Role of logistics service providers

LSPs may be characterized as the companies that conceives and implements logistics solutions for its customers, adding value to their products at all stages of the supply chain. These companies have great responsibility to minimize the supply chain risks, since they have the necessary expertise to perform delivery activities and usually have experience in management of logistic partnerships.

Besides worrying about the logistics primary activities (transport and storage), the LSP should be focused on adding value to the customer’s existing process whenever possible. Another important aspect about these firms is that most all information about supply
and delivery activities passes through them. Since the correct flow of the information to all actors in the chain is one of the most important aspects to SCM success, it is clear why these companies have an important role in any given supply chain.

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