An ISO 9001:2008 Certified companyFirst programming school in IndiaA STUDY ON FACTORS THAT INFLUENCESELECTION OFA LOGISTIC...
An ISO 9001:2008 Certified companyFirst programming school in IndiaManipal Institute of ManagementManipal UniversityMANIPA...
An ISO 9001:2008 Certified companyFirst programming school in IndiaPlace: Dubai,UAE Muhammad Haris NPDate: 27 – June - 201...
An ISO 9001:2008 Certified companyFirst programming school in IndiaI owe my sincere thanks to Mr. V.P. Haris,Business Mana...
An ISO 9001:2008 Certified companyFirst programming school in IndiaABBREVIATIONS.............................................
An ISO 9001:2008 Certified companyFirst programming school in India4.4 SERVICES OFFERED......................................
An ISO 9001:2008 Certified companyFirst programming school in IndiaEXECUTIVE SUMMARYWorldnet Logistics L.L.C is a third pa...
An ISO 9001:2008 Certified companyFirst programming school in Indiaservice and depends upon the three companies Worldnet L...
An ISO 9001:2008 Certified companyFirst programming school in IndiaLIST OF CHARTSChart 5.1.1: Services Availed by differen...
An ISO 9001:2008 Certified companyFirst programming school in IndiaChart 5.1.6: Ratings to credit policy of the service pr...
An ISO 9001:2008 Certified companyFirst programming school in IndiaTable 5.2.1: Statistical data of different factors........
An ISO 9001:2008 Certified companyFirst programming school in IndiaABBREVIATIONSAbbreviation ExpansionL.L.C Limited Liabil...
An ISO 9001:2008 Certified companyFirst programming school in India1CHAPTER 1. INTRODUCTION
An ISO 9001:2008 Certified companyFirst programming school in India2The council of Logistics Management defines logistics ...
An ISO 9001:2008 Certified companyFirst programming school in India3This study identifies different factors which companie...
An ISO 9001:2008 Certified companyFirst programming school in India4As per ISO 9000 quality can be defined as “Degree to w...
An ISO 9001:2008 Certified companyFirst programming school in India5measures whether companies prefer a service provider w...
An ISO 9001:2008 Certified companyFirst programming school in India6CHAPTER 2. RESEARCH DESIGN
An ISO 9001:2008 Certified companyFirst programming school in India72.1 TITLE OF THE STUDY:A study on factors that influen...
An ISO 9001:2008 Certified companyFirst programming school in India8The scope of the project is restricted to study on dif...
An ISO 9001:2008 Certified companyFirst programming school in India9Type of universe: The type of universe under considera...
An ISO 9001:2008 Certified companyFirst programming school in India102.9 COLLECTION OF DATAPredesigned Questionnaire will ...
An ISO 9001:2008 Certified companyFirst programming school in India11CHAPTER 3. INDUSTRY–THIRD PARTY LOGISTICS
An ISO 9001:2008 Certified companyFirst programming school in India123.1 OVERVIEWThird party logistics companies emerged i...
An ISO 9001:2008 Certified companyFirst programming school in India13The main driver of the birth and further development ...
An ISO 9001:2008 Certified companyFirst programming school in India14
An ISO 9001:2008 Certified companyFirst programming school in India15CHAPTER 4. COMPANY PROFILE
An ISO 9001:2008 Certified companyFirst programming school in India16Worldnet Logistics L.L.C, based in Dubai, United Arab...
An ISO 9001:2008 Certified companyFirst programming school in India174.4 SERVICES OFFEREDWorldnet offers different service...
An ISO 9001:2008 Certified companyFirst programming school in India18The customs clearance services for various import and...
An ISO 9001:2008 Certified companyFirst programming school in India19Worldnet provides the following services in Air freig...
An ISO 9001:2008 Certified companyFirst programming school in India20Personal Effect Shipping and Household RemovalWarehou...
An ISO 9001:2008 Certified companyFirst programming school in India21the country within 30 days from the date of the trans...
An ISO 9001:2008 Certified companyFirst programming school in India22This type of bills is processed for allowing Free Zon...
An ISO 9001:2008 Certified companyFirst programming school in India23Export of Goods from local market through Free Zone (...
An ISO 9001:2008 Certified companyFirst programming school in India24CHAPTER 5. DATAANALYSIS5.1 LIST OF CHARTS5.1.1 Servic...
An ISO 9001:2008 Certified companyFirst programming school in India25Transportation 6 4.7 4.7 25.6Air-FreightClearance22 1...
An ISO 9001:2008 Certified companyFirst programming school in India265.1.2 Area of operations of different companiesArea o...
An ISO 9001:2008 Certified companyFirst programming school in India275.1.3 Are the companies satisfied with their service ...
An ISO 9001:2008 Certified companyFirst programming school in India28Freight House L.L.C 42 1.71 .457 .071Swift Internatio...
An ISO 9001:2008 Certified companyFirst programming school in India29Freight ForwarderSw ift InternationalFreight House L....
An ISO 9001:2008 Certified companyFirst programming school in India30Easy to change the current Provider20.2%79.8%NoYesCha...
An ISO 9001:2008 Certified companyFirst programming school in India31On time delivery44.2%43.4%7.8%4.7%Strongly AgreeAgree...
An ISO 9001:2008 Certified companyFirst programming school in India32Credit Policy11.6%23.3%26.4%23.3%15.5%Strongly AgreeA...
An ISO 9001:2008 Certified companyFirst programming school in India33Missing System 4 3.1Total 129 100.0Customized Service...
An ISO 9001:2008 Certified companyFirst programming school in India34Indifferent 6 4.7Agree 55 42.6StronglyAgree62 48.1Tot...
An ISO 9001:2008 Certified companyFirst programming school in India35Disagree 33 25.6Indifferent 36 27.9Agree 21 16.3Stron...
An ISO 9001:2008 Certified companyFirst programming school in India36DisagreeDisagree 24 18.6Indifferent 32 24.8Agree 36 2...
An ISO 9001:2008 Certified companyFirst programming school in India37Frequency PercentValid StronglyDisagree4 3.1Disagree ...
An ISO 9001:2008 Certified companyFirst programming school in India385.1.12 Round the clock service availability24/7 Avail...
An ISO 9001:2008 Certified companyFirst programming school in India395.1.13 Additional services offered by service provide...
An ISO 9001:2008 Certified companyFirst programming school in India40Inference: Additional services provided by the compan...
An ISO 9001:2008 Certified companyFirst programming school in India41Domain Consultation25.6%27.9%24.8%18.6%3.1%Strongly A...
An ISO 9001:2008 Certified companyFirst programming school in India425.2 LIST OF TABLES5.2.1 Different factors and their r...
An ISO 9001:2008 Certified companyFirst programming school in India433. Employee Behaviour4. Defined process5. Domain Cons...
An ISO 9001:2008 Certified companyFirst programming school in India44Employee Behaviour 39 4.13 .656 .105Swift Internation...
An ISO 9001:2008 Certified companyFirst programming school in India45Employee Behaviour 1.220 38 .230 .13Swift Internation...
An ISO 9001:2008 Certified companyFirst programming school in India46Services availed N Mean Std. DeviationStd. ErrorMeanD...
An ISO 9001:2008 Certified companyFirst programming school in India47Domain Consultation 22 3.41 1.368 .29224/7 Availabili...
An ISO 9001:2008 Certified companyFirst programming school in India48On time delivery 4.183 21 .000 .45Quality 5.020 21 .0...
An ISO 9001:2008 Certified companyFirst programming school in India49For companies who need only air-freight clearance ser...
An ISO 9001:2008 Certified companyFirst programming school in India50Additional services Between Groups 10.170 4 2.543 2.2...
An ISO 9001:2008 Certified companyFirst programming school in India51Value dfAsymp. Sig.(2-sided)Pearson Chi-Square 1.465(...
An ISO 9001:2008 Certified companyFirst programming school in India52Inference: From the cross tabulation we can see that ...
An ISO 9001:2008 Certified companyFirst programming school in India53CHAPTER 6. RESEARCH FINDINGS
An ISO 9001:2008 Certified companyFirst programming school in India541. 40.31 % of companies need more than one service. T...
An ISO 9001:2008 Certified companyFirst programming school in India55Factor RankQuality 1On time delivery 2Employee Behavi...
An ISO 9001:2008 Certified companyFirst programming school in India5610. The service provider selection has no association...
An ISO 9001:2008 Certified companyFirst programming school in India57CHAPTER 7. RECOMMENDATIONS
An ISO 9001:2008 Certified companyFirst programming school in India58Worldnet logistics should:1. Worldnet should try to p...
An ISO 9001:2008 Certified companyFirst programming school in India59
An ISO 9001:2008 Certified companyFirst programming school in India60CHAPTER 8. CONCLUSIONThird Party Logistics (3PL) prov...
An ISO 9001:2008 Certified companyFirst programming school in India61interaction with carriers, and having to oversee hund...
An ISO 9001:2008 Certified companyFirst programming school in IndiaAPPENDIX
An ISO 9001:2008 Certified companyFirst programming school in IndiaANNEXURE 1: BIBLIOGRAPHYBooks referred1. P. Saravanavel...
An ISO 9001:2008 Certified companyFirst programming school in India3. http://www.experiment-resources.com/anova-test.html4...
An ISO 9001:2008 Certified companyFirst programming school in India2. International1. Are you satisfied with the existing ...
An ISO 9001:2008 Certified companyFirst programming school in India11. I prefer companies who provide additional services ...
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baabtra, first programming school in India Statistics project template for students mba project template

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This template will help the students to create their project report. It is a template that can be edited to make it yours. Please note that the actual report is given to help you to understand what should be filled in the fields. If found help like us facebook. fb.com/baabtra. We will have more of it for you. baabtra, First programming school in India.

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baabtra, first programming school in India Statistics project template for students mba project template

  1. 1. An ISO 9001:2008 Certified companyFirst programming school in IndiaA STUDY ON FACTORS THAT INFLUENCESELECTION OFA LOGISTICS SERVICEPROVIDERConducted ForWorldnet Logistics L.L.CDubaiSummer Project ReportSubmitted In Partial Fulfilment of the RequirementsFOR THE MASTERS DEGREE IN BUSINESS ADMINISTRATION OFMANIPAL INSTITUTE OF MANAGEMENTByMuhammad Haris NPReg. No. 091202020Under the guidance ofDr.A.J. JoshuaYear 2010
  2. 2. An ISO 9001:2008 Certified companyFirst programming school in IndiaManipal Institute of ManagementManipal UniversityMANIPAL - 576104DECLARATIONI hereby declare that the summer project entitled “A STUDY ON FACTORS THATINFLUENCE SELECTION OF A LOGISTICS SERVICE PROVIDER”, carried out atWorldnet Logistics L.LC has been submitted during the year 2010 - 2011 under the valuableguidance and supervision of Dr.A.J. Joshua, Selection Grade Lecturer, Manipal Institute ofManagement (MIM), Manipal, in partial fulfillment of the requirements of the Masters ofBusiness Administration (MBA), Manipal University.Further I extend my declaration that this report is my original work and has previously notformed the basis for the award of any degree or diploma.
  3. 3. An ISO 9001:2008 Certified companyFirst programming school in IndiaPlace: Dubai,UAE Muhammad Haris NPDate: 27 – June - 2010ACKNOWLEDGEMENTIt gives me immense pleasure to acknowledge and thank all those who have given consistentguidance, advice and encouragement in my endeavour. I would also like to thank all thosepersons who have spent their valuable time to contribute the required information to me and gaveme support while preparing this report.I gratefully acknowledge my sincere gratitude to Dr.A.J.Joshua for his kind guidance andhelpful suggestions in every stage of the preparation of this report.
  4. 4. An ISO 9001:2008 Certified companyFirst programming school in IndiaI owe my sincere thanks to Mr. V.P. Haris,Business Manager, Worldnet Logistics (L.L.C) forproviding me an opportunity to undertake my project work in their esteemed organization and toobtain valuable insights about the working of the firm.I am greatly indebted to Mr.FinojKathandy, Operations Supervisor and MuhammadShafeek,Operations Supervisor,Worldnet LogisticsL.L.C, for their kind guidance and helpfulsuggestions.I also thank other staff members of Worldnet Logistics L.L.C, Dubai for all the support extendedby them.TABLE OF CONTENTSEXECUTIVE SUMMARY.................................................................................................................................. 7LIST OF CHARTS............................................................................................................................................. 9LIST OF TABLES............................................................................................................................................ 10
  5. 5. An ISO 9001:2008 Certified companyFirst programming school in IndiaABBREVIATIONS.......................................................................................................................................... 12CHAPTER 1. INTRODUCTION..................................................................................................................... 1CHAPTER 2. RESEARCH DESIGN ................................................................................................................ 62.1 TITLE OF THE STUDY:..................................................................................................................... 72.2 BACKGROUND OF THE STUDY....................................................................................................... 72.3 RESEARCH OBJECTIVE ................................................................................................................... 72.4 SCOPE OF THE PROJECT ................................................................................................................ 72.5 HOW THE FACTORS WHERE IDENTIFIED?..................................................................................... 82.6 PARAMETERS OF INTEREST........................................................................................................... 82.7 SOURCES OF DATA........................................................................................................................ 82.8 SAMPLING DESIGN........................................................................................................................ 82.9 COLLECTION OF DATA................................................................................................................. 102.10 SIGNIFICANCE OF THE PROJECT.................................................................................................. 102.11 LIMITATIONS ............................................................................................................................... 10CHAPTER 3. INDUSTRY – THIRD PARTY LOGISTICS ................................................................................. 113.1 OVERVIEW................................................................................................................................... 123.2 HISTORY OF THIRD PARTY LOGISTICS ......................................................................................... 123.3 PROCESS...................................................................................................................................... 13CHAPTER 4. COMPANY PROFILE ............................................................................................................. 154.1 VISION ......................................................................................................................................... 164.2 MISSION ...................................................................................................................................... 164.3 LEADERSHIP................................................................................................................................. 16
  6. 6. An ISO 9001:2008 Certified companyFirst programming school in India4.4 SERVICES OFFERED...................................................................................................................... 17CHAPTER 5. DATA ANALYSIS ................................................................................................................... 245.1 LIST OF CHARTS........................................................................................................................... 245.2 LIST OF TABLES............................................................................................................................ 42CHAPTER 6. RESEARCH FINDINGS........................................................................................................... 53CHAPTER 7. RECOMMENDATIONS.......................................................................................................... 57CHAPTER 8. CONCLUSION....................................................................................................................... 60APPENDIX...................................................................................................................................................... 1ANNEXURE 1: BIBLIOGRAPHY ................................................................................................................... 2ANNEXURE 2: QUESTIONNAIRE ................................................................................................................ 3
  7. 7. An ISO 9001:2008 Certified companyFirst programming school in IndiaEXECUTIVE SUMMARYWorldnet Logistics L.L.C is a third party logistics company. Third party logistics is the outsourcing ofall or a part of company’s logistics operations to a specialized company. A 3PL company is aprovider of multiple logistics services for customers operating in various industries locally aswell as globally (e.g. aerospace, automotive, chemicals, consumer products, electronics,industrial manufacturing, and retail). Sending products from one international destination to anothercan involve a multitude of carriers, requirements and legalities. Worldnet Logistics L.L.C is a small scalethird party logistics company with 8 employees. There are around 200 companies in the market which hasthe potential to grab the customer segment of Worldnet Logistics L.L.C. The scope of the project islimited to interviewing the customers of the three service providers (Worldnet Logistics L.L.C, FreightHouse L.L.C and Swift Freight international L.L.C.).The objective of the project is to identify theimportant factors companies consider and how important is each factor for choosing a service provider forfreight forwarding.It also finds out whether the customers are happy with its existing service provider andhow easy it is for companies to change their service provider. A quantitative research is used to meet theobjectives of the project. 10 factors were identified which influence the selection of a service provider byinterviewing customers and industry experts. A structured questionnaire was administered to a samplesize of 129 companies which was made based on the identified factors.The scale used is Likert andAnova, Chi-square tests are used for the testing of hypothesis. In the study, Type of universe underconsideration is finite population which consists of all the companies who wants freight forwarding
  8. 8. An ISO 9001:2008 Certified companyFirst programming school in Indiaservice and depends upon the three companies Worldnet Logistics L.L.C, Freight House L.L.C and SwiftFreight International L.L.C. The Sampling Method is Stratified random sampling is made use for thestudy. The Target Population is Companies who uses freight forwarding services of Worldnet LogisticsL.L.C, Freight House L.L.C and Swift Freight International L.L.C. Worlnet Logistics L.L.C has close to100 clients, Freight House L.L.C has close to 1000 clients and Swift Freight International L.LC has closeto 2000 clients and the population size is 3100.From the study, it is found that Quality, On time delivery and Employee Behaviour are the mostimportant factors whereas credit policy, cost of the service and additional services are the least importantfactors. It is also found that companies can change their service provider very easily and in generalcustomers are not happy with the service they are getting from their existing service provider. In order tomore grab more customers and retain the existing customers, Worldnet Logistics L.L.C should improvethe quality of the services they are providing. It should also provide trainings to its employees on softskills and how to interact with the customers. Worldnet Logistics should also create a customer retentionprogram and a customer service department.Worldnet should try to provide multiple services as majorityof the companies require more than one service. In the budget minimum money should be allocated forTransportation as only 4.67 % need only transportation services.Separate department should be createdfor international services as half of the companies either export or import goods out of Dubai.
  9. 9. An ISO 9001:2008 Certified companyFirst programming school in IndiaLIST OF CHARTSChart 5.1.1: Services Availed by different companies................................................................................ 25Chart 5.1.2: Area of operations of different companies.............................................................................. 26Chart 5.1.3 : Satisfaction with the existing service provider ...................................................................... 27Chart 5.1.4: Easiness to change the current service provider ..................................................................... 30Chart 5.1.5: Ratings to on time delivery..................................................................................................... 31
  10. 10. An ISO 9001:2008 Certified companyFirst programming school in IndiaChart 5.1.6: Ratings to credit policy of the service provider ...................................................................... 32Chart 5.1.7: Ratings to customized service provided.................................................................................. 33Chart 5.1.8: Rating given to Quality of the service..................................................................................... 34Chart 5.1.9: Rating given to cost of service................................................................................................ 35Chart 5.1.10: Rating given to existence of defined process in the service provider ................................... 36Chart 5.1.11: Rating given to the employee behaviour............................................................................... 37Chart 5.1.12: Rating given to the round the clock service.......................................................................... 38Chart 5.1.13: Rating given to additional services provided........................................................................ 39Chart 5.1.14: Rating given to domain consultation by the service provider............................................... 41LIST OF TABLES
  11. 11. An ISO 9001:2008 Certified companyFirst programming school in IndiaTable 5.2.1: Statistical data of different factors.......................................................................................... 42Table 5.2.2: Importance given to different factors...................................................................................... 45Table 5.2.3: Importance given to factors based on the services the company avail.................................. 48Table 5.2.4: Importance given for each factor amongst the companies based on the service they avail . 50Table 5.2.5: Association of area of operation and the service provider..................................................... 50Table 5.2.6: Association of services availed and the service provider selection........................................ 51
  12. 12. An ISO 9001:2008 Certified companyFirst programming school in IndiaABBREVIATIONSAbbreviation ExpansionL.L.C Limited Liability Company3PL Third Party LogisticsISO International Standard OrganizationUAE United Arab EmiratesGCC Gulf country councilFOB Freight on BoardAWB Airway Bill Number
  13. 13. An ISO 9001:2008 Certified companyFirst programming school in India1CHAPTER 1. INTRODUCTION
  14. 14. An ISO 9001:2008 Certified companyFirst programming school in India2The council of Logistics Management defines logistics as the process of planning, implementingand controlling the efficient, effective flow and storage of goods, services, and relatedinformation from point of origin to point of consumption for the purpose of conforming tocustomer requirements. Third party logistics is the outsourcing of all or a part of company’slogistics operations to a specialized company. A 3PL company is a provider of multiple logisticsservices for customers operating in various industries locally as well as globally (e.g. aerospace,automotive, chemicals, consumer products, electronics, industrial manufacturing, and retail).Moreover, it is a company that usually offers “one-stop shopping” for logistics services withcapabilities to integrate these services in contrast to companies that specialize in a specific areaof services (motor carriers, ocean carriers, public warehouses, forwarders etc.)Third party logistics companies emerged in Dubai in the 1990s and have been providing valuableservice for companies willing to outsource logistics. Since then the industry has been growingsubstantially both in terms of revenues and number of players. Nowadays 3PL market has aconsiderable share in total transportation costs and the services provided by 3 PLs continue toconsume a significant portion of overall logistics and supply chain budgets. However, theindustry is not enjoying adequate profits and margins are small. 3PL companies have difficultiesdifferentiating among each other and have difficulties demonstrating value proposition topotential customers.
  15. 15. An ISO 9001:2008 Certified companyFirst programming school in India3This study identifies different factors which companies consider while choosing a serviceprovider and the average importance given to each factor by companies. This information willhelp Worldnet to focus on improving the factors of high importance to companies. As of nowthere is no sustainable competitive advantage for Worldnet. Worldnet can formulate a strategybased on this study to create a sustainable competitive advantage.The study was done amongst customers of three companies with a sample size of 129. Thedifferent factors were identified by referring to the literature relating to logistics, by interviewingthe employees of Worldnet and by talking to experts in the industry.The different factors are1. On time deliveryIt measures whether the company is able to deliver the freight on or before promised deliverydate.2. Credit periodCompanies do not pay freight forwarder up front the cost. The payment is done on producing theinvoice. After invoice is given usually there will be minimum 15 days to pay the money either bycash or cheque. Sometimes freight forwarder accepts post dated cheque as well. This factorsmeasure the credit period given after the invoice is given.3. A customized service from a companySome companies require additional reports for the work they are giving to its freight forwarders.This factor measures what the average rating is given by companies for a customized service.4. Quality of service
  16. 16. An ISO 9001:2008 Certified companyFirst programming school in India4As per ISO 9000 quality can be defined as “Degree to which a set of inherent characteristicsfulfills requirements.”5. Economic serviceIt measures the average rating given by companies to the cost they are ready to pay to avail theservice. i.e It measures whether the companies are price sensitive and to what extent.6. Well defined processSome freight forwarder will have a defined process for tracking the job requests, place an orderetc. Some companies give importance to knowing the current status of the job.7. Employee behaviourIt measures how important is employee behaviour of the freight forwarder to the companies.8. 24/7 availabilityIt measures whether companies prefer a service which is available round the clock.9. Additional services like loading and unloading facilities3PL logistics duty is limited to picking up the goods or shipment and ships it to the destination.In most of the cases the company or customer should arrange a person for loading or unloading.But some 3PL companies provide this facility to its customers without any extra cost. This factorwill measure how important is this factor for companies while choosing a service provider.10. Domain consultation.Most of the companies need logistics service to run their business. But most of them are unawareof the document clearance procedure of customs. They need consultation on this. This factor
  17. 17. An ISO 9001:2008 Certified companyFirst programming school in India5measures whether companies prefer a service provider who provides expert domain consultationor not.
  18. 18. An ISO 9001:2008 Certified companyFirst programming school in India6CHAPTER 2. RESEARCH DESIGN
  19. 19. An ISO 9001:2008 Certified companyFirst programming school in India72.1 TITLE OF THE STUDY:A study on factors that influence selection of a logistics service provider2.2 BACKGROUND OF THE STUDYWorldnet Logistics L.L.C has not yet done any research to identify the different factors and itspriority given by companies for selecting a service provider for their freight forwarding. Thisstudy will help Worldnet Logistics to concentrate on top priority factors and grab morecustomers.2.3 RESEARCH OBJECTIVE1. To find out whether the clients are happy with the existing service provider.2. To find out various factors that influence companies in choosing their service providerfor their freight forwarding.3. To make a comparative analysis between the extent of influence of various factors.2.4 SCOPE OF THE PROJECT
  20. 20. An ISO 9001:2008 Certified companyFirst programming school in India8The scope of the project is restricted to study on different factors which clients of threecompanies consider while choosing a service provider.2.5 HOW THE FACTORS WHERE IDENTIFIED?The different factors were identified by referring to the literature relating to logistics, byinterviewing the employees of Worldnet and by talking to experts in the industry.2.6 PARAMETERS OF INTERESTThe average importance (rating) given by companies for each factor while selecting a serviceprovider for freight forwarding.2.7 SOURCES OF DATAPrimary data- Would be collected by direct interviewing company representatives using astructured questionnaire.Secondary data: This source of data would be used for some historic data to analyse andprepare the questionnaire. The secondary data used is obtained from discussion with theemployees and using internet.2.8 SAMPLING DESIGN
  21. 21. An ISO 9001:2008 Certified companyFirst programming school in India9Type of universe: The type of universe under consideration is finite population whichconsists of all the companies who wants freight forwarding service and depends upon the threecompanies Worldnet Logistics L.L.C, Freight House L.L.C and Swift Freight InternationalL.L.C.Sampling Method:Stratified random sampling is made use for the study.Target Population: Companies who uses freight forwarding services of Worldnet LogisticsL.L.C, Freight House L.L.C and Swift Freight International L.L.C. Worlnet Logistics L.L.C hasclose to 100 clients, Freight House L.L.C has close to 1000 clients and Swift FreightInternational L.LC has close to 2000 clients. So the total population under consideration is 3100.Target Sample Size:n = Z2σ2N/[ (N-1)e2+Z2σ2]Where,N = number of companies who provides business to Worldnet Logistics L.L.C and its two othercompetitors. = 3100Standard deviation σ = Range of population/6 = [5-1]/6=0.67Error, e = 0.113Confidence level z ( 0.95) = 1.9612945.129)67.096.1113.0)13100(()310067.96.1(22222nCustomers of the companies where selected on a proportionate basis.
  22. 22. An ISO 9001:2008 Certified companyFirst programming school in India102.9 COLLECTION OF DATAPredesigned Questionnaire will be used to collect the information from customer. The surveywill be done through phone or in person. Most of the respondents will be contacted over phone.2.10 SIGNIFICANCE OF THE PROJECTThe project will help Worldnet Logistics L.L.C to concentrate on where the company needsimprovement. The study will also help in decision making of future expansion plans.2.11 LIMITATIONSThe study is limited to the customers of three companies namely Worldnet LogisticsL.L.C, Freight House L.L.C and Swift Freight international L.L.C.Time taken to the survey is very high as the customers are too busy to answer the survey.
  23. 23. An ISO 9001:2008 Certified companyFirst programming school in India11CHAPTER 3. INDUSTRY–THIRD PARTY LOGISTICS
  24. 24. An ISO 9001:2008 Certified companyFirst programming school in India123.1 OVERVIEWThird party logistics companies emerged in Dubai in the 1990s and have been providing valuableservice for companies willing to outsource logistics. Since then the industry has been growingsubstantially both in terms of revenues and number of players. Nowadays 3PL market has aconsiderable share in total transportation costs and the services provided by 3 PLs continue toconsume a significant portion of overall logistics and supply chain budgets. However, theindustry is not enjoying adequate profits and margins are small. 3PL companies have difficultiesdifferentiating among each other and have difficulties demonstrating value proposition topotential customers.The council of Logistics Management defines logistics as the process of planning, implementingand controlling the efficient, effective flow and storage of goods, services, and relatedinformation from point of origin to point of consumption for the purpose of conforming tocustomer requirements. Third party logistics is the outsourcing of all or a part of company’slogistics operations to a specialized company. A 3PL company is a provider of multiple logisticsservices for customers operating in various industries locally as well as globally (e.g. aerospace,automotive, chemicals, consumer products, electronics, industrial manufacturing, and retail).Moreover, it is a company that usually offers “one-stop shopping” for logistics services withcapabilities to integrate these services in contrast to companies that specialize in a specific areaof services (motor carriers, ocean carriers, public warehouses, forwarders etc.)3.2 HISTORY OF THIRD PARTY LOGISTICS
  25. 25. An ISO 9001:2008 Certified companyFirst programming school in India13The main driver of the birth and further development of third party logistics can be contributedto the deregulation of the transportation industry during the 1990s. Prior to deregulation thetransportation sector was heavily regulated by government agencies, and these regulationscovered practically every phase of a carrier’s business. It included regulation of rates, serviceoffering, equipment, mergers, and acquisitions. The difficulty in obtaining authority to operateand the restrictions ensured lower levels of competition. Due to high competition, industryfragmentation, over-capacity, the growth of internet, and advances in information technologysolutions, trucking and other freight companies broadened their service offering fromconventional transportation services to material handling, inventory control, order fulfilment, andother value-added services. Many traditional trucking companies started integratingwarehousing, logistics, and less-than-truckload (LTL) services into their suite of services,remarking themselves into third party logistics firms. In addition, warehousing firms startedbroadening their service offerings by developing them internally and/or through alliances,mergers, and acquisitions and positioning themselves also as integrated logistics serviceproviders. Other roots include freight forwarders, customhouse brokers, and transportationbrokers.3.3 PROCESS
  26. 26. An ISO 9001:2008 Certified companyFirst programming school in India14
  27. 27. An ISO 9001:2008 Certified companyFirst programming school in India15CHAPTER 4. COMPANY PROFILE
  28. 28. An ISO 9001:2008 Certified companyFirst programming school in India16Worldnet Logistics L.L.C, based in Dubai, United Arab Emirates, has been providing logisticssolution since 2006. The company has made a remarkable presence in the industry in Documentclearance and GCC transportation (land). Over the years the company has acquired wide range ofclients, to a name few, Cater Pillar UAE, GEA, Logwin and most of them corporate clients. Weprovide a wide range of services which include clearance, delivery and installation using specialequipments.Today the company’s presence is both GCC and international markets. The client base of thecompany is increasing at an enormous speed.4.1 VISIONTo become one of the best logistics firms in the U.A.E. by providing the most reliable serviceand by introducing innovative solutions merging expertise, resource and technology.4.2 MISSIONTo work between clients, authorities and agencies making all aspects of freight handling smoothand safe, in keeping with all regulations, and thus building a customer base slowly and steadily.4.3 LEADERSHIPWorldnet Logistics was founded in 2006 by Mr. Haris V.P., a shipping & logistics professionalwith a verifiable, wide range of experience in the industry in Dubai since 1982. After his ratherlong and educating stints with the Department of Ports and Customs, Dubai for fourteen yearsand later with global leaders such as STI Middle East and Hanjin Int’l Shipping Co. in freightforwarding companies in Dubai, he established Worldnet. Leveraging on his thoroughknowledge of all aspects of Shipping, International Freight Forwarding and Logistics for morethana quarter of a century, the company set out to provide strategic solutions for the clients.Under his dedicated leadership, the Worldnet team has ever since been operating with aremarkable understanding of the client needs, industry regulations and all technical and humanaspects of freight forwarding and logistics.
  29. 29. An ISO 9001:2008 Certified companyFirst programming school in India174.4 SERVICES OFFEREDWorldnet offers different services which are listed below.Customs clearance/Customs brokingCustoms clearance is a profession that involves the clearing of goods through customs barriersfor importers and exporters (usually businesses). This involves the preparation of documentsand/or electronic submissions, the calculation (and usually the payment) on behalf of the clientof taxes, duties and excises, and facilitating communication between the importer/exporter andgovernmental authorities. A customs clearing agent may need to advise an importer regardingcountry of origin marking requirements or the precise paperwork requirements for a clothingshipment subject to quota/visa requirements. Knowing the requirements of each type of importcan avoid costly delays or seizure of the merchandise. Many customs brokers specialize incertain types of transactions, such as wearing apparel, perishables, or clearing the crew andmanifest of large cargo vessels. Customs brokers can be located at inland "ports" to clearmerchandise sent "in bond" but most are located at major airports and harbors with internationaltraffic. Customs brokers normally arrange the transhipment or local delivery of clearedmerchandise through relationships with trucking companies and others. Customs brokers mustpass an examination and background check to become licensed. Customs brokers are notgovernment employees and should not be confused with Customs agents, although in somecountries the term customs agent may mean customs broker.Custom brokers may be employed by or affiliated with freight forwarders, but may beindependent businesses or may be employed by shipping lines, importers, exporters, tradeauthorities and customs brokerage firms.The customs clearance done by the company includes the following:
  30. 30. An ISO 9001:2008 Certified companyFirst programming school in India18The customs clearance services for various import and export consignments include thefollowing:Guidance and consultancy on pre and post shipment servicesLiasoning and follow up with various GovtOrganisationsDocumentation procedures i.e. preparation and handling of documentsAll post shipment formalities and endorsementsDrawback/DEPB and several other export benefitsBill ClearanceThis is a part of the customs clearance and is the process of clearing the customs bill. Billclearance includes entering the complete details about the shipment, payment of the customsduties and port charges. This is usually done through internet but in case if the website is notavailable, it can be done manually.Road transportation (GCC)Worldnet LogisticsL.L.C assists in making informed choices about the most appropriate mode oftransport for your shipment. Worldnet has formed strong alliances with a number of internationalroad freight operators, each with strengths in particular geographical areas, and together it offersits customers a comprehensive flexible and competitive range of services. Also we arespecialized for customers a comprehensive flexible and competitive range of services. Worldnetis specialized for trucking in all G.C.C countries (Kuwait, Qatar, Saudi Arabia, Oman andBahrain)Air freight – Import and Export
  31. 31. An ISO 9001:2008 Certified companyFirst programming school in India19Worldnet provides the following services in Air freight.Consolidation Cargo HandlingImport and Export Custom ClearanceTransportation / TruckingDoor to door ServicePacking and MovingWarehousingSea freight – Import and ExportWorldnet provides the following services in Sea freightImport and Export FCL Container HandlingImport and Export LCL Cargo HandlingConsolidation Container HandlingImport and Export Custom ClearanceTerminal ServiceTransportation / TruckingDoor to door ServicePacking - General and Hazardous CargoTransportation and DistributionMarine Insurance
  32. 32. An ISO 9001:2008 Certified companyFirst programming school in India20Personal Effect Shipping and Household RemovalWarehousingCross stuffingCross stuffing means moving goods from a small or medium size container to a large containeror vice versa for shipping out of Dubai. This happens in the case of transits.TransshipmentTransfer of a shipment from one carrier, or more commonly, from one vessel to another where asin transit. Transshipments are usually made (1) where there is no direct air, land, or sea linkbetween the consignor’s and consignee’s countries, (2) where the intended port of entry isblocked, or (3) to hide the identity of the port or country of origin. Because transshipmentexposes the shipment to a higher probability of damage or loss, some purchase orders or lettersof credit specifically prohibit it. Such type of declaration is processed upon arrival of goods inthe country’s port of entry and intended to be transited in cases of ship-shore-ship or air to air.The declaration shall only be processed by registering such goods due to their transiting to a finaldestination without transiting the territories of the country or leaving the customs zone.TransitSuch a type of declaration is processed for goods being imported from outside the country for thebenefit of an importer from outside the country as well addressed in his name or the name of alicensed carrier agent by a competent authority on behalf of the importer. The goods shall onlybe registered, since it is transiting the territories of the country to the final destination. A depositamount equivalent to the total value of goods shall be collected to ensure exit of goods outside
  33. 33. An ISO 9001:2008 Certified companyFirst programming school in India21the country within 30 days from the date of the transactional processing. Worldnet does thedocument clearance for transit.Free zone documentationFree zones are part of the country’s territories but considered to be outside the customs territoryand subject to customs control other than normal customs procedures. This is applicable to JebelAli Free Zone, Airport Free Zone, DUCAMZ and unfenced Free Zones including TECOM.Import into Free Zone:Free zone licensee are allowed to import goods or equipments into the free zone from a foreigncountry without payment of customs duties. Such goods may be stored for an unlimited period oftime depending upon the type of goods and the validity of the Free Zone License.Import from Free Zone into UAE/GCC:This type of bills is processed for allowing Free Zone Licensee to sell their commodities to theLocal Companies in UAE or in GCC Countries opeartiong under valide Commercial/IndustrialLicenses from the concerned regulatory authorities with UAE or in GCC. Based on submissionof following documents received from the Free Zone Companies to Customs by the local orGCC Importer or their appointed Clearing Agents, FZ Transit Out(Ex-FZ Import Bill) shall beissued upon payment of applicable Customs Duty as per the customs tariff & the processingcharge of AED 60. Free Zone Licensee has to deliver the goods only upon receiving the copiesof the Ex-FZ Import Bill from the importer.Import for Re-Export from Free Zone (FZ TRANSIT OUT)
  34. 34. An ISO 9001:2008 Certified companyFirst programming school in India22This type of bills is processed for allowing Free Zone Licensees to sell their commodities to theLocal Companies in UAE operating under valid Commercial Licenses from the concernedregulatory authorities with UAE on Import for Re-Export basis. This facility will grant the UAEImporter a grace period to export the goods purchased from the Free Zone Licensees within 180days from the bill date. A Customs Deposit equivalent to the duty tariff of the invoice value iscollected from the UAE Registered Company against these transactions. Refund the deposit fullyor partially if the proof of export is submitted within the time frame allocated for this type ofbills.EX-FZ Export Bill (FZ TRANSIT OUT)This type of bill allows the FZ Licensee to export goods out of GCC by sea, land and air. Theprocessing charge for this type of bill is normally AED 50 being the registration charge plusAED 10 being the Knowledge Dirham Fee provided the cargo is being exported other than fromDubai Airport. The registration charge for processing an EX-FZ Export Bill for the cargodispatching through Dubai Airport will be only AED 20.Free Zone Temporary AdmissionThis type of Customs bills are prepared in the event facilitating the entry of goods throughcustoms zones into the country on temporary basis for the purposes of exhibition or repairs andmaintenance of equipment and machineries. A deposit equivalent to customs tariff on total valueof goods shall be collected against such type of transactions.Free Zone Internal TransferThis type of Customs bills prepares in the event of sale of goods internally by a free zonelicensee to another free zone licensee having same type of activity upon approval and consent ofthe seller and buyer.
  35. 35. An ISO 9001:2008 Certified companyFirst programming school in India23Export of Goods from local market through Free Zone (FZ TRANSIT IN)This type of facility shall allow a Free Zone Licensee to buy goods from UAE Local Market forExport Purposes. In order to validate the entry of goods into the Free Zone, the local exporterhave to file a local export declaration and subsequently, the Free Zone License have to file a FreeZone Bills of Entry(FZ Transit Bill)Vehicle ClearanceThe cars which get exported to Dubai need customs clearance. Worldnet Logistics L.L.C is apioneer in getting the vehicle clearance from the customs.
  36. 36. An ISO 9001:2008 Certified companyFirst programming school in India24CHAPTER 5. DATAANALYSIS5.1 LIST OF CHARTS5.1.1 Services availedby different companiesServices availedFrequency Percent Valid PercentCumulativePercentValid DocumentClearance27 20.9 20.9 20.9
  37. 37. An ISO 9001:2008 Certified companyFirst programming school in India25Transportation 6 4.7 4.7 25.6Air-FreightClearance22 17.1 17.1 42.6Sea-FreightClearance22 17.1 17.1 59.7More than oneservice52 40.3 40.3 100.0Total 129 100.0 100.0Services Availed40.3117.0517.054.6520.93More than one servicSea-Freight ClearancAir-Freight ClearancTransportationDocument ClearanceChart5.1.1: Services Availed by different companiesInference:40.31 % of companies avail more than one service. The transportation service availed bycompanies are very less compared to other services.
  38. 38. An ISO 9001:2008 Certified companyFirst programming school in India265.1.2 Area of operations of different companiesArea of operationsFrequency Percent Valid PercentCumulativePercentValid Domestic 29 1 22.5 22.5 22.5International65 50.4 50.4 72.9GCC 35 27.1 27.1 100.0Total 129 100.0 100.0Area of operations27.1350.3922.48GCCInternationalDomesticChart 5.1.2: Area of operations of different companiesInference: 50.39 % of the companies operate in international market. i.e they either import or exportgoods out of Dubai.
  39. 39. An ISO 9001:2008 Certified companyFirst programming school in India275.1.3 Are the companies satisfied with their service provider? Is there anysignificant difference amongst the companies?Satisfied with the current ProviderFrequency Percent Valid PercentCumulativePercentValid Yes 63 48.8 48.8 48.8No 66 51.2 51.2 100.0Total 129 100.0 100.0Chart 5.1.3 : Satisfaction with the existing service providerDescriptivesN Mean Std. Deviation Std. ErrorWorldnet Logistics L.L.C 4 1.50 .577 .289YesNoSatisfied with the current ProviderPies showcountsWorldnet Logistics L.L.C50.00%50.00%Freight House L.L.C28.57%71.43%Swift International L.L.C59.04%40.96%
  40. 40. An ISO 9001:2008 Certified companyFirst programming school in India28Freight House L.L.C 42 1.71 .457 .071Swift International L.L.C 83 1.41 .495 .054Total 129 1.51 .502 .044Hypothesis:Null Hypothesis H0 = There is no significant difference between the satisfaction level of the threecompanies.H1 = There is significant difference between the satisfaction level of the three companies.ANOVASum ofSquares df Mean Square F Sig.Between Groups 2.589 2 1.294 5.502 .005Within Groups 29.644 126 .235Total 32.233 128
  41. 41. An ISO 9001:2008 Certified companyFirst programming school in India29Freight ForwarderSw ift InternationalFreight House L.L.CWorldnet Logistics L1.81.71.61.51.41.3Inference:71.43 % customers of Freight House LLC are not satisfied where as only 40.96% of the SwiftInternational LLC customers are not satisfied. 50 % of the Worldnet Logistics LLC customers are notsatisfied with the service they are getting. Since the level of significance is less than .05, we reject the nullhypothesis. So the proposed hypothesis which states that there is a significant difference between thesatisfaction levels of the three companies is supported.5.1.4 Is it easy for companies to change their service provider?Easy to change the current ProviderFrequency Percent Valid PercentCumulativePercentValid Yes 103 79.8 79.8 79.8No 26 20.2 20.2 100.0Total 129 100.0 100.0
  42. 42. An ISO 9001:2008 Certified companyFirst programming school in India30Easy to change the current Provider20.2%79.8%NoYesChart 5.1.4: Easiness to change the current service providerInference: A huge 79.8 % of companies can change their service provider easily.5.1.5 Ratings given to on time deliveryOn time deliveryFrequency PercentValid Disagree 6 4.7Indifferent 10 7.8Agree 56 43.4StronglyAgree57 44.2Total 129 100.0
  43. 43. An ISO 9001:2008 Certified companyFirst programming school in India31On time delivery44.2%43.4%7.8%4.7%Strongly AgreeAgreeIndifferentDisagreeChart 5.1.5: Ratings to on time deliveryInference: On time delivery is very important for 44.2 % of the companies. More than 80 % of thecompanies feel that on time delivery is a very important factor in taking decisions.5.1.6 Ratings given to credit policy of the service providerCredit PolicyFrequency PercentValid StronglyDisagree20 15.5Disagree 30 23.3Indifferent 34 26.4Agree 30 23.3StronglyAgree15 11.6Total 129 100.0
  44. 44. An ISO 9001:2008 Certified companyFirst programming school in India32Credit Policy11.6%23.3%26.4%23.3%15.5%Strongly AgreeAgreeIndifferentDisagreeStrongly DisagreeChart 5.1.6: Ratings to credit policy of the service providerInference: The credit period provided by the service provider is immaterial to the companies while theylook to take a decision on the service provider. The majority of the companies are indifferent towards thecredit policy of the service provider.5.1.7 Ratings given to customized serviceCustomized ServiceFrequency PercentValid StronglyDisagree7 5.4Disagree 16 12.4Indifferent 69 53.5Agree 19 14.7Strongly Agree 14 10.9Total 125 96.9
  45. 45. An ISO 9001:2008 Certified companyFirst programming school in India33Missing System 4 3.1Total 129 100.0Customized Service3.1%10.9%14.7%53.5%12.4%5.4%MissingStrongly AgreeAgreeIndifferentDisagreeStrongly DisagreeChart 5.1.7: Ratings to customized service providedInference: More than 50 % of the companies are indifferent towards customized service provided by theservice providers.5.1.8 Ratings given to Quality of the serviceQualityFrequency PercentValid StronglyDisagree4 3.1Disagree 2 1.6
  46. 46. An ISO 9001:2008 Certified companyFirst programming school in India34Indifferent 6 4.7Agree 55 42.6StronglyAgree62 48.1Total 129 100.0Quality48.1%42.6%4.7%1.6%3.1%Strongly AgreeAgreeIndifferentDisagreeStrongly DisagreeChart 5.1.8: Rating given to Quality of the serviceInference: More than 90 % of the companies agree that quality of the service is very important whilechoosing a service provider.5.1.9 Rating given to cost of service the companies should payCost of ServiceFrequency PercentValid StronglyDisagree35 27.1
  47. 47. An ISO 9001:2008 Certified companyFirst programming school in India35Disagree 33 25.6Indifferent 36 27.9Agree 21 16.3StronglyAgree4 3.1Total 129 100.0Cost of Service3.1%16.3%27.9%25.6%27.1%Strongly AgreeAgreeIndifferentDisagreeStrongly DisagreeChart 5.1.9: Rating given to cost of serviceInference: More than 75 % of the companies are either indifferent or disagree that the cost of the serviceplays an important role in choosing the service provider.5.1.10 Rating given to defined processes in the service providerDefined ProcessFrequency PercentValid Strongly 2 1.6
  48. 48. An ISO 9001:2008 Certified companyFirst programming school in India36DisagreeDisagree 24 18.6Indifferent 32 24.8Agree 36 27.9StronglyAgree35 27.1Total 129 100.0Defined Process27.1%27.9%24.8%18.6%1.6%Strongly AgreeAgreeIndifferentDisagreeStrongly DisagreeChart 5.1.10: Rating given to existence of defined process in the service providerInference: 55 % of the companies either agree or strongly agree that they like to choose a serviceprovider who has a well defined process for handling the service requests by their clients.5.1.11 Ratings given to the employee behaviour of the service providersEmployee Behaviour
  49. 49. An ISO 9001:2008 Certified companyFirst programming school in India37Frequency PercentValid StronglyDisagree4 3.1Disagree 4 3.1Indifferent 24 18.6Agree 61 47.3StronglyAgree36 27.9Total 129 100.0Employee Behaviour27.9%47.3%18.6%3.1%3.1%Strongly AgreeAgreeIndifferentDisagreeStrongly DisagreeChart 5.1.11: Rating given to the employee behaviourInference: Employee behaviour of the service provider is a very important factor for decidingthe service provider. 75.2% of the companies are in favour of this factor.
  50. 50. An ISO 9001:2008 Certified companyFirst programming school in India385.1.12 Round the clock service availability24/7 AvailabilityFrequency PercentValid StronglyDisagree9 7.0Disagree 41 31.8Indifferent 40 31.0Agree 29 22.5StronglyAgree10 7.8Total 129 100.024/7 Availability7.8%22.5%31.0%31.8%7.0%Strongly AgreeAgreeIndifferentDisagreeStrongly DisagreeChart 5.1.12: Rating given to the round the clock serviceInference: 31.8 % disagree and 31 % are indifferent whether the service is available 24/7.
  51. 51. An ISO 9001:2008 Certified companyFirst programming school in India395.1.13 Additional services offered by service provider to its clientsAdditional servicesFrequency PercentValid StronglyDisagree20 15.5Disagree 47 36.4Indifferent 38 29.5Agree 16 12.4StronglyAgree8 6.2Total 129 100.0Additional services6.2%12.4%29.5% 36.4%15.5%Strongly AgreeAgreeIndifferent DisagreeStrongly DisagreeChart 5.1.13: Rating given to additional services provided
  52. 52. An ISO 9001:2008 Certified companyFirst programming school in India40Inference: Additional services provided by the company do not matter for most of the companies inchoosing their service provider.5.1.14 Domain consultation to the clientsDomain ConsultationFrequency PercentValid StronglyDisagree4 3.1Disagree 24 18.6Indifferent 32 24.8Agree 36 27.9StronglyAgree33 25.6Total 129 100.0
  53. 53. An ISO 9001:2008 Certified companyFirst programming school in India41Domain Consultation25.6%27.9%24.8%18.6%3.1%Strongly AgreeAgreeIndifferentDisagreeStrongly DisagreeChart 5.1.14: Rating given to domain consultation by the service providerInference: Domain consultation provided by the companies does not contribute much in choosing aservice provider.
  54. 54. An ISO 9001:2008 Certified companyFirst programming school in India425.2 LIST OF TABLES5.2.1 Different factors and their ratings given by companiesDescriptive StatisticsN Range Mean Std. DeviationOn time delivery 129 3 4.27 .798Credit Policy 129 4 2.92 1.248Customized Service 125 4 3.14 .970Quality 129 4 4.31 .882Cost of Service 129 4 2.43 1.144Defined Process 129 4 3.60 1.121Employee Behaviour 129 4 3.94 .93324/7 Availability 129 4 2.92 1.065Additional services 129 4 2.57 1.088Domain Consultation 129 4 3.54 1.152Valid N (listwise) 125Table 5.2.1: Statistical data of different factorsInference:The highest average mean rating (4.31) is given to the quality of the service. The lowest ratingis given to cost of the service (2.43). The standard deviation is lowest for on time delivery (mean rating =4.27) and lower for quality. i.e. companies invariably believe that quality and on time delivery are themost important factors in choosing a service provider. All the factors except on time delivery has a range4. The credit policy of the service provider has a very low rating when it comes to choosing a serviceprovider.Based on the ratings given, ranking of each factor while choosing a service provider for logisticsis given below.1. Quality2. On time delivery
  55. 55. An ISO 9001:2008 Certified companyFirst programming school in India433. Employee Behaviour4. Defined process5. Domain Consultation6. Customized service7. 24/7 Availability8. Credit Policy9. Additional Services10. Cost of service5.2.2 How important is each factor for the customers of different companieswhen they look for a service?Assumption: If the average rating is 4 or more, the factor is considered to be important.One-Sample StatisticsFreight Forwarder N Mean Std. DeviationStd. ErrorMeanWorldnet Logistics L.L.C Credit Policy 4 2.50 1.291 .645On time delivery 4 4.75 .500 .250Quality 4 4.75 .500 .250Cost of Service 4 2.50 1.291 .645Defined Process 4 2.25 .500 .250Customized Service 4 4.00 .816 .408Additional services 4 4.00 1.155 .577Domain Consultation 4 3.75 1.258 .62924/7 Availability 4 3.00 1.826 .913Employee Behaviour 4 4.00 1.414 .707Freight House L.L.C Credit Policy 39 3.13 1.174 .188On time delivery 39 4.36 .668 .107Quality 39 4.46 .555 .089Cost of Service 39 2.31 1.104 .177Defined Process 39 3.90 1.046 .168Customized Service 39 2.95 .724 .116Additional services 39 2.41 .818 .131Domain Consultation 39 3.54 1.120 .17924/7 Availability 39 2.95 1.123 .180
  56. 56. An ISO 9001:2008 Certified companyFirst programming school in India44Employee Behaviour 39 4.13 .656 .105Swift International L.L.C Credit Policy 82 2.89 1.296 .143On time delivery 82 4.22 .875 .097Quality 82 4.18 1.008 .111Cost of Service 82 2.45 1.188 .131Defined Process 82 3.51 1.147 .127Customized Service 82 3.18 1.056 .117Additional services 82 2.61 1.173 .130Domain Consultation 82 3.46 1.157 .12824/7 Availability 82 2.90 1.038 .115Employee Behaviour 82 3.84 1.036 .114One-Sample TestFreight ForwarderTest Value = 4t Df Sig. (2-tailed)MeanDifferenceWorldnet Logistics L.L.C Credit Policy -2.324 3 .103 -1.50On time delivery 3.000 3 .058 .75Quality 3.000 3 .058 .75Cost of Service -2.324 3 .103 -1.50Defined Process -7.000 3 .006 -1.75Customized Service .000 3 1.000 .00Additional services .000 3 1.000 .00Domain Consultation -.397 3 .718 -.2524/7 Availability -1.095 3 .353 -1.00Employee Behaviour .000 3 1.000 .00Freight House L.L.C Credit Policy -4.638 38 .000 -.87On time delivery 3.354 38 .002 .36Quality 5.196 38 .000 .46Cost of Service -9.574 38 .000 -1.69Defined Process -.612 38 .544 -.10Customized Service -9.073 38 .000 -1.05Additional services -12.135 38 .000 -1.59Domain Consultation -2.573 38 .014 -.4624/7 Availability -5.848 38 .000 -1.05
  57. 57. An ISO 9001:2008 Certified companyFirst programming school in India45Employee Behaviour 1.220 38 .230 .13Swift International L.L.C Credit Policy -7.755 81 .000 -1.11On time delivery 2.271 81 .026 .22Quality 1.644 81 .104 .18Cost of Service -11.806 81 .000 -1.55Defined Process -3.853 81 .000 -.49Customized Service -7.009 81 .000 -.82Additional services -10.729 81 .000 -1.39Domain Consultation -4.200 81 .000 -.5424/7 Availability -9.578 81 .000 -1.10Employee Behaviour -1.386 81 .170 -.16Table 5.2.2: Importance given to different factorsInference:For Worldnet Logistics L.L.C customers: Quality and on time delivery are the most important factors.The next important factors are customized service, additional services and employee behaviour. Domainconsultation, 24/7 availability, credit policy and cost of service are also important. Having a defined toprocess to serve the customers is not important.For Freight House L.L.C customers: Quality is the most important factor. On time delivery is the secondimportant factor. Employee behaviour and having a defined process to serve the customers are alsoimportant. All the other factors are not important.For Swift International L.L.C customers: On time delivery is the most important factor. The secondimportant factor is quality. Employee behaviour is also an important factor. All other factors are notimportant.Overall, quality of service and on time delivery are the most important factors for all the customers whilelooking for a service.5.2.3 How important is each factor for the customers based on differentservices they avail?Assumption: If the average rating is 4 or more, the factor is considered to be important.
  58. 58. An ISO 9001:2008 Certified companyFirst programming school in India46Services availed N Mean Std. DeviationStd. ErrorMeanDocument Clearance Credit Policy 23 3.65 .487 .102On time delivery 23 4.65 .487 .102Quality 23 4.65 .487 .102Cost of Service 23 1.96 .878 .183Defined Process 23 3.57 1.273 .265Customized Service 23 2.91 .515 .107Additional services 23 2.61 .891 .186Domain Consultation 23 3.43 .992 .20724/7 Availability 23 3.22 1.347 .281Employee Behaviour 23 3.83 .834 .174Transportation Credit Policy 6 2.33 1.033 .422On time delivery 6 4.00 .894 .365Quality 6 4.33 .516 .211Cost of Service 6 3.33 .516 .211Defined Process 6 3.00 .894 .365Customized Service 6 4.33 .516 .211Additional services 6 3.67 1.033 .422Domain Consultation 6 3.67 1.366 .55824/7 Availability 6 3.33 1.366 .558Employee Behaviour 6 4.00 .894 .365Air-Freight Clearance Credit Policy 22 2.55 1.371 .292On time delivery 22 4.45 .510 .109Quality 22 4.55 .510 .109Cost of Service 22 2.36 1.177 .251Defined Process 22 3.36 1.177 .251Customized Service 22 2.91 1.192 .254Additional services 22 2.36 1.002 .214Domain Consultation 22 3.50 1.058 .22624/7 Availability 22 2.64 1.177 .251Employee Behaviour 22 4.36 .658 .140Sea-Freight Clearance Credit Policy 22 3.55 1.371 .292On time delivery 22 4.14 .941 .201Quality 22 4.41 .666 .142Cost of Service 22 2.14 1.082 .231Defined Process 22 3.41 1.141 .243Customized Service 22 3.14 1.521 .324Additional services 22 2.32 1.249 .266
  59. 59. An ISO 9001:2008 Certified companyFirst programming school in India47Domain Consultation 22 3.41 1.368 .29224/7 Availability 22 3.18 .958 .204Employee Behaviour 22 3.50 1.058 .226More than one service Credit Policy 52 2.63 1.221 .169On time delivery 52 4.13 .908 .126Quality 52 3.96 1.137 .158Cost of Service 52 2.63 1.253 .174Defined Process 52 3.85 1.055 .146Customized Service 52 3.19 .627 .087Additional services 52 2.67 1.115 .155Domain Consultation 52 3.54 1.146 .15924/7 Availability 52 2.75 .883 .122Employee Behaviour 52 3.98 1.000 .139Services availedTest Value = 4t Df Sig. (2-tailed)MeanDifferenceDocument Clearance Credit Policy -3.425 22 .002 -.35On time delivery 6.423 22 .000 .65Quality 6.423 22 .000 .65Cost of Service -11.163 22 .000 -2.04Defined Process -1.638 22 .116 -.43Customized Service -10.130 22 .000 -1.09Additional services -7.486 22 .000 -1.39Domain Consultation -2.732 22 .012 -.5724/7 Availability -2.787 22 .011 -.78Employee Behaviour -1.000 22 .328 -.17Transportation Credit Policy -3.953 5 .011 -1.67On time delivery .000 5 1.000 .00Quality 1.581 5 .175 .33Cost of Service -3.162 5 .025 -.67Defined Process -2.739 5 .041 -1.00Customized Service 1.581 5 .175 .33Additional services -.791 5 .465 -.33Domain Consultation -.598 5 .576 -.3324/7 Availability -1.195 5 .286 -.67Employee Behaviour .000 5 1.000 .00Air-Freight Clearance Credit Policy -4.977 21 .000 -1.45
  60. 60. An ISO 9001:2008 Certified companyFirst programming school in India48On time delivery 4.183 21 .000 .45Quality 5.020 21 .000 .55Cost of Service -6.521 21 .000 -1.64Defined Process -2.536 21 .019 -.64Customized Service -4.294 21 .000 -1.09Additional services -7.659 21 .000 -1.64Domain Consultation -2.217 21 .038 -.5024/7 Availability -5.434 21 .000 -1.36Employee Behaviour 2.592 21 .017 .36Sea-Freight Clearance Credit Policy -1.555 21 .135 -.45On time delivery .680 21 .504 .14Quality 2.881 21 .009 .41Cost of Service -8.078 21 .000 -1.86Defined Process -2.430 21 .024 -.59Customized Service -2.663 21 .015 -.86Additional services -6.315 21 .000 -1.68Domain Consultation -2.026 21 .056 -.5924/7 Availability -4.006 21 .001 -.82Employee Behaviour -2.217 21 .038 -.50More than one service Credit Policy -8.063 51 .000 -1.37On time delivery 1.069 51 .290 .13Quality -.244 51 .808 -.04Cost of Service -7.859 51 .000 -1.37Defined Process -1.052 51 .298 -.15Customized Service -9.283 51 .000 -.81Additional services -8.579 51 .000 -1.33Domain Consultation -2.905 51 .005 -.4624/7 Availability -10.210 51 .000 -1.25Employee Behaviour -.139 51 .890 -.02Table 5.2.3: Importance given to factors based on the services the company availInference: For companies who need only document clearance service, quality, on time delivery andemployee behaviour are the most important factors. All other factors are not important.For companies who need only transportation, customized service, domain consultation, additionalservices, 24/7 availability, quality, on time delivery and employee behaviour are the most importantfactors. All other factors are not important.
  61. 61. An ISO 9001:2008 Certified companyFirst programming school in India49For companies who need only air-freight clearance service, quality and on time delivery are the only twoimportant factors.For companies who need only sea-freight clearance service, credit policy, quality and on time delivery arethe important factors.For companies who need more than one service, employee behaviour, quality, on time delivery andhaving a defined process are the important factors.5.2.4 Is there any significant difference for the importance given for eachfactor amongst the companies based on the service they avail?ANOVASum ofSquares df Mean Square F Sig.On time delivery Between Groups 4.734 4 1.184 1.912 .113Within Groups 76.770 124 .619Total 81.504 128Credit Policy Between Groups 24.406 4 6.102 4.328 .003Within Groups 174.819 124 1.410Total 199.225 128Customized Service Between Groups 11.043 4 2.761 3.136 .017Within Groups 105.645 120 .880Total 116.688 124Quality Between Groups 11.938 4 2.985 4.222 .003Within Groups 87.659 124 .707Total 99.597 128Cost of Service Between Groups 11.811 4 2.953 2.351 .058Within Groups 155.740 124 1.256Total 167.550 128Defined Process Between Groups 7.363 4 1.841 1.487 .210Within Groups 153.475 124 1.238Total 160.837 128Employee Behaviour Between Groups 8.525 4 2.131 2.566 .041Within Groups 102.979 124 .830Total 111.504 12824/7 Availability Between Groups 7.704 4 1.926 1.737 .146Within Groups 137.521 124 1.109Total 145.225 128
  62. 62. An ISO 9001:2008 Certified companyFirst programming school in India50Additional services Between Groups 10.170 4 2.543 2.230 .070Within Groups 141.380 124 1.140Total 151.550 128Domain Consultation Between Groups .941 4 .235 .173 .952Within Groups 169.075 124 1.364Total 170.016 128Table 5.2.4: Importance given for each factor amongst the companies based on the service they availInference: The difference in rating given to different factors is significant only in credit policy, quality,employee behaviour and customized service.5.2.5 Does area of operation has any association with the service providerselection?Hypothesis:H0: Area of operation has no association with the service provider selection.H1: Area of operation has association with the service provider selection.Freight Forwarder * Area of operations CrosstabulationArea of operationsTotalDomestic International GCCFreight Forwarder Worldnet LogisticsL.L.CCount 1 2 1 4Expected Count .9 2.0 1.1 4.0Freight House L.L.C Count 11 18 13 42Expected Count 9.4 21.2 11.4 42.0Swift InternationalL.L.CCount 17 45 21 83Expected Count 18.7 41.8 22.5 83.0Total Count 29 65 35 129Expected Count 29.0 65.0 35.0 129.0Table 5.2.5: Association of area of operation and the service providerInference: From the above table, there is no significant difference between the count and the expectedcount, so there is no association between the area of operation of the company and service providerselection.Chi-Square Tests
  63. 63. An ISO 9001:2008 Certified companyFirst programming school in India51Value dfAsymp. Sig.(2-sided)Pearson Chi-Square 1.465(a) 4 .833Likelihood Ratio 1.469 4 .832Linear-by-LinearAssociation.006 1 .941N of Valid Cases129Inference: From the above table, we can infer that the statistical significance ie. .833 is more than thepostulated significance that is .05. Hence we accept the null hypothesis. So the proposed hypothesiswhich states that there is no association between the area of operation of the company and serviceprovider selection is supported.5.2.6 Does services availed has any association with the service providerselection?Freight Forwarder * Services availed CrosstabulationServices availed TotalFreightForwarderDocumentClearanceTransportationAir-FreightClearanceSea-FreightClearanceMorethan oneserviceWorldnetLogistics L.L.CCount1 2 1 0 0 4Expected Count .8 .2 .7 .7 1.6 4.0Freight HouseL.L.CCount17 0 8 0 17 42Expected Count 8.8 2.0 7.2 7.2 16.9 42.0SwiftInternationalL.L.CCount9 4 13 22 35 83Expected Count 17.4 3.9 14.2 14.2 33.5 83.0Total Count 27 6 22 22 52 129Expected Count 27.0 6.0 22.0 22.0 52.0 129.0Table 5.2.6: Association of services availed and the service provider selection
  64. 64. An ISO 9001:2008 Certified companyFirst programming school in India52Inference: From the cross tabulation we can see that there is a significant different between the count andexpected count for some of the services availed and freight forwarder. So we can say that there is anassociation between the service provider selection and the different type of services company want.Hypothesis:Null Hypothesis H0:Type of services a company want has no association with the service providerselection.Alternate Hypothesis H1:Type of services a company wants has association with the service providerselection.Chi-Square TestsValue dfAsymp. Sig.(2-sided)Pearson Chi-Square 45.594(a) 8 .000Likelihood Ratio 43.744 8 .000Linear-by-LinearAssociation12.048 1 .001N of Valid Cases129a 7 cells (46.7%) have expected count less than 5. The minimum expected count is .19.Inference: As the statistical significance (.000) is less than the postulated significance .05, we reject thenull hypothesis. So the proposed hypothesis which states type of services a company wants has noassociation with the service provider selection is not supported.
  65. 65. An ISO 9001:2008 Certified companyFirst programming school in India53CHAPTER 6. RESEARCH FINDINGS
  66. 66. An ISO 9001:2008 Certified companyFirst programming school in India541. 40.31 % of companies need more than one service. The percentage of companies who requiretransportation is less(Only 4.67%) compared to other services.2. Half of the companies (50.39%) either export or import goods out of Dubai.3. 59.04 % of the customers of the Swift International L.L.C are satisfied with the service they aregetting. 50 % of the customers of the Worldnet Logistics L.L.C are satisfied with the service theyare getting. Only 28.57 % of the customers of the Freight House LLC are satisfied with theservice they are getting. The difference between the satisfaction levels of three companies issignificant.4. A huge 79.8 % of the companies can change their service provider easily.5. 87.8 % of the companies believe that on time delivery is an important factor in choosing theirservice provider.6. Ranks given to factors that influence the selection of a service provider is given below in theascending order. Quality, On time delivery and Employee Behaviour are the top three factors.
  67. 67. An ISO 9001:2008 Certified companyFirst programming school in India55Factor RankQuality 1On time delivery 2Employee Behaviour 3Defined Process 4Domain Consultation 5Customized Service 624/7 Availability 7Credit Policy 8Additional Services 9Cost of Service 107. The average ratings given to each factor differ from service provider to service provider. Butirrespective of the service provider, Quality and On time delivery are the most importantfactors.For Worldnet Logistics L.L.C customers: The next important factors are customizedservice, additional services and employee behaviour. Domain consultation, 24/7 availability,credit policy and cost of service are also important. Having a defined to process to serve thecustomers is not important. For Freight House L.L.C customers: Employee behaviour and havinga defined process to serve the customers are also important. All the other factors are notimportant.For Swift International L.L.C customers: Employee behaviour is also an importantfactor. All other factors are not important.8. The average ratings given to each factor differ based on the service a company avail. Forcompanies who need only document clearance service, quality, on time delivery and employeebehaviour are the most important factors. For companies who need only transportation,customized service, domain consultation, additional services, 24/7 availability, quality, on timedelivery and employee behaviour are the most important factors. All other factors are notimportant. For companies who need only air-freight clearance service, quality and on timedelivery are the only two important factors. For companies who need only sea-freight clearanceservice, credit policy, quality and on time delivery are the important factors.For companies whoneed more than one service, employee behaviour, quality, on time delivery and having a definedprocess are the important factors.9. Even though the ratings given to factors are different for different service providers, thedifference is significant only in the case of credit policy, quality, employee behaviour andcustomized service.
  68. 68. An ISO 9001:2008 Certified companyFirst programming school in India5610. The service provider selection has no association with the area of operation( domestic, GCC orinternational)11. Companies choose service provider depending upon what kind of service they need.
  69. 69. An ISO 9001:2008 Certified companyFirst programming school in India57CHAPTER 7. RECOMMENDATIONS
  70. 70. An ISO 9001:2008 Certified companyFirst programming school in India58Worldnet logistics should:1. Worldnet should try to provide multiple services as 40.31 % of the companies require more thanone service. In the budget minimum money should be allocated for Transportation as only 4.67 %need only transportation.2. Separate department should be created for international services as half of the companies eitherexport or import goods out of Dubai.3. Create a customer service department as only half of the customers are happy with the serviceWorldnet Logistics is providing.4. Customer retention programmes should be included as 79.8 % of the companies can change theirservice provider easily.5. Create a quality control team as all the companies have maximum rating to Quality and On timedelivery as the deciding factor while choose their service provider.6. Provide trainings to Employees as Employee Behaviour is the third important factor whilechoosing a service provider.
  71. 71. An ISO 9001:2008 Certified companyFirst programming school in India59
  72. 72. An ISO 9001:2008 Certified companyFirst programming school in India60CHAPTER 8. CONCLUSIONThird Party Logistics (3PL) provider handles all or most of freight of the organizations includingthe management of information by the third party, freeing the company from day to day
  73. 73. An ISO 9001:2008 Certified companyFirst programming school in India61interaction with carriers, and having to oversee hundreds or thousands of shipment. Like in anyother business there are different factors which companies consider while choosing a serviceprovider for their logistics needs. This study has identified different factors which companiesconsider and the importance given to each factor by different companies. The different factorsbased on their rank are Quality, Quality, on time delivery, Employee Behaviour, Definedprocess, Domain Consultation, Customized service, 24/7 Availability, Credit Policy, AdditionalServices, Cost of service. This study will help the third party logistics providers to concentrateon specific areas of work to improve the customer loyalty. The managers of a third partylogistics should concentrate on the quality of service, on time delivery, employee behaviour, increating a well defined process to provide the service. In order to improve the employeebehaviour and productivity, different training sessions can be arranged to the employees. Asmost of the companies have international operations, companies should implement technologicalsolutions based on internet which will benefit the international customers.
  74. 74. An ISO 9001:2008 Certified companyFirst programming school in IndiaAPPENDIX
  75. 75. An ISO 9001:2008 Certified companyFirst programming school in IndiaANNEXURE 1: BIBLIOGRAPHYBooks referred1. P. Saravanavel (2003) , “Research Methodology” KitabMahal, Patna IndiaP 304-3122. Research methodology – C R Kothari (second revised edition, pagenumbers: 55-60, 95-105 and 191-194)3. NasehaKanwal, Shakil Ahmed,( June 2009)”Sales Force Automation AndOrganization Profitability The Case of Unilever And Dalda Companies”International Review of Business Research Papers, Vol. 5 No. 4 Pp.365‐3734. S L Gupta,(2006), Sales and Distribution Management, Excel Publishers(page10-55)Websites1. http://en.wikipedia.org/wiki/Chi-square_test2. http://en.wikipedia.org/wiki/Pearsons_chi-square_test
  76. 76. An ISO 9001:2008 Certified companyFirst programming school in India3. http://www.experiment-resources.com/anova-test.html4. http://www.physics.csbsju.edu/stats/anova.html5. http://en.wikipedia.org/wiki/Third-party_logistics6. http://www.iimm.org/knowledge_bank/1_growth-in-logistic-anoverview.htmANNEXURE 2: QUESTIONNAIREName:Address:Phone:Email ID:Type of services the company uses:1. Document clearing2. Transportation3. Air – freight clearance4. Sea freight clearance5. More than one serviceArea of operations:1. Domestic3. GCC
  77. 77. An ISO 9001:2008 Certified companyFirst programming school in India2. International1. Are you satisfied with the existing service provider?Yes No2. Is it easy for you to change your service provider if you want?Yes NoHow would you rate the following factors? (Choose from a scale of 1 to 5)5. Strongly Agree 4. Agree 3. Indifferent 2. Disagree 1. Strongly Disagree3. On time delivery is very important4. Credit period for the payments for both customs duty and service charge affects my decision making5. A customized service from a company will impact my decision making6. Quality of the service is very important7. I prefer an economic service even if the service is slow.8. I like the companies which have a well defined process for the service processing9. I like companies whose employees behave cordially10. I like service which is available round the clock(24/7)
  78. 78. An ISO 9001:2008 Certified companyFirst programming school in India11. I prefer companies who provide additional services like loading, unloading facilities.12. I prefer companies which provide consultation about customs/shipment procedure.

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