The Causal Relationship of Logistics Service Quality on Retail Business
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Abstract
Background and Objectives: Logistics is recognized as a crucial element in driving organizational success. Effective management of logistics activities enhances service quality and establishes standards that create opportunities for organizational achievement. Logistics service quality is vital for fostering customer satisfaction and significantly influences customer success or failure. In the highly competitive logistics sector, maintaining market share is essential. Retail businesses face constant demands from customers that are interconnected with their various requests, which hold substantial value and are critical to the national economy. This research focuses on factors influencing the enhancement of logistics service quality, particularly within the retail sector. The objective is to investigate the causal relationships among various dimensions affecting logistics service quality and to identify key factors that support informed decision-making.
Methodology: The study examines 12 dimensions of logistics service quality that are critical for improving service performance. These dimensions include Information Quality, Timeliness, Ordering Procedure, Order Release Quantity, Order Accuracy, Order Quality, Order Conditions, Order Discrepancy Handling, Personnel Quality, Costs, Failures, and Flexibility. To evaluate the influence of each dimension on overall service quality, the research employs the Decision-making trial and evaluation laboratory (DEMATEL) technique, a recognized multi-criteria decision-making (MCDM) method for addressing complex problems. DEMATEL is particularly useful for identifying causal relationships and interdependencies between dimensions. The data collected comprised the opinions of qualified experts with relevant retail management experience. Interviews were conducted to assess the influence and significance of each dimension.
Main results: Data analysis revealed that all twelve dimensions are interconnected, with both causal and impact relationships identified. Specifically, seven dimensions are identified as causal, while five are classified as impact dimensions. The "Failures" dimension emerged as the most interconnected, acting as both a causal and an impact dimension. This suggests that errors in logistics services have widespread effects, influencing other aspects of service quality.
Discussion: The findings suggest that errors in logistics services can result in significant consequences across multiple operational areas. In the retail sector, where organizations handle high transaction volumes and address diverse customer demands, errors may be inevitable. However, their impact can be mitigated through effective management strategies and prompt, appropriate responses. These results highlight the critical importance of reducing service failures in order to enhance overall service quality. This applies particularly to contexts where customer satisfaction is closely tied to the performance of logistics operations.
Conclusion: The interrelations among these dimensions suggest a reciprocal influence. The conclusion of this research emphasizes the importance of understanding the causal relationships and significant dimensions that guide decision-making aimed at reducing failures, which have a substantial impact on service quality. Given the significant influence of the "Failures" dimension, which is both causal and influential on others, it should be prioritized for improvement initiatives. Ultimately, these results are expected to enhance the quality of logistics services within organizations, thereby enhancing their competitive potential in the future.
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