Exploring logistics service providers for small and medium-sized enterprises and large corporations: benefits and challenges

Abstract

Purpose The purpose of this study is to examine the benefits and challenges of using logistics service providers (LSPs) for small and medium-sized enterprises (SMEs) and large corporations. Design/methodology/approach This study uses the focus group interview method with eight LSP companies of varying sizes in the UAE. The aim is to obtain detailed insights into the advantages and obstacles associated with using LSPs. Findings The interview results reveal differences in the services and payment options offered by large and small-medium-sized LSPs, leading to varying impacts on SMEs. Additionally, both large and small-medium-sized LSPs encounter challenges in delivering services to SMEs, including sustaining logistic excellence in a competitive market, meeting the high customer expectations from SMEs and large enterprises, difficulty in recruiting skilled and competent employees and high costs of business technology. Research limitations/implications This study is limited to the UAE context and the perspectives of eight LSP companies. The findings may not be generalizable to other regions or industries. Practical implications The findings of this research provide valuable insights for SMEs and large corporations considering the use of LSPs. Understanding the benefits and challenges associated with outsourcing logistics services can assist in making informed decisions and developing effective collaborations with LSPs. Originality/value This research contributes to the existing literature by specifically examining the benefits and challenges of using LSPs for SMEs and large corporations. This study provides a comprehensive analysis of the factors that influence logistics outsourcing decisions and highlights the unique challenges faced by LSPs and SMEs in the context of the UAE.