Measurement Of Supplier Service Quality Dimensions In The Supply Chain

Measurement Of Supplier Service Quality Dimensions In The Supply Chain

Ashok Nimanpure, Dr. Nagendra Sohani, Department of Mechanical Engineering Institute of engineering and Technology,

Devi Ahilya Vishwavidhayalaya, Indore (M.P.)

Abstract

Purpose of this paper is to highlight the importance of supplier service quality in the supply chain and present framework for its measurement. Supplier service quality dimension is important because it includes sensitivity to customer needs dealing with the products and services regularly.

We collect the data from all the suppliers of the industry like cutting tools supplier, oil suppliers, job work supplier, raw material supplier etc. all the respondent were asked to assess supplier service quality in supply chain based on expectation and perception.

We wish to identify the extent of which awareness of supplier service quality through all the members of supply chain.

Introduction

With the fast developing world economy and global market place there has been a drastic increase in the pressure on organization to find new ways to create and deliver value to customer through supply chain management.

It is well known that improved service quality enhance productivity and reduces costs as well as increasing customer loyalty, market share and general benefits for the company. Service quality aims to confirm the requirements of the customers, to meet their expectation and satisfy them.

It is evident that supplier service quality has impact overall business growth of the organization, present days purchasing functions has been receiving increasing importance as a critical function in the supply chain (Sakis and Talluri 2002)

Today manufacturer and service provider are seeking ways to co-operate with the supplier to improve purchasing management (Lee et al.2003) and supply chain performance for better control.

Most of successful organization seeks to achieved competitive advantage primarily through their direct and indirect network of supplier(Hines 1997)

To understand the performance of supplier service quality firms must first examine whether the service provided will meet with customers requirement and expectation.

Therefore firms should focused on

• Knowing customer requirements

• Fulfilling customer requirements

• Investigating where the service performed is satisfactory to customers and where it is not

• Taking appropriate actions to correct or improve in case where quality is poor

  Objectives

• To derive its dimensions for better measurement and control for higher productivity and profitability for all the members of supply chain

• To identify different barriers that affect the supplier service quality in the supply chain

• To identify customer satisfaction level respect to supplier service quality

Literature review

Definition of Service, Quality and Service Quality

Service- Service is an activity of intangible nature which is take place in interaction between customer and service provider to provide solution of the customer problem.

Quality- Fitness for use

Service quality- Service quality aims to confirm the requirements of the customers to meet their expectation and to satisfy them.

There has been considerable progress as to how service quality should be measured, there is little advancement as to what should measured?

Researchers generally have adopted one of two perspectives

1. Nordic perspective

2. American perspective (Brady and Cronin, 2001). The Nordic perspective was proposed by Gronroos (1984) and the American perspective was proposed by Parasuraman et al. (1985, 1988).

   In the Nordic perspective, Gronroos (1984) identified 2 dimensions of service

   Quality

   1. Technical quality and

   2. functional quality

He defined technical quality as What the consumer receives as a result of interactions with a service firm and

Identified employees technical ability, employees knowledge, technical solutions,

Computerized systems and machine quality as its 5 attributes.

Functional quality defined as The way in which the technical quality is transferred and identified behavior, attitude, accessibility, appearance, customer contact, internal relationships, and service- mindedness as its 6 attributes.

He concluded that the technical and functional quality of service built up the corporate image of the company.

The Nordic perspective of service quality was the first to be published in scholastic literature. However, the first seriously dedicated program of research to answer the questions whats the best way to define service quality? and whats the best way to measure it? was launched by Parasuraman et al. (1985,1988) (Schneider and White , 2004). This program developed the American perspective of service quality.

In the American Perspective

Parasuraman et al.(1985) built up a 34-item service quality scale comprising 10

Dimensions (reliability, responsiveness, competence, access, courtesy,

Communication, credibility, security, understanding/knowing the customer and Tangibles).

Subsequent work by Parasuraman et al. (1988) resulted in the service

quality measurement scale with 22-items on 5 dimensions. The dimensions reliability, responsiveness and tangibles were retained as identified in 1985 whereas

Communication, competence, credibility, courtesy and security merged as a new

Dimension assurance. Access and understanding / knowing the customer merged to form the dimension empathy.

Parasuraman et al. (1988) codified this scale as SERVQUAL and defined its 5 dimensions as: Tangibility: Appearance of physical facilities, equipment and communication

Reliability: The consistency of service, this is often seen to be the most important part of service quality. Responsiveness: Willingness to help customers and provide prompt service.

Assurance: Sufficient competence to perform the service, courtesy of supplier behavior credibility of supplier and security of the service.

Empathy: Ease of access to the supplier, effective communication between customer and supplier.

However, the service quality measurement scale developed by Parasuraman et al.

(1988) has been the subject of criticism since its development (Johnston, 1995). Buttle (1996) provides a detailed critique of the issues surrounding the 5 dimensions of the Parasuraman et al. (1988) service quality scale, mainly on the basis of number of dimensions and contextual stability.

Methods of service quality

1. SERVQUAL is based on the gap model of service quality

2. Customer surveys

3. Customer interviews

4. Internal audits

Dimensions of service quality reported in the literature

Methodology

This study is focused on Gathering Information related to Supplier service quality dimensions in supply chain on the basis of SERVQUAL by taking following criteria

Literature Review

Literature Review

Final scale to measure supplier service quality

Final scale to measure supplier service quality

Conclusion

1. SSQSC: A tool to measure supplier service quality in supply chain

   Developing the list of measurements on the basis of criteria decided

   Developing the list of measurements on the basis of criteria decided

   By Nitin Seth, S.G. Deshmukh, Prem Vrat

2. Service quality models: a review

   Exploratory interview regarding suppliers from the concern departments

   Exploratory interview regarding suppliers from the concern departments

   By Nitin Seth, S.G. Deshmukh, Prem Vrat

3. A framework for measurement of quality of service in supply chains

   By Nitin Seth, S.G. Deshmukh, Prem Vrat

   Collect data as required

   Collect data as required

4. Prioritizing Service Quality Dimensions By Nimit Chowdhary and Monika Prakash

5. Measuring Service Quality in Retail Supply Chain in India

   First level purification of the data collected

   First level purification of the data collected

   By Subas Chandra Das; Satendra Dash

6. Integrated Customer relationship management for service activities

Development of final list of measures

Development of final list of measures

Data Analysis

Data Analysis

By Sergios Dimitriadis; Eris Stevens

Understand the performance of service quality by examining the service provided will meet with the customer requirements and expectations with respect to the improved service quality .Results higher productivity and reduces cost as well as increasing customer loyalty, market share and general benefits for the company.

References

1. A Conceptual model of service quality and its implications for future research

   By a. parsuraman, valarie a. zeithaml, leonard l. berry

2. Refinement and reassessment of the servqual scale

   By a. parasuraman, leonard l. berry

3. Establishment and applications of the integrated model of service quality measurement

   By Ching- Chow yang

4. Service management

By james a. fitzsimmons, mona j. fitzsimmons