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Journal Article Review 3: Innovations in Logistics Outsourcing Relationships: Proactive Improvements by Logistics Service Provider as a Driver of Customer Loyalty

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Journal Article Review 3:
Innovations in Logistics Outsourcing Relationships: Proactive Improvements by Logistics Service Provider as a Driver of Customer Loyalty
BUSI 613: Supply Chain Management

Abstract The purpose of this journal article review is to discuss the article, Innovation in Logistics Outsourcing Relationships: Proactive Improvement by Logistics Service Providers as a Driver of Customer Loyalty by Carl Marcus Wallenburg. Currently, the number of outsourced logistics service providers has risen as a result of companies demanding their services. With more and more entering the market, competition between the providers is becoming more intense, and they must innovate their own logistics systems. With innovation, the providers may expect to their customer loyalties to grow and expand as they keep current customers and win over new ones. The question arises as to whether the providers seek to innovate and improve their services to offer lower prices, or to provide the customers with more efficient services. In his research, Wallenburg finds that customers prefer that the quality of services increases rather than seeing the service prices decrease. This report also takes a brief look into the survey results of Wallenburg’s findings, as well as the implications managers should consider when deciding how to improve their logistics service systems.

Author’s Purpose The single most important issue in the journal article, Innovation in Logistics Outsourcing Relationships: Proactive Important by Logistics Service Providers as a Driver of Customer Loyalty, is that logistics services providers (LSPs) are burdened with the “necessity of enhancing customer loyalty” in order to differentiate and compete with other providers (Wallenburg, 2009, pg. 75). In order to accomplish the goal of enriching business relationships with their customers, the logistics

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