Shippers-Providers Perception of Third-Party Logistics Services – An Importance-Performance Matrix Analysis

Using a sample of companies drawn from Logistics Association Australia’s current membership list, this study assessed the relative importance assigned by shippers and logistics service providers (LSP) to various elements of third party logistics services. The importance-performance matrix (IPM) analysis was conducted to assess the gap between what is required by the shippers and what is provided by the LSPs, and categorised the logistics service elements into four categories such as ‘low priority’, ‘possible overkill’, ‘concentrate here’, and ‘keep up the good work’. The results indicate that the LSPs must improve image in terms of their capability to provide service and at a necessary quality level. They must be able to shorten delivery time, reduce product/service cost and be flexible while providing services. It is critical that they use EDI and stand-alone IT platform to integrate with the shippers.