Modularization and Configuration of Logistics Services

This thesis addresses the industrial need for a more efficient way of providing logistics services from a logistics service provider (LSP) perspective by using the concepts of modularization and configuration. The main objective of this research was to modularize the service offering and provide an approach to ensure alignment between what is being sold and what can be delivered.

The research methodology concerns multiple case studies in an LSP company, focusing on the potential of standardizing its service offerings among multiple customers. The case studies investigate approaches to changing specification processes. A logistics service system (LSS) is suggested to organize the LSP as a system with a shared logistics service platform to align knowledge among departments. This study uses the principles of modularization and platform thinking by splitting the provided services into modules that represent types of activities, such as labeling and gift wrapping. The collection of clearly defined modules that can be combined in many ways for types of customers creates an overview of their services and allows them to discuss which services are adding value to the customers and which are not. With action research, this work develops an approach to creating a logistics service configurator that can be used in the
specification processes of new and existing customers in an LSP company. The key findings of this thesis reveal that the modular modeling of logistics services between customers operated by an LSP is possible based on feedback from employees. Some benefits are that the standard naming of services can result in the utilization of available warehouse management data that can be used to improve knowledge about customer types and the profitability of the services provided. Implementing a logistics service configurator is expected to increase initial contact from 50% of customers to all customers approaching the case company and reduce the offer generation time from 20 to 5 days. It can also allow potential customers to make the initial contact, and with the right data provided, the LSP can quickly assess the potential fit of new customers.

This thesis emphasizes the potential to modularize physical processes and IT systems to enable an organization to implement a logistics service configurator. The logistics service industry is highly customized, and the modularization and configuration methods previously applied in engineer-to-order companies producing physical products are used as inspirations. This research demonstrates the value of modularizing logistics services to enable an LSP to obtain an overview
of its offerings and thereby augment its data-related foundation for the further analysis of customers in the future.