How do logistic service providers face the pressures of globalisation? Choosing the right strategy is crucial

I. Cornillie, C. Macharis

In this paper we analyse the impact of globalisation on logistic service providers (LSP’s) and how they face the pressures of the globalisation trend. The direct impact of globalisation on logistics can be measured by the extended number of supply chain activities executed by LSP’s and by their geographical positioning. Multinational enterprises (MNE’s) are increasingly opening manufacturing sites in Eastern Europe and Asia, in particular India and China. In order to survive LSP’s are forced to follow the internationalisation trend of their customers and guarantee international presence, serving the global oriented business of today. In this context, choosing the right strategy in terms of service offer and organisational structure is crucial to guarantee the LSP’s future success. The aim of this paper is to reveal the strategic choices and ways of responding to these trends by the LSP’s. The case of Belgium is being chosen as Belgium serves as one of the most important logistic gateways for Europe. To answer this research question a two-folded market survey was conducted. First, in depth interviews were organised with LSP’s at their premises (qualitative market research). This was realised half 2006. Secondly, a large scale survey targeted at logistics managers was realized in the beginning of 2007 (quantitative market research). This paper is a continuation of our former paper “Impact of globalisation on logistics service providers in Belgium” (Cornillie and Macharis, 2006). The latter paper was concentrated on the results of the qualitative market research, while this paper completes the study with the large scaled quantitative market survey.

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