Research on Supply Chain Performance Improvement Based on Logistics Service Level

Abstract

This study discusses the opportunities and challenges for improving the performance of a supply chain based on Logistics customer service level. Most studies of logistics service performance improvement have focused on cost reduction, while few studies have reported on service benefits. In our work, we empirically examines if different logistics service activities results in differences supply chain performance. We identify and analyze four levels of logistics service activities: transportation (level 1), packaging (level 2), transportation management (level 3), and distribution network management (level 4). A research framework was formulated to discuss the effect of the decision of different levels on perceived logistics service performance and includes the moderating role that supply chain complexity may play in the proposed relationships. Our findings show that the performance when Logistics service level 4 activities increases with an increasing degree of demand complexity.