This paper presents an interdisciplinary systems approach to service modeling, design and deployment. The study is based on a longitudinal case study of the development process of a complex logistic service system based on an advanced logistics model. The case examines the development of a Virtual Enterprise Architecture (VEA) for an automatic high-speed transport and sorting system applied in airports for baggage handling. The study traces the evolution of the system from the early conceptual phases to a successful commercial service deployed at Changi, Singapore Airport. The study is conducted using a retrospective analysis of the case using a design science research approach. The paper evaluates and discusses the issues of creating and designing a new complex logistics service, distinct from the physical product, based on an advanced discrete event-based simulation model. The paper concludes by presenting a generalized and validated conceptual framework for a VEA based on an advanced simulation model. The paper thus contributes to the field of service systems and service management by identifying a novel approach to effective design of a new service.