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THIS IS A SYSTEM FOR:

SERVICE QUALITY IN TRANSPORTATION AND LOGISTICS: MEASUREMENT, EVALUATION, AND IMPROVEMENT Forrest E. Harding California State University Long Beach. THIS IS A SYSTEM FOR:. SERVICE EVALUATION AND QUALITY TRACKING INTERPRETATION OF SURVEY RESULTS SETTING SERVICE IMPROVEMENT PRIORITIES.

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THIS IS A SYSTEM FOR:

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  1. SERVICE QUALITY IN TRANSPORTATION AND LOGISTICS: MEASUREMENT, EVALUATION, AND IMPROVEMENTForrest E. HardingCalifornia State University Long Beach

  2. THIS IS A SYSTEM FOR: • SERVICE EVALUATION AND QUALITY TRACKING • INTERPRETATION OF SURVEY RESULTS • SETTING SERVICE IMPROVEMENT PRIORITIES

  3. DESIGNED TO BE ADMINISTERED BY LOGISTICS PERSONNELANYWHERE IN THE WORLD WITHOUT THE ASSISTANCE OF OUTSIDE EXPERTS OR CONSULTANTS

  4. THERE ARE TWOTHINGS WE NEED TO KNOW ABOUT EACH CATEGORY OF SERVICE WE OFFER: • HOW GOOD IS OUR SERVICE (Performance Rating) • WHAT IS IMPORTANT TO OUR CUSTOMERS (Importance Rating)

  5. PERFORMANCE RATINGUSE SURVEY RESULTS TO: • DETERMINE WHAT WE ARE DOING WELL • DETERMINE WHAT NEEDS TO BE IMPROVED

  6. IMPORTANCE RATING • DETERMINE WHAT CATEGORIES OF SERVICE MOST CONTRIBUTE TO CUSTOMER SATISTACTION • REGRESSION ANALYSIS • ADDING IMPORTANCE ITEM

  7. DEVELOPING THE EVALUATION INSTRUMENT : • VISUALIZE SERVICE FLOW • IDENTIFY QUALITY INDICATORS • IDENTIFY FUNCTIONS THAT DEFINE SERVICE • WRITE “ALL THINGS CONSIDERED” QUESTIONS • ADD CLASSIFICATION CHARACTERISTICS

  8. VISUALIZE SERVICE FLOW : • WHERE DOES SERVICE BEGIN? • WHERE DOES IT END? • WHAT SHOULD HAPPEN BETWEEN?

  9. IDENTIFY SERVICE QUALITY INDICATORS: • FOCUS GROUP RESEARCH • SURVEY RESEARCH AND FACTOR ANALYSIS • INTERVIEWS • LITERATURE REVIEW • PROFESSIONAL MEETINGS

  10. SERVICE QUALITY INDICATORS:INTEGRATED CARGOCARRIER • CUSTOMER SERVICE • TRANSIT/DELIVERY TIME ESTIMATES • SHIPMENT PICKUPS • RECOVERY FROM DELIVERY PROBLEMS • TRACKING • PODs • BILLING

  11. SERVICE QUALITY INDICATORS:PASSENGERCARRIER • RESERVATIONS • CHECK-IN • BOARDING • CABIN APPEARANCE • COMFORT • CABIN PERSONNEL • MEAL AND BEVERAGE SERVICE • ENTERTAINMENT • BAGGAGE RETRIEVAL

  12. SERVICE QUALITY INDICATORS:SUPPLIER • PERSONNEL • QUOTATIONS • ORDER INTEGRITY • DELIVERY • POST ORDER SERVICES • INVOICING • DISPUTES AND RETURNS • CREDIT SERVICES

  13. PUBLIC SCHOOLS (K-8) • TEACHERS • PRINCIPAL • PHYSICAL PLANT • SUBSTANCE ABUSE • LOCATION • EXTRACURRICULAR ACTIVITIES • DISCIPLINE • TEST SCORES • STUDENT CONDUCT • RECEPTION BY EMPLOYEES • COMMUNICATION WITH PARENTS • OVERCROWDEDNESS • PARENTAL SUPPORT • SCHOOL CLIMATE • TRAFFIC/NOISE

  14. FUNCTIONS THAT DEFINE SERVICE:SUPPLIER PERSONNEL • ABILITY TO REACH OUTSIDE REPS • ABLITY TO REACH CUSTOMER SERVICE • PROPMPT RETURN OF CALLS • FREQUENCY OF REP VISITS • HOW KNOWLEDGABLE? • ATTITUDE OF REPS • ATTITUDE OF CUSTOMER SERVICE PEOPLE

  15. WRITING QUESTIONS • THREE OR FIVE POINT POINT SCALE SUPERIOR TO SAME AS WORSE THAN COMPETITION COMPETITION COMPETITION GOOD AVERAGE POOR (3) (2) (3) • OBJECTIVE DESCRIPTORS • COMPARE TO COMPETITION

  16. FOR EACH QUALITY INDICATOR All things considered, I would rate my satisfaction with the performance of... “ALL THINGS CONSIDERED” QUESTIONS:

  17. AT THE END OF THE QUESTIONNAIRE... “THE BOTTOM LINE”QUESTION: Considering all the services I have received, I would rate my overall satisfaction with ____Company to be: “ALL THINGS CONSIDERED” QUESTIONS:

  18. INDEPENDENT VARIABLES ARE SERVICE FEATURES DEPENDENT VARIABLE IS “ALL THINGS CONSIDERED” (BOTTOM LINE) QUESTION HIGH REGRESSION COEFFICIEMNTS DETERMINE OVERALL IMPORTANCE OF SERVICE FEATURES IMPORTANCERATINGS:REGRESSION ANALYSIS

  19. SMALLER POPULATIONS NO STATISTICAL SOPHISTICATION REQURED NO OUTSIDE CONSULTANTS OR ANALYSTS REQUIRED IMPORTANCE MEASURE ADDED TO PERFORMANCE QUESTION: 3 = CRUCIAL 2 = VERY IMPORTANT 1 = MODERATELY IMPORTANT IMPORTANCERATINGS:ADDING IMPORTANCE ITEM

  20. What is your annual logistics budget? How many international dutiable shipments do you make each month? What does your company ship? CLASSIFICATION QUESTIONS:Who thinks what?

  21. Use survey results to determine: What we are doing well What needs to be improved What is important to our customers EVALUATIONING SURVEY RESULTS

  22. How Good is Performance What is Important to Customers What to Promote What to “fix now” Where to cut budgets Performance-Importance Action Matrix

  23. SERVICE QUALITY EVALUATIONACTION PLANNING TOOL IMPORTANCE TO CUSTOMERS UPGRADE USE FIX H THESE I THESE PROMOTIONALLY (3) SERVICES G NOW! (3-1) (3-2) (3-3) H M O D IMPROVE ENCOURAGE E CONGRATULATE (2) R THESE STAFF STAFF A SERVICES T (2-1) (2-2) (2-3) E QUESTION REALLOCATE CUT THESE L THESE O (1) EXPENDITURES RESOURCES BUDGET W (1-1) (1-2) (1-3) (3) 0 (1) (2) BELOW SAME AS ABOVE COMPETITION COMPETITION COMPETITION SERVICE PERFORMANCE RATINGS

  24. Cost-Time Analysis • Set Priorities for “Fix Now” Services • Create a “Low Cost” Strategy” • Create a “Quick Fix” Strategy • Identify What Should be Done First • Establish Longer Range Priorities

  25. COST RELATIVELY STRATEGIC H SLOW AND I CONSIDERATION EXPENSIVE G Q (3-1) (3-2) (3-3) H U I M RELATIVELY LONG E SLOW C RANGE D RELATIVELY K PLAN I EXPENSIVE F U (2-1) (2-2) (2-3) M I X L O LOW COST APPROACH W (1-1) (1-2) (1-3) SHORT INTERMEDIATE LONG RUN (3) RUN (1) RUN (2) TIME

  26. 1-1 SERVICES 1-2 SERVICES 1-3 SERVICES LOW COST SHORT RUN LOW COST INTERMEDIATE RUN LOW COST LONG RUN SERVICE IMPROVEMENT PRIORITIES:LOW COST APPROACH

  27. 1-1 SERVICES 2-1 SERVICES 2-3 SERVICES SHORT RUN LOW COST SHORT RUN MEDIUM COST SHORT RUN HIGH COST SERVICE IMPROVEMENT PRIORITIES:QUICK FIX APPROACH

  28. 2-2 SERVICES 2-3 SERVICES 3-2 SERVICES 3-3 SERVICES INTERMEDIATE RUN MEDIUM COST LONG RUN MEDIUM COST INTERMEDIATE RUN HIGH COST HIGH COST LONG RUN OTHER SERVICE IMPROVEMENT PRIORITIES:

  29. CONCLUSIONS • This is a service evaluation technique designed to be administered without consultants or outside experts • It is based on customer research • The technique will tell us what to promote and what to improve • Top priority for service improvement are services most important to customers that are the least expensive and time consuming to fix.

  30. SERVICE QUALITY Produces REPEAT BUSINESS

  31. REPEAT BUSINESS Produces PROFITABILITY

  32. FOR COPIES OF THIS PRESENTATION : http://www.csulb.edu/~fharding E-mail: HardingFE@aol.com FOR ADDITONAL INFORMATION SEE: Harding, Forrest, E. “Logistics Service Provider Quality: Private Measurement, Evaluation, and Improvement”, Journal of Business Logistics 15, No. 1(1998): 103-120

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