Abstract

This study uses the logistics center of a large organic retail store in Taiwan to analyze service blueprint and workflow, identifying the potential points of failure and thus serving as a basis for quality improvement. The failure mode and effect analysis (FMEA) model is an effective problem prevention methodology that can easily interface with many engineering and reliability methods. The utilized method integrates the failure mode and effect analysis (FMEA) and the Kano model to explore the possible occurrence of failures in the internal workflow and services of the studied logistics center. A two-stage survey was conducted. In the first stage, an investigation was conducted by 20 logistics experts on the FMEA’s key service failures. In the second stage, a questionnaire was filled out by 220 store staff to summarize the logistics service quality factors found in the Kano model. The results show that the degree of attention and satisfaction in the priority improvement items when there were service failures vary among the opinions of different internal employees and customers. The participants jointly believed that the items that need improvement are “Damaged incoming goods” and “A shortfall in the quantities of delivered goods”.

Highlights

  • Increasing global consumer awareness has prompted individuals to pay more attention to food safety and health

  • Despite abundant research on service quality within the logistics industry, few studies have applied the Kano model and failure mode and effect analysis (FMEA) methods to improve service failure; this study aims to discuss integrating the Kano model and FMEA methods application in service failure improvement

  • The case study is mainly responsible for the storage and management of organic food, which is delivered to 91 different specialty stores every day

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Summary

Introduction

Increasing global consumer awareness has prompted individuals to pay more attention to food safety and health. Organic agriculture has become a trend in global agricultural development. According to the organics annual report issued by the Research Institute of Organic Agriculture, the global market for organic food (expressed in retail sales) was 96.7 billion euros in 2018. The United States (40.6 billion euros) is the leading market, followed by Germany, France, and China. Consumer demand is increasing, reflected in the significant market growth of 11 percent in the United States, the world’s largest organic market. Organic food sales are growing at a healthy rate, developing a strong local market in Asia has been a challenge, especially the logistics management of organic food from source of farmer to the end of market

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