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| PROCUREMENT STRATEGIES IN SHIPPING COMPANIES |
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Ana Cristina Ferreira Castela Paixão Casaca, ‘World of Shipping Portugal’, Parede, Portugal and CIMOSM - Centro de Investigação em Modelação e Optimização de Sistemas Multifuncionais, ISEL, 1959-007 Lisboa, Portugal.  https://orcid.org/0000-0003-3925-473X |
| Ana Rita Lynce,
Equimodal, Zaragoza, Spain. https://orcid.org/0000-0003-2511-4816 |
| Cassia Bomer Galvão,
Texas A&M University, College of Marine Sciences & Maritime Studies, Department of Maritime Studies, Galveston, TX, United States. https://orcid.org/0000-0001-8424-1781 |
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| SUMMARY |
| Shipping companies operate within one of the most complex and capital-intensive service industries in the global economy, where operational continuity, cost efficiency, regulatory compliance, and risk management depend heavily on procurement decisions. Unlike manufacturing firms, shipping companies deliver an intangible transport service while simultaneously relying on a wide array of tangible assets, specialised technical services, and globally dispersed suppliers. This dual service–asset dependency means that procurement extends well beyond a transactional or cost-control function and becomes a strategic determinant of service reliability, supplier dependency, cost structures, and long-term competitiveness across the shipping value chain. |
| Within this context, procurement must be understood as an integrated value-creating activity embedded in the broader organisational system. Decisions related to sourcing, supplier selection, contracting, and relationship management directly influence not only operating costs, but also vessel availability, safety performance, regulatory compliance, and exposure to operational and market risks. Given the capital intensity of ships and equipment, the global dispersion of supply networks, and the criticality of time and reliability in maritime services, procurement choices have cascading effects across operations, customer service, and financial performance. Understanding procurement through a value chain perspective is therefore essential for both scholars and practitioners seeking to navigate increasing market volatility, technological disruption, and sustainability pressures in maritime transport. |
| This monograph aims to provide a structured, industry-specific analysis of procurement strategy and supplier management in shipping companies. It begins by establishing the conceptual foundations of procurement within the value chain framework, clarifying its definition, scope, and core processes as they apply to maritime transport services. The analysis then situates shipping companies within a service–goods logistics system, identifies the principal procurement categories, and examines the varying degrees of supplier pressure along the maritime service–product supply chain. Particular attention is given to how different supplier groups influence operational continuity, cost exposure, and strategic flexibility. |
| Building on this foundation, the analysis applies established strategic management and procurement models to the shipping context, with a strong emphasis on supplier segmentation. The Kraljic Matrix is used as the central analytical tool to classify suppliers by profit impact and supply risk, while Porter’s analytical logic is integrated to assess supplier power, dependency, and strategic exposure. Clear thresholds are developed to distinguish between transactional, leverage, bottleneck, and strategic suppliers in shipping, highlighting the distinct managerial approaches and governance structures required for each category. Special emphasis is placed on identifying high-pressure suppliers and on the strategic responses necessary to mitigate risk, reduce dependency, and safeguard service continuity. |
| The final sections explore emerging trends and innovations shaping the future of procurement in shipping companies. These include the growing influence of digitalisation, sustainability and decarbonisation requirements, increasing market volatility, and rising supply chain complexity. The analysis shows how procurement strategies are evolving across different supplier categories in response to these pressures, reinforcing procurement's role as a dynamic, strategic function rather than a purely operational activity. By combining conceptual clarity with practical, industry-specific insights, this analysis positions procurement as a central pillar of value creation and competitive advantage in modern shipping companies. |
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| KEYWORDS |
| Shipping companies’ procurement; Procurement strategy; Supplier management; Supplier segmentation; Kraljic Matrix; Maritime logistics systems; Supply risk; Supplier power. |
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