Logistics Service Providers

Abstract

Supply chain complexity is reflected through the existence of multiple logistics service providers (LSPs). The decision on the appropriate logistics partner is considered significant for the chain efficiency. The managerial problem relies in the providers’ efforts to broaden their service portfolio, thus erasing controversies concerning the identification of their core competences. This issue mainly lies in the selection among an International Freight Forwarder (IFF), a Third Party Logistics Provider (3PL), and a Fourth Party Logistics Provider (4PL). The aim of this chapter is to provide an overview of the characteristics and services offered by the LSPs, present the benefits and drawbacks from the collaboration with each entity, and finally form a framework regarding their representative features. The framework is articulated based on literature review and aims to provide a guideline to the interested chain members, enabling them to assess their needs against the LSPs’ characteristics.