QFD‐based modular logistics service design

Purpose
This paper aims to develop a framework of QFD (quality function deployment)‐based logistics service design to integrate the HOQ (house of quality) technique and modular logic to help in designing logistics services with high quality and a large service variety.

Design/methodology/approach
Based on a literature review, a conceptual research framework is built integrating the QFD method and modular logic together. A case study is used to illustrate a real application in logistics service design of the third‐party logistics (3PL) provider.

Findings
The results show that QFD and modularity used simultaneously as design principles can ensure service design quality at three layers (service, process, activity) in the modular logistics service platform.

Research limitations/implications
This paper provides multi‐disciplinary insights for both industry and academics on how QFD/HOQ and modular logic can be integrated to systematically translate customer requirements into logistics service designs.

Practical implications
The framework proposed is directed to show how, at the operational level, the service providers can transform customer requirements to customer value with modular services and develop new service modules more quickly for new customers that have not been served before.

Originality/value
The resulting framework combining QFD philosophy and modular logic, particularly integrating three‐level HOQs paralleled with three layers in the modular service platform, adds knowledge in the research on service design, operations management and marketing.