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This paper aims to propose a customer‐oriented, objective‐based model for evaluating the performance of logistics service providers (LSPs).

The study develops an appropriate customer‐oriented, objective‐based measurement model for LSPs on conceptual grounds. The paper illustrates the application in the form of a case study of a Taiwanese electronics manufacturer.

Satisfactory results are obtained in demonstrating the application of the model. Compared with the previous model used by the case company, the new model produced sensitive, accurate, and effective manufacturing performance rating results for different achievement levels.

The proposed LSP performance‐rating model can be applied by a variety of manufacturers to assess all kinds of LSPs in various industries. The proposed model can assist manufacturers in selecting the best LSP and integrating LSP capabilities to develop an appropriate quality‐and‐profit improvement program using customer‐specific requirements.

This paper proposes an original model to solve the problem of multiple measurements in assessing an LSP, taking into account the total cost of logistics (including net price, delivery, quality, service, and so on).

This paper establishes an objective‐orientation driven supplier customer satisfaction performance rating system. The purpose is to provide a methodology for “integrating supplier and manufacturer capabilities and applying different strategies for quality improvement”. This study was undertaken to specify the interaction and mutual movement among three groups in the supply chain “Supplier‐Manufacturer‐Customer” and integrate the results from four factors: incoming inspection, line reject performance, supplier service quality and product reliability. These factors are transformed into measurable, quantitative, Just‐in‐time (JIT) parameters, utilized in planning and establishing a supplier performance rating system focused on satisfying both internal and external customers.