QFD Application In Cross-border E-commerce Third Party Logistics Provider Selection
DOI:
https://doi.org/10.31181/sa21202412Keywords:
Bayesian networks, Cross-border third party logistics provider, House of quality , Quality function deployment , Ranked nodes , Voice of customerAbstract
The purpose of this study is to demonstrate the potential use of quality function deployment (QFD) in the selection of cross-border Third Party Logistics (3PL) provider. Our approach involves extending conventional QFD with Bayesian Networks (BN) with ranked nodes and a multi-criteria decision analysis method such as Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). This way, cross-border 3PL provider selection process will incorporate voice of overseas customers and expert knowledge. Cooperating with Lovely Wholesale, a cross-border e-commerce wholesaler of women's clothing; we record the voice of customer (VOC) through a survey, develop decision criteria and compute their relative importance weights and build a correlation matrix using the House of Quality (HOQ).
A causal nexus graph is formed based on the correlation analysis. We use a parameterization of BN called Ranked Nodes, which lets experts contribute their expertise in the form of natural language phrases. BN produces the decision matrix while the relative importance weights are used as weights of criteria in ranking with TOPSIS. A successful ranked list of alternatives confirms that the methodology developed in this work may aid in selecting the most appropriate cross-border 3PL provider considering the voice of customer.
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