Performance gaps in the dyadic order fulfillment process

Abstract

Purpose

The purpose of this paper is to assess the existence of logistics performance gaps in the dyadic order fulfillment process.

Design/methodology/approach

A literature review on service quality, logistics quality and logistics performance generated a conceptual model, four hypotheses and a scale for measuring logistics performance. Dyads of customers (large manufacturing companies) and their most important suppliers were addressed in two similar surveys. A total of 136 such dyads were acquired.

Findings

The dyadic order fulfillment process contains four significant logistics performance gaps, even though important business dyads are addressed. Customers' expectations are not perceived by customers as being fulfilled, customers' expectations are over‐targeted by suppliers, but suppliers' internal performance decreases performance. Finally, suppliers overestimate their performance compared with the ratings of customers.

Research limitations/implications

By applying a service quality model to a logistics process, new knowledge about logistics performance was obtained. A tested conceptual model and a tested scale for measuring logistics performance are theoretical contributions.

Practical implications

The model can be used as a basis for deeper communication between customer and supplier in order to improve logistics performance in the dyadic order fulfillment process.

Originality/value

A true dyadic approach is rare in logistics research. As no comprehensive studies of the “mechanisms” of the dyadic order fulfillment process were found, the results can be valuable to both customers and suppliers.

Citation

Forslund, H. (2006), "Performance gaps in the dyadic order fulfillment process", International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 8, pp. 580-595. https://doi.org/10.1108/09600030610702871