Enhanced logistics service provider framework for higher integration and efficiency in maritime logistics

Abstract

The concept of maritime logistics results from the convergence of maritime transport and supply chains. The paper aims to propose an enhanced logistics service provider (LSP) framework which facilitates LSPs to integrate supply chains in an optimal manner by utilising their unique expertise and experience. In the framework, the enhanced LSP serves as the single contact point for shippers and assumes the leading role in supply chain optimisation with proper information sharing and pricing mechanisms. Interviews have been conducted with industry practitioners and academics to gather opinion, collect data for empirical analyses and verify the framework's feasibility. Various techniques including analytical hierarchy process, decision matrix and cost–benefit analysis are employed. Critical success factors for the framework including bargaining power of the enhanced LSP, transparent system for the performance evaluation, trusting beliefs in sharing critical information and incentives for parties to accept performance-based pricing mechanisms are identified and discussed.