Performance Of Logistics Service Providers Research Articles

FUTURE-PROOFING LOGISTICS: AN EMPIRICAL INSIGHTS ON INNOVATION-DRIVEN LOGISTICS SERVICE PROVIDERS PERFORMANCE

Logistics service providers (LSPs) are a significant individual in supply chain management services. The escalating competitive pressures are placing considerable strain on LSP particularly those operating at the local level, as competition arises from both domestic and international. It becomes crucial for LSP to enhance their performance by aiming for growth and long-term sustainability in this industry. Thence, this study explores the direct influence of logistics service capacity on LSP performance, as well as the mediation influence of innovation linking logistics service capability to logistics performance. This study involved the participation of 127 LSP through survey methodology in Malaysia. The study employed Structural Equation Modelling (SEM) using Partial Least Squares (PLS) estimation to examine and test the hypotheses posited in this study. The results provide valuable understandings for LSPs to enhance their logistics services in alignment with highest performance and customer satisfaction. The findings also show that innovation failed to connect the model of logistics performance The findings are necessary to establish a reliable policy in attaining better logistics performance especially during unprecedented situation. This study extends the degree of knowledge regarding logistical performance during the COVID-19 epidemic and to the innovation as mediation to attain performance in logistics field.

An Analysis of How Logistics Integration Affects Organizational Performance in Kenya's Clearing and Forwarding Sector. A Structural Equation Modelling Approach.

The performance of logistics service providers in Kenya is marred by poor customer satisfaction, stemming from delays experienced in port clearance, disintegrated clearance systems, complex regulations, inefficient document processing and lack of integrated information systems. This study examined the effect of logistics integration on organizational performance among the Clearing and Forwarding firms in Kenya. It adopted a cross-sectional design and collected primary data through structured questionnaires. Simple and stratified random sampling were used to select respondents and ethical approvals obtained before collecting data using structured questionnaires. Data were collected from 298 employees from the operations, customer service, and finance departments. Using SPSS and SPSS AMOS 29, the study used descriptive statistics and structural equation modelling. The study findings revealed a disparity in the level of logistics integration among different Clearing and Forwarding firms in Kenya. This variance in logistics integration significantly impacts the overall organizational performance of these firms. From SEM analysis, the study established that logistics integration has a positive and significant effect (Path coefficient = 0.791, C.R = 5.664, P-value < 0.001) on the organizational performance of C&F companies in Kenya. The study concludes that enhancing logistics integration will lead to a substantial improvement in the organizational performance of C&F companies in Kenya. Thus, managers responsible for strategy should aim to collaborate with strategic partners such as state corporations managing ports and customs processes (KRA and Kenya Ports Authority), shipping lines, transportation companies, and other key stakeholders in the C&F supply chain in integrating logistics systems and processes.

The Effectiveness of Logistics Services on Firms’ Performances – A Literature Review

Until a few years ago, logistics was considered a low-value-added sector, just an additional cost in the supply chain that directly impacted the economics of the activity. However, today that perception has changed, and its importance has become paramount. Logistics efficiency is therefore seen as a differentiating strategic element in an organization and an undeniable competitive advantage for companies. In this research, the researchers aim to highlight the components of logistics services, identify the factors affecting the performance of logistics services, and the Impact of Logistics Services on the Company’s performance. The methodology adopted for conducting this study is qualitative as the literature pertaining to the topic of study has been searched and explored to arrive at conclusions. The main findings of the study suggested that logistics service providers should invest in logistics services, adopt best logistics practices, and collaborate with their customers to improve their logistics services and meet the changing demands of customers. Overall, the effectiveness of logistics services is a complex and multifaceted topic that requires a comprehensive understanding of supply chain management principles, transportation and warehousing technologies, and customer service practices. Ongoing research in this area is critical for businesses looking to optimize their logistics operations and improve their competitiveness. Additionally, future research could explore the specific logistics services that have the greatest impact on the performance of logistics service providers.

Blockchain-based Logistics 4.0: enhancing performance of logistics service providers

PurposeTechnology is the lifeline for the logistics industry, and it has been immensely disrupted by the emerging blockchain technology. This paper has two main objectives. The first is to explore how the current blockchain technology can be implemented in the logistics industry with the aim of improving logistic services amongst the network of logistics service providers (LSPs). The second is to propose the development of a blockchain model for the small and medium logistics service supply chain.Design/methodology/approachA prototype blockchain-based logistics system has been created and tested in a case study with a real logistics company. The primary technologies for developing a blockchain model on the Hyperledger platform as well as how the system is designed based on the logistics service flow are explained.FindingsThe study has resulted in the successful implementation of the proposed prototype blockchain-based logistics system. In particular, the case company has managed to fully utilise the developed tracking and tracing system. Whilst utilising the prototype, the participants have been able to fulfil their responsibilities in an effective manner. The performance of LSPs has improved following the World Bank Logistics Performance Index (LPI) criteria.Originality/valueThis paper contributes to current research in the application of blockchain technologies in the domain of logistics and the supply chain to progress LSPs towards Logistics 4.0. The current frameworks for Logistics 4.0 and how blockchain as a disruptive technology revolutionises logistic services are reviewed. In addition, this paper highlights the benefits of blockchain technology that LSPs can leverage to further improve their performance based on the LPI criteria.

Integration, Resilience, and Innovation Capability Enhance LSPs’ Operational Performance

In the context of the development of industry 4.0 embedded in various industries, organizations face stiffening competition from external dynamically changing and unpredictable environments. To remain competitive and sustainable in this era, organizations need resilience and innovation capability. Therefore, this paper aims to investigate the association between external integration, resilience, innovation capability, and logistics service providers (LSPs) operational performance. Moreover, this research investigates the mediating effects of sustainable logistics and innovation capability between external integration and LSPs operational performance. Based on Resource orchestration theory, a framework has been drawn. The survey of 273 Chinese LSPs was examined through the PLS-SEM technique. The findings indicate that external integration has a positive relationship with logistics resilience and innovation capability, which have a positive impact on LSPs’ operational performance. The results also show that innovation capability positively mediates the relationship between external integration and operational performance. Unexpectedly, logistics resilience has not played a mediating role between external integration and operational performance. This study makes contributions to the construction of a mechanism of LSP performance improvement by integrating the external environment, resilience, and innovation. The paper also advanced the theory of resource orchestration theory by adding these two mediators of logistics resilience and innovation capability

Enhancing the Logistics 4.0 Firms through Information Technology

In the logistics service industry, the rapid advancement of Information Technology (IT) has cultivated a competitive dynamic that promotes uptake of logistics information technologies by Logistics Service Providers (LSPs). However, there remain many LSPs who have yet to embrace IT and thus have not realized their fullest competitiveness and financial success. This research conceptualizes the role of IT in logistics operations and investigates the degree to which IT, its usage, and its capabilities can affect LSP performance and competitiveness. The research interviews a logistics operations manager and the findings support that a firm’s performance and competitive advantage are influenced by IT usage and (especially) capability. As IT capability complements service processes and allows for innovation in services, this research and suggested future research provide not only theoretical and technological but also managerial implications.

THE IMPACT OF LOGISTICS CAPACITIES ON THE LOGISTICS PERFORMANCE OF LSPS: RESULTS OF AN EMPIRICAL STUDY

This paper has a dual objective, to specify the logistical capacities of Moroccan Logistics Service Providers (LSPs) and to understand the process by which these capacities contribute to the logistical performance of LSPs. Methodologically, we used the qualitative approach based on a sample of sixteen LSP. The results of this research show that the main logistical capacities of Moroccan LSPs are flexibility and innovation, which respectively abound in reactivity/proactivity and technological innovation / administrative innovation. Similarly, "customer response" appears to be a purpose that overlaps with logistics performance. Thus, this variable mediates between flexibility and logistics performance. This study also tries to analyse the emergence of new moderating variables, particularly "logistics skills," which strengthen the relationship between innovation and customer response, and "communication with employees" as a support for maintaining performance logistics.

Sustainable Firm Performance of Logistics Service Providers along Maritime Supply Chain

As a result of globalization and the growing importance of environmental and social issues, scholars have started to update the scope of logistics management and capture its complexity using different theoretical perspectives. The output of logistics services also encompasses the so-called negative by-products, which have been increased in past decades and stress the need for a standardized, comprehensive and quantitative performance measurement. The reduction of the negative by-production, e.g., decarbonization in the transport industry, is commonly associated with a higher degree of logistics performance using different capabilities. Research aims of the study are twofold: to show the decisive components for sustainability performance of a logistics service provider (LSP) and to outline internal capabilities of LSPs as indicators of its sustainability-oriented firm performance. In the first step, firm performance is sampled using the lenses of sustainability. For this purpose, general and transport-related sustainability frameworks are summarized to identify how they differ in sustainability dimensions in order to help LSPs contribute to the 17 Sustainable Development Goals. In the second step, decisive and evidence-based capabilities as indicators of sustainability-oriented performance are outlined using mixed methods by reviewing the literature.

The role of strategic agility towards the firm performance of logistics service providers in Indonesia

Competition in various companies encourages practitioners, entrepreneurs, and academics to examine the dynamization of business models. The dynamic study of this business model was driven by its dynamic environment. Dynamic moving environments require companies to be adaptive as quickly as possible. This adaptation encourages different firms to perform a certain strategy of excellence in the face of competition. Strategy Agility becomes a study of practitioners and academics due to its ability to predict and capture opportunities. One of the service industries faced with the dynamic environment within the company is the Logistic Service Provider. Fierce competition, the dynamic type of service, and rapidly changing technol-ogy encourage enterprises to always be agile in determining the direction to the business. The purpose of this research is to get a model of the relationship between strategic agility and competitive strategy as a moderator for the improvement of the firm performance. Methods used are quantitative methods. The research results describe the direct relationship between strategic agility and competitive strategy to the firm performance. However, when the competitive strategy is made as a moderator, strategic agility shows a negative effect.

The Effect of Organizational Culture on Logistics Performance of Logistics Service Providers and Shippers

The Effect of Organizational Culture on Logistics Performance of Logistics Service Providers and Shippers

Framework for Measuring Sustainability Performance of Logistics Service Providers- A Systematic Review of Literature

Sustainability and sustainable development have become a buzzing topic in today's business world. Business organizations are more inclined towards making themselves economically, socially, and environmentally more sustainable. With the introduction of concepts like “Sustainable Supply Chain Management” organizations have determined to not only make themselves sustainable but to make the whole supply chain sustainable as well. As part of the supply chain, Logistics Service Providers (LSPs) are no exception. With the pressure from the internal and external stakeholders such as Government, Non-Government Organizations (NGOs), public authorities, LSPs are more inclined towards making themselves more sustainable and ‘being sustainable’ has become a competitive advantage for them now. To measure and evaluate sustainability performance, various frameworks and standards have been introduced. This paper reviews the available literature from 2010 to 2019 under logistics service providers, sustainability, and sustainability performance evaluation. This study was conducted through a systematic review of the literature and presents various sustainability indicators used by researchers, sustainability performance evaluation models, and frameworks and the approaches used by researchers in developing those models and frameworks for the logistics service providers and the supply chain as a whole. The review brings up the importance of further analyzing and testing those proposed models and frameworks using case studies and the need for incorporating the opinions of stakeholders when developing the models for the evaluation of sustainability performance and frameworks.

Halal logistics: practices, integration and performance of logistics service providers

PurposeThis paper aims to examine the halal value creation in halal logistics practices and halal logistics integration in delivering halal products and/or services by investigating the effects of halal logistics practices on halal logistics performance and the role of halal logistics integration as a mediator.Design/methodology/approachPartial least square is performed on a survey data of 129 Malaysian logistics service providers.FindingsThe novel findings affirm that halal logistics practices comprising of physical segregation of halal products from non-halal in halal warehousing, halal transportation and halal terminal positively affect halal logistics performance. The most novel finding is that halal logistics integration positively affect halal logistics performance and mediate, significantly the relationship between halal warehousing and halal transportation and halal logistics performance.Practical implicationsManagers/logisticians should aware that halal value creation in halal logistics practices have a positive effect on halal logistics performance and they should appreciate halal logistics practices and halal logistics integration to realize a better halal logistics performance towards halal logistics implementation.Originality/valueThe results draw the novel contributions of halal logistics practices and mediating effects of halal logistics integration between halal logistics practices and halal logistics performance that have never been published.

New Service Development Across the Logistics and Financial Industries

Logistics service providers (LSPs) can create a more strategic position in supply chains for themselves or increase margins, by offering or supporting financial instruments. There is a scarcity of literature in Supply Chain Finance (SCF) on how financial instruments are developed before they are adopted, and on the LSP perspective. Via exploratory research using case studies we aim to give insights on how financial services are developed by LSPs, and what the enablers and inhibitors are in different phases of development. Results show how that the development of cross-industry services (in this case, from logistics to finance) for LSPs presents significant difficulties, and how a series of enablers and inhibitors might facilitate or hinder the LSP performance in developing the new service.

MODELING SUPPLY CONTRACTS TO MANAGE OUTSOURCING RISKS OF LOGISTICS' ACTIVITIES

Many companies managed to improve logistics performance by making outsourcing decisions on logistics activities. The use of logistics outsourcing, not only can maintain their focus on core businesses, but also continue to minimize distribution costs by establishing relationships with third party service providers to create value of their operational performance excellence. But in a decentralized supply chain condition, the control of the supply chain players towards third-party logistics service providers is also limited, while the performance of logistics services affects the availability of products, quality, price, and market share of these companies. Coordination mechanisms are needed in a decentralized supply chain, especially with the implementation of logistics outsourcing decisions, so companies can maintain competitive advantage. In this paper, the model revenue and inventory-risk sharing contract was developed to coordinate the supply chain consisting of manufacturers, third party logistics service providers, and retailers. In addition, incentive and penalty schemes are applied based on the performance of logistics service providers that will affect the level of availability in retailers, so that inventory risk can also be allocated to all stakeholders.

INFORMATION TECHNOLOGY, LOGISTICS PERFORMANCE AND MODERATING EFFECT OF FIRM SIZE: EMPIRICAL EVIDENCE FROM EAST COAST REGION OF MALAYSIA

Information Technology (IT) is universally accepted as one of efficiency boosters. Logistics Service Providers (LSPs) around the world involve in IT implementation with the purpose to increase their service efficiency in catering business demands, especially for LSPs which operate in the areas of heavy trade activities. The activities create congestion which lead to deficient of LSPs performance and increase delivery time and total costs. However, the review of literature reveals that IT implementation met with productivity paradox. Thus, in order to examine how IT implementation influences the performance of LSPs in East Coast Malaysia, 81 LSP firms in the region were involved in this study. This study also investigated the moderating effect of LSP sizes on their performance. The findings reveal that IT implementation significantly influenced LSPs’ performance, but it happened vice versa for the moderator investigation. This study has bridged the literature gaps of IT adoption in such that it offers empirical evidence and new insights on the significant moderating effect of firm size in the relationships between IT implementation and logistics firm performance using Malaysian samples.Keywords: Information Technology, logistics service providers, performance, firm size, Malaysia.Cite as: Mohd Zawawi, N.F. & Abd Wahab, S. (2018). Information technology, logistics performance and moderating effect of firm size: Empirical evidence from east coast region of Malaysia. Journal of Nusantara Studies, 3(1), 87-102. http://dx.doi.org/10.24200/jonus.vol3iss1pp87-102

Oil price shocks and the financial performance patterns of logistics service providers

This paper examines the influence of oil price shocks on the financial performance of logistics service providers. By applying the structural vector auto regression (SVAR) methodology to the data of 301 logistics service providers (LSPs) from 2004 to 2014, based on annual and half-yearly report data (in total 6020 firm-years), it is shown that oil price changes are absorbed in a variety of ways by different types of companies. Fluctuations in oil prices negatively affect the transportation industry – with minor restrictions in asset-light clusters and companies which consume little to no oil. Our analysis also shows that oil price shocks result in effects of different magnitude and length with respect to the type of LSP. Thus, some LSP clusters adapt quicker to oil price changes than others and are better able to absorb price shocks. An innovative approach is applied to examine LSP performance; SVAR, a widespread model in economics, is used to analyse the LSP sector. The results are important for financial planning of the management of different LSP types as well as their customers.

The performance of logistics service providers and the logistics costs of shippers: a comparative study of Finland and Switzerland

ABSTRACTThis article analyses the market dynamics between shippers in the manufacturing sector and logistics service providers (LSPs) in Finland and Switzerland, focusing on factors that are characteristic of the demand and supply sides of logistics markets such as performance indicators, financial ratios and relevant macroeconomic indicators. The development of shippers’ logistics costs over a period of ten years is analysed as a proxy for cost savings. This is mirrored against the development of the LSPs’ financial performance. The share of logistics costs in the turnover of Finnish shippers is consistently higher than that of their Swiss peers, whereas Finnish LSPs perform financially better than their Swiss peers. This implies that Finnish and Swiss logistics markets differ in terms of market power and interdependence between shippers and LSPs. The results indicate that the sub-regional interdependence and market power of LSPs, caused by a lack of competition, explain some of the differences in logistics costs.

The effect of a competitive strategy and green supply chain management on the financial and environmental performance of logistics service providers

AbstractDespite the critical role of logistics service providers (LSPs) in improving the environmental sustainability of supply chains, there is still uncertainty about how LSPs can turn environmental management into competitive advantage. Based on a Finnish national logistics survey and financial reporting data from 266 LSPs, this article examines their competitive strategies and green supply chain management (GSCM), and tests their respective relationships with environmental and financial performance. Financial data are used to measure financial performance in a novel way. The findings indicate that leading LSPs with operational excellence and strong brands are more advanced in terms of GSCM than LSPs that do not excel in any competitive priority. GSCM practices are positively related to environmental performance, but not to financial performance. However, managers should not be discouraged by the apparent absence of short‐term financial benefits of GSCM practices, which in any case could enhance future differentiation opportunities.

Promoting Logistics Providers in Developing Countries: Proposals for Peru

This working paper provides a historical overview of the performance of logistics service providers, examining the characteristics of regulations governing logistics service providers, with emphasis on Peru. The paper also discusses the best practices implemented in a number of countries for promoting the integration of logistics operators, presenting a series of proposals for developing logistics service providers in Peru

Environmental sustainability in the service industry of transportation and logistics service providers: Systematic literature review and research directions

This paper provides a systematic review on the subject of environmental sustainability in the service industry of logistics service providers (LSPs) to analyse the advances of the literature on the topic and pick out appropriate research questions to investigate. The literature review has been performed using two academic databases and spans the years 1960–2014. The paper shows that despite the increasing number of papers on the subject, several areas of research are still being neglected. In particular, the paper highlights six main literature gaps concerning the classification of green initiatives, the impact of green initiatives on LSP performance, the evaluation of sustainability performance, the factors influencing the adoption of environmental sustainability initiatives, the customer perspective in the sustainable supply chain, and the information and communication technologies supporting green initiatives. Starting from these six gaps, eight research questions have been identified. These research questions represent possible emerging areas of investigation on the topic.