Group 486

Core principle 6: Local decision-making

The BDI supports the local context: the framework offers room for local habits, agreements and legislation within subnetworks.  

Innovation and differentiation 

Innovation, competitiveness and profitability depend on differentiation, specialisation and the freedom to create new offerings. This need for flexibility and innovation remains balanced due to existing common rules and agreements.

Subsidiarity

The BDI operates on the principle of local decision-making, also called the ‘subsidiarity principle’: issues need to be managed at the most direct or local level – the location most suitable for resolving these issues. For instance: processes relating to sea ports can differ quite significantly from processes relating to airports. Overcoming challenges within these kinds of subdomains will increase the business value for each domain.  

The governance recommendations of the BDI framework follow this principle. This system ensures that joint agreements between organisations are in line with things like the market structure, legal frameworks and local habits. 

Consequences 

The governance structure of the BDI framework is polycentric and layered. This structure ensures flexible decision-making with room for specific, local requirements. The approach is in line with the diversity and layering of logistics processes. At the same time, joint agreements safeguard the cohesion of this framework.