Int. J Sup. Chain. Mgt Vol. 9, No. 6, December 2020
72
The Lead Logistics Provider (LLP) Concept:
Case Studies
Zoltán Valentinyi
#+1
, Zita Fodor
*2
, Csaba Balogh
+3
, Anna Dunay
*4
#
Doctoral School of Management and Business Administration, Szent István University, H-2100 Gödöllő, Páter
K. u. 1. Hungary
+HAVI Logistics Kft. 2360 Gyál, Bem József utca 30. Hungary
*
Institute of Business Economics, Leadership and Management, Szent István University, H-2100 Gödöllő, Páter
K. u. 1. Hungary
1
Zoltan.Valentinyi@havi.com
2
Fodor.Zita@szie.hu
3
Csaba.Balogh@havi.com
4
Dunay.Anna@szie.hu
Corresponding Author E-mail Address: Dunay.Anna@szie.hu
Abstract— Researches, literature reviews and
professional experiences show that traditional
logistics services were precisely defined and
differentiated in the past 30 years, but Industry 4.0
brings additional service opportunities for leading
logistics service providers and for their customers.
New circumstances may improve supply chain
efficiency by remodelling the solutions and
responsibilities of the different cooperating partners.
The aim of the paper is to summarize the definitions
of the different traditional and more developed
logistics service providers and to create and propose a
standard definition for the Lead Logistics Providers,
based on the LLP studies and key characters of the
existing LLP services. Based on a desk research
(literature review and document analysis) and using
the professional experience of authors, the analysis
focuses on the advanced services by looking at the
content and service elements of some leading logistics
service companies. Conclusion of the research is that
leading service providers offer quite wide range of
services which is difficult to standardize in terms of
creating a standard definition as it’s available for 1-2-
3 PL logistics service providers. Therefore, the
introduction and generic definition is proposed from
the time being for the Lead Logistics Providers. In the
light of Industry 4.0 the coming years might clarify
the content and meaning of additional PL levels, such
as 5, 6, or higher PL levels.
Keywords— logistics service providers, LLP services,
trust, innovation, performance
1. Introduction
Nowadays we can clearly state that logistics plays
tensile force in modifying, rationalizing and
influencing production and service companies’ and
industries’ changing trends, daily routines,
including its operational, also practical details. The
successful use of logistics service providers (LSPs)
is based on building long-term relationships with
customers [1]. The design of these cross-firm
relationships influences the LSPs’ success. If it
does not designed correctly, the relationship
between the LSP and customer may suffer from a
lack of specific expertise, unmatched expectations,
and poor communications [2], [3]. It can be
expected that the more intensive cooperation
amongst partners, the higher operational potentials
in the field of savings and increasing efficiency [4].
Supply chain risks tend to paralyze most supply
chains. Successful companies are able to break the
risk spiral by restoring trust within the supply chain
through the chain. The benefit goes far beyond cost
reduction, reducing market risks and increasing
sales and market share, penetrating new markets,
and rapidly introducing new products [5], [6].
That trust plays a determining role in the
establishment of the strategic relations of the
different companies [6]. Trust means the belief that
the partner will behave correctly and act according
to its commitments. The established system of
relationships determines how the industry develops
and how individual companies are able to follow
and manage this development [7].
Management of a company shall face three
important challenges in the process of building
partnerships: the definition of the real main
activities and the establishment of the company's
______________________________________________________________
International Journal of Supply Chain Management
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print)
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