Towards an improved service quality: transportation modelling of product distribution

Abstract

The study aims to assess customer satisfaction with the activities of the case study company. It established, through a survey, a level of dissatisfaction by the company’s customers, attributable to inefficient product distribution. The solution to the transportation model of the company’s product distribution pattern, using the Vogel’s Approximation Method shows that the company can reduce its transportation cost from N60,095,397.20 to N58,385,972.20. This saving made from product distribution cost becomes a motivation for management of the company to ensure adherence to the accompanying shipping list, thus improving the reliability rating of the company due to a more efficient product distribution. This study would help enlighten companies, especially the case study company, on the need to continually assess their performance on service delivery (from the customers’ perspective), and analyse their activities with a view to improving customer satisfaction, service delivery and their operational efficiency and effectiveness.

Keywords: transportation modelling, service quality, logistics, product distribution, customer satisfaction