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
SURVEY RESULTS
 SETTING
SERVICE
IMPROVEMENT
PRIORITIES
OF
DESIGNED TO BE
ADMINISTERED BY
LOGISTICS
PERSONNEL
ANYWHERE IN THE
WORLD WITHOUT
THE ASSISTANCE
OF OUTSIDE
EXPERTS OR
CONSULTANTS
THERE ARE TWO
THINGS 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)
PERFORMANCE
RATING
USE SURVEY
RESULTS TO:
 DETERMINE
WHAT WE
ARE DOING WELL
 DETERMINE
WHAT
NEEDS TO BE IMPROVED
IMPORTANCE
RATING
 DETERMINE
WHAT
CATEGORIES OF
SERVICE MOST
CONTRIBUTE TO
CUSTOMER
SATISTACTION
 REGRESSION ANALYSIS
 ADDING
ITEM
IMPORTANCE
DEVELOPING THE
EVALUATION
INSTRUMENT :
 VISUALIZE
SERVICE FLOW
 IDENTIFY QUALITY
INDICATORS
 IDENTIFY FUNCTIONS
THAT DEFINE SERVICE
 WRITE “ALL THINGS
CONSIDERED” QUESTIONS
 ADD CLASSIFICATION
CHARACTERISTICS
VISUALIZE SERVICE
FLOW :
 WHERE
DOES SERVICE
BEGIN?
 WHERE
 WHAT
DOES IT END?
SHOULD HAPPEN
BETWEEN?
IDENTIFY SERVICE
QUALITY
INDICATORS:
 FOCUS
GROUP RESEARCH
 SURVEY RESEARCH AND
FACTOR ANALYSIS
 INTERVIEWS
 LITERATURE
REVIEW
 PROFESSIONAL MEETINGS
SERVICE QUALITY
INDICATORS:
INTEGRATED
CARGO CARRIER
 CUSTOMER
SERVICE
 TRANSIT/DELIVERY TIME
ESTIMATES
 SHIPMENT PICKUPS
 RECOVERY FROM
DELIVERY PROBLEMS
 TRACKING
 PODs
 BILLING
SERVICE QUALITY
INDICATORS:
PASSENGER
CARRIER
 RESERVATIONS
 CHECK-IN
 BOARDING
 CABIN APPEARANCE
 COMFORT
 CABIN
PERSONNEL
 MEAL AND BEVERAGE
SERVICE
 ENTERTAINMENT
 BAGGAGE RETRIEVAL
SERVICE QUALITY
INDICATORS:
SUPPLIER
 PERSONNEL
 QUOTATIONS
 ORDER
INTEGRITY
 DELIVERY
 POST
ORDER SERVICES
 INVOICING
 DISPUTES AND
 CREDIT
RETURNS
SERVICES
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

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
WRITING QUESTIONS
 THREE
OR FIVE POINT
POINT SCALE
SUPERIOR TO
COMPETITION
GOOD
(3)
SAME AS
COMPETITION
AVERAGE
(2)
WORSE THAN
COMPETITION
POOR
(3)

OBJECTIVE DESCRIPTORS

COMPARE TO COMPETITION
“ALL THINGS
CONSIDERED”
QUESTIONS:
 FOR
EACH QUALITY
INDICATOR
 All
things considered, I
would rate my satisfaction
with the performance of...
“ALL THINGS
CONSIDERED”
QUESTIONS:
 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:
IMPORTANCE
RATINGS:
REGRESSION
ANALYSIS
 INDEPENDENT
VARIABLES ARE
SERVICE FEATURES
 DEPENDENT VARIABLE
IS
“ALL THINGS
CONSIDERED” (BOTTOM
LINE) QUESTION
 HIGH
REGRESSION
COEFFICIEMNTS
DETERMINE OVERALL
IMPORTANCE OF
SERVICE FEATURES
IMPORTANCE
RATINGS:
ADDING
IMPORTANCE ITEM
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
CLASSIFICATION
QUESTIONS:
Who thinks what?
 What
is your annual
logistics budget?
 How
many international
dutiable shipments do you
make each month?
 What
ship?
does your company
EVALUATIONING
SURVEY RESULTS
Use survey results to
determine:
 What we are doing well
 What needs to be
improved
 What is important to our
customers
PerformanceImportance Action
Matrix
 How
Good is
Performance
 What
 What
 What
is
Important to
Customers
to
Promote
to “fix
now”
 Where
to cut
budgets
SERVICE QUALITY EVALUATION
ACTION PLANNING TOOL
IMPORTANCE
TO
CUSTOMERS
H
FIX
I
THESE
NOW!
UPGRADE
THESE
SERVICES
(3-1)
(3-2)
(3) G
H
M
O
D
E
(2) R
A
T
E
L
(1) O
W
0
IMPROVE
THESE
ENCOURAGE
USE
PROMOTIONALLY
(3-3)
CONGRATULATE
STAFF
STAFF
(2-1)
(2-2)
(2-3)
CUT
QUESTION
THESE
SERVICES
BUDGET
(1-1)
EXPENDITURES
(1-2)
(1)
(2)
BELOW
COMPETITION
SAME AS
COMPETITION
REALLOCATE
THESE
RESOURCES
(1-3)
(3)
ABOVE
COMPETITION
SERVICE PERFORMANCE RATINGS
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
COST
RELATIVELY
H
I
G
H
M
E
D
I
U
M
STRATEGIC
SLOW AND
Q
(3-1)
U
I
C
CONSIDERATION
(3-2)
(3-3)
RELATIVELY
LONG
SLOW
RANGE
RELATIVELY
K
F
EXPENSIVE
EXPENSIVE
(2-1)
(2-2)
PLAN
(2-3)
I
X
L
O
W
LOW COST APPROACH
(1-1)
SHORT
(1-2)
(1-3)
INTERMEDIATE
LONG
RUN
RUN
RUN
(1)
(2)
TIME
(3)
SERVICE
IMPROVEMENT
PRIORITIES:
LOW COST
APPROACH

1-1 SERVICES
LOW COST
SHORT RUN

1-2 SERVICES
LOW COST
INTERMEDIATE
RUN

1-3 SERVICES
LOW COST
LONG RUN
SERVICE
IMPROVEMENT
PRIORITIES:
QUICK FIX
APPROACH

1-1 SERVICES
SHORT RUN
LOW COST

2-1 SERVICES
SHORT RUN
MEDIUM COST

2-3 SERVICES
SHORT RUN
HIGH COST
OTHER SERVICE
IMPROVEMENT
PRIORITIES:

2-2 SERVICES
INTERMEDIATE
RUN
MEDIUM COST

2-3 SERVICES
LONG RUN
MEDIUM COST

3-2 SERVICES
INTERMEDIATE
RUN
HIGH COST

3-3 SERVICES
HIGH COST
LONG RUN
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.

SERVICE QUALITY
Produces
REPEAT BUSINESS
REPEAT BUSINESS
Produces
PROFITABILITY
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