Logistics firms overestimate their supply chain service

18 July 2006
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19 July 2006 | Rebecca Ellinor

There is a serious disparity between logistics customers' expectations and the reality of the services they receive, an industry-wide survey has revealed.

The study, conducted by supply chain and logistics consultancy SCALA, found the majority of logistics contractors (94 per cent) believe they offer a fully integrated supply chain service but just 7 per cent of customers concur.

SCALA managing director John Perry, said: "Logistics companies see benefits in growth through being able to provide a wider range of services; a more integrated service with further benefits from increased synergy; and operational cost benefits. Unfortunately a large proportion of their customers do not see it that way."

All logistics companies surveyed claim to adopt a proactive approach within a contract, with 94 per cent saying they also do so in areas not covered by the deal. But only 21 per cent of customers agree providers are proactive within the contract and just 6 per cent believe this extends to outside the deal.

The study follows a recent spate of mergers to form mega-providers.

SMjul2006

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