Courier service's efficiency measurement by using data envelopment analysis (idea) / Nur Amanina Norazizol and Tengku Dinie Atirah Tengku Kamarul Zaman

Courier service is one of the important services in the world, especially in Malaysia. In this era of internet commerce and global communication, courier services have grown in popularity. Simply put, couriers enable everyone to transport a package from one location to another. Hence, this project was carried out to assess the efficiency of Malaysian courier service companies using Data Envelopment Analysis (DEA). The CCR Model is the focus of this project. In this project, the output orientation was chosen to emphasize the output. Thirteen courier service companies have been chosen to serve as the Decision-Making Unit (DMU). In this project, there were three inputs and one output. Total number of employees, total number of courier branches and courier service volume are the inputs, and total revenue is the output. The result shows that three courier service companies, DMU 3, DMU 9 and DMU 11, were deemed to be efficient with a score of 1. With scores ranging from 0.000173249 to 0.613379667, the other DMUs were considered as inefficient. According to the peer group analysis, the efficient courier service companies will become the reference set for the inefficient courier service companies. In order to maximise the courier service companies’ efficiency, the companies should maximise the output while keeping the input constant.