Measurement of Logistics Performance in Customer Service and Support to Enhance the Delivered In-Full and On-Time Rate: A Case Study of the Customer Service Department of an Ice Manufacturer and Distributor
Keywords:
Cost Dimension, Time Dimension, Reliability DimensionAbstract
This research aims to: 1) measure the efficiency of logistics in customer service and support activities, 2) identify improvement strategies for operational processes, and 3) enhance the delivery capability by assessing the Industrial Logistics Performance Index (ILPI). The study adopts a mixed-methods research design, starting with a literature review on logistics efficiency measurement. Subsequently, data was collected within the business establishments to measure the efficiency of customer service and support activities. Identified areas for improvement were then discussed in collaborative meetings with relevant stakeholders from the customer service department. The study utilized the Industrial Logistics Performance Index (ILPI) as a research tool, along with Why-Why Analysis, in-depth interviews, and group discussions.
The research findings indicate that in terms of the cost dimension (ILPI2C), the proportion of customer service costs to total sales is deemed satisfactory at 8.57%. In the time dimension (ILPI2T), the average response time to customer orders is considered good at 3 hours. However, in the reliability dimension (ILPI2R), the rate of successful product delivery stands at 84.72%, signaling a need for improvement. A Why–Why Analysis was conducted to determine the causes of the identified issues, revealing that incomplete and untimely deliveries were attributed to excessive stacking of products, causing imbalance. To address this, the Efficient Consumer Response System (ECRS) was implemented to enhance the arrangement of stacked products on carts using BLOCK and PINWHEEL patterns. This adjustment improved the stability of loaded products, making counting easier and restricting the number of transported products per round to a maximum of 25 bags. Consequently, the delivery capability increased to 95.10%, meeting satisfactory criteria.
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