The impact of performance management on customers' expected logistics performance

Purpose – The main objective of this paper is to describe state‐of‐the‐art practices for handling logistics performance management in dyadic relationships. Another objective is to explain the relationship between logistics performance management practices and customers' expected logistics performance. Design/methodology/approach – A logistics performance management model was developed and applied to 136 dyads of Swedish manufacturing companies and their most important suppliers. Two linked survey studies were conducted. Findings – A state‐of‐the‐art description of the activities in logistics performance management is provided, addressing the following questions in dyadic relationships: how often are expectations updated? Who is the customer's contact person? What is the contract situation? Which actor (customer or supplier) formulates performance targets, and who measures logistics performance? Some of these issues' relationships to customers' expected logistics performance were verified. Research limitations/implications – The contribution of the paper is mainly descriptive. A logistics performance management model together with descriptions of how the various activities are executed in dyadic relationships is presented. It is also explanatory, showing that some of these practices influence customers' expected logistics performance. Practical implications – This study provides knowledge of the impact of contact persons and contracts on customers' expected logistics performance, which could increase the possibilities for the supplier to meet customers' expectations. The importance of a collaborative discussion on performance management is emphasized. Originality/value – Dyadic research approaches are rarely performed in logistics research. Studies highlighting the link between logistics performance measurement and logistics performance are also few. This paper will hopefully remedy this neglected area.