Factors Affecting Long-Term Cooperation with Logistics Service Providers

Abstract

Nowadays different approaches are used by the companies to systematically compare and evaluate logistics service providers. The purpose of this study is to define and classify requirements, evaluation criteria and quality criteria set towards logistics service providers. In this study, information is gathered about the selection arrangements for logistics providers, which were collected from several companies. Authors looked for information related to the following questions: what are the criteria for evaluating logistics service providers; what are the requirements that logistics providers need to ensure to become a partner; what are the objectives of the selection contests (procurement tenders) defined by the companies; what are the main service quality indicators that are used to measure the performance of logistics service providers. Companies originated in the European Union from various countries have been examined. A literature review was conducted that helped to collect information regarding application of multiple-criteria decision-making for selection of logistics service providers and extract proposed selection criteria. Analysis of procurement documentation by logistics service providers was done to extract and group data that will be used to develop decision-making framework in further research. Authors created unique groups of logistics service providers selection criteria, requirements towards logistics service providers, selection goals and key performance indicators. Finally, general market research of pre-defined industries was made. There are very few studies dedicated to selection of criteria and requirements towards logistics service providers. Companies tend to formulate selection criteria of logistics service providers in general manner, at the same time, not paying attention to formulating selection process goals.