Service quality evaluation of international freight forwarders: an empirical research in East Asia

Abstract

Abstract The purpose of this paper is to improve service quality of international freight forwarders and explore practical business solutions to enhance customer service level. Freight forwarder usually acts as an agent to source logistics service for shipper and work closely with carriers such as shipping line and airline companies. This business is characterized by lower capital investment and entry barrier comparing with carriers, and most of their major customers are small or medium size manufactures or traders. Providing high quality service to enhance customer satisfaction is the key mission since competition is extremely severe. This paper empirically investigates the leading freight forwarders to find important customer requirements in East Asian region such as Japan, Korea and Taiwan. Furthermore, the feature of the study by using quality function deployment approach would not only identify key technical measures but also explore meaningful business solutions as direction of quality improvement. The finding reveals key customer requirements are cheaper agency fees, door to door ability and instant response, and the key technical measures are customer relationship management, overall information system, service point and network. We would further discuss the empirical result and conclude managerial meaning for decision makers.

Full text

O R I G I N A L A R T I C L E Open Access
Service quality evaluation of international
freight forwarders: an empirical research in
East Asia
Sheng Teng Huang
1*
, Emrah Bulut
2
and Okan Duru
3
* Correspondence: danielhuang@
ntou.edu.tw
1
Department of Transportation
Science, National Taiwan Ocean
University, Keelung 20224, Taiwan,
Republic of China
Full list of author information is
available at the end of the article
Abstract
The purpose of this paper is to improve service quality of international freight
forwarders and explore practical business solutions to enhance customer service level.
Freight forwarder usually acts as an agent to source logistics service for shipper and
work closely with carriers such as shipping line and airline companies. This business is
characterized by lower capital investment and entry barrier comparing with carriers,
and most of their major customers are small or medium size manufactures or traders.
Providing high quality service to enhance customer satisfaction is the key mission since
competition is extremely severe. This paper empirically investigates the leading freight
forwarders to find important customer requirements in East Asian region such as Japan,
Korea and Taiwan. Furthermore, the feature of the study by using quality function
deployment approach would not only identify key technical measures but also explore
meaningful business solutions as direction of quality improvement. The finding reveals
key customer requirements are cheaper agency fees, door to door ability and instant
response, and the key technical measures are customer relationship management,
overall information system, service point and network. We would further discuss the
empirical result and conclude managerial meaning for decision makers.
Keywords: Quality function deployment, International freight forwarder, Shipping
agent, Fuzzy analytic hierarchy process
Introduction
Global trade is the vigorous force triggering the growth of both regional and world economy.
International trade brings a lot of advantages to nations and enterprises to share the fruit of
business activities as well as provides people various options to buy their daily necessities.
These activities rely on international transportation to connect cargo, people and country to
facilitate business growth and regional prosperity. Advance transportation not only provides
time utility but also place utility from the point of merchandise production to the point of
consumption for the business supply chain management. Governments also make effort to
minimize logistics cost through improve infrastructuretoovercomethetradebarriersand
vitalize their manufactures and products to stay competitive in the global market. According
to the recent publication of WTO and UNCTAD, over 75% of the global trade is completed
by containerised cargo shipping and the rest of the cargo is mainly dependent on land or air
transportation. (WTO, 2013;UNCTAD,2013) International freight forwarder plays the
© The Author(s). 2019 Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International
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indicate if changes were made.
Journal of Shippin
g
and Trade
Huang et al. Journal of Shipping and Trade (2019) 4:14
https://doi.org/10.1186/s41072-019-0053-6
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primary role to consolidate containerised cargo from small-medium size and complete busi-
ness transactions more economically and efficiently. Freight forwarders plays a significant role
to complete these economic activities and support small medium-size enterprises with various
logistics solution. (Lloyd’sList,2014).
Since financial crisis in 2008, the shipping industry faces serious challenges such as glo-
bal economic depression and greater market uncertainty. International freight forwarders
in East Asian countries also could not immune from these negative effects. To well oper-
ate the forwarder business becomes extremely difficult tasks. On the other hand, shippers
want better, cheaper, safer, reliable, speedy and professional service since freight forwarder
is also important part of their global supply chain management. Customer is getting more
demanding and competition from other logistics service provider is getting fierce, so it is
necessary for forwarders to redefine standards and strategies to face the changing market
and challenges. According to Lloyd’s list 2014, top six forwarders in Europe such as DHL
Global forwarding and Damco suffer a decline in profit due to fierce competition,
currency effects and overcapacity of shipping. Mr. Hanne Sorensen, CEO of Damco,
stressed that rather than reducing cost or increasing IT investment, improving overall
service quality and productivity may be more useful to enhance profitability. (Lloyd’s list,
2014) Therefore, improving the quality of service could not only help the forwarders to
survive but also make profits in such brutal shipping market.
Theforwarderplaystheroleasthebridgebetween carrier and shipper to source various
transport solution and earns profits by arranging package of delivery service. As an agent,
forwarders tend to have more flexibility to market change since the physical infrastructure
investments are far less than the shipping or airline companies. In order to effectively
consolidate LCL (Less than container loaded) cargo to containers especially for small
medium size manufactures or traders, it is necessary for them to use the service providing
by international freight forwarders as intermediary connection to efficiently complete the
delivery. In general, the duties of forwarders may include space booking on a ship or air-
craft, non-vessel operating carriers (NVOCCs), organizing local and international shipping,
providing necessary paperwork and custom clearance, delivery and distribution service, in-
formation service, warehousing, consolidation and other related formalities. On the other
hand, forwarder’s target market is slightly different from carriers since they tend to target
on LCL customer for consolidation while liner carriers focus more on attracting FCL (Full
container loaded) cargo. In East Asia, market is extremely competitive because service pro-
viding by freight forwarder seems to be same or similar to one another, along with the
increasing number of new entrants. Thus, competitive advantage of freight forwarders only
based on cheaper price is not enough. Enhancing satisfactory customer service becomes
strategic and survival issue for forwarders to stay competitive and build sustainability.
Forwarder is a service-oriented industry, and its quality of service is important factor for
business success. Service quality is a key issue of managerial goal of business to pursue
customer satisfaction. In literature, many scholars already discuss the service quality issues
of liner shipping and third party logistics service provider, however, few researches apply
quality function deployment (QFD) to explore the service quality requirement of inter-
national freight forwarders. The main contribution of this paper is conducting expert
consultation from Japan, Korea and Taiwan to define the important solutions for this
industry. QFD is a special procedure to transform service quality requirement into tech-
nical requirement through analysing the relationship between technical measures and
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customer requirements. Applying QFD would not only identify important service quality
requirement but also understand useful technical measure for quality improvement. The
basic framework of research process and flowchart are shown in Fig. 1.Figure1demon-
strate the combining QFD and MCDM technique to define suitable solution for enhan-
cing service quality.
Literature review
Service attributes of international freight forwarder
Measuring service quality of freight forwarder industry is not an easy task due to its hetero-
geneity, intangibility and inseparability. Perceived service quality is the description of inter-
action between customer and service provider, so we could obtain service quality
requirements directly from shipper with quantitative and qualitative surveys. On the other
hand, through reviewing literature and practical publication, we could find some researches
Fig. 1 Method application design for service quality evaluation in international freight forwarding industry
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regarding to the service quality requirements of related shipping, logistics or freight forward-
ing industry. Brooks (1985) reveals the service quality attributes of liner shipping industry such
as transit time, directness of sailings, carrier’s reputation for reliability, frequency of sailing and
next ship leaving. Lu and Dinwoodie (2002) empirically explores the international network
development of regional forwarders. Collaboration between competing forwarders may create
favourable condition and network sharing for each other. Lai and Cheng (2004) empirically
study the freight forwarding industry in terms of demographic profiles, capabilities of provid-
ing different type of logistics services, service performance and the perceived prospects in
Hong Kong. They explain many forwarders have high capability to provide freight forwarding
and traditional logistics service, but they seem to lack the ability to provide other value-added
service. Liang et al. (2006) pointed out four critical service items for an ocean freight for-
warder. The four service items include operations convenience and response ability, integrated
service, transportation ability, and price. Lu (2007) identifies seven capability dimensions for
liner shipping including purchasing, operation, human resource management, customer ser-
vice, information integration, pricing, and financial management. Results show four factors
are significant differ between shipping companies and agency: marine equipment, information
equipment, operation, and information integration. Stated the downturn of Hong Kong freight
forwarding industry owing to the growing competition and challenge from the neighbouring
ports of Yantian and Shekou in China, which operated in a much cheaper way. He suggested
a tactical knowledge-based scheduling system implemented in a local freight forwarder for
supporting the scheduling process of a shipping plan. Tongzon (2009) empirically studied on
port choice issue from the freight forwarders’perspective in Southeast Asia. Efficiency is found
to be the most significant factor followed by shipping frequency, adequate infrastructure and
location. Lun et al. (2009) examine liner shipping from network perspective with an aim to
develop a descriptive framework for operation and development of liner shipping networks.
The framework supports liner shipping companies and their partners for cost and service im-
provement in renovating their networks. Shang (2009) empirically studied the organizational
learning capabilities in third-party logistics providers in Taiwan. The results indicate the posi-
tive relationship between integration capability organizational learning capability and ser-
vice performance. Lu and Yang (2010) empirically evaluated the crucial logistics
service capabilities and firm performance of international distribution centre opera-
tors in Taiwan. Three key capabilities are innovation capability, customer response
capability and flexible operation capability. Bock (2010) proposed a real-time-
oriented control approach for freight forwarders to expand load consolidation,
reduce empty vehicle trips, and handle dynamic disturbances. Feo et al. (2011)ex-
plored the preference analysis of Spanish freight forwarders modal choice between
short sea shipping and door-to-door road transport in terms of value of time, value
of reliability and value of frequency in freight transport.
Attribute selection of customer requirement and technical measure
Ministry of land, infrastructure and Transportation (2011) reveals important service
quality items for third party logistics providers in Japan, including speedy delivery,
price, schedule reliability, staff capability, problem handling, logistics solution and
information providing ability. After logistics diagnosis by Japanese logistics consult-
ant committee, several solutions are proposed such as improving technical support,
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solution to reduce cost and time, total logistics strategies, customer service support
system and web-based information sharing. Su et al. (2011) explore the logistics
innovation process in the health care supply chain and find the improved process
may have positive impact on performance and financial result. Yang (2012) applied
multiple regression analysis to explore the critical logistics service capabilities for
ocean freight forwarders such as logistics service reliability, logistics value-added
service capability, flexibility capability and logistics information capability. These
factors had significant positive effects on financial performance. Propose a domain-
specified quality of service (QoS) model to explore the web service technology of
logistics industry with an aim to improve its business standards. Empirically exam-
ines customer relationship management (CRM) and its impacts on performance of
freight forwarder services in Taiwan. The understanding of relationships among in-
formation technology, client response, knowledge management application, profit
and managerial performance may offer a reference as to how freight forwarders
can amend customer relationship to improve their performance. Vivaldini and Pires
(2013) apply business cell approach to fourth party logistics freight management in
Brazil. The results reveal better process integration to reduce cost and improved
performance. Investigate the importance of information communication technology
(ICT) to enhance the competitiveness in the shipping industry. ICT is also consid-
ered as the dynamic capabilities for shipping companies to survive in the complex
environment. Supply chain consultant Crimson, says more demanding standards
should be defined to European fresh food supply chains, but the cost may be high.
The standards will define the details if the responsibility is belonging to origins of
food, transport supplier or the retailers. The standards could also help all the party
to pay attention to quality and source of food and monitor the supply chain from
food supplier to end customer. Rogerson et al. (2014) propose the framework and
purchase process of freight transport services, and the model suggest three dimen-
sions such as purchase task, importance ranking and service type. After reviewing
the above literature related to evaluation of the service quality, consulting with the
president of leading forwarder companies, experienced executives, professors as
well as shippers, we choose 12 customer requirements (CRs) in Tables 1and 12
technical measures (TMs) to evaluate the service quality of freight forwarders in
Table 2.Table1istheleftpartofHoQ,andTable2is the upper part of HoQ. In
Fig. 2, we lists several key performance indicators (KPI) and performance indicators
(PI) of each technical measure to help decision makers understand the direction of
quality improvement and its managerial meaning.
Methodology
Definition of quality function deployment
QFD is founded by Yoji Akao and first applied by shipping industry for Kobe shipyard
for building of a new oil tanker ship. Following many applications in manufacture,
service industry and public organization make QFD an important and popular method-
ology for quality improvement. QFD is a unique methodology to explore the important
service quality as well as assessable technical measures for quality improvement. The
house of quality (HoQ) is the main structure to complete QFD research. Literature
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reviews show us several criticism and inadequacy of traditional QFD and how to im-
prove this method. Therefore, many scholars take advantage of these characteristics
and combine QFD with other techniques such as fuzzy, process management, DEA,
AHP, MSE and SERVQUAL to solve service quality problems. (Duru et al., 2013) The
combination of the techniques makes the research result more accurately and over-
comes the original weakness and criticism of QFD method. Vanegas and Labib (2001)
explain the QFD is an important tool to translate the Voice of customer (VOC) into
the technical requirement. He applies the fuzzy numbers to optimize the relationship
between customer requirement and technical requirement for the car door design and
manufacture considering the cost, technical and market factors. Özgener (2003) stresses
the evolution and advantage of QFD for product design and service management. How-
ever, the teamwork concept is key factor to make QFD successful because it will take
more time and effort to get the best result. Arash and Chan (2006) improve QFD meth-
odology by introducing the concept of customer requirement segmentation (CRS) for a
four-star hotel. The contribution is to overcome the problems and difficulties such as
ambiguities of VOC, handling of larger HoQ, conflict of each CR. Chen (2009)
Table 2 Technical measures in the empirical work
Technical Measures Description
1. Overall information system Implementing the system for information sharing
2. Paperless and simple procedure Easiness and convenience to handle customer paperwork
3. Quality manual and certificate Clear procedure to define corporate goal and job details
4. Customer clearance Efficient custom clearance procedure
5. Service point and network Office or service centre overseas and service route
6. Customer relationship management Work closely with customer to build relationship and commitment
7. IT implementation Applying new technology to improve efficiency of cargo operation
8. Human resource management Train potential employees for their valuable contribution in the future
9. Strong intermodal ability Ability to provide efficient mode combination to complete delivery
10. Marketing strategy Clear marketing goal to both VIP or general customer
11. Free consulting service Free market and supply chain information consulting
12. Green shipping policy Environmental friendly transport and low CO2 emission commitment
Table 1 Customer requirements in the empirical work
Customer requirements Description
1. Instant response Speed to respond customer’s request
2. Cheaper agency fee Offer lower prices for customer.
3. Global service ability Ability to provide global and local service
4. Tailor-made service Provide service according to the request for individual customer
5. Door to door ability Ability to deliver freight to customer’s warehouse or designated location
6. Schedule reliability No delay or cancel of delivery service
7. Consult service Expert consult to provide supply chain and logistics solution
8. Excellent reputation Company has good business records and trustworthy
9. Stable space supply Ability to provide the space or handle large delivery
10. Fast document handling Speed and easiness of documentation handling
11. Instant cargo tracking Provide sophisticated dynamic or on-line tracking
12. Regular visit Commercial visit to VIP customer
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innovatively integrates the concept of QFD and process management techniques to
meet customer requirement and company goals in terms of product design, process
management in semiconductor industry. Process management is an important concept
of Six Sigma implementation and may be significantly improved by applying the QFD
method. Ip (2009) creates a model for business succession such as assessment of
current situation of business, successor and competencies analysis and planning of ne-
cessary tasks for future development by utilizing the QFD method. Combine QFD and
Fig. 2 List of technical measures of international freight forwarder, KPIs and PIs
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mean square error (MSE) criterion to evaluate the bank service. The important service di-
mensions are service quality, staff attitude, information providing, technology and man-
agement feature. Pakdil et al. (2012) apply QFD to analyze the after sales services both
qualitatively and quantitatively for a manufacture firms. SERVQUAL and factor analysis
are also used to include the house of quality. Explore the Spanish small medium sized en-
terprises to discuss their certified quality management systems and logistics performances.
Their current standard is ISO 9001. The authors proposed the more specific logistics
management standards may be needed to improve the process. Kilibarda et al. (2016)use
SERVQUAL model to evaluate the logistics service quality of freight forwarder. Factor
analysis and ANOVA are conducted to explore best service quality items. Gil-Saura et al.
(2018) explore the service quality of freight forwarder in B2B relationship through
ANOVA and SEM process. Archetti and Peirano (2019) explore air freight forwarder’s
service problem and find the simulation model to optimize its intermodal service
problem.
The QFD framework is proposed to translate customer requirements (CRs) into tech-
nical requirements (TMs) by constructing HoQ matrix as shown in Fig. 3. We could
obtain the priority degree of TMs through computing the sum product of relative
weight of each CR. After normalizing the value of result, the obtained relative weight
could show the relationship degree of TM for enhancing customer satisfaction. The
conventional HoQ matrix consists of seven major parts including the customer require-
ments (CRs), the priority degree for requirements, technical measures (TMs), the
correlation matrix (between TMs), relationship matrix (between TMs and CRs), sum
products of priority degrees and relationship degrees, wj, and the priority degree of
Fig. 3 Structure of house of quality
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TMs, wnj. The correlation matrix is mainly practical for developing strategies to im-
prove technical measures. In some cases, a technical measure has a positive or negative
correlation and an improvement may give to another or deteriorate it. For evaluation of
the balance of improvements, correlation matrix signifies such interactions.
The numerical procedure for assignment of priority degree of TMs is as follows:
Given mcustomer requirements signified by CRi,(i= 1,2,…,m) and ntechnical mea-
sures signified by TMi (i= 1, 2,…,n). Let di (i= 1, 2,…, m) be the priority degree for
the ith CRi among the whole set of CRs, whereas wj (j=1, 2,…,n) signifying the relative
weight of importance of the jth TM, is determined from the relationship between TMs
and CRs. Let Rbe the relationship matrix between TMs and CRs, the component Rij
signifies the level of impact of the jth TM on satisfaction of the ith CR. The value of Rij
is assigned by an indicator value of 9 (Strong relationship, ■), 5 (Moderate relationship,
▲), 1 (Low relationship, ●) or 0 (No relationship, “ø”).The sum product of the priority
degree, di of the ith CRi and Rij is calculated as follows;
wj¼X
m
i¼1
diRij;j¼1;2;…;nð1Þ
The priority degree for the CRs, di, is defined by an original FAHP process through
the pair wise comparison survey.
In this study, the relative weight of customer requirement is defined by using FAHP
and applied to calculate the technical measures. This combination with FAHP could
improve the classic QFD method by determining the relative weight quantitatively and
assessing the relationship between requirements precisely. Second, the technical meas-
ure would be obtained for the priorities of enhancing customer satisfaction. By analysis
and discussion of the result, the meaningful business solution could be proposed for
enhancing customer satisfaction.
Fuzzy analytic hierarchy process
After introducing fuzzy method by Zadeh (1965), Van Laarhoven and Pedrycz
(1983) extended analytic hierarchy process (AHP) by using fuzzy approach to deal
with vagueness of human thought for decision making problem. They used a tri-
angular fuzzy numbers (TFNs) to develop fuzzy-AHP (FAHP) method. In the
FAPH method, the judgement matrix is formed in a pair-wise comparison matrix
which is calculated fuzzy arithmetic and fuzzy aggregation operators and the pro-
cedure calculated a sequence of weight vectors that can be used to choose main
attribute. In existing literature, many studies investigate the decision problems
under uncertainty condition by using FAHP methods (Bozbura & Beskese, 2007;
Bulut et al., 2012; Duru et al., 2013; Gumus, 2009). In this paper, Chang’sap-
proach is used for the FAHP calculation and its algorithm is as follows (Chang,
1996); Let X = {× 1, × 2, …, xn} be an object set and U = {u1, u2, …, um} be a goal
set. According to the method of extent analysis, each object is taken and extent
analysis for each goal is performed, respectively (Chang, 1996). Therefore, m extent
analysis values for each object can be obtained, with the following signs:
M1
gi;M2
gi; :::; Mm
gi;i¼1;2;…;n;ð2Þ
where all the Mj
g(j = 1,2, …,m) are TFNs.
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The steps of Chang’s extent analysis can be given as in the following:
Step 1: The value of fuzzy synthetic extent with respect to the ith object is defined as
SiX
m
j¼1
Mj
giX
n
i¼1X
m
j¼1
Mj
gi
"#
−1
ð3Þ
To obtain Pm
j¼1Mj
gi, the fuzzy addition operation of mextent analysis values for a
particular matrix is performed such as:
X
m
j¼1
Mj
gi¼X
m
j¼1
lj;X
m
j¼1
mj;X
m
j¼1
uj
! ð4Þ
And to obtain ½Pn
i¼1Pm
j¼1Mj
gi−1, the fuzzy addition operation of Mj
gi(j = 1, 2, …,m)
values is performed such as:
X
n
i¼1X
m
j¼1
Mj
gi¼X
m
j¼1
lj;X
m
j¼1
mj;X
m
j¼1
uj
! ð5Þ
and then the inverse of the vector in Eq. (5) is computed, such as:
X
n
i¼1X
m
j¼1
Mj
gi
"#
−1
¼1
X
n
i¼1
ui
;1
X
n
i¼1
mi
;1
X
n
i¼1
li
0
B
B
B
@
1
C
C
C
A
ð6Þ
Step 2: The degree of possibility of M2 = (l2, m2, u2) ≥M1 = (l1, m1, u1) is defined as
VM
2≥M1
ðÞ¼sup
y≥x
min μM1xðÞ;μM2yðÞ
 ð7Þ
and can be expressed as follows:
VM
2≥M1
ðÞ¼hgt M1∩M2
ðÞ¼μM2dðÞ¼
(1;if m2≥m1;
0;if l1≥u2;
l1−u2
m2−u2
ðÞ−m1−l1
ðÞ
;otherwise:
ð8Þ
Figure 4illustrates Eq. 8where d is the ordinate of the highest intersection point D
between μM1and μM2. To compare M1 and M2, we need both the values of V (M1 ≥
M2) and V (M2 ≥M1).
Step 3: The degree possibility for a convex fuzzy number to be greater than k convex
fuzzy Mi (i = 1,2, …,k) numbers can be defined by.
VM≥M1;M2;…;Mk

¼VM≥M1
ðÞand M ≥M2
ðÞand…and M ≥Mk
ðÞ½
¼min V M ≥Mi
ðÞ;i¼1;2;3;…;kð9Þ
Assume that d’(Ai) = min V (Si ≥Sk) for k = 1,2, …,n; k ≠i. Then the weight vector is
given by.
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W0¼d’A1ðÞ;d’A2ðÞ;…;d’AnðÞðÞTð10Þ
Where Ai (i = 1, 2, …, n) are n elements.
Step 4: Via normalization, the normalized weight vectors are.
W¼dA1ðÞ;dA2ðÞ;…;dAnðÞðÞT;ð11Þ
where W is a non-fuzzy number.
Table 3displays the linguistic comparison terms and their equivalent fuzzy numbers
in this paper.
The consistency calculation for the FAHP method
Duru et al. (2013) proposed the centric consistency index (CCI) for the consistency
calculation of FAHP method and it is based on geometric consistency index (GCI).
The calculation of CCI is as follows;
Let A = (aLij,aMij,aUij)n × n be a fuzzy judgment matrix, and let w = [(wL1,wM1,
wU1),(wL2,wM2,wU2), …,(wLn,wMn,wUn)]T be the priority vector derived from A
using the RGMM. The centric consistency index (CCI) is computed by
CCI AðÞ¼ 2
n−1ðÞn−2ðÞ
X
i<j
ðlog aLij þaMij þaUij
3

−log wLi þwMi þwUi
3

þlog wLj þwMj þwUj
3

Þ2
ð12Þ
When CCI(A) = 0, we consider Afully consistent. Also provide the thresholds ðGCI Þ
as GCI =0.31 for n=3; GCI =0.35 for n= 4 and GCI =0.37 for n> 4. When CCI (A)<
Fig. 4 The intersection between M1 and M2
Table 3 The linguistic comparison terms and their equivalent fuzzy numbers
Fuzzy number Linguistic scales Membership function Inverse
Ã
1
Equally important (1,1,1) (1,1,1)
Ã
2
Moderately important (1,3,5) (1/5,1/3,1)
Ã
3
More important (3,5,7) (1/7,1/5,1/3)
Ã
4
Strongly important (5,7,9) (1/9,1/7,1/5)
Ã
5
Extremely important (7,9,9) (1/9,1/9,1/7)
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GCI , it is considered that the matrix Ais sufficiently consistent. Since the CCI is a
fuzzy extended version of the GCI, thresholds remain identical.
The prioritization of decision maker
The weight of each decision makers is different than each other because their experi-
ence and thought about the problem differ from each other. In this paper, therefore,
the reverse value of CCI is considered as their prioritization and it is used the calcula-
tion of the aggregated fuzzy judgment matrix for the criteria of customer satisfactions
(Duru et al., 2013).
Let A=(a
ij
)
n×n
, where a
ij
> 0 and a
ij
×a
ji
= 1, be a judgment matrix. The
prioritization method refers to the process of deriving a priority vector of criteria
w=(w
1
,w
2
,…,w
n
)
T
, where w
i
≥0 and Pn
i¼1wi¼1, from the judgment matrix A.
Let D={d
1
,d
2
,…,d
m
} be the set of decision makers, and λ
k
={λ
1
,λ
2
,…,λ
m
} be the
priority vector of decision makers. The priority vector of decision makers (λ
k
) is the
normalized I
k
for the group of experts which is calculated as follows:
Ik¼1
CCI k
ð13Þ
where Ik is the inverse of the CCI normalization,
λk¼Ik
Pm
k¼1Ik
ð14Þ
where λk > 0, k = 1,2, …,m, and Pm
k¼1λk¼1.
Let A (k) = ðaðkÞ
ij Þnnbe the judgment matrix provided by the decision maker dk.
wðkÞ
iis the priority vector of criteria for each decision maker calculated by
wkðÞ
i¼Qn
j¼1aij

1=n
Pn
i¼1Qn
j¼1aij

1=nð15Þ
The aggregation of individual priorities is defined by
wwðÞ
i¼Qm
k¼1wkðÞ
i

λk
Pn
i¼1Qm
k¼1wkðÞ
i

λkð16Þ
where wðwÞ
iis the aggregated weight vector. After the aggregation process, the extent
synthesis methodology of Chang (1996) is applied for subsequent choice selection.
The empirical study on freight forwarder in East Asia
Several leading freight forwarders are selected to explore for service quality evaluation
and technical measures are used to evaluate customer satisfaction in East Asian region.
Selected 15 consultation experts include professors, president, senior executives and
practitioners and the name of company is kept confidential. The data is collected by
email, telephone and personal visits. The consultation is performed according to the
following steps. In the first step, an initial survey is arranged to define the appropriate
Huang et al. Journal of Shipping and Trade (2019) 4:14 Page 12 of 16
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customer requirements and technical measures for evaluation. Then, the primary
survey is performed to complete cross relationship matrix in the second step. The
FAHP is applied to define relative weight for the priorities of customer requirement.
The expert group is asked to complete a pair wise comparison survey. Table 4shows
the aggregate fuzzy judgement matrix for the customer requirement. CCI is 0.01 which
is less than the critical value of 0.37. The top three customer requirements are cheaper
agency fee (0.19), door to door ability (0.16) and instant response (0.15). First of all,
“cheaper agency fee”is the top customer requirement. Forwarders should provide com-
petitive prices by reducing operational cost or financial planning as Porter’s(1998) cost
leadership approach. Second, “door to door ability”shows us the current customer’s
high expectation of forwarder’s logistics solution in terms of time, cost and reliability.
This means forwarders should work closely with partners such as truck, rail or other
inland transportation firms to ensure logistics capability. Third, “instant response”-
shows the importance of information providing. Forwarders should have sophisticated
tracking system and quick response to customer’s question.
Managerial implication and conclusion
The top four relative weight of technical measures are customer relationship manage-
ment (0.16), overall information system (0.14), service point and network (0.14) as
shown in Table 5. The finding and proposed practical application could be useful infor-
mation and supportive function for decision making process. First, the most important
technical measure is “customer relationship management.”Forwarder business is highly
competitive business and may be easily replaced by other logistics service provider.
Interaction and commitment from value customer is indispensable to success in this
business.
Second, “overall information system”may be an important tool for reducing cost, in-
stant response and efficiency improvement. Bjorn et al. (2012) also empirically explore
how the information systems improve maritime logistics from tracking stock level, ves-
sel space allocation, transport and inventory cost reduction. The utilization can support
the decision making from operational, tactical, and strategic levels within maritime lo-
gistics. Therefore, implementing advance information system could effectively support
the customer and enhance the efficiency.
Third, regarding“service point and network”, forwarders may expand its service
coverage and network through more partnerships with major carriers or local logistics
service providers. Many global freight forwarders play the role as a local company, so
the local knowledge and expertise becomes a barrier for market entry. When service
and network of forwarder business expands globally, the important of reliable local
partner is indispensible factor for business success. Therefore, the forwarders should
Table 4 The aggregated fuzzy judgment matrix for customer requirements
Huang et al. Journal of Shipping and Trade (2019) 4:14 Page 13 of 16
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not only cooperate with logistics service providers as well as deeply connect with local
stakeholders for serving their customers.
The result of the research reveals important technical measures for quality improve-
ment of freight forwarder in East Asian countries, and we collect practitioner’s com-
ments and feedback regarding to our research findings as managerial implication. They
explain the relationship with customer is particularly significant because the import-
ance of private relationship may be key factor for long term contract and partnership
especially in East Asia. Therefore, strengthen the relationship with shipper may be the
primarily mission. On the other hand, investment of IT facilities is indispensable to
maintain the satisfactory service level. The integrated information system with carriers
may help forwarder to improve efficiency. Finally, the comprehensive service network is
also essential to provide shipper the global service. Freight forwarders may strengthen
their network by cooperating with more reliable local partners such as truck or railway
firms.
Acknowledgements
Not applicable.
Authors’contributions
All authors read and approved the final manuscript.
Author’s information
Sheng Teng Huang is an Assistant Professor in the Department of Transportation. Science at the National Taiwan
Ocean University (NTOU), Keelung, Taiwan. He received his PhD from Kobe University, Japan. His main research
interests are Japanese shipping industry, logistics and delivery management. He has several journal and conference
papers. He has the memberships of Japan Society of Logistics and Shipping. Economics (JSLSE) and International
Association of Maritime Economics (IAME). He also reviews papers for International Journal of Production Research (IJPR)
and International Journal of Shipping and Transport Logistics (IJSTL).
Emrah Bulut is an Assistant Professor in the Department of Business Administration at the Yıldız Technical University
and received his PhD from Kobe University, Japan. His research interests are in shipping business management and
behavioral decisionmaking. He contributes several studies related to the decision support systems, group decision-
making under uncertainty, behavioral finance, time series forecasting and fuzzy extended time series analysis. He has
published several journal and conference papers. He has memberships of the American Finance Association (AFA),
International. Association of Maritime Economics (IAME) and Korean Association of Shipping and Logistics (KASL). He
also reviews papers for, Transport Policy (JTRP),Asian Journal of Shipping & Logistics (AJSL),European Journal of Oper-
ational Research (EJOR), and Fuzzy Sets and Systems (FTS).
Okan Duru is an Assistant Professor of Nanyang Technological University, Singapore. He holds a PhD in Maritime
Science (Maritime Logistics) from Kobe University, Japan. His research interests are in shipping asset management,
behavioral economics of shipping business, forecasting, judgment and decision making. He has published many
Table 5 House of quality matrix for customer requirements and technical measures
Huang et al. Journal of Shipping and Trade (2019) 4:14 Page 14 of 16
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journal papers and conference papers as well as editing journal issues. He reviewed several papers for Maritime Policy
and Management, International Journal of Forecasting, Transportation Research Part E: Logistics and Transportation
Review, Technological Forecasting and Social Change, European Journal of Operational Research, Journal of the
Operational Research Society-JORS, Applied Soft Computing, Fuzzy Sets and Systems, International Journal of Fuzzy
Systems, among others.
Funding
There were no additional sources of funding for this research.
Availability of data and materials
Not applicable
Competing interests
The authors declare that they have no competing interests.
Author details
1
Department of Transportation Science, National Taiwan Ocean University, Keelung 20224, Taiwan, Republic of China.
2
Department of Business Administration, Yildiz Technical University, Besiktas, 34349 Istanbul, Turkey.
3
School of Civil
and Environmental Engineering, Nanyang Technological University, 50 Nanyang Avenue, N1-01c-95, 639798 Singapore,
Singapore.
Received: 27 September 2018 Accepted: 31 October 2019
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