Journal of Applied Engineering and Technological Science (JAETS)
Vol. 5 No. 1 (2023): Journal of Applied Engineering and Technological Science (JAETS)

Performance Evaluation of Logistics Service Provider (LSP) in FMCG Companies Using Physical Distribution Service Quality (PDSQ) Dimension: Case Study

Evi Yuliawati (Institut Teknologi Adhi Tama Surabaya)
Clora Brilliana (Sekolah Tinggi Ilmu Ekonomi Mahardhika, Indonesia)
Nur Rahmawati (UPN Veteran Jatim)
Dian Trihastuti (Widya Mandala Surabaya Catholic University)



Article Info

Publish Date
10 Dec 2023

Abstract

Increasingly fierce business competition requires companies to be able to meet customer desires on time, in the right amount and in the right quality. FMCG XXX Company is a skin care product manufacturing company that focuses on production activities. Therefore, the company transfers product distribution activities to customers (distributors) to Logistics Service Providers (LSP). FMCG XXX hold consumer’s satisfaction in the highest regard. Along with the increasing number of activities being diverted, FMCG XXX companies aim to evaluate LSP performance through appropriate indicators. The indicators evaluated in this study adopt dimensions in Physical Distribution Service Quality (PDSQ) which consist of three dimensions, namely timeliness, availability and condition. Based on the results of the study, 13 indicators were obtained that FMCG XXX Company used to evaluate LSP performance. In general, around 69% of LSP's actual performance has been able to meet the targets set by the company, where two indicators are able to exceed the target and seven indicators are in accordance with the target. However, the company still has to focus on four indicators that have negative deviations because the actual performance value is less than the target set by the company. Negative indicators come from the availability and condition dimensions. The company coordinates with LSP to design improvement projects in order to improve actual performance according to the company's targets.

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Journal Info

Abbrev

jaets

Publisher

Subject

Civil Engineering, Building, Construction & Architecture Computer Science & IT Decision Sciences, Operations Research & Management Electrical & Electronics Engineering Industrial & Manufacturing Engineering

Description

Journal of Applied Engineering and Technological Science (JAETS) is published by Yayasan Pendidikan Riset dan Pengembangan Intelektual (YRPI), Pekanbaru, Indonesia. It is academic, online, open access, peer reviewed international journal. It aims to publish original, theoretical and practical ...