How logistics-service providers can develop value-added services for SMEs: a dyadic perspective

Purpose - This work aims to combine the perspectives of logistics-service providers (LSPs) and small and medium-sized enterprises (SME) in the development of value-added logistics services. The purpose was to mate a theory-based and initially tested framework that could help both service providers and SMEs identify new opportunities for developing their logistics. Design/methodology/approach - The research followed design-science methodology and was carried out via semi-structured interviews within the case company (a large Finnish LSP), its customers, and experts from the area of logistics services. Data on companies offering value-added logistics services were also used in the research. The focus of the research was on advanced value-added logistics services. Findings - The paper presents a framework for categorizing logistics services for SMEs and proposes new logistics-service models for SME customers. Altogether, three service models are proposed to bridge the gap between LSP and SME customers. In particular, the consulting-oriented approach seemed to be appropriate for the SMEs. The other two models, 3PL with planning and Outsourced Chief Logistics Officer, require more effort from both parties. Research limitations/implications - The paper presents a theoretical framework for categorizing logistics services and discusses the strategic options for an LSP to expand its service portfolio. However, further empirical research related to logistics-service design is needed to develop the framework further and to improve its external validity. Practical implications - This work offers insights that support LSPs to develop their service offerings to better match the needs of SMEs, and also allow managers of SMEs to better utilize the available LSP competence and services. Originality/value - The existing research in the area of value-added logistics services has mainly focused on either the customer perspective or the service-provider perspective. The dyad combining these perspectives has been largely neglected. Furthermore, studies in this area have been on large enterprises as opposed to SMEs. This work fills this gap by designing value-added logistics-service models that combine SME needs with LSP capabilities.