Within supply chains, logistics services have become a key source of competitive differentiation
between firms. Yet significant challenges exist relative to developing supply chain service
offerings for global business customers. Diverse regulations across borders, longer lead times,
and increased transportation costs all add to the difficulty of managing logistics services
internationally. As a service offering, logistics is often characterized by intensive customer contact,extensive customization requirements, and a reliance on extrinsic cues for service performance.Because of these qualities, logistics services are adaptable to specific customer segments,enhancing customer value and loyalty over time. In this article, we describe how Logistics Service Quality (LSQ) components can be used to identify global segments of logistics services customers. By identifying specific customer segments, some which may transcend national
borders, logistics managers can benefit from reduced costs, enhanced revenue, and the ability to differentiate their offering from others in the highly competitive marketplace.