Identification and modelling of factors influencing service recovery

Abstract

All supply chain around the world are established with an aim of reducing customer order cycle time, drive customer value and facilitate financial success. This also results in implementing effective service recovery strategies to achieve these goals. This paper identifies and analyses various factors which influences and contributes to service recovery process by exploring the existing literature on service recovery. Based on these factors, decision-making trial and evaluation laboratory (DEMATEL) method is illustrated to precisely measure causal relations between all factors and define the processes influencing these factors. The results of this study state that proactive recovery capability, communication from suppliers in form of early warnings, focus on service outcome failures and moment of truth are the key enabling factors for service recovery, while customer commitment level, original cost and placing inventory close to customers are the most direct influencing factors