An analytic hierarchy process-based approach to the strategic management of logistic service: An empirical study in the mechanical forest industry

Customer service is increasingly being recognised as a source of competitive advantage. The keys to provide effective customer service are determining the customer needs accurately, and meeting and exceeding the needs in a consistent manner. Companies should adapt a strategic, proactive focus on customer service based on understanding customers' own logistic processes and designing the logistics system to meet their needs. The ultimate objective is to create value for the customers by enabling them to achieve their own objectives more efficiently. In the paper, we approach customer service from a logistics point of view. We present a framework based on using the Analytic Hierarchy Process for strategically managing logistics service consisting of the following steps: (1) dividing the customers into logistically distinct businesses (LDBs), (2) assessing the strategic importance of the customers, (3) analysing the importance of the logistics service elements for the customers, (4) benchmarking own performance against competitors, (5) analysing the strengths and weaknesses of the own company, (6) defining logistics service plans for the LDBs, and (7) reviewing the implementation of the plans and making the needed adjustments. The use of the developed framework is demonstrated with a real application.