Utilising quality function deployment to select customer voice-based quality improvement technique for 3PL companies

ISSN： 1748-1252

Source： International Journal of Enterprise Network Management, Vol.1, Iss.2, 2006-12, pp. : 179-195

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Abstract

Third-Party Logistics (3PL) help connecting buyers and suppliers in supply chains. Hence, logistics quality significantly affects the performance of the supply chain. An intensely competitive business environment necessitates that firms provide services according to customer demand to retain them and reduce the turnover rate. Selecting an appropriate logistics quality improvement technique for 3PL according to customer demand is an important issue. This study utilises Quality Function Deployment (QFD) with 'Quality Attribute Ranking' and 'Utility Function Ranking' to select most appropriate quality improvement technique. QFD analysis transforms voice of customer into the preference for quality improvement techniques of 3PL company, enabling the most effective quality improvement technique to be selected. This study classifies 3PL companies into three types according to their organisation characteristics and their customer source. The best quality improvement techniques are determined with empirical data for each type of 3PL company. The difference among the analytical results are compared and discussed further.