An Approach to Improve Customer Satisfaction in Logistics: the Case of HEPCO

Customer service is increasingly being recognized as a source of competitive advantage. Determining customer needs accurately, meeting and exceeding them in a consistent manner is the key to the effective customer service. Companies should adapt a strategic, proactive focus on customer service based on understanding logistics process and designing logistics system to meet their needs. This paper provides an approach based on quality function deployment (QFD) to rank strategic actions to improve logistics service and addresses issue of how to deploy house of quality (HOQ) to effectively and efficiently improve logistics process and customer satisfaction. In data collecting, fuzzy logic is used to deal with ill-defined nature of qualitative linguistic judgments required in proposed HOQ. Finally, we found that JIT implementation has highest priority in strategy actions with inventory management and demand-forecasting method coming next.