Protecting Finnish defence security: a logistics challenge

This study examines how Finland can secure efficient logistics for the use of their military forces. In doing so, it examines how logistics service providers (LSPs) in countries with higher cost structures can maintain their profitability when competing against transport companies in countries with lower cost structures. The empirical data was gathered from Finnish LSPs in 2008. The survey resulted in 460 acceptable responses. The research models were tested with structural equation modelling (SEM). The results suggest that LSPs can not increase their profits with their negotiation power. However, a positive image of the industry seems to facilitate profitability. In addition, contracts seem to facilitate the profitability of the LSPs, but only if those are accurate and updated. As a conclusion, in addition to negotiation power and contracts, the image of the industry is found to be important as well when LSPs want to increase their profits.