INNOVATION IN LOGISTICS OUTSOURCING RELATIONSHIP – IN THE SEARCH OF CUSTOMER SATISFACTION

Background: Nowadays LSPs face an increasingly competitive environment in which a strategy to focus on existing customers by satisfying and sustaining them has been proved to be more successful than trying to get the small share of customers that have not yet outsourced any logistics activities. To be able to keep and grow the customers, LSPs have to overcome a number of barriers, align with customers and innovate. However, there is still a lack of understanding when, with what type of customers, and how LSPs can effectively leverage customer integration within Innovation Alignment for successful innovation. The purpose of the paper is to: present the concept of logistics innovation and its role in creating customer satisfaction, point a number of barriers to LSPs’ innovativeness, and analyze the role and characteristics of relationship innovation alignment when developing and implementing innovative logistics services.

Methods: The research adopts a two-stage effort, with Stage 1 being focus groups with LSPs and their customers, and Stage 2 being a theory-testing survey. Up to now, focus groups, survey development, and survey pre-tests with LSPs senior executives have been completed. Conducting the survey and collecting data is in progress. To illustrate the preliminary findings from the American market, case studies in the European surrounding, describing cooperation between LSPs and their customers on logistics innovations, were prepared.

Results: Aligning with a customer when pursuing something new is a crucial success factor in logistics sector, especially when pursuing and developing a radical tailored service innovation. The Innovation Alignment should embrace managerial as well as relational mechanisms.

Conclusions: LSPs, compared to other industries, are not very innovative. However, logistics managers should try to overcome barriers and proactively develop and implement logistics service innovations. The preliminary results of the research have already shown that integrating customers into the logistics innovation process could increase their satisfaction and enhance the innovation performance of LSP.