INNOVATION IN LOGISTICS OUTSOURCING RELATIONSHIPS: PROACTIVE IMPROVEMENT BY LOGISTICS SERVICE PROVIDERS AS A DRIVER OF CUSTOMER LOYALTY

2009 ◽  
Vol 45 (2) ◽  
pp. 75-93 ◽  
Author(s):  
CARL MARCUS WALLENBURG
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.


Author(s):  
Yasmine El Meladi ◽  
Richard Glavee-Geo ◽  
Arnt Buvik

Using resource-based view (RBV) as the main theoretical framework, this chapter examines the impact of logistics service providers' capabilities on logistics outsourcing performance from the perspective of textile and clothing exporting companies in Egypt. The study focuses on three resource capabilities acquired by logistics service providers (flexibility, expertise, and innovativeness) in a specific LSP-Client outsourcing relationship. The study identified flexibility and expertise as strong drivers of logistics outsourcing performance. No support was found for LSPs innovativeness as a driver of outsourcing performance. This may be because of the standardized logistics services provided by LSPs to exporters in the textile and clothing industry, which requires less service innovation within the empirical setting. Implications of the study for management are highlighted along with suggestions for further studies.


Author(s):  
Harlina Suzana Jaafar ◽  
Mohammed Rafiq

As the business competition is becoming more intense, there has been a great pressure to the logistics service providers to demonstrate its contribution to the organizational performance. Consequently, there has been a tendency of studies focusing at measuring the logistics service performance within various perspectives. This chapter provides a review on several significant studies that measures the performance of logistics services followed by presenting an empirical study on measuring logistics performance as perceived by the customers in the UK context. The empirical results confirms the relationships and consequent effects of LSQ-satisfaction, relationship quality, and customer loyalty-by providing a process model that shows the process of how customers would stay loyal in the logistics outsourcing business relationships by using exit intention as the output variable. The model in this study can greatly assist the logistics outsourcing companies in measuring the performance of their services. It helps the logistics companies understand how their customers measure the quality of their relationship experiences in receiving the logistics services provided by the logistics companies.


Author(s):  
Thierry Sauvage

Our work discusses the results of a survey among French logistics service providers. In a highly competitive context characterized by “time compression”, technological effort becomes a key variable and a means of differentiation between third‐party logistics providers. The success of logistics outsourcing relationships is entrenched in the third‐party's technological ability to improve the supply chain reactivity.


2016 ◽  
Vol 7 (1) ◽  
pp. 18-27 ◽  
Author(s):  
Miroslava Rakovska

AbstractThe increased demand and supply of logistics services bring together the logistics service providers (LSPs) and the companies that outsource logistics activities. LSPs stand in between those companies and their customers, thus playing an essential role for supply chain integration. If the two parties have different viewpoints of the processes in the supply chain, the fulfillment of the goal to satisfy the end customers may be hindered. The purpose of this article is two-fold: First, to investigate the characteristics of logistics outsourcing in Bulgaria from the perspectives of the logistics service providers and their customers, and more specifically, to compare their viewpoints concerning the motives for outsourcing, the methods and contents of communication and some relationship management aspects; Second, to assess the relations of the communication and relationship management aspects to customer satisfaction. This article is based on empirical data provided by 138 manufacturing and trading companies and 136 LSPs and collected through two structured questionnaires designed to address the researched issues. The data were analyzed using descriptive statistics and the independent samples t-test. The research found that the service related reasons for logistics outsourcing are prevailing and that LSPs overestimate, compared to manufacturing and trading companies, motives related to service, organizational capabilities and relationships, while more manufacturing and trading companies concern as important the availability of logistics assets and the provision of value-added services. The research also found that both the LSPs and their customers consider that the extent of sharing of knowledge and information essential for material flow integration is very low and that the usage of team meetings and joint teams is quite rare. Also, customers do not view their relationships with the LSPs as so collaborative as viewed by the LSPs. Furthermore, the research proved the existence of positive relationships between customer satisfaction and communication through team meetings and joint teams, knowledge sharing concerning material flow management and relationship management issues such as trust, mutual problem solving, understanding the logistics strategy of the other party and respecting its financial interests. The research findings may help fill in some of the gaps between LSPs and their customers. They point the need for LSPs to include in their service offerings more value-added services and to invest in assets that provide reliable and flexible services for their customers. The research also highlights the importance of knowledge sharing and trust building and reveals great potential for effective trust-based alliances between LSPs and their customers that could help them extract more competitive benefits from their relationships.


2019 ◽  
Vol 13 (1) ◽  
pp. 143-160
Author(s):  
Mohammad Shaiq ◽  
Masood Hassan

Logistics outsourcing markets are globally expanding at a breakneck pace. Like other industries, the demand and supply forces of the logistics service industry are also affected by external determinants. The primary objective of this research is to evaluate the behavior patterns of Logistics Outsourcing Market (LOM) in Pakistan in contrast to global demand and supply patterns of the logistics industry and find out the major factors, drivers and obstacles which impact the growth of logistics outsourcing in Pakistan. For statistical analysis, this study solely relied upon the perspective of logistics service providers. A sample of 180 logistics service providers was surveyed to gather information through a semi-structured questionnaire. Results confirmed that the behavior of the logistics outsourcing market in Pakistan is tilted towards local business needs and customer demands. Statistical analysis also proved that, as far as the growth of logistics market is concerned, the internal industry factors along with national business environment have more impact on the growth of logistics outsourcing than global drivers and challenges.


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