The performance of logistics service providers and the logistics costs of shippers: a comparative study of Finland and Switzerland
Journal
International Journal of Logistics: Research and Applications
ISSN
1367-5567
ISSN-Digital
1469-848x
Type
journal article
Date Issued
2018-02-21
Author(s)
Solakivi, Tomi
;
Hofmann, Erik
;
Töyli, Juuso
;
Ojala, Lauri
Abstract
This article analyses the market dynamics between shippers in the manufacturing sector and logistics service providers (LSPs) in Finland and Switzerland, focusing on factors that are characteristic of the demand and supply sides of logistics markets such as performance indicators, financial ratios and relevant macroeconomic indicators. The development of shippers’ logistics costs over a period of ten years is analysed as a proxy for cost savings. This is mirrored against the development of the LSPs’ financial performance. The share of logistics costs in the turnover of Finnish shippers is consistently higher than that of their Swiss peers, whereas Finnish LSPs perform financially better than their Swiss peers. This implies that Finnish and Swiss logistics markets differ in terms of market power and interdependence between shippers and LSPs. The results indicate that the sub-regional interdependence and market power of LSPs, caused by a lack of competition, explain some of the differences in logistics costs.
50 free online copies (first come, first served): http://www.tandfonline.com/eprint/HIF4sDaHpCxvZ996vAbH/full
50 free online copies (first come, first served): http://www.tandfonline.com/eprint/HIF4sDaHpCxvZ996vAbH/full
Funding(s)
Language
English
Keywords
Logistics costs
logistics service provision
accounting-based firm performance
market power
micro and macro data
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Taylor & Francis
Publisher place
London [u.a.]
Volume
21
Number
4
Start page
444
End page
463
Subject(s)
Eprints ID
253727