Presents an analysis of the total quality management (TQM) system of a logistics service provider operating in a supply chain context. The company can achieve ongoing improvement in its services cost‐effectively through efficient use of information system and teamwork. Following the strategy of case study research, analytical generalisation is made with respect to the multiple roles of the logistics service provider in determining its relationships with internal and external customers and in setting service goals; the intensive use of information in facilitating and monitoring logistics service operations, which in turn determines the competitive advantage of the service provider; essence of people‐based management and how that promotes interactions in teamwork, trust building and flexibility in meeting changing goals and process requirements; and alliance leadership and its potential to empower teams to innovate and upgrade total quality service in turbulent environments.