*4.5. Logistics Service Provider*

The finished products are picked up from the production and transported to a refrigerated warehouse of a logistics service provider (Company E). Company E is a medium-sized company with expertise in intralogistics, transportation, storage services, and value-adding services (e.g., product finishing, and labeling), especially in the food industry.

When coordinating supply chain processes in the food industry, Company E uses contracts to determine the scope of services, contractor and customer obligations, insurances and liabilities, inventory procedures, running times, fees, or payment modalities. Company E uses industry-specific and sustainability certificates (e.g., IFS, Smeta Sedex, and EU organic logo) to be more attractive to its customers and determine the sustainability standards in its business relationships. IP5 calls for mandatory social and environmental standards in the logistics industry so that all companies can work under the same conditions and workers can be paid fairly: "[ . . . ] of course I think it makes sense to implement this [standards] in the industry because then everyone will have the same conditions and [ . . . ] the employees in logistics will also benefit from this [ . . . ]." (IP5).

In addition to formal governance, coordination on an informal level is also important for Company E. Personal exchanges begin during the initial contract negotiations and continue throughout the contractual relationship. Company E exchanges information with both customers and service providers (e.g., disposal partners or transportation companies). Particularly in the case of price increases, e.g., due to rising personnel costs, the business relationship on a personal level is advantageous. The understanding for price increases is largely present due to mutual trust: "[ . . . ] we introduced a price increase [ . . . ] at the end of the year, [and] our customers understand that." (IP5).

At the logistics service provider level, the ability of the governance to increase environmental and social sustainability in the supply chain is limited. However, Company E itself pays attention to increasing sustainability, e.g., through energy-efficient warehouses or ecological waste systems. Additionally, all employees receive fair pay and additional performance bonuses.
