Studies regarding risk management in low cost country (LCC) sourcing are limited considering the dramatic increase in direct sourcing from LCC. The purpose of this paper is to present supplier risk management mechanisms in sourcing directly from China. An in-depth case study serves to identify the perceived risks in sourcing directly from China. This is followed by exploratory studies with nine industrial product companies to study supplier risk management. Identified perceived risks are classified as performance and relational risks managed by trust and control mechanisms. Involving Chinese employees, local presence and constant communication are three interrelated antecedents for managing risks. Prioritised customer, cross-functional team, supplier development and performance feedback are identified as four trust based risk management mechanisms. Performance measurement, clarity of specifications, supplier selection and contractual agreements are the four control based risk management mechanisms. Trust precedes control and determines the effectiveness of control, though both are pursued simultaneously.

 Advanced Logistics Services (ALSs) have emerged as an indispensable element in Global Value Chains (GVCs). By adapting to shipper demand, logistics services providers facilitate the expansion of world trade. Firms focus on cost-cutting measures, including outsourcing of logistics activities. This often means outsourcing some of their logistics activities to so-called Third- and Fourth-Party Logistics (3PL or 4PL) providers. This paper focuses on the role of ALS in connection to GVCs or Global Production Networks (GPNs). The term -Logistics Value Chain- (LVC) is used to illustrate the complex market structure and division of work that has emerged between various service providers in the market for ALS. Recent development in East Asia, and also in other developing economies, is similar to what happened in western Europe over the past 20 years. Logistics Service Providers (LSPs) can take advantage of these experiences, well-functioning LVCs rely on two components: (1) committed and effective transport and Customs authorities and related policy-making; and (2) competitive logistics services. These two are essential for local producers - typically Small and Medium-sized Enterprises (SMEs) - to connect to GPNs. The absence of effective logistics markets is a serious obstacle for firms wishing to internationalise, which often leads to sustained poverty.

This article emphasise the importance of coordination in Third Party Logistics (TPL) and describes how coordination can be managed. This is inspired by Key Account Management (KAM) literature and supported by empirical evidence. Buyers of TPL services currently perceive KAM as focusing on making sales and on negotiating contracts. This article proposes that KAM may have a material impact on TPL relationships and that this function can be developed further, primarily by having a coordination role. The article contains a coordination model based on both internal and external coordination of activities within a dyad, divided into operational, functional, geographic, and development coordination. The model explains how these types of coordination can integrate functions and contents in different alliance phases to build successful TPL relationships. Copyright © 2007 Inderscience Enterprises Ltd.