Chapter 1: Theoretical Framework of Logistics Services and the Importance of

Improving Services Quality for Logistics Companies

1.1. Overview of Logistics Services
1.1.1. Definition of Logistics Services
1.1.2. Characteristics of Logistics Services
1.1.3. Role of Logistics Services
1.1.3.1. For the Economy
1.1.3.2. For businesses
1.1.4. Classification of Logistics Services
1.1.4.1. By field of operation
1.1.4.2. By method of exploiting logistics operations
1.1.4.3. By the specialization of logistics enterprises
1.1.4.4. By the process of performing logistics services
1.2. Overview of Logistics Services Quality
1.2.1. Definition of Logistics Services Quality
1.2.2. Indicators to evaluate the quality of logistics services
1.2.3. Factors Affecting Logistics Services Quality
1.2.3.1. Internal Factors
1.2.3.2. External Factors
1.3. Overview of Improving the Quality of Logistics Services
1.3.1. Definition of Improving the Quality of Logistics Services
1.3.2. The importance of improving the Quality of Logistics Services
 Chapter 1: Theoretical Framework of Logistics Services and the Importance of
Evaluating Service Quality for Logistics Companies
1.1. Overview of Logistics Services
1.1.1. Definition of Logistics Services
Throughout the supply chain, logistics is the business function in charge of
moving and delivering goods to the appropriate location at the appropriate time. It
basically involves the transfer and storage of product stocks along the chain. The smooth
operation of the supply chain and the organization depend heavily on logistics since
without it, supplies would not get to their destinations on time. Logistics must organize
and coordinate all material flows from the supply source to every user in the chain in
order to meet its objectives. Sanders (2023)
The Commercial Law of 2005 in Vietnam outlines specific regulations concerning
the definition of logistics services. Article 233 - Section 4 - Chapter VI of this law,
enacted on June 14, 2005, defined: "Logistic services are commercial activities whereby
traders organize the performance of one or many jobs including reception, transportation,
warehousing, yard storage of cargoes, completion of customs procedures and other
formalities and paperwork, provision of consultancy to customers, services of packaging,
marking, delivery of goods, or other services related to goods according to agreements
with customers in order to enjoy service charges."
According to Nguyen Xuan Hao (2015), logistics services are those related to
activities that ensure the optimization of the entire production and business process, from
the supply of inputs to the consumption of products. These services can be self-organized
or outsourced by manufacturing enterprises and have an impact on the business
performance of each enterprise in the market.
In the process of formation and development of the logistics service industry, there
are many definitions given by researchers with different viewpoints. However, the
definitions of logistics services can be classified into two groups as follows:
  Group 1: Defines logistics services as the activities of receiving and delivering
goods, and transporting goods from the manufacturer to the consumer. Therefore,
in essence, logistics services are only support services for the process of
transporting goods from the manufacturer to the consumer.
 Group 2: This group provides a more comprehensive definition of logistics
services, encompassing activities from the input of raw materials to the output of
finished products, and the transportation and distribution of goods to the final
consumer. According to this group, logistics services include all processes, from
the import of raw materials to the production of finished goods and the distribution
of those goods through various channels to ensure that they reach the final
consumer. According to this group, a professional logistics service provider must
handle all stages, from the import of raw materials to the transportation of finished
goods to the final consumer. This definition clearly distinguishes a professional
logistics service provider from individual logistics services providers such as
freight forwarding, transportation, customs clearance, distribution, and
management consulting services.

1.1.2. Characteristics of Logistics Services

Logistics services share some common characteristics with other services,
including:

 Intangibility: Logistics services cannot be physically touched or seen. They are

experiences that involve the movement and storage of goods.
 Non-storability: Logistics services cannot be stored for later use. Once they are
provided, they are consumed.
 The inseparability of production and consumption: Logistics services are produced
and consumed simultaneously. The service provider and the customer are often in
close contact throughout the service delivery process.
  Variability in quality: The quality of logistics services can vary depending on a
number of factors, such as the complexity of the shipment, the experience of the
service provider, and the condition of the transportation infrastructure.
 Perishability: Logistics services have a limited lifespan. If a shipment is not
delivered on time, the value of the service is diminished.

In addition to these general characteristics, logistics services also have some

unique features, according to Lam Tuan Hung (2020):
The parties involved in logistics services are service providers and customers.
Logistics service providers are businesses that must meet certain requirements in terms of
vehicles, tools, safety standards, technical expertise, and personnel. Logistics service
providers must be licensed businesses. Customers are those who have goods to send or
receive and require the use of freight forwarding services. Thus, customers can be
organizations or individuals; they can be the owners of the goods or not. The outcome of
logistics services represents the added value that customers receive in terms of time,
location, convenience, and connectivity.
Moreover, the logistics service delivery process is complex. Logistics services are
diverse, and the service delivery process involves many stages and steps. Receiving
goods from the sender for transportation includes packaging, marking, transferring goods
from the sender's warehouse to the port, wharf, bus station, etc. according to the
agreement between the shipper and the consignee; Completing the necessary paperwork:
customs procedures, bills of lading, sending and holding procedures, etc. to send goods or
receive goods transported to; Handing over goods to the shipper, loading goods onto the
means of transport in accordance with regulations, receiving goods transported to;
Organizing the receipt of goods, warehousing, storage, preservation of goods or delivery
of goods transported to the person entitled to receive the goods.
In addition, for the logistics service delivery process to be effective, mutual trust
between the service provider and the customer is essential. When outsourcing services,
customers have entrusted their assets to the logistics company to perform the purpose of
goods movement. On the other hand, logistics businesses may hold highly confidential
information such as information about the source of goods, and business strategies... to
support the service delivery process. Business trust is the premise for building sustainable
business relationships.
Besides, logistics services create a link with related goods-related services such as
transportation; packaging; freight forwarding; warehousing; storage; customs brokerage,
etc. Logistics businesses can provide individual services such as chartering ships, packing
goods, handling customs procedures, registering codes... or providing packaged services.
Logistics businesses perform services according to a chain, with a reasonable
arrangement to save costs and time from receiving goods, packaging, marking,
transporting, warehousing, storage, preparing documents, handling customs procedures,
and delivering to the consignee. Logistics service providers receive remuneration from
the services they provide.
1.1.3. Role of Logistics Services
1.1.3.1. For the Economy

a. Enhancing socio-economic efficiency

Logistics encompasses a continuous chain of interconnected activities that

interact with each other, forming an economic link that permeates almost the entire
process of production, goods circulation, and distribution. It serves as the
backbone that enables economic components to circulate goods effectively,
contributing to overall economic development. Many countries worldwide have
economies largely dependent on the advancement of logistics services. A nation
with well-developed logistics services, robust logistics infrastructure, and
appropriate logistics costs possesses a key condition for fostering the overall
development of its entire economy.

b. Enhancing Economic and National Competitiveness

 Logistics services play a pivotal role in boosting the competitiveness of
both the economy and the nation. As the world undergoes globalization and global
production becomes increasingly fragmented, intensifying competition has
elevated logistics services to a position of prominence among a nation's
competitive advantages. Logistics facilitates the flow of economic transactions.
Economic growth can only occur smoothly and synchronously when the logistics
chain operates continuously and harmoniously. A myriad of economic activities
unfold within the logistics service chain, transforming resources into products and,
crucially, increasing value for both customers and producers, ultimately satisfying
human needs. Moreover, a strong logistics network is a powerful tool for a nation
to compete in the global market. Well-developed logistics infrastructure attracts
investment from multinational corporations, further integrating the nation into the
global economy. Examples like China, Korea, and Malaysia showcase how
investing in logistics can lead to rapid economic growth, increased trade, and a
positive trade balance.

1.1.3.2. For businesses

a. Enhancing Management Efficiency

Logistics enables managers to optimize the entire supply chain, from

sourcing raw materials to delivering finished goods to customers. This involves
identifying and eliminating inefficiencies, streamlining processes, and improving
communication and collaboration among supply chain partners. Moreover,
logistics facilitates the selection of reliable and cost-effective suppliers, ensuring a
steady supply of high-quality raw materials at the right price and time. Effective
logistics practices help maintain optimal inventory levels, preventing stockouts
that can halt production and excess inventory that ties up capital and incurs storage
costs. Additionally, logistics plays a crucial role in coordinating production
schedules with transportation and warehousing plans, ensuring that goods are
 produced and delivered just in time, minimizing waste, and maximizing resource
utilization. Logistics data and analytics provide valuable insights into supply chain
performance, enabling managers to make informed decisions about resource
allocation, cost optimization, and risk management.

b. Minimizing Production Costs

Logistics optimization techniques can significantly reduce transportation

costs by choosing the most efficient transportation modes, negotiating better rates
with carriers, and optimizing shipping routes. By maintaining optimal inventory
levels, businesses can minimize the costs associated with holding too much or too
little inventory, including storage costs, insurance costs, and obsolescence costs.
Furthermore, efficient warehouse management practices can reduce labor costs,
minimize damage and loss, and optimize space utilization, leading to significant
cost savings.

c. Strengthening Business Competitiveness

Efficient logistics processes ensure that products are delivered to customers

on time, in good condition, and at the lowest possible cost. This leads to higher
customer satisfaction, increased customer loyalty, and a stronger brand reputation.
By streamlining supply chain processes, businesses can reduce the time it takes to
bring new products to market, giving them a competitive edge in the marketplace.
Moreover, a robust logistics system can help businesses mitigate supply chain
disruptions, such as natural disasters, political unrest, or transportation delays,
ensuring business continuity and protecting their competitive position.

d. Increasing the business value of transportation and forwarding enterprises.

Logistics services are a more extensive and complex type of service

compared to pure transportation and forwarding activities. In the past,
 transportation and forwarding service providers only provided customers with
simple, pure, and individual services. Today, due to the development of
production and circulation, the components of a product can be supplied by many
countries, and conversely, a company's product can be consumed in many
countries and different markets. Therefore, the services that customers demand
from transportation and forwarding service providers must be diverse and rich.
Today's transportation and forwarding companies have deployed services to meet
the actual needs of customers. They have become logistics service providers. It is
clear that logistics services have contributed to increasing the business value of
transportation and forwarding enterprises.

1.1.4. Classification of Logistics Services

According to Nguyen Xuan Hao (2015), logistics services can be classified as
follows:
1.1.4.1. By field of operation
Logistics Services in Business: Logistics services in business are an integral part of the
supply chain process, encompassing the planning, execution, and control of the flow and
storage of goods, services, and related information. The goal is to ensure the readiness,
accuracy, and efficiency of these activities.
Logistics Services in Events: Logistics services in events encompass the planning,
organization, and execution of all logistical aspects of an event, from venue selection and
transportation to catering and waste management. The goal is to ensure the smooth and
efficient operation of the event, contributing to its overall success.
1.1.4.2. By method of exploiting logistics operations
First-party logistics (1PL): involves businesses managing their own logistics operations
internally. This means that they own or lease the necessary transportation assets,
warehouses, equipment, and personnel to handle their logistics needs.
Second-party logistics (2PL): refers to the outsourcing of specific logistics activities to
specialized service providers. This is often done to gain access to expertise, resources, or
economies of scale that the business may not possess internally.
Third-party logistics (3PL): also known as contract logistics, is a business arrangement
where a company outsources its logistics operations to a specialized service provider.
This provider takes over the management and execution of logistics activities, either for
the entire supply chain or for specific functions such as transportation, warehousing, or
distribution. In essence, 3PL encompasses logistics activities performed by a logistics
company (logistics services provider) on behalf of its clients. This typically involves
managing and executing transportation and warehousing operations for a minimum of
one year, with or without a formal partnership agreement. 3PL relationships are often
characterized by a close alliance between the business and the logistics services provider,
extending beyond mere logistics execution to encompass the sharing of information,
risks, and benefits under a long-term contract.
Fourth-party logistics (4PL): also known as full-process logistics, is a service model that
builds upon the foundation of 3PL to provide a more comprehensive, customer-centric,
and adaptable approach to supply chain management. 4PL manages and executes
complex logistics operations, encompassing resource management, control centers,
architectural functions, and logistics integration. 4PL encompasses a broader scope than
3PL, including 3PL activities, information technology services, and business process
management. 4PL serves as a single point of contact, managing, consolidating resources,
and overseeing 3PL functions throughout the supply chain to achieve global reach,
strategic advantage, and long-lasting relationships.
1.1.4.3. By the specialization of logistics enterprises
Transportation Service Providers:

 Single-Mode Transportation Providers: These companies specialize in providing

transportation services using a single mode of transport, such as trucking, air
 freight, or ocean freight. They offer expertise in their respective modes and can
handle shipments efficiently within their specific transportation domain.
 Multimodal Transportation Providers: These companies go beyond single-mode
transportation, offering integrated logistics solutions that combine multiple modes
of transport, such as sea-air or rail-road. They excel at optimizing transportation
routes, coordinating between different modes, and ensuring seamless delivery of
goods.
 Port Operations Providers: These companies manage and operate port facilities,
handling the loading, unloading, and storage of cargo moving through ports. They
play a critical role in the maritime supply chain, ensuring efficient port operations
and cargo handling.
 Freight Forwarders: These companies act as intermediaries between shippers and
carriers, arranging transportation, customs clearance, and other logistics services.
They provide expertise in navigating complex transportation networks and
handling international shipments.

Distribution Service Providers:

 Warehousing Service Providers: These companies offer storage and inventory

management services for goods at various stages of the supply chain.
 Distribution and Retail Service Providers: These companies handle the physical
distribution of goods from warehouses to retailers or directly to consumers.

Value-Added Service Providers:

 Customs Brokerage Service Providers: These companies assist with customs

clearance procedures, ensuring compliance with import and export regulations.
 Freight Consolidation and Less-Than-Truckload (LTL) Services: These companies
consolidate small shipments from multiple shippers into larger truckloads,
reducing costs for shippers with smaller volumes.
  Hazardous Materials Handling Specialists: These companies provide specialized
handling and transportation services for hazardous materials, ensuring safety and
compliance with regulations.
 Packaging and Shipping Services: These companies offer packaging solutions and
shipping services to protect and prepare goods for transportation.

Specialized Logistics Service Providers:

 Information Technology (IT) Providers: These companies offer IT solutions and

systems for logistics management, such as transportation management systems
(TMS) and warehouse management systems (WMS).
 Telecommunications Providers: These companies provide communication
infrastructure and services to support logistics operations, such as data
transmission and real-time tracking.
 Financial and Insurance Providers: These companies offer financial solutions, such
as trade finance and cargo insurance, to mitigate risks and manage cash flow in the
supply chain.
 Education and Training Providers: These companies offer training and
certification programs to enhance the skills and knowledge of logistics
professionals.

1.1.4.4. By the process of performing logistics services

Inbound Logistics Services: encompass a range of activities aimed at optimizing the
procurement of inputs (raw materials, capital, information, etc.) for a business's
production and operations. These services focus on ensuring the timely, cost-effective,
and strategically advantageous acquisition of resources necessary for the manufacturing
process.
Outbound Logistics Services: encompass a range of activities aimed at optimizing the
delivery of finished products from the production facility to the final customer. These
services focus on ensuring the timely, cost-effective, and customer-centric distribution of
goods to meet market demands.
Reverse Logistics Services: refers to the process of collecting and managing returned
goods, waste materials, and other byproducts generated throughout the production,
distribution, and consumption cycles. These services aim to minimize environmental
impact and promote resource recovery.

1.2. Overview of Logistics Services Quality

1.2.1. Definition of Logistics Services Quality
According to Mentzer et al. (1999), numerous concepts of "Logistics Services
Quality" have been proposed. Among these, the pioneering research of Perreault and
Russ (1974) stands out as a significant contribution to the field. Perreault and Russ
(1974) developed a detailed framework for measuring logistics service quality,
encompassing three key dimensions:

 Time: The timeliness of delivery and the ability to meet promised delivery
schedules.
 Place: The convenience and accessibility of delivery locations, ensuring that goods
are delivered to the right place at the right time.
 Utility: The overall value proposition of the logistics service, including factors
such as reliability, consistency, and information availability.

Building upon the work of Perreault and Russ (1974), a series of subsequent
studies by Coyle et al. (1992), Shapiro and Heskett (1995), and Stock and Lambert
(1987) further refined the measurement of logistics service quality. These studies
introduced the concept of the "7 Rights" of logistics service, encompassing seven key
elements that contribute to customer satisfaction and perceived value: “Right product,
right quantity, right condition, right place, right time, right information and right price”.
 Moreover, the quality of logistics services is studied from two different
approaches: objective and subjective. The objective approach to service quality asserts
that quality is the conformity of the service to the technical specifications provided by the
service provider (Crosby, 1991). This concept views service as a physical object that can
be observed and has attributes that can be evaluated. This approach, influenced by
traditional views, includes aspects of the physical distribution of the service. This means
that this perspective focuses solely on logistics service providers rather than on the
customers who use these services. The subjective approach to service quality shifts the
assessment of quality to the customers. This approach has been endorsed by many
researchers such as Bienstock et al. (1997), Sohal et al. (1999), and Mentzer et al. (1999),
who identified objective variables through the study of the relationship between customer
perceptions and expectations. They also agree that customer satisfaction is one of the
main factors in evaluating service quality.
In this thesis, logistics services quality can be simply defined as the degree to
which a business's logistics services meet and satisfy customer needs.
1.2.2. Indicators to evaluate the quality of logistics services
1.2.3. Factors Affecting Logistics Services Quality
1.2.3.1. Internal Factors

a. Financial Resources

Logistics is not a field suitable for all businesses. The high barriers to entry
require new entrants to have significant capital to invest in infrastructure and
equipment, as well as facing challenges in finding customers. For businesses in the
industry, financial resources are extremely important because the capital needed to
upgrade facilities, apply technical means, and use modern machinery to fully meet
customer needs is substantial. If financial resources are limited, it is clear that the
provision of logistics services will be affected and it will be difficult to ensure the
quality of logistics services delivered to customers. When a company possesses
 substantial financial strength, it gains several advantages such as easier capital
mobilization for investments, acquiring new technologies and machinery, and
creating opportunities for training and rewarding staff. These benefits contribute to
improving the professional skills of its employees, enhancing product quality,
lowering costs, and boosting competitiveness. Therefore, financial capability is the
first important factor for the formation and development of an enterprise.

b. Physical Resources

The physical resources of logistics enterprises mainly include transportation

fleets (such as trucks, airplanes, ships, railcars, and tractors), warehouses, and a
system of machinery and equipment used to provide logistics services. Among
these, transportation vehicles are essential for moving shipments between various
collection and delivery points. Logistics companies with a sufficiently large and
appropriately diversified fleet will be crucial in ensuring shipments are delivered
on time. Conversely, if physical resources and transportation vehicles are
inadequate or nonexistent, logistics companies may face extended delivery times
during peak seasons and increased operating costs, leading to higher transportation
fees. This situation will compromise the quality of logistics services.
Furthermore, at seaports, airports, railway stations, or inland ports, logistics
companies equipped with modern, specialized handling equipment will
significantly increase handling productivity and reduce the time required to load
and unload shipments. This also helps to improve the quality of logistics services.

c. Application Level of Science and Technology

Technologies commonly used in logistics service providers include

warehouse management systems (WMS), reporting and visibility tools that track
the entire logistics chain, electronic data interchange (EDI) systems, barcode
scanning, and order management. Integration of modern technology enables
 businesses to deliver high-quality services tailored to consumer preferences, while
enhancing labor productivity to lower prices and reduce waste. Furthermore, the
application of science and technology not only ensures the accuracy of shipment
information but also enhances convenience, ease, and speed in connecting
information between organizations involved in the logistics process (such as
carriers across different modes, regulatory agencies, shippers, and freight
forwarders). This helps minimize time wastage and losses related to goods,
accelerates delivery times, ensures cargo safety, and improves the quality of
logistics services.

d. Human Resources

The workforce in logistics enterprises primarily consists of employees

operating transportation vehicles, handling equipment, freight forwarding staff, IT
system operators, and other related departments. Today, with the application of
science and technology in the logistics field and the standardization of goods
information between importing and exporting countries as well as among
organizations involved in commercial shipments, these employees are required to
have professional expertise. They must also possess computer and foreign
language skills and in-depth knowledge of logistics services. These skills and
knowledge enable them to proficiently and professionally carry out their assigned
tasks, reduce work processes, shorten transportation times, and increase their
ability to handle unexpected situations. As a result, the quality of logistics services
provided by the enterprise is enhanced.

1.2.3.2. External Factors

a. Legal framework and policy institutions for logistics activities

 In the industrial era, the logistics services industry is heavily influenced by both
national and international legal systems. The legal frameworks of major economic
powers play a significant role. A recent survey by the Japan External Trade Organization
(JETRO) revealed that approximately 30% of logistics costs are affected by
transportation and customs clearance laws and regulations, while 30-40% are impacted
by delays in administrative procedures. Additionally, variations in technical standards,
legal frameworks, and infrastructure development across different countries and regions
create challenges for the logistics service industry. It is essential to establish a legal
framework with specific and clear regulations that outline the management areas and
responsibilities of relevant agencies. This helps prevent overlaps and ambiguities that can
impede business operations and the development of logistics services.

b. Economic Growth

The economic environment impacts all industries, and the logistics services sector
is no exception. The economic growth of a country reflects an increase in the capacity to
sell goods, import demand, and the ability to exchange goods. As the economy develops,
the demand for transportation of goods increases, including both raw materials for
production and finished products for delivery to end consumers. This provides logistics
companies with opportunities to generate higher profits, reinvest resources, and enhance
the quality of logistics services. Moreover, economic development makes the logistics
industry more promising, attracting more companies to enter the sector, improving
competitiveness, and driving the quality of logistics services forward.
However, as the economic growth rate rises, inflation levels also increase, leading
consumers to reduce their purchases of wholesale products, tighten their consumption,
and save more. This behavior results in more purchases of goods at lower prices.
Additionally, some consumers may avoid buying durable goods, while others might
increase their purchases in anticipation of future price hikes. These factors contribute to
market volatility, reducing business security for companies.
 c. The Scientific and Technological Environment

In today's rapidly evolving technological landscape, the utilization of these

innovations in business operations is improving efficiency more than ever. E-commerce
stands as a significant driver behind the global advancement of logistics, a trend expected
to continue in the foreseeable future.
Moreover, the Fourth Industrial Revolution, characterized by the convergence of
artificial intelligence with the Internet of Things (IoT) network and modernization tools,
is revolutionizing warehousing and distribution services worldwide. An estimated 5.5
million new devices are being connected daily, leading to the integration of non-
traditional equipment like pallets, cranes, and cargo trailers into the Internet for the
logistics sector. Major international logistics companies are expected to adopt IoT
technology, with its popularity projected to rise over the next three years. Consequently,
logistics companies worldwide are swiftly upgrading their technology to stay abreast of
this trend, deploying modern automated tools to enhance competitiveness and increase
profit margins in their service offerings.
Besides, it is clearly that logistics companies cannot effectively utilize information
technology if the national or local telecommunications infrastructure is underdeveloped.
A country with a developed scientific and technological environment, particularly in
information and communication technology, will provide its citizens with easier access to
technology applications (such as order tracking or order creation applications). This
contributes to ensuring and enhancing the quality of logistics services.

d. Infrastructure

Logistics infrastructure encompasses all physical, architectural, and technical

facilities that serve as the foundation for logistics service sectors. Among these,
transportation infrastructure plays an extremely crucial role in the economy, comprising a
system of technical materials, architectural structures, and organizational vehicles that
form the backbone of the transportation sector. This includes road systems, bridges,
railways, airports, and seaports. Clearly, logistics companies cannot or find it challenging
to invest in infrastructure such as terminals, airports, and seaports, which typically
require government investment. Countries with well-serving infrastructure for logistics
development ensure swift, secure, and efficient transportation of goods to customers,
thereby guaranteeing the quality of logistics services provided by businesses to their
customers.

e. Climate condition

Geographical elements such as terrain, bodies of water, and natural barriers can
directly affect transportation routes and the development of infrastructure. For example,
mountainous areas may present obstacles to road transportation, while rivers or seas can
facilitate maritime shipping but also pose risks of weather-related disruptions. Regions
prone to severe weather events like hurricanes or typhoons face increased risks of delays,
damage, and safety concerns for both personnel and cargo.
Climate conditions impact demand patterns and supply chain dynamics. Seasonal
changes in weather, for instance, can influence consumer behavior and product demand,
leading to fluctuations in shipping volumes and transportation needs. Furthermore, goods
sensitive to temperature, such as food, pharmaceuticals, and electronics, require
specialized handling and storage facilities, which may be vulnerable to extreme
temperatures or humidity levels. Climate change compounds these challenges by
introducing uncertainties related to shifting weather patterns, rising sea levels, and the
frequency/intensity of extreme weather events, all of which can disrupt global supply
chains and logistics operations.

f. Competitive Environment

This factor significantly influences the quality assurance of logistics services

provided by businesses. In a less competitive environment, the market tends to be less
dynamic, with a few companies dominating the logistics service sector. This can lead to
monopolistic practices in providing logistics services, resulting in high service fees
without corresponding service quality. Conversely, in a highly competitive market with
multiple participants, latecomers to the market can benefit from the experiences of earlier
entrants. Competition prompts logistics companies to continually seek solutions and
improvements to enhance service quality, attract more customers, and ultimately elevate
the quality of logistics services offered by businesses in the market.
1.3. Overview of Improving the Quality of Logistics Services
1.3.1. Definition of Improving the Quality of Logistics Services
From the analysis about the definition of “Logistics Services Quality", it can be
understood that Improving the quality of logistics services refers to the process of
enhancing various aspects of services provided within the logistics industry to meet or
exceed customer expectations. This includes optimizing efficiency, reliability, accuracy,
safety, responsiveness, and overall customer satisfaction throughout the supply chain
process. It involves implementing strategies, technologies, and practices aimed at
delivering goods or services in a timely, cost-effective, and consistent manner while
minimizing errors, delays, and disruptions. Continuous improvement efforts are
undertaken to identify areas for enhancement, streamline processes, and innovate
solutions to achieve higher standards of service excellence and maintain a competitive
edge in the market.
1.3.2. The importance of improving the Quality of Logistics Services
Fulfill the diversified need of customers: One of the important benefits of
improving the quality of logistics services is the ability to expand and provide diverse
services to meet customer needs. Companies need to develop and provide customized
logistics solutions, from cargo transportation to supply chain management services, to
fully meet customer requirements.
Optimize transportation process and cost: ỉmpoving the quality of logistics
services helps freight forwarders and NVOCCs companies optimize the transportation
process and reduce costs. By using modern technology and optimizing the transportation
network, companies can provide more efficient services at lower costs, increasing value
for customers and creating competitive advantages in the market.
Improve brand reputation and expand partner network and market: One of the
important goals of improving quality is to create differentiation and enhance brand
reputation. By providing high-quality, reliable, and innovative services, companies can
build a positive image in the eyes of customers and generate a large amount of trust and
loyalty from them. Besides, quality-improved also helps companies expand their partner
network and access new markets. By building strong global partnerships and enhancing
presence in potential markets, companies can enhance diversification and stability in their
business operations.
Respond quickly and flexibly: In a market demanding flexibility and quick
response, improving quality helps freight forwarders and NVOCCs companies maintain
the ability to respond quickly and flexibly to fluctuations in customer demand and
requirements.