Factors influencing shippers to use multiple country consolidation services in international distribution centers

Multiple country consolidation (MCC) combines cargos from different countries into same destinations by implementing logistics services including assembling, simple processes, packing, and labeling to increase cargos’ added value. Facing such an opportunity in global supply chain, international distribution centers (IDCs) need to examine internal resources and their external environment to create more competitive advantages. From the shippers’ perspective, this study uses structural equation modeling to examine the causal effect relationship of key factors affecting the use of MCC provided in IDCs. Results show logistics cost advantage, logistics operation efficiency, and logistics information technology service could positively influence the shippers to use MCC provided in IDCs. Several managerial implications were included and could be useful for the decision makers of IDCs and the government.