supply chain synchronizer.