A model for customer‐focused objective‐based performance evaluation of logistics service providers

Purpose – This paper aims to propose a customer‐oriented, objective‐based model for evaluating the performance of logistics service providers (LSPs). Design/methodology/approach – The study develops an appropriate customer‐oriented, objective‐based measurement model for LSPs on conceptual grounds. The paper illustrates the application in the form of a case study of a Taiwanese electronics manufacturer. Findings – Satisfactory results are obtained in demonstrating the application of the model. Compared with the previous model used by the case company, the new model produced sensitive, accurate, and effective manufacturing performance rating results for different achievement levels. Practical implications – The proposed LSP performance‐rating model can be applied by a variety of manufacturers to assess all kinds of LSPs in various industries. The proposed model can assist manufacturers in selecting the best LSP and integrating LSP capabilities to develop an appropriate quality‐and‐profit improvement program using customer‐specific requirements. Originality/value – This paper proposes an original model to solve the problem of multiple measurements in assessing an LSP, taking into account the total cost of logistics (including net price, delivery, quality, service, and so on).