Articles

Proposed Improvement of Logistic Operations to Increase Service Level Agreement (SLA)

In the digital era, e-Commerce or online shopping is a big breakthrough in the world of buying and selling services on the Internet, the success of e-Commerce is inseparable from the success of its shipping services or logistics partners. The level of customer satisfaction must be balanced with the delivery performance since the customer buys until the item received. SEI is a company engaged in delivering package. SEI is one of the delivery services which provide the delivery service end to end from the First mile to the Last mile. Thus, SEI should be able to control the performance of their shipment from pick up until successfully delivered to the customer. The most significant volume of SEI comes from the marketplace (e-Commerce) or sellers. Therefore, the customer satisfaction level also determines the shipping company’s performance or they called service level agreement (SLA). SEI recorded to have untargeted SLA within this current 3 months. This research aims to find the problems and the suitable solutions of the shipping company operations that affect service level agreement scored. The methodology used for this research is both qualitative and quantitative data. Data collection is primarily based on an interview with the internal stakeholder of the company to find the root causes of the problem. The root cause analysis evaluation is done by interviewing several stakeholders about the performance and quality of the shipping company. The secondary data comes from historical data from SEI used to know the current and previous performances. The historical data has been taken during 2022. The output of the root cause analysis illustrated in the Cause-Effect

Diagram or usually called Fishbone Diagram. After find the root causes, the suitable solutions for this SLA’s problem proposed by DMAIC method. DMAIC is part of Six Sigma method, one of the quality management tools that aimed to manage quality improvement activities throughout an organization/company.