A framework for cost-service analysis in differentiation of logistics services

The purpose of this paper is to emphasize the importance of the differentiation of logistics services in creating logistics customer value, and to clarify the meaning and roles of the competitor-based external differentiation and the internal differentiation. Especially, this paper addresses the question of how the internal differentiation of logistics services could be used in the strategic planning of distribution logistics. First, a tentative process model of decision making of logistics service differentiation is suggested. The stages of the process are described, and arising opportunities and problems are discussed. Also, some guidelines are suggested as to how different analytical methods could be used at various stages of the process. Secondly, the common features and differences of external and internal differentiation are considered within the context of the logistics decision-making process. Lastly, the main perceptions are summarized, and a few research targets associated with this topic are raised.