Why contract logistics providers fail to act as demand chain leaders

Abstract

This paper outlines why market development efforts could fail by choosing contract logistics providers. This is usually due to the nonexistence of marketing capabilities at contract logistics providers. Hence they are not able to deliver effective and service-dominant solutions. The paper points at consequences in preferring contract logistics providers by comparing them with demand chain leaders which capture marketing as well as logistics capabilities and therefore are being able to offer state-of- The- Art business concepts. © Springer-Verlag Berlin Heidelberg 2010.