Transportation & Distribution

Who provides competitive advantage? (selecting a logistics service provider)

The contract logistics industry has been in a state of change. Multi-region systems have developed, independent firms have formed sales associations, the array of value-added services has increased, and users have increasingly considered outsourcing as an option to private warehousing. In many cases, the role of the public warehouse has moved well beyond the process of moving material in, storing it, and moving it out. Public warehousing firms offer a broad array of services that include logistics activities such as order processing, assembly, light manufacturing, custom packaging, consolidation, and drop shipping.

Faced with this changing scenario, the University of South Alabama compiled some hard data on where shippers believe the best and worst service levels are found.

Forty-one shipper respondents to Alabama's survey evaluated six logistics service providers of their own choosing. …

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