Logistics services quality (LSQ) is currently considered as a differentiation factor enhancing companies’ competitive advantage. Nevertheless, there is neither consensus about its dimensions, or on how they affect customer satisfaction and loyalty in the business relations context. The present paper aims at identifying the main dimensions of logistics service quality and analyzing their effects on supplier’s performance in terms of customer satisfaction and loyalty. The proposed structural equations model is tested empirically in a sample of 213 manufacturing companies in Greece. The results show that: 1) business customers’ appraisal of their supplier’s physical distribution quality is based on its technical/outcome and functional/process elements and that technical/outcome quality is further affected by functional/process quality, 2) both LSQ dimensions have a positive impact on customer satisfaction with technical/outcome quality being the main driver followed by functional/process quality, and 3) LSQ dimensions and customer satisfaction are all directly related to customer loyalty, while their indirect effects, through satisfaction, enhance their impact on customer loyalty. Finally, the theoretical and practical implications of the results within the framework of logistics management are discussed.