The purpose of this paper is to develop a framework for measuring the performance of logistics service providers (LSPs). The logistics literature was explored and a set of articles and key performance indicators (KPIs) were derived. A network analysis of the identified articles was undertaken and revealed five performance themes. A conceptual framework was developed based on the systems model and was classified as input and output performance dimensions. The proposed conceptual framework was further validated with empirical data. The obtained data was analyzed using Structural Equation Modeling. Results showed that the input performance dimension had a strong and positive impact on the output performance dimension. The results indicated that LSPs were concerned on their service quality in terms of delivery in-full and on-time, and their cash conversion cycle. The framework contributes to the LSP’s performance measurement literature by proposing and empirically validating a performance measurement framework that is considered to be more comprehensive and suitable for the use in the LSP context. Given this framework, LSPs should be able to not only evaluate and monitor their day-to-day operations but also develop strategic policy and action plans that may be used to improve and enhance their competitiveness in a competitive environment.

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Mr. Paitoon Varadejsatitwong