SELECTING LOGISTICS PROVIDERS IN THAILAND: A SHIPPERS’ PERSPECTIVE

Competition in the export logistics service industry is very high in Thailand. The purpose of this paper is to present the findings of a survey conducted on behalf of a leading Thai logistics service provider (LSP). The objective of the research was to identify critical factors that could affect the decision making process of LSP selection. It was therefore important for the Thai LSP to understand which factors could affect shippers ’ decision in choosing LSP in order to maintain its dominant position. A logistics regression model was developed to understand the factors that would impact on shippers ’ decision-making process when choosing logistics service providers. Based on the literature, a total of 23 factors that influence the selection process were used. It was first assumed that “price ” would be one of the most significant factors to be taken into consideration by shippers but the result showed that “accuracy of documents ” and “updated freight rates ” was the most statistically significant factors that could contribute to a change in service providers