A new operations model of logistics service providers: Evidence from EA Company

Abstract

With a trend of supply chain integration (SCI) on the one hand and more use of logistics service providers (LSPs) on the other hand, supply chain service provider (SCSP) is emerging for higher degree of integration and optimization of the whole chain. In this paper, we first develop the concept of SCSP based on literature review, and then conduct a case study (EA Company, a successful SCSP in China) to illustrate the operations model of SCSP. The proposed operations model consists of six dimensions (1) horizontal and vertical integration; (2) non-asset-based; (3) charge mode; (4) information technology; (5) finance support; and (6) brand effect. These dimensions can differentiate SCSP from traditional LSPs.