Case study: Managing for total quality of logistics services in the supply chain

Patrick Fung and Alfred Wong

Logistics Information Management

1998, Vol. 11, No. 5, pp. 324-329

 

1)      Logistics services

  1. a) Intra-organizational and inter-organizational materials management activities
  2. b) Maximizing the time and place utilities of the goods to the customers.
  3. c) Effective alignment of suppliers’ and customers’ marketing objectives through
  4. i) Use of technical resources
  5. ii) Organizational structure

2)      Logistics services providers must develop a coherent mix of strategy, structure and tasks that best link upstream and downstream supple chain customers.

3)      TQM issues for logistics services provider

  1. a) Customer service
  2. i) Offering wide range of services

(1)   Pre-transaction consulting

(2)   Import/export administration

(3)   Provide staffing

  1. ii) Customized to customers needs

iii)     Minimize total cost per throughput

  1. iv) Job is not done until customer is satisfied
  2. b) Information technology
  3. i) Communication (between suppliers, customers, firm)
  4. ii) Data linkage for efficiency

(1)   Order input

(2)   Online credit/account management

(3)   Reporting (utilization)

  1. c) Organization and personnel
  2. i) Flexibility
  3. ii) Communication and interaction
  4. d) Continuous improvement
  5. i) Incremental improvement ito quality, speed, flexibility, cost

4)      TQM Model

  1. a) Management by fact: customized IT
  2. b) Delight the customers: interactively determined CS
  3. c) People-based management organized teamwork