Challenges of Global Logistics Service Providers in Latin America

Abstract

The original function of many Logistics Service Providers (LSP) has changed during the last decades. Originally freight forwarding companies started off with their typical freight forwarding activities: bundling several shipments of several customers, shipping them to their point of destination and debundling the goods before they are delivered to the final consignee. Over time the operating activities of freight forwarders have extended: while the traditional supply chain was highly fragmented, modern supply chains are characterized by a high degree of process integration. During this development freight forwarders increasingly have become Logistics Service Providers that manage the whole supply chain of globally active firms. This does not only involve the transportation of goods, but also the integration of complete supply chains, the planning, measurement, and controlling of flow of goods, information, and payment.