Information Exchange, Responsiveness and Logistics Provider Performance

Abstract

The impact of information exchange on suppliers' performance is investigated in the context of trade relationships formed between manufacturers and third party providers of international logistics services. A conceptual model that predicts the important linkages among information exchange, responsiveness and performance is introduced and tested. The research shows that information exchange positively affects customers' perceptions of third party logistics providers' performance; information exchange also positively affects logistics providers' service responsiveness; and logistics provider responsiveness affects customers' perceptions of the providers' performance. These linkages provide a fuller understanding of why and how information exchange influences manufacturers' perceptions of the performance of third party logistics providers. Logistics providers that used information obtained from trading partners to develop more responsive operations were viewed as better performers.