Price and distribution range of logistics service providers considering market competition

2018 ◽  
Vol 30 (4) ◽  
pp. 762-778
Author(s):  
Fei Du ◽  
Sheng Ang ◽  
Feng Yang ◽  
Chenchen Yang

Purpose The purpose of this paper is to analyze the relationship between market competition and distribution strategy for logistics service providers (LSPs), including freight price, service level (delivery speed), and service coverage. Design/methodology/approach The authors consider two risk-neutral LSPs in which one is an existing company and the other is a new entrant. The existing LSP has a sound distribution network and provides service in both local and remote areas. The new entrant LSP should determine the freight price and service coverage to compete for business. The authors use a Stackelberg game to model the competition between two LSPs with assumptions of consumers’ utility and demand distribution. Numerical examples are used to validate the findings. Findings The findings show that the distribution strategy for LSPs depends on the ratio of the cost difference and shipping speed difference and demand structure. The LSP with higher shipping speeds only need to meet demands in local areas and may stay out of the market in some cases. To compete for business in the whole areas is more profitable for the LSP with lower shipping speeds when either unit service cost or the potential demand in remote areas is low enough. Otherwise, the LSP with lower speeds should stay out the market of remote areas. Originality/value This study is a preliminary research on the relationship between market competition and distribution strategy for LSPs and contributes to service operations management literature and strategic management for LSPs.

2015 ◽  
Vol 26 (2) ◽  
pp. 275-295 ◽  
Author(s):  
Patricija Bajec ◽  
Danijela Tuljak-Suban ◽  
Evelin Krmac

Purpose – The purpose of this paper is to investigate the prevalence of the application of standards and their positive influence on the efficiency and competitiveness of Slovenian logistics service providers. Moreover, an analysis was also done on the relationship between the adoption of the environmental standard and greater concern for the environment. Design/methodology/approach – A small sample analysis was done using a combination of statistical methods and an abductive approach. A χ2 analysis was utilized to test the hypotheses. Findings – Many benefits were indicated. However, a positive relationship between quality standards and efficiency, as well as competitiveness, was not confirmed. In addition, the implementation of ISO 14001 quality standards was found to have no effect on the higher investment in environmental protection. Research limitations/implications – This study is limited by its local aspect (Slovenia), small sample size and its focus on just quality standards and their external factors. Future studies should be extended to the countries of eastern Europe and should further examine the relationship of internal factors as well as the relationship between the adoption of quality standards and the supply chain. Practical implications – A survey is essential not just for the Slovenian industry but also for the wider logistics industry as well as for government authorities and standards providers. Originality/value – This is one of the first papers written to analyse the effects of quality standards on international logistics service providers and the first paper that has explored the impact of standards on Slovenian logistics service providers.


2017 ◽  
Vol 9 (3/4) ◽  
pp. 269-291 ◽  
Author(s):  
Alessandra Cozzolino ◽  
Ewa Wankowicz ◽  
Enrico Massaroni

Purpose The purpose of this paper is to explore the contribution of logistics service providers’ (LSPs) initiatives to disaster relief and how LSPs are engaged with humanitarian sector. In recent years, the importance of logistics services in disaster relief operations and the capacity of LSPs to improve humanitarian supply chain management have become an increasingly interesting topic for both professionals and academics. Design/methodology/approach This research follows a qualitative approach based on multiple case studies. Findings The current research, after considering the differences and similarities among collaboration, cooperation and coordination and underlining how crucial these mechanisms are in the humanitarian context, explains the contribution of LSPs to relief operations alongside humanitarians. Research limitations/implications There has been increased interest in humanitarian logistics on the part of international academic and professional communities. This study constitutes a first exploratory step in the research to build a platform for benchmarking analysis of logistics services that aims to ensure the effective implementation of social responsibility principles. Practical implications The managerial implications arising from the research offer a range of current responsible actions from which strategic and operative directions to contribute can be derived. Originality/value Humanitarian logistics represents a crucial field in logistics management. This paper addresses the innovative socially responsible initiatives undertaken by the main international LSPs in the area of humanitarian logistics.


2020 ◽  
Vol 31 (3) ◽  
pp. 575-605
Author(s):  
Maria Huge-Brodin ◽  
Edward Sweeney ◽  
Pietro Evangelista

PurposeVarious suggested paths for greening logistics and supply chains often address the specific perspectives of single supply chain actors. Drawing on stakeholder theory, the purpose of this paper is to develop a deeper understanding of the alignment between logistics service providers (LSPs) and shippers in the context of adopting more environmentally sustainable logistics practices.Design/methodology/approachWith a case study approach, a dual perspective is taken in which both LSPs and shippers were researched. The cases comprise eight LSPs and six shipper companies in Sweden, Italy and Ireland. Information was first analysed in relation to levels of environmental awareness, customer requirements and provider offerings and critical success factors (CSFs) and inhibitors. In a second step, the findings were analysed using stakeholder theory.FindingsLSPs demonstrate higher ambition levels and more concrete offerings compared to shippers' requirements for green logistics services. Paradoxically, customers are an important CSF and also an inhibitor for both LSPs and shippers. Both LSPs and shippers perceive financial factors and senior management priorities as important CSFs. The application of stakeholder theory helps to illuminate the importance of the many secondary stakeholders vs that of one or a relatively small number of primary stakeholders.Originality/valueThe three-dimensional analysis of environmental alignment between LSPs and shippers reinforces existing knowledge and provides new insights. A novel use of stakeholder theory in a supply chain context underlines its usefulness in research of this kind.


Author(s):  
Mathias Mathauer ◽  
Erik Hofmann

Purpose The purpose of this paper is to reveal the effects of different technology access modes on the successful integration of technological innovations. From the perspective of logistics service providers (LSPs), theoretical and managerial implications for the process of technology adoption are discovered. Design/methodology/approach The paper provides a structured literature review of the state-of-the-art in technology adoption by LSPs. Drawing on the innovation diffusion theory (IDT) and absorptive capacity, the explorative case study research includes systematic analyses of ten technology projects conducted by seven different LSPs. Findings The findings illustrate that the technology access modes (make, buy and ally) prejudge the success of the integration process in terms of technology acceptance, as well as process quality, speed and costs of integration. This relationship is moderated by technology-, firm-, environment- and relation-related factors. Research limitations/implications The paper is limited by its qualitative research approach, only seven different LSPs were addressed. Furthermore, the scope of the investigated technologies is broad but not exhaustive. Practical implications For practitioners, research indicates that the way LSPs access technologies is highly related to a successful integration process. Therefore, the paper provides practical support for improving technology adoption. Originality/value As the link between LSPs’ technology access strategies and a successful integration process has been largely neglected thus far, this paper is the first contribution addressing this research gap. In this context, IDT and absorptive capacity are discussed for application to technology adoption in supply chain management research.


2015 ◽  
Vol 26 (2) ◽  
pp. 254-274 ◽  
Author(s):  
Silvia Bellingkrodt ◽  
Carl Marcus Wallenburg

Purpose – The purpose of this paper is to provide insights into commonalities and differences of service innovation across industries. The compared sectors are logistics service providers and IT service providers (SPs). Design/methodology/approach – Data were collected from 778 SPs via an online survey. Structural equation modelling was used to analyse the empirical data. Findings – Both types of SPs benefit from close customer relations in terms of innovativeness and customer satisfaction. However, ITSPs rely more on a large number of customers to be innovative than logistics service providers (LSPs), further, LSPs can evoke a higher level of customer satisfaction when being innovative. Research limitations/implications – Empirical data were collected in a single country (Germany) and at one point in time. A confirmation of the results in different service settings is therefore encouraged. Practical implications – The results help managers with regard to their strategic decisions. The differentiating effects influencing innovativeness and customer satisfaction have been revealed. Originality/value – The research is extended by developing a model based on the knowledge of service innovation, social exchange theory and industry characteristics and by empirically testing this model.


2012 ◽  
Vol 24 (3) ◽  
pp. 515-532 ◽  
Author(s):  
Tejas R. Shah ◽  
Mahendra Sharma

PurposeThe purpose of this paper is to develop a scale for measuring benefits of third party logistics service providers for co‐operative dairies in an Indian context. The objective is to measure benefits of third party logistics service providers for co‐operative dairies.Design/methodology/approachA standard scale development research procedure recommended by experts was followed. First, the literature review of studies to measure benefits of third party logistics was undertaken. Later, Delphi method was used. Interviews were conducted of experts and customers for understanding and generating items for measuring benefits of third party logistics service providers for co‐operative dairies. A survey was then undertaken first for development of the scale and later for validation purpose.FindingsA reliable and valid scale is developed to measure the five dimensions of benefits of using 3PLSPs for co‐operative dairies: responsiveness, accuracy, customization of service, inventory handling and order processing and information sharing.Research limitations/implicationsThis scale is developed to outsource logistics functions at operational levels in the context of co‐operative dairies in India. So, this scale can be tested for co‐operative dairies of countries other than India. The scale can also be tested where outsourcing of logistics activities is done at operational level, other than co‐operative dairies.Practical implicationsThe proposed scale can be used as a diagnostic tool to identify important benefits to consider in outsourcing operational function of logistics management to 3PLSPs in co‐operative dairies.Originality/valueMost relevant studies about benefits of third party logistics service providers do not have stable factor structure, especially for co‐operative dairies. The new scale fills the gap of the absence of a validated scale to measure benefits of 3PLSPs for co‐operative dairies at operational level.


2021 ◽  
Vol 12 (3) ◽  
pp. 279-287
Author(s):  
Engkos Achmad Kuncoro ◽  
Dony Saputra ◽  
Robin Cahyadi ◽  
Ridho Bramulya Ikhsan

With the rise of competition and challenges for Logistics Service Providers (LSP) in Indonesia, competitiveness and sustainability are needed. The research explored the logistical process and identified the factors that built the competitiveness of LSP, such as Third-Party Logistics (3PL) in Indonesia. The research also identified the factors and relationships of their competitiveness and sustainability. The research methodology was explorative with the qualitative-observation approach. The applied sampling technique was purposive and snowball. The participants were 10 LSP operating in Indonesia: Kühne + Nagel, FedEx, Damco, DB Schenker, APL Logistics, Panalpina, Agility Logistics, TNT Express, Röhlig Logistic, and Rhenus Logistic. The data were unstructured interviews with 10 middle managers with the job position of leader and manager. Then, the data were analyzed using NVivo 10 software. The result is the recommendation of the competitiveness model for 3PL that the providers can apply to achieve its sustainability. Moreover, the factors that drive the competitiveness of LSP are price, service, people, and network. Meanwhile, innovation and credibility will improve competitiveness toward sustainability of 3PL. Based on the findings, it can offer opportunities for further research on the relationship and influence of these variables on other similar companies in other countries.


2021 ◽  
Vol 8 (4) ◽  
pp. 445-453
Author(s):  
Thapanee Ruangsriroj ◽  
Adisak Suvittawat

This study examines the influence of the relationship between resources dimensions and the value creation of logistics service providers (LSPs), in the economic crisis caused by the coronavirus disease 2019 (COVID-19). It also explores the mediating role of innovation solutions in halal logistics in the relationship between resources dimensions and value creation. Halal logistics play an important role in Muslim countries, and there has been a growing demand for halal products from non-Muslims. Despite its importance, there is limited knowledge of halal logistics problems in Thailand among the LSPs. To understand these issues, the study uses a questionnaire to collect data from 200 Thai LSPs selected through purposive sampling based on their logistics experience in halal, agricultural, or food products. We test the hypotheses using structural equation modeling. The results show a direct relationship between resources dimensions and the value creation of LSPs. The resource dimension is indirectly related to value creation through innovation solutions that mean it acts as a partial mediator in the relationship between resources dimensions and value creation. This study has important implications for LSPs in Thailand in that it demonstrates that they can promote innovation through resources utilization and thereby enhance financial and business performance.


Author(s):  
Timo Gossler ◽  
Tina Wakolbinger ◽  
Christian Burkart

PurposeOutsourcing of logistics has great importance in disaster relief. Aid agencies spend several billion US dollars every year on logistics services. However, the concept of outsourcing has not been established adequately in literature on humanitarian logistics, leading to a fragmented view of the practice. This paper provides a holistic perspective of the concept by constructing a conceptual framework to analyze both practice and research of outsourcing in humanitarian operations. Based on this analysis, we explore future trends and identify research gaps.Design/methodology/approachThe paper is based on a structured review of academic literature, a two-round Delphi study with 31 experts from aid agencies and a complementary full-day focus group with twelve experts from aid agencies and logistics service providers.FindingsThe paper systemizes the current practice of outsourcing in humanitarian logistics according to a conceptual framework of five dimensions: subject, object, partner, design and context. In addition, it reveals ten probable developments of the practice over the next years. Finally, it describes eight important research gaps and presents a research agenda for the field.Research limitations/implicationsThe literature review considered peer-reviewed academic papers. Practitioner papers could provide additional insights into the practice. Moreover, the Delphi study focused on the perspective of aid agencies. Capturing the views of logistics service providers in more detail would be a valuable addition.Originality/valueThe paper establishes the academic basis for the important practice of outsourcing in humanitarian logistics. It highlights essential research gaps and, thereby, opens up the field for future research.


Author(s):  
Heleen Buldeo Rai ◽  
Sara Verlinde ◽  
Cathy Macharis ◽  
Penelope Schoutteet ◽  
Lieselot Vanhaverbeke

Purpose The purpose of this paper is to identify in what way logistics service providers are involved in the logistics operations of omnichannel retailers. Given the importance of logistics in omnichannel retail and the complexities that it brings forth, it is unclear if the current tendency towards logistics outsourcing continues, and how logistics service providers should adapt to remain relevant in the omnichannel retail environment. Design/methodology/approach The research draws on both desk and field research. The authors analysed the scientific information available on omnichannel retail logistics and conducted semi-structured expert interviews with food and non-food retailers that adopt an omnichannel model. Findings The research demonstrates distinct differences between food and non-food retailers. While food retailers are inclined to organise fulfilment and last mile activities in-house, non-food retailers partner closely with logistics service providers. Nonetheless, the store network of non-food retailers is attracting a growing part of logistics activities, which retailers are building themselves. To sustain their relevance in the omnichannel environment and strengthen their position for the future, the authors created a competency recommendation framework for logistics service providers, in which service differentiation is proposed as a viable direction for growth. Research limitations/implications The research is based on insights from retailers based in the Brussels-Capital Region (Belgium) and requires further and wider testing in other contexts and geographical areas. Practical implications The findings have strategic importance for retailers that are developing an omnichannel retail model and logistics service providers that (aim to) serve clients and operate activities within the retail sector. Originality/value The research provides a holistic view of logistics in omnichannel retail by identifying insourcing and outsourcing mechanisms and developing competency recommendations to fulfilment, internal transport and last mile transport in omnichannel retail.


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