The Kano Model: An Analysis Of Third Party Logistics

2.2 Third-party Logistics

Third party –logistics refers to that a firm provides multiple logistics services for use by customers. And these services are integrated or bundled together by the provider. (Murphy & Wood, 2011)

Based on the customers’ needs and market conditions, third party logistics provider normally provide the integrated operation, warehousing and transportation services that can be customized and scaled. For instance, the different requirements for delivery services and the different demands for products and materials can be scaled and customized for different customers. 3PL targets a particular function in supply management, such as warehousing, transportation, or raw material provision. (O'Byrne, 2011)

According to

In order to choose the suitable service quality model, several considerations have been comparing in the following table:

KANO Model SERVQUAL Model

Definition The Kano Model is an insightful way of understanding and categorizing 5 types of customer requirements (or potential features) for new products and services. SERVQUAL Model highlights the main components of high-quality service. It is also a quality management framework.

Explanation A product or service can have three types of attribute (or property):

a) Threshold Attributes: Which the customers expect to be present in a product.

b) Performance Attributes: Which are not absolutely necessary, but which are known about and increase the customer's enjoyment of the product.

c) Excitement Attributes: Which customers don't even know they want, but are delighted when they find them. a) The original SERVQUAL model was identified into ten elements of service quality; however these elements were collapsed into five factors in the later work, they are reliability, assurance, tangibles, empathy, and

In additional to being a measurement model, SERVQUAL is also a management model. The SERVQUAL authors identified five Gaps that may cause customers to experience poor service quality. (Parasuraman, Zeithaml, & Berry, 1990)The five gaps are:

Gap 1: between consumer expectation and management perception

Gap 2: between management perception and service quality specification

Gap 3: between service quality specification and service delivery

Gap 4: between service delivery and external communication

Gap 5: between expected service and experienced service

In order to get an understanding what the gap is between the expectation of the customer and the provided delivery services by Afu Company, this SERVQUAL model will be used in this research. In addition, this model will help the researcher to develop the questionnaire for customers and answer the empirical question