An AHP approach in
benchmarking logistics
performance of the
postal industry
Felix T.S. Chan and H.K. Chan
Department of Industrial and Manufacturing Systems Engineering,
University of Hong Kong, Hong Kong, People’s Republic of China
Henry C.W. Lau
Department of Industrial Systems Engineering, Hong Kong Polytechnic
University, Hung Hom, Hong Kong, People’s Republic of China, and
Ralph W.L. Ip
Department of Manufacturing Engineering and Engineering Management,
City University of Hong Kong, Kowloon Tong, Hong Kong,
People’s Republic of China
Abstract
Purpose – To develop a new benchmarking process for continuous improvement against the market
leader, and report a case study in the postal industry by employing the proposed benchmarking
process.
Design/methodology/approach – A double AHP methodology is developed in this paper to divide
benchmarking process into two main parts: performance evaluation and continuous improvement.
Both qualitative and quantitative factors have been taken into consideration. The first phase aims at
evaluation of the performance of the benchmarked company and its competitors. The second phase
aims at finding the best practice from a list of improvement alternatives based on the first phase.
Findings – The proposed framework can evaluate the performance of the case company against its
competitors. It can also help the company to select the best improvement alternative for
implementation in order to enhance its performance on the weakest measures.
Originality/value – The proposed benchmarking process in this paper can help the case company to
identify its weaknesses and then select the best improvement alternative in order to improve its
performance against the market leader. Although the postal industry is used to demonstrate the
proposed framework, it can be applied to other industries with a little modification.
Keywords Benchmarking, Analytical hierarchy process, Postal services
Paper type Research paper
1. Introduction
Postal service plays a significant role in the development as a leading commercial and
financial region, providing communications between individuals, business and
government. In the past, the postal industry used to involve physical transportation of
physical communication, like package and mail delivery (Gru
¨
nert and Sebastian, 2000).
However, the industry has evolved to include traditional post, courier services, freight
services and e-services in recent years. Emerging technology based on the convergence
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1463-5771.htm
BIJ
13,6
636
Benchmarking: An International
Journal
Vol. 13 No. 6, 2006
pp. 636-661
q Emerald Group Publishing Limited
1463-5771
DOI 10.1108/14635770610709031