In search of value

By Staff -- Logistics Management, 8/1/1998

According to the results of the 1998 Logistics Quest for Quality survey, airlines and air-express operators best serve their customers through the formula OT + V = S. That is, on-time performance plus value equals satisfaction. Eighty-eight percent of the survey participants measure their carriers' on-time door-to-door service performance, and 86.0 percent measure these providers in terms of competitive rates.

The carriers were measured in several service categories, reflected in the accompanying charts. This year, for the first time in the Quest for Quality survey, the scores were weighted to reflect the relative importance of each to shippers. Thus, shippers who responded to the survey rated the importance of each category on a scale of 1 to 5 (with 5 as very important), and the average weight was multiplied by the unweighted score given in each category, based on a three-point scale (1 = poor, 2 = average, 3 = outstanding), to provide a weighted score. Carriers qualified for a "Best of the Best" award by scoring above the average total weighted score for all companies. (The weights assigned to each category are listed in the footnote to the charts.)

Few buyers (30.0 percent) monitor their carriers' proficiency in information technology, and even fewer (18.0 percent) measure them in the areas of lift and equipment. Those survey participants who measure these areas are less satisfied with airlines this year than they were in 1997. On the three-point grading scale, buyers gave a 2.19 unweighted rating to their airlines for performance in equipment and operational issues in 1998, compared to a 2.25 rating in 1997. (Comparisons against last year are made against unweighted scores as scores in 1997 were not weighted.)

1998 "Best of the Best" Air-Express Carriers

Carrier On-Time Value Info Customer Equipment Total* Performance Tech Service & Operations

FedEx 12.48 8.01 4.68 7.44 4.48 37.10

United Parcel Service 11.59 8.39 4.60 7.01 4.44 36.03

Average 10.93 7.81 4.10 6.77 4.03 33.64

1998 "Best of the Best" Airlines

Carrier On-Time Value Info Customer Equipment Total* Performance Tech Service & Operations

Delta Air Lines 10.58 7.41 3.80 6.65 3.99 32.42

Lufthansa 11.59 8.23 4.05 6.92 4.18 34.97

Southwest Airlines 12.72 9.11 4.02 7.84 4.10 37.79

USAirways 10.97 7.41 3.83 6.59 3.61 32.40

Average 10.57 7.68 3.69 6.42 3.74 32.10

*Totals may be greater than the sums of the individual scores because of rounding.N.B. All scores are weighted. Weighted scores are determined by multiplying average raw scores by average weighted importance of each attribute (1 = least important, 5 = most important). Attribute weights for this category: On-time performance, 4.7; Value, 3.6; Info tech, 1.8; Customer service, 3.1, Equipment & operations, 1.7.