Logistics Service Providers Selection Criteria

Topic: Logistics
Words: 333 Pages: 1

Logistics service providers keep growing in demand as the trade nets are expanding, which has led to a significant number of organizations involved in the logistics market. When choosing a transportation service, it is important to consider various factors to choose a reliable provider and avoid problems associated with poor quality services and missed deadlines. Such criteria as cost, company’s experience in the market, geographic and mode specialization, and customer service can help in making the right choice.

Cost is one of the major factors considered by consignors when deciding on a logistics partner. Low cost can be deceptive because it is likely to be caused by operating without an official contract, which makes the logistics company not responsible for any damage that happens during the transportation. Another factor worth considering is the company’s stability and presence on the market. A company that has been operating on the market for a substantial period of time, for instance, not less than five years, most probably has permanent partners and is more reliable than a new company that is likely to be using borrowed machinery (Narkhede et al. 2017). Another important factor is customer service, as service orientation implies a high problem-resolution ability of the company and a commitment to continuous improvement (Pamucar et al. 2019). When a consignor is deciding on which logistics company to choose, it can also be beneficial to consider the mode (marine/air/land) and the geographical are of operation of the company. Specialized companies are more likely to provide a service with expertise in their field and, thus, provide a more stable and reliable service.

Amid the steady growth of the logistical market, choosing a reliable partner can pose a challenge. In order to make the right decision, such factors as the company’s reputation, operation mode and area, customer service, and cost are worth considering. However, in the conditions of the immense market competition, is it possible to take into account all of the factors crucial when choosing a logistics partner?


Narkhede, B., Raut, R., Gardas, B., & Luong H. (2017). Selection and evaluation of third-party logistics service provider (3PLSP) by using an interpretive ranking process (IRP). Benchmarking: An International Journal, 24(6), 113-143.

Pamucar, D., Chatterjee, K., & Zavadskas, K. (2019). Assessment of third-party logistics provider using multi-criteria decision-making approach based on interval rough numbers. Computers & Industrial Engineering, 127(6), 383-407.

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