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OP INION

AUTHORS
Tom Zunder
Dewan Md Zahurul
Islam FCILT

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A new logistics quality standard:


is it necessary?
Quali ty is one of the most critical aspects for the strategic
management of se rvice firms such as transport and logistics
companies. How is it currently measured , and do we need a new
or modified logistics qual ity standard? Tom Zunder and Dewan
Md Zahurul Islam of the Freight Logistics Research Group at the
University of Newcastle upon Tyne discuss the question.

A standard is a docu ment , being a set of rules or measureme nt method s. St anda rds are int imate ly
meth od s, de scr ibing definitive procedures, giving a set connected with qu ality and vice ver sa. Brenn an and
of instructio ns for operations or function s, co nt ro lling Dou glas defined a sta ndard fo r local govern ment service
produ cts, se rvices, proce sses, production , etc. Brenn an as: 'an agreed leve l of service requ ired for a particular
and Do uglas' argue th at th e stand ard sho uld be precise , purp ose ; a benchmark used for co mp et it ive ana lysis'.The
relevant, re alistic and mean ingful to users. According to ISO 8402 - 1986 stand ard de fines qu ality as: 't he tota lity
ISIC', the role of sta nda rds is to provide requ irem e nts, o f featu re s and characteristics of a pro duct or service
definit ion s, guide lines, cod es of best pra ct ice and t hat bea rs its ab ility to satisfy stated o r implied needs'.
Q uality is o ne of th e most crit ical aspects for the Cou ntry analysis of first roun d De lphi panel
strat egic manage me nt of se rvice firms such as t ran sport 20
and logistics companies. C ustom er sat isfact ion and re
loyalty can be achieved th rou gh high-quality se rv ices 16

providing value for mo ney for the co nsumers th at are '-I


essent ial for lo ng-term survival and success.' Q uality is ~ 12
E 10

~ ;II. II ....
always re lative to a set of inherent charact eristics and a
set of re quireme nts . It may be see n as a question of
deg ree to w hich th e pro d uct o r service meets th e
custom e r's stated re q uirements. The Quality Manual (or I I I • I .. I .• I
Combined Tronsport' defines quality asan underlying part .~ r::- ~ 0 ,(.. M '6 ~ ~~ ~ ~, ,11" oS-'~ s» 'f" \' -D ('

of eac h product th at we identify as a se rvice; it is a


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guarant ee of adhere nce to wh at was agreed upon. ~ ~

Inde ed th e con ce pt act ually goes o ne ste p furthe r ; Figure 1 Ceo- try
qu ality implies a mat ch between the custom e r's
req uirements and t he service-provider's technical
capac ity.' • EN 15696 :200 7 Spec ificatio n for se lf-sto rage se rvices
s
Mora sh et al argued that: 'Logistics quality is defined • ISO 900 I:2008 Q uality manage ment syste ms ­
in t erms o f pe rformance 'gaps' and is me asured as th e re quirements
ability t o distribute a product or mate rials in conformance
• ISO 1400 I Environ men tal management
with custo mer requirements and standard s: The ce nt ral
systems - re quirements wit h guidance fo r use
th e me of this research is to examine w het he r or not we
ne ed a new or modified logistics quality standa rd.To do The last two quality sta ndard s are general and are
this, we need to identify th e current lo gistics qua lity used by all sectors.We have doubt th at th e six ex isting
,:,t.

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standards. Accord ingly t he current research ident ified, logist ics q uality standards may not be known t o the
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stake ho lders, so we included th ese two sta ndard s t o o
th ro ugh lite rat ure reviews and int erviews wit h the .:.!
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stakeho lde rs , th e following qu ality standards fo r com pare th e re sult w it h th e logistics quality sta nda rds.
tran spo rt and logistics services:
• EN 130 I I:2000 De clarat io n of quality pe rformance
in tr anspo rt chains
Research meth od
A t wo- stage q ualitative res earc h approach was adopted,
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using on line De lphi surveys. In t he first stage, existing
• C ENIT R 143 10:2002 Declara t ion and re po rting of sta nda rds we re ident ified th rou gh lite rature reviews of
environ me ntal pe rformance in freight t ranspo rt sources including journals, we b sites - for ex ample, of
chains differe nt standards de veloping organisation (SDO) - and
published literatu re and str ucturedinterviews w ith key
• EN 13876:2002 Code of practice fo r t he provisio n

exp erts to ident ify and confirm t he key logistics quality


of cargo t ransp o rt services

standards. In the second stage , opi nions o n t he logistics


• EN 12507:2005 Guidan ce notes o n th e a pplicat ion
quality standa rds we re co ll ected from a pan-European
of EN ISO 900 I:2000 t o th e road transportation,
ex pert panel of differe nt types o f: stake ho lders - for
sto rage, distribut ion and railway goods industries
example , small and medium-sized e nte rprises (SME) vs
OPINION

no n-SME; level of management - senior, middle, Convergence of consensus view


o perat ional;and servi ce providers - transport or logistics The overall aim of the study was to achieve a consensus
Vl operator, transport of logistics service user, research, among the participant s" which can be based on any
~
U policy-maker, The findings of t he first rou nd Delhi study arbitrary figure - for example, more t han 50% - although
o
u, are reported in t his research, some justification should be made, Some recent studies'
9,10 used the followi ng for mula for average percentage of
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D elphi study majority opin ion (A PMO), wh ich w as used in t he present
A Delphi technique has been used for quantitative and research to find out t he cut-off point for a consensus:
qualitative data' , w hich is an approach to collecting, APMO ~ Aggcegale d _ a~" - Afg'egaIe d """'Il"'tY ""'&"",""""15 x 100
10taIopinion< expressed
aggregating and analysing the informed judgements of a
group or panel of experts on previously identified issues, Quest ionnaire
McKinnon and Foster noted th e advantages of Delphi A meeting w it h t he parti cipat ion of experts in t he field.
studies as t hat: t hey elicit t he views of panels of experts ; Including t he Union Internationale des Societes de
Transport Combine Rail-Rout e (IJIRR) was held in
t hey employ an iterative pro cess of summarising,
Vilnius, Lithuania in 2009, t hro ugh w hich t he first round
averaging and recycling panel member s' view s to
Delphi questionnaire was prepared, The questionnaire
encourage convergence on a consensus view ; panellists
w as piloted by competent volunt eer s and was designed
are given t he opportu nity to revise earlier answers in the to verity some logistics quality-relat ed ideas, to identity
light of t he general opinions expressed by the panel as a the elements of logistics quality standards, review
whole; information is collected by questionnaire and the usage of t hese standards, and t o examine whet her
does not involve interviews or discussion; and members the re is a need to develop one or mo re quality standards
of th e panel are guaranteed anonymity, for logistics,

Delphi panel according to the experience in logistics D elphi panel according t o t he field of work

34% 6,Cl%

• Transporlor klgtstLG se-vce


provder

- None
- I ·~ Yw-s ~<eJn:h orgatl""lkJ<l (ac. dem;c.
consultancy. ~ CMIre)
6-10 Yea"
10+

Trade assodanon

18.0%

616%

- !'ot,cy-maker ~t cjv;'

wvan1 etc.)

- Other

Figure 2 Figure 3
The Delp hi stat ements were int ended t o elicit quality standard should be implemented by voluntar y
opinions on: agreement between parties, rat her t han be mandatory
• W ho should set th e logistics quality standard by state legislation. There was also consensus on th e
not ion that free and fair com petition is th e only way to
requirement
improve logistics ser vice quality.
• H ow logistics quality standards can be implemente d
There was no consensus on the notion th at th e
• Th e role of the stat e in t he improvement logistics logistics secto r needs state inte rventio n to improve its
service quality service quality or on the not ion that quality labels are
• The necessity of free and fair com petition t o only a marketing t ool.
improve logistic s serv ice quality The panel w as divided on th e notion th at we can only
t ru st t r ansport logistics system th rou gh qualit y
• The ro le o f quality contracts
contracts, and that there is a need for a new or mod ified
• The necessity of a new or mo dified logistics standard in th e t ransport and logistics field.
standard
There were also questions to examine th e existing Importa nt elem ents of st an dards to e nsu re lo gisti cs q uality
standards,relating t o:
Elements of standards Ranking
• The ranking of exist ing standards
Individual servi ce quality provisions/crit eria I
• W het her these existing standards are known to th e
Q uality management along supply chain 2
expert panel or not
Q uality contract betwe en provider and user 3
• The level of market usage of each standard
Standand combined tran sport product 4

Samp le Qualit y management along transport corrid ors 5


The online surv ey took place from 15th Januar y to 15th St andards of professional competence 6
March 20 I 0 among some 200 experts, O ne hundred Standardisation in segments of the supply chain 7
part icipants took par t in the first rou nd of which 90 are
Q uality labelling 8
valid: 45.5% senior; 40% middle and 14.5% operat ional
->t:
management. Of t hem, 61% have more than 10 yeat-s' Table 1 :l
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experience, 59% belong t o SMEs and 40% are tr ansport o
..,;,
or logistics serv ice providers - see Figures I. 2 and 3.
The Delph i panel is highly dominated by the
N et herlands, th e UK, Belgium, Get-many and A ustri a,
probably due to the fact that t hese countri es have
Th e stat ement s or not ion t hat have achieved
consensus will not be included in t he second round
study.The statements that did not achieve consensus w ill
be included in t he secon d roun d question naire.
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strong ro les in logistics in Europe, and are proact ive in
However;input and feedback from th e Delphi panel will
t rade associations - most responses from Belgium were
be included. It is one of the novelt ies of Delphi study
from t rade associations represent ing the whole of th at th e Delphi panel generates new noti ons or ideas
Europe - and research activiti es. Th e dominance may t hat are explored in the subsequent .r?und.
not be prob lemat ic, if the panel has exten sive and long
experience of t he sector and as such can be seen as Findings using non -APMO methods
qualified experts. Apart from t he Delphi stateme nt s, th e survey included
some questions that designed to be analysed by ot her
First ro un d find ings methods. Table I shows the eight element s of logistics
The De lphi panel show ed consensus on the idea that quality standards th at are ranked by the panel, wit h I
logistics quality standand requirement should be set or represent ing the highest and 8 th e lowest. The study
developed by th e market, in contra st to by t he regulator found that individual service quality provision/criteria
or government. There was consensus t hat t he logistics was t op and quality labelling was at th e bottom.

Pe rce nt age of t he pane ll ist s aw are o f th e e xist ing sta ndards


Existing quality standards Total opinion Known, % Unknown. %
Logistics quality standards
EN I 30 I I :2000 Declaration of qualit y perfor mance in transport chains 80 20 00 80.00
CENITR 14310: 2002 Declaration and reporting of environ mental performance 79 17.72 82.28
in freight tran sport chains
EN 13876:2002 Code of practice for the provision of cargo t ransport services 76 14.47 85.53
EN 12507:2005 Guidance not es on the applicatio n of EN ISO 900 I:2000 t o t he 80 38.75 6 1.25
ro ad tran sportation, storage. distribution and railway good s industries
EN 12798:2006 Qu ality management system requirements to supplement 80 4 1.25 58.75
EN ISO 900 I for th e t ransport of dangero us goods wit h regard to safety
EN 15696:2007 Specificat ion for self-storage serv ices 78 7.69 92.31
General quality standards
ISO 900 I :2008 Q ualit y management systems - requirements 81 82.72 17.28
ISO 1400 I Environmental management systems - requirements w it h guidance for use 83 67.47 32.53

Table 2
OPIN ION
,

A total of eight quality standards were examined, of Conclusion


w hich six we re internat ional.The study found t hat out of From t he findings of th e research, we conclude th at
t he six logistics quality standards,two - EN 12507: 2005 although there are some logistics quality standards that
Guidance notes on the applicat ion of EN ISO 900 1:2000 were developed over t he period of 2000 th rough 2007,
t o th e road t ransportation, storage, distribut ion and th ey are not wid ely known or used by t he stakeholders
railway goo ds industries, and EN 12798: 2006 Q uality and, by inference, t he logistics sector The panel suppo rts
management system - are known - see Table 2 - at a th e vo luntary and market -led development and
higher level than the ot hers. T hey also have a
adoption of logistics quality standards. The panel was
comparat ively higher usage as well. It is impo rta nt to
divided on t he centra l issue of w hether or not we need
note that the most of the Delphi panel did not
a new or modified standard, but has provided some
know t hese six logistics quality standards. O n t he othe r
impo rtan t feedback.
hand, the general st andards are far more wid ely
known and have a much higher usage th an th e logistics Before suggesting any new or modified logistics
standards. ISO 900 I, w hich is a general-purp ose quality quality standards, further examination of t he uti lity and
management standard, and ISO 14000 I, which is an relevance of t he existing standards wi ll examine by
environ mental management standard, are w idely know n, experts, policy-makers and the t ransport and logistics
used and rat ed highly. secto r: Fo r thi s, a second round study w ill be reported.

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About the author


Tom Zunder is a member of Freight Logistics Research Group, Univer sity of N ewcastl e upon Tyne.

Dewan Md Zahurul Islam FCiLT is Freight Logistics Ac ademic and Researcher at t he N ewRail Centr e for Railway

Research, N ewcastle University. For corr espondence on t his research, contact: Dewan Md Z ahurul Islam.

Tel: 0 19 I 22 2 3972. Email: dewan.islam@ncl.ac.uk

References
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services', in Managing SERICE Quality,Vol 8, No 4, 1998
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te rminals, Rapp Trans AG for EC DG T REN, 2005
3. RO BLEDO, M A.'Measuring and managing ser vice qualit y: int egrating customer expect at ions', in Managing
Service Quality, Vol I I, N o I , 200 I
4. UIC - Internat ional Un ion of Railways, 200 I , Quality Manual (or Combined Transport, www. uic.org
5. MORAS H, E A, DROGE. C and VICKERY, S, 'Bou ndar y-spanning interfaces between logist ics, pro duction,
market ing and new pro duct development', ljPDLM , MCB University Press,Vol. 27 No 5/6, 1997
6. W ELLINGTON, J, Educational Research - Contemporary Issues and Practical Approaches, UK: Contin uum,
repri nted, 2003
7. MC KINN ON and FOSTER, European Logistical and Supply ChainTrends: / 999-2005,TRILO G Project, full repor t
of the D elphi 2005 Surve y
8. SALDAN HA, J and GRAY, R, T he Potential for Brit ish Coastal Shipping in a Multi modal Chain', Maritime Policy
and Management.Vol 29, No 1.2002
9. HWAN G, K S, 'A Comparat ive St udy of Logist ics Serv ices in t he Co ntainer Liner Shipping Mar-ket in the UK
and South Korea', unpublished t hesis for PhD. Business Schoo l, Univer sit y of Plymo uth, 2004
10. ISLA M. D 11 Z , D IN W O ODIE, J and RO E, M,'Promot ing development through mult i-modal freight t ransport
in Bangladesh', Tmnsporl Reviews,Vol 26, No 5, 2006

Further information
For more inform ation on t he issues raised in thrs article, w hy not join our Benchmarking Forum in our Supply
Chain Pro fessional Secto r? See our web site www.ciltuk.org.uk for more details.

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