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Journal Article Review 5
Wallenburg, C. M. (2009). INNOVATION IN LOGISTICS OUTSOURCING RELATIONSHIPS: PROACTIVE IMPROVEMENT BY LOGISTICS SERVICE PROVIDERS AS A DRIVER OF CUSTOMER LOYALTY. Journal of Supply Chain Management, 45(2), 75-93. Retrieved from http://search.proquest.com/docview/304919299?accountid=12085
Liberty University
BUSI 613 September 24, 2014

In order for companies to stay competitive in the dynamic, fast-paced, and ever-changing business world; they must stay current and find ways to stay ahead of their competitors. In other words, that “innovativeness may help logistics service providers (LSPs) differentiate themselves from their competitors” (Wallenburg, 2009). Customers can always take their business to a competitor who is offering a better, cheaper product or service, as well as better customer service. Outsourcing, or the contracting out of a business process to another party, has become a staple in 21st century business and logistics. Not only has outsourcing become a mainstay for companies, it has become a necessity; and customer loyalty is sometimes dependent on the innovation of logistics outsourcing. However, for the logistics outsourcing relationship to work smoothly, there needs to be constant proactive (rather than reactive) improvements made to maintain customer loyalty.
This article links the level of customer loyalty directly to the innovation of logistics outsourcing by aiming to reduce the research gaps concerning the effect of proactive improvement on customer loyalty and the selection of the focus (cost versus performance)” (Wallenburg, 2009). The competitive nature of the logistics industry has increased over the past several years and is continuing to grow. Today, about 80 percent of industrial companies outsource logistics activities to logistics service providers (LSPs) accounting for an average of 60

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