This thesis project includes an overview of services provided by logistics services providers. It explains the characteristics of third- and fourth- party logistics providers, and the opportunities for logistics services providers to change the amount and/or type of services in order to respond to market demand. The main research question is ‘To what trends and developments can logistics services providers respond and how?’. The sub questions are ‘What services do logistics services providers provide?’, ‘What other services could logistics services providers provide?’ and ‘What are the trends and developments in the logistics services market?’. Answers to these questions are acquired through a literature review and a market analysis including a case company analysis and benchmarking in Cape Town, South Africa.

Logistics outsourcing can be done on several levels. Some companies only outsource a few basic functions from second- party logistics providers, others decide to outsource more integrated services and value added services to third- party logistics providers, and nowadays companies decide to outsource the management and complete logistics processes to fourth- party logistics providers. The logistics services industry is developing rapidly, the range and amount of logistics services is growing. The competitiveness in the market is increasing as clients have a wide choice of logistics services providers, it is very important for the logistics services providers to achieve and remain high client satisfaction levels. Clients are looking for high service levels and information technology capabilities, relatively low cost, flexibility and trust. Logistics services providers need to provide more than just standardised services, customised and value-added services are necessary, clients want unique solutions and customer loyalty.

The possibility of changing the amount and/or type of services is not applicable to the industry since logistics services providers are flexible and able to provide a wide range of services according to the need of the client. Non of the companies approached are considering changing the way or scope of services they are currently providing since they try their best to provide whatever service the client requests. Instead of the quantity of services, the industry needs to focus on the quality of the services and the relationship with their clients. The case company along with its competitors in Cape Town will try its best to provide customised solutions for its customers and create a close relationship through building trust and reliability.

The logistics services market faces higher customers’ expectations of services and products, increased globalisation of business, and increased competition. Opportunities from the literature review and market analysis include developing and improving relationships with clients and thirdparty logistics providers, increasing global presence by expanding agent network, improving the service level, improving information technology, increasing flexibility and providing a unique solution for each client, focusing on existing customers, and acquiring expertise and contacts in new markets as China and the new wine markets in Eastern Europe.

Overall it seems that logistics services providers should take the opportunity to build close relationships with their clients by providing excellent personal services.