Logistics service characteristics and supply chain priorities for freight management

Abstract

Purpose The purpose of this paper is to examine how the type of logistics services required by firms is related to the freight characteristics, and to the cost and other dimensions of the services in Mexico. Design/methodology/approach The authors conducted an exploratory study using Anova analysis and correlations, on the basis of a sample of 266 freight movements in Mexico, in order to test two main hypotheses. Findings The authors found an association between some logistics services, according to their level of customization, with the freight characteristics, and a positive relation of those customized services with security and reliability, on the one hand, and a negative relation with cost of the services, on the other hand. Research limitations/implications Size of the sample and some subjective measures of logistics services performance. Practical implications For shipping companies to be aware of existing limitations of Mexican logistics service providers in relation to customizing their services and the attributes associated with these services. This knowledge will contribute to firms' better planning of their freight movements. Originality/value Authors extend the supply chain analysis considering logistics variables variables such as freight characteristics, logistics services requirements, and the firms’ priorities for contracting these services, such as cost and other attributes.