Ruth Banomyong and Nucharee Supatn
The purpose of this research is to identify key attributes of freight logistics service quality and to examine how these attributes impact shippers' selection of third‐party…
Abstract
Purpose
The purpose of this research is to identify key attributes of freight logistics service quality and to examine how these attributes impact shippers' selection of third‐party logistics service providers (3PLs). The knowledge and understanding of these attributes can be of great value to 3PLs when developing marketing strategies to attract and retain clients.
Design/methodology/approach
A literature review was carried out to identify the main attributes of freight logistics service quality. In‐depth interviews were subsequently undertaken to validate and refine the freight logistics service attributes. A questionnaire was then developed and a survey conducted. Logistics regression analyses were performed to examine the impact of freight logistics service attributes on shippers' decision to select 3PLs.
Findings
A total of 24 freight logistics service attributes were identified and categorised based on the SERVQUAL model into six dimensions: reliability, assurance, tangibility, empathy, responsiveness, and cost. Freight logistics service quality was found to impact shippers' selection of 3PLs significantly. In the assessment of the impact of each individual service attribute it was observed that accuracy of documents; EDI and E‐commerce services; customer relationship management; customer care; updated freight rates; and consolidation provision significantly influenced how shippers selected 3PLs.
Research limitations/implications
The focus of the study is limited to international freight logistics services, while other logistics services, such as inventory management or warehouse management, were not included. The context of the study is related to Thailand and the provision of international freight service in the country.
Practical implications
An understanding of key attributes based on key freight logistics service quality can help 3PLs in developing marketing strategies that provide services that are considered to be critically important to their customers.
Originality/value
The purpose of the study is to define key freight logistics service quality attributes and their respective impact on shippers' decision‐making process when choosing a 3PL.
Details
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Ruth Banomyong and Nucharee Supatn
This paper aims to present a supply chain performance assessment tool that measures the performance of key supply chain activities of a firm under different performance dimensions.
Abstract
Purpose
This paper aims to present a supply chain performance assessment tool that measures the performance of key supply chain activities of a firm under different performance dimensions.
Design/methodology/approach
The tool was developed based on an extensive literature review. The nine key internal supply chain activities, as proposed by Grant et al. in 2006, constituted the backbone of the assessment framework, while performance was measured based on three dimensions: cost, time, and reliability. The tool was pilot‐tested on 44 local SMEs. The results were then compared with existing performance benchmark as well as within the benchmarked group itself and a high performing Thai multinational in order to see whether the developed tool could identify performance gaps in the trial group.
Findings
The results obtained from the tool provide a description of a firm's internal supply chain activity. The utilised supply chain performance framework can isolate each individual supply chain activity. The results are therefore precise enough for firms to identify individual areas of strengths and weaknesses. The tool is relatively simple and easy to use and understand.
Research limitations/implications
Limitation is related to the availability of the required assessment data. The availability of data is a reflection of systematic data collection and storage procedures of the respondent firms.
Originality/value
The tool was developed on clearly defined theoretical foundations. The three dimensions of cost, time and reliability can balance both financial and non‐financial characteristics of supply chain performance. The data required are simple and objective.