• Title/Summary/Keyword: Operational Logistics Service Quality

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Comparative Analysis on Efficiency and Productivity for Korea, Japan and Global Parcel Delivery Companies (한국, 일본, 글로벌 택배기업의 효율성 및 생산성 비교 분석)

  • Ma, Jin-Hee;Ahn, Young-Hyo
    • Journal of Distribution Science
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    • v.14 no.3
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    • pp.73-83
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    • 2016
  • Purpose - The parcel delivery service(courier) industry all over the world has been expanding its market so far, but its growth has been declining in recent years. In this situation, most parcel delivery companies are having trouble with managing themselves because of the pressure from the customer to increase service level and decrease the rate. The purpose of this study is to provide ways to improve competitive advantages of the parcel delivery service industry by evaluating the multi-period operating efficiency of Korea, Japan and global service providers. Research design, data, and methodology - The data for the period of 2011 to 2014 were collected from the annual reports published by parcel delivery companies. In this study, we analyze the marketability (revenue), profitability (operating profits), and management conditions (net profits) of parcel service companies by combining information on human resources (number of employees) and material resources (total assets and equity). Therefore, the number of employees, total assets, and equity are selected as input variables, and revenue, operating profits, and net profits as the output variables. In this study, DEA (Data Envelopment Analysis) is used to measure the comparative efficiency and MPI (Malmquist Productivity Index) is used to analyze the trend of change of the efficiency for a multi-year period. Results - The operational efficiency scores of medium-sized parcel delivery companies in Korea are higher than other larger competitors such as Korean, Japan and Global larger companies. As of 2014, Logen(1.878) was found to be the most efficient parcel delivery enterprise, followed by KGB (1.224), and Kyoungdong(1.002). Otherwise, Hanjin(0.235), CJ(0.262), Hyundai Logistics(0.657), DHL(0.611), UPS(0.766), FedEx(0.498), TNT(0.350), Yamato(0.762) and Sagawa(0.520), larger sized companies, were done inefficiently. The productivity of parcel delivery companies is influenced by endogenous factors as well as exogenous ones such as changes in business environment and technological advances. Conclusions - Korean medium-sized companies have relatively high efficiency scores in operation. That is why they still survive the competitive market in Korea where market restructuring on the industry has been expected to be conducted for many years. The reason why medium-sized couriers had higher efficient scores than larger couriers is that most of couriers spend more operating expenses versus unit price of delivery which is the amount of money that is needed in order to send a package by parcel service. So the delivery unit price must be taken into account by all the expenses associated with the cost of fuel, labor and maintenance expenses for facilities, etc. therefore, the unit price must be increased to strengthen business competitive power. In order for the industry to have more competitive advantage, the companies need to make profits by increasing demand volume and raising the delivery rate to provide high-quality delivery service to customers. And both endogenous and exogenous change must take precedence in order to strengthen their competitiveness.

Organization of Crisis Response Teams and Operating Procedures for Crisis Response Activities in the Food Industry (식품산업체의 위기관리 조직 및 위기대응 절차)

  • Kim, Jong-Gyu;Kim, Joong-Soon
    • Journal of Environmental Health Sciences
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    • v.41 no.3
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    • pp.191-202
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    • 2015
  • Objectives: Promotion of food safety/eradicating adulterated food has been listed as one of the four major issues recently identified for action by the Korean government. Due to the related seriousness, the food industry has been encouraged to take steps to restore consumer confidence. In order to set guidelines for the creation of manuals for the response to a food safety crisis by the food industry, this study provided a suggested organization for a crisis response team and operating procedures for crisis response activities. Methods: The prototypes of an organizational structure and a set of standard procedures for a crisis response system were provided. Results: The results of the study suggested that a crisis response team should be comprised of four divisions of responsibility: information analysis, site response, communication and operational support. The organization chart and the role and functions for each division of the crisis response team should be indicated. Response activities will be more effective when the team features multi-disciplined staffing, such as public relations, food safety/technology/quality, sales/marketing, purchasing, production, distribution/logistics, regulatory affairs/legal, and consumer service specialists. This study created a flow chart for the total crisis response system, which included crisis and normal situations. A crisis response team should be continuously operated for both crisis and normal conditions. This study also suggested a scenario to explain the procedures for crisis response activities. Conclusion: In order to cope more effectively with a food safety crisis, the organizational structure and its functions should be defined clearly, and a detailed set of standard procedures for response activities should be offered.

Efficient Utilization of Private Resources for the National Defense - Focused on maintenance, supply, transportation, training & education - (국방분야 민간자원의 효율적 활용방안 - 정비, 보급, 수송, 교육훈련분야를 중심으로 -)

  • Park, Kyun-Yong
    • Journal of National Security and Military Science
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    • s.9
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    • pp.313-340
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    • 2011
  • The National Defense Reformation bill of "National Defense Reformation 2020" which have been constantly disputed and reformed by the government went through various levels of complementary measures after the North Korean sinking on the Republic of Korea (ROK) Naval Vessel "Cheonan". The final outcome of this reform is also known as the 307 Plan and this was announced on the 8th March. The reformed National Defense Reformation is to reduce the number of units and military personnel under the military structure reformation. However, in order for us to undertake successful National Defense Reformation, the use of privatized civilian resources are essential. Therefore according to this theory, the ROK Ministry of National Defense (MND) have selected the usage of privatized resources as one of the main core agenda for the National Defense Reformation management procedures, and under this agenda the MND plans to further expand the usage of private Especially the MND plans to minimize the personnel resources applied in non-combat areas and in turn use these supplemented personnel with optimization. In order to do this, the MND have initiated necessary appropriate analysis over the whole national defense section by understanding various projects and acquisition requests required by each militaries and civilian research institutions. However for efficient management of privatized civilian resources, first of all, those possible efficient private resources which can achieve optimization will need to be identified, and secondly continuous systematic reinforcements will need to be made in private resource usage legislations. Furthermore, we would need to consider the possibility of labor disputes because of privatization expansion. Therefore, full legal and systematic complementary measures are required in all possible issue arising areas which can affect the combat readiness posture. There is another problem of huge increase in operational expenses as reduction of standby forces are only reducing the number of soldiers and filling these numbers with more cost expensive commissioned officers. However, to overcome this problem, we would need to reduce the number of positions available for active officers and fill these positions with military reserve personnel who previously had working experiences with the related positions (thereby guaranteeing active officers re-employment after completing active service). This would in tum maintain the standards of combat readiness posture and reduce necessary financial budgets which may newly arise. The area of maintenance, supply, transportation, training & education duties which are highly efficient when using privatized resources, will need to be transformed from military management based to civilian management based system. For maintenance, this can be processed by integrating National Maintenance Support System. In order for us to undertake this procedure, we would need to develop maintenance units which are possible to be privatized and this will in turn reduce the military personnel executing job duties, improve service quality and prevent duplicate investments etc. For supply area, we will need to establish Integrated Military Logistics Center in-connection with national and civilian logistics system. This will in turn reduce the logistics time frame as well as required personnel and equipments. In terms of transportation, we will need to further expand the renting and leasing system. This will need to be executed by integrating the National Defense Transportation Information System which will in turn reduce the required personnel and financial budgets. Finally for training and education, retired military personnel can be employed as training instructors and at the military academy, further expansion in the number of civilian professors can be employed in-connection with National Defense Reformation. In other words, more active privatized civilian resources will need to be managed and used for National Defense Reformation.

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