The performance of logistics service providers and the logistics costs of shippers: a comparative study of Finland and Switzerland.
Research output: Contribution to journal › Article › Scientific › peer-review
- University of St. Gallen
- University of Turku
This article analyses the market dynamics between shippers in the manufacturing sector and logistics service providers (LSPs) in Finland and Switzerland, focusing on factors that are characteristic of the demand and supply sides of logistics markets such as performance indicators, financial ratios and relevant macroeconomic indicators. The development of shippers’ logistics costs over a period of ten years is analysed as a proxy for cost savings. This is mirrored against the development of the LSPs’ financial performance. The share of logistics costs in the turnover of Finnish shippers is consistently higher than that of their Swiss peers, whereas Finnish LSPs perform financially better than their Swiss peers. This implies that Finnish and Swiss logistics markets differ in terms of market power and interdependence between shippers and LSPs. The results indicate that the sub-regional interdependence and market power of LSPs, caused by a lack of competition, explain some of the differences in logistics costs.
|Number of pages||20|
|Journal||International Journal of Logistics: Research and Applications|
|Publication status||Published - 4 Jul 2018|
|MoE publication type||A1 Journal article-refereed|
- accounting-based firm performance, Logistics costs, logistics service provision, market power, micro and macro data