MANAGEMENT OF THE 'CUSTOMER - LOGISTICS SERVICE PROVIDER' RELATIONSHIP

Logistics service providers (LSPs) serve as an intermediate between shippers and their customers to create the value shippers aim at. However, it is not always clear what this value is neither to the LSP nor to the shipper. We develop and test a Customer Process Analysis (CPA) tool to identify the nature and level of key performance requirements set by shippers, and the extent to which these requirements are met by LSPs. The CPA is a hierarchy of performance indicators used to determine the level of fit. CPAs were carried out at 9 companies and the findings were, at first sight, disappointing. Hardly any of the LSPs had defined any type of performance indicator nor its required level, furthermore shippers were also not able to provide this information when asked. A number of the larger LSPs had indeed defined and applied internal performance indicators, but they used the same indicators for all of their customers and thus are not customizing these indicators to all for the fact that different customers may have different demands.