To read the full version of this content please select one of the options below:

Segmenting logistics service users based on their provider selection criteria to succeed in outsourcing

Gerald Oeser (Faculty of Business and Health, Bielefeld University of Applied Sciences, Bielefeld, Germany)

International Journal of Retail & Distribution Management

ISSN: 0959-0552

Article publication date: 5 May 2020

Issue publication date: 9 September 2020

Abstract

Purpose

Logistics service providers (LSPs) may invest a lot of time in tenders unsuccessfully, as they do not meet the expectations of logistics service users (LSUs). In order to help them classify and target their customers more efficiently and effectively and make logistics outsourcing more successful for both LSUs and LSPs, this paper analyzes underlying dimensions of criteria German manufacturing and trading companies actually use in selecting an LSP and clusters of LSUs based on these dimensions.

Design/methodology/approach

A questionnaire survey with 110 manufacturing and 135 trading companies was conducted in Germany. Principal component analysis (PCA), cluster analysis, multivariate analysis of variance, analysis of variance and discriminant analysis were performed on the sample data.

Findings

PCA revealed eight dimensions of LSU criteria in selecting LSPs and that cost alone seems not decisive. Based on these dimensions, cluster analysis produced nine LSU groups. These groups differ the most in the selection criteria dimensions cost-performance ratio, operational collaboration, quality and locations. Recommendations for servicing these groups are given. The two largest groups, which make up 43.5%, seem not that demanding and price sensitive. The selection criteria dimensions and LSU groups enable LSPs to classify and target their customers more efficiently and effectively, to evaluate and develop their core competencies, and contribute to successful logistics-outsourcing relationships.

Originality/value

This research is the first to examine selection criteria dimensions and resulting clusters of German manufacturing and trading companies in order to make logistics outsourcing more successful.

Keywords

Acknowledgements

Funding: This research was supported by the internal research fund of the European University of Applied Sciences in Brühl, Germany

Citation

Oeser, G. (2020), "Segmenting logistics service users based on their provider selection criteria to succeed in outsourcing", International Journal of Retail & Distribution Management, Vol. 48 No. 9, pp. 963-984. https://doi.org/10.1108/IJRDM-04-2019-0125

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited