Logistics Services in the 21st Century

Abstract

Due the cross-functional character of logistics tasks and the cross-organizational structure of most logistics chains, the logistics service industry is strongly affected by business dynamics. Since the 1950s, this industry has experienced a variety of changes; While logistics was traditionally concerned with the fulfilment of functions like transportation and warehousing, modern logistics service offerings also encompass services like network design and carbon footprint assessment. But not just the scope of logistics services has changed. Additionally logistics business models developed from 1PL to 4PL, indicating a shift from the provision of execution tasks to tactical tasks and from fragmented logistics solutions to integrative logistics solutions for complete logistics chains. As a consequence, logistics service providers at the beginning of the 21st century have many options to configure their service offerings. But which options exist to comply with the requirements in a modern competition being fought supply chain versus supply chain rather than firm versus firm? After analyzing the dynamics in the logistics service industry and the importance of logistics for an effective and efficient supply chain management, this chapter will focus on options how logistics service providers can construct single logistics services (service architecture), their logistics service program (service program architecture) and their appearance on the market (service provider architecture) in order to fulfil their role within today’s supply chains and to improve supply chain performance.