Abstract-The concept of logistics capability is analysed from the perspectiveof customer satisfaction and a study of the relationship between the customer satisfaction and logistics capability is made in this paper. Based on the analysis, a model is built, in which the method of marginal utility is used and a conclusion that when logistics capabiltiy meets a certain condition the customer satisfaction is maximized is found out. Furthermore, a programme about constructing logistics capability to maximize the customer satisfaction is made. At the end, an example shows how to construct logistics capabilty which maximizes the customer satisfaction.
Keywords:logtistics capability, customer satisfaction, marginal utility, price of logsitics service, service level
INTRODUCTION
Improving customer satisfaction andcustomer loyalty degree is playing a critical part in the development of logistics enterprises in the current competitive environment. As “the third profit source” and an effective means in raising competitiveness of enterprises, logstics should aim to imporve customer satisfaction. Many scholars have made a study of the concept and component elements of logistics capability.
Donald J.Bowersox and David J.Closs think that logistics capability is a relative assessment whether a manufacturer is capable of providing customer service with its competitive advantage at a total cost as low as possible [2].Morash,Dröge and Vickery found out four key logistics capabilities of delivery speed, reliability, responsiveness, and low cost distribution[3].Liu Weihua, Ji Jianhua and Wang Jilin consider logistics capability consists of logistics facilities capactiy and logistics operation capability. And logistics operation capability is devided into capability of supplying serivce and capability of controling cost[4].
Reference [5] introduced an evaluation system of logistics capability, including cost, quality, delivery, flexibility and innovation.
Reference [7] introduced Analytic Hierarchy Process(AHP) in quantifying component elements of logistics capability and introduced a method of improving logistics service by comparing the elements of logistics capability of the enterprise studied with the model enterprise’s.