The perception of the farmer on dairy cooperative feed mill logistics service using customer satisfaction index (CSI) and importance-performance analysis (IPA)

Abstract

A good logistics service performance in the dairy feed mill increases farmer benefits and reduces negative environmental effect. Therefore, this study aims to measure the effectiveness of logistics services quality in dairy cooperative feed mill using the customer satisfaction index (CSI) method and important performance analysis (IPA) to enhance performance quality in achieving sustainable business processes. This was conducted in Lembang Districts, West Java, Indonesia, with 150 farmer members of the cooperative as respondents. Then, a total of 100 questionnaires that is suitable with the analysis criteria were used. The CSI method was used to determine farmers’ perception of the logistics service performance and the IPA was adopted for selecting the attributes that need improvement. The result showed a CSI value of 71.05%, which falls under the satisfied category and the IPA diagram showed that the responding rate toward farmers’ demand and employees’ willingness to help was in quadrant II. Conclusively, the logistics service in the cooperative is effective to fulfil farmer needs. Furthermore, some attributes in quadrant II are useful recommendations for improving the logistics service quality.