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A STUDY ON MEASURING SERVICE QUALITY AT NETWORK LOGISTICS PVT LTD

By

JITHENDRA.D 310011631017

A PROJECT REPORT Submitted to the FACULTY OF MANAGEMENT SCIENCES In partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY Tharamani Campus, Chennai – 600113 July , 2013

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BONAFIDE CERTIFICATE

Certified that the Project report titled “A study on the measuring service quality at Network Logistics Private Limited” is the bonafide work of Mr.D.JITHENDRA, 310011631017 who carried out the work under my supervision. Certified further that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

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ABSTRACT
Logistics is a catalyst for economic development and trade-in an increasingly globalized world where goods are moving farther, faster and cheaper than ever. In the fastpaced and highly competitive market, service quality and customer satisfaction play an important role in determining success of an organization. This research applies the Logistic Service Quality (LSQ) model, using variables which include „timely delivery‟, „physical facilities‟, „quality of information‟, „quality of personnel‟, „assurance‟ and „reliability‟ in determining the most effective dimension in providing sound service quality to achieve customers‟ satisfaction in the current market condition. This because the performance of a service-based company is based solely through their ability to provide good service to their customers in orders to satisfy their needs. This research will be carried out on Network Logistics Private Limited (NLPL), which is a Third Party Logistics (3PL) company. The research will measure the service quality of NLPL using SERVQUAL instrument and KANO‟S MODEL to categorize logistics service quality dimensions and their elements and understand the demands of users. The data were collected through a questionnaire survey in which a customer‟s responded to a series of 40 attribute questions based on six key dimensions – timely delivery, physical facilities, information, personnel, assurance and reliability. Hypotheses were taken on the fact that there is a gap existing between expectation and perception in this dimension and all hypotheses are proved significant and they all are accepted after conducting Paired T test, one sample t test and correlation test. Therefore it is better to conclude that the network logistics private limited is not performing up to the satisfaction of the customers and they need to take corrective steps to minimize these gaps as early as possible. The study concludes with some recommendations to improve the quality to attract the customers.

MUNAVER HUSSAIN. It has been a wonderful learning experience throughout and this work would have been impossible without him. Dr. yet importantly.N.D.Prabhakaran.O. I wish to express my deep sense of gratitude to my Internal Guide. Tharamani. CPT Campus. Finally. I would like to express my heartfelt thanks to my beloved parents for their blessings. Chennai for all her valuable assistance in the project work. and encouragement. in time.Department of Management Studies.R. I wish to express my deep gratitude to Mr. which helped me in completing the project work. D. motivation. my friends/classmates for their help and wishes for the successful completion of this project.JITHENDRA . for his able guidance and useful suggestions.iv ACKNOWLEDGEMENT I take immense pleasure in thanking our H. K. Anna University.GEETHA. Operations Department manager “NETWORK LOGISTICS PRIVATE LIMITED” my guide who has been a great source of guidance.S.

3 INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE OBJECTIVE OF THE STUDY NEED FOR THE STUDY SCOPE OF THE STUDY LIMITATIONS OF THE STUDY REVIEW OF LITERATURE RESEARCH METHODOLOGY ANALYSIS AND INTERPRETATION FINDINGS SUGGESTIONS AND CONCLUSION FINDINGS SUGGESTIONS CONCLUSION BIBLIOGRAPHY APPENDICES ( Questionnaire) iii iv vi vii viii 1 13 23 36 37 38 39 40 46 56 69 69 71 72 73 75 .1 1.6 2 3 4 5 5.v CONTENTS CHAPTER.NO.5 1.1 5.4 1.3 1.2 5. NAME OF THE CHAPTER PAGE.2 1.NO ABSTRACT ACKNOWLEDGEMENT LIST OF TABLES LIST OF FIGURES LIST OF ABBREVATIONS 1 1.

5 3.7 4.6 4.3 1.3 4.1 3.8 4.4 4.vi LIST OF TABLES No 1.2 4.2 3.9 4.4 4.4 1.1 4.1 1.10 Title Key opportunities logistics industry Major players logistics industry Key players in Rs 100mn license fee category Market potential analysis Details of network logistics private limited Calculation of SERVQUAL scores SERVQUAL importance weights Calculation of weighted SERVQUAL scores Functional and dysfunctional question in the KANO questionnaire Reliability statistics for P and (P-E) scores SERVQUAL output (attribute) SERVQUAL output (dimension) Friedman test (mean) Test statistic for friedman test (mean) Paired t test Correlation test KANO‟S model output one KANO‟S model output two CS coefficients Page No 16 17 19 21 23 47 48 48 53 56 58 59 60 61 62 63 64 65 66 .2 1.3 3.5 4.

1 4.2 1.2 4.4 1.1 3.2 Service quality gaps KANO'S model Ownership pattern of NLPL Logo of NLPL Network of NLPL Chronology of vessel / rig clearance Clients of NLPL KANO evaluation table KANO‟S model evaluation process SERVQUAL output (dimension) SII & DDI Title Page No 6 10 24 25 25 26 33 53 54 59 68 .6 1.5 1.3 1.1 1.vii LIST OF FIGURES No 1.7 3.

Ltd Custom House Agency Ministry Of Home Affairs Ministry Of Defense Mercantile Marine Department Offshore Defense Advisory Group Offshore Supply Vessels Dive Support Vessel Central Board Of Direct Taxes .viii LIST OF ABBREVIATIONS Abbreviations TPL CLNI PDSQ LSQ DLA ASRS AGV CAGR EMS MTO NMDP ICD CFS PREM NLPL CHA MOHA MOD MMD ODAG OSV DSV CBDT Third Party Logistics Expansion Page No 2 4 4 4 7 8 8 13 14 15 15 16 16 21 23 23 32 32 32 32 32 32 32 Council Of Logistics Management Physical Distribution Service Quality Logistics Service Quality Defense Logistics Agency Automated Storage And Retrieval System Automated Guided Vehicle Compound Annual Growth Rate Express Mail Service Multimodal Transport Operation National Maritime Development Program Interface Control Document Container Freight Station Poverty Reduction And Economic Management Network Logistics Pvt.

and people. This can be defined as having the right item in the right quantity at the right time for the right price and is the science of process and incorporates all industry sectors. reason. and packaging. energy. transportation. services. calculation. 1. speech. calling for experts in the field who are called Supply Chain Logisticians. Roman and Byzantine empires. and finished inventories where required at the lowest cost possible. and oration”. effective forward and reverse flow and storage of goods. word. information and other resources like products. material handling. The goal of logistic work is to manage the fruition of project life cycles. inventory. from the source of production to the market place. It involves the integration of information. . Business logistics: Logistics as a business concept evolved only in the 1950s.2 Logistics management Logistics Management is that part of the supply chain which plans. 1.1 Logistics Logistics is the art and science of managing and controlling the flow of goods. supply chains and resultant efficiencies.1 INTRODUCTION TO STUDY 1. The operating responsibility of logistics is the geographical repositioning of raw materials.1. Logistics as a concept is considered to evolve from the military's need to supply them as they moved from their base to a forward position.1 CHAPTER I INTRODUCTION 1. which means “ratio. In ancient Greek.1. implements and controls the efficient. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain. there were military officers with the title „Logistikas‟ who were responsible for financial and supply distribution matters. It is difficult to accomplish any marketing or manufacturing without logistical support. work in process. warehousing. services and related information between the point of origin and the point of consumption in order to meet customers' requirements. The word of logistics originates from the ancient Greek logos .

or materials management were handled internally by firms as support functions and were given low priority compared to other business functions. but to streamline and control the flow through the value adding processes and eliminates non-value adding ones. incorporating the shift to just-in-time production schemes. inventory management. and emerging technology contribute to the interest in outsourcing. and customer needs are often as diverse as the countries in which they live”. the internal and the external. Increasing customer expectations with respect to IT support . Accordingly. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time. The Top 5 of these dynamics consists of 1. Traditionally. A growing customer interest in outsourcing a broader array of logistics services 3. order processing. Lead time reductions. given that “the best supplier may be found halfway around the world. logistics activities like distribution. They can Provide the functions in-house Own logistics subsidiaries Outsource the function and buy the service. trends like globalization.1. 1. add to the increasing complexity and cause inventory and logistics control to be crucial to manufacturing and distribution operations. lead time reductions. Large-scale mergers of 3PL providers in North America 5. An increased pressure to internationalize company service offerings 4.2 2. The internal principle refers to recognizing a lack of in-house resource availability. Production logistics: The term is used for describing logistic processes within an industry. conducted by Lieb and Butner (2007) among CEOs of third-party logistics providers in North America. The external principle puts emphasis on a firm's external competitive environment. One can divide the principles underlying organization‟s decision to outsource into two groups. The issue is not the transportation itself. A recent study. reveals several industry dynamics that are currently operating in the marketplace. Globalization increases the complexity of supply chains.3 The development of third party logistics (3pl) Companies have different options to consider in handling their logistics activities effectively and efficiently. A continuing downward pressure on prices 2.

the concept of logistics customer service remains important until today. and to some extent. and related information flows. Since then. a continuing downward pressure on prices and pressures to internationalize service offerings. It acts as the binding and unifying force for the total logistics supply chain of warehousing. 1. order processing. satisfaction and service quality in logistics. Since it was given attention in the early 1970s. closer customer. The importance of customer service and satisfaction in logistics can be viewed from chronological perspectives. However.5 Logistics leads to competitive advantage In the early years of the "customer focus" era. This was due to the fact that firms that provide innovative customer service would benefit from increased customer satisfaction. transportation. 1. at the right price.3 Two of these dynamics. are also among the Top 5 of the main industry problems. then known as physical distribution had been one of the longest standing subjects of study in marketing.1. Accordingly. and profitability and a differential competitive advantage. inventory management. companies realized that in order to be successful in business. combined with the right promotion and available at the right place. which are the four Ps of the marketing mix. It also demonstrates various ways in which measuring customer satisfaction has evolved in the literature. they must integrate the ideas of having the right product. management science. more work has shifted the focus of customer service definition from a supplier's viewpoint to a customer perspective. increased customer loyalty.supplier relationships. Much of the influence in developing the concept in the early 1970s to Mid 1980s came from the operations management. marketing. . the focus on logistics customer service and the related concept of customer satisfaction and service quality has only increasingly developed in the early 1970s and been seen as a key part of future research in the logistics discipline.4 The importance of customer service and satisfaction in logistics The importance of customer service was recognized over 50 years ago while logistics. A company may improve their competitive position by allocating resources more effectively and efficiently to these components of the marketing mix to create a market offering.1. it reviews related literature on customer service.

mistakes. PDSQ. materials and services without errors. Thus. The interactions that the customers have with these people and procedures should affect their perceptions of overall logistics services. undamaged orders and error-free paperwork. defects. Other components comprise of marketing customer service components that were developed in line with traditional service quality research in marketing. They argue that customer service should be combined with Physical Distribution Service Quality (PDSQ) to conceptualize Logistics Service Quality (LSQ). (1) ease of inquiry. Specifically. are viewed as the critical aspects of the customer's perception of LSQ. timely generation and transmission of information among the functions of business and with external parties to support the planning. order placement and order transmission. accuracy of orders and information as well as responsiveness. availability and order condition.6 Measuring logistics service performance In a study on the quality and productivity in the logistics process by The Council of Logistics Management (CLNI).7 Logistics service quality By taking into consideration SERVQUAL and other service quality research in marketing. They measure logistics quality based on the ability to distribute a product or materials in conformance with customer requirements and standards. which consists of timeliness. which was based on the notion that logistics services involve people who often take orders and deliver products and procedures for placing orders and handling discrepancies.1. management and execution of the activities". timeliness of delivery and communication. (3) accurate. The developments of these definitions form the starting point of using a service quality approach to measure customer satisfaction. order delivery and communication. or other gaps from customers' expectations. complete. 1. . Byrne and Markham (1991) define quality in logistics as the "means meeting agreed to customer requirements and expectations. Mentzer et al (1999) expanded the use of the service quality concept into the logistics context. (2) timely. logistics quality measures the ability to deliver products. including the following dimensions. (5) accurate. From this definition. the focus was given to the ease of ordering procedures.4 1.1. reliable. (4) timely and responsive post-sales support.

(1985). According to the following explanation. word of mouth recommendation and past service experiences.8 Service quality gaps There are seven major gaps in the service quality concept. Gap1: Customers‟ expectations versus management perceptions: as a result of the lack of a marketing research orientation. Gap6: The discrepancy between customer expectations and employees‟ perceptions: as a result of the differences in the understanding of customer expectations by front-line service providers. . since they have a direct relationship with customers. 2. lack of perceived control and lack of teamwork. 5. Gap3: Service specifications versus service delivery: as a result of role ambiguity and conflict. In this case. 1. 3. 4. Gap4: Service delivery versus external communication: as a result of inadequate horizontal communications and propensity to over-promise. Gap7: The discrepancy between employee‟s perceptions and management perceptions: as a result of the differences in the understanding of customer expectations between managers and service providers. inappropriate supervisory control systems. a perception of unfeasibility. inadequate upward communication and too many layers of management. The model is an extension of Parasuraman et al. Gap5 and Gap6. which are more associated with the external customers. inadequate task standardization and an absence of goal setting. are Gap1. Gap2: Management perceptions versus service specifications: as a result of inadequate commitment to service quality. 7.5 1. the three important gaps. poor employee-job fit and poor technology-job fit. 6. Gap5: The discrepancy between customer expectations and their perceptions of the service delivered: as a result of the influences exerted from the customer side and the shortfalls (gaps) on the part of the service provider. customer expectations are influenced by the extent of personal needs.1. which are shown in Figure 1.

whereas Gap 5 pertains to the customer and as such is considered to be the true measure of service . Gap 6 and Gap 7) are identified as functions of the way in which service is delivered. The first six gaps (Gap 1. Gap 2. The model identifies seven key discrepancies or gaps relating to managerial perceptions of service quality.1 : Service Quality Gaps According to Brown and Bond (1995). and tasks associated with service delivery to customers. "the gap model is one of the best received and most heuristically valuable contributions to the services literature". Gap 3. Gap 4.6 Figure 1.

Reliability: This is the assessment of firm‟s consistency and dependability in service performance. trust in this study is defined as "the customer's perceived credibility and benevolence of a 3PL provider". timely delivery and physical facilities. providing the correct service at the first time. keep an error free record. In a broader perspective. In the following. it refers to the length of time between . it is evaluated that how well the service providers can keep their promise. 3. It is generally agreed in the marketing literature that trust is essential industrial marketing settings as a key ingredient for successful relationships. 2. Defense Logistics Agency (DLA) in the United States. by which perceptions of logistics service components affect one another and eventually lead to customer satisfaction across order placement. The Gap on which the SERVQUAL methodology has influence is Gap 5. Doney and Cannon (1997) emphasize the relevance of this definition in an industrial buying context due to some degree of risk in a purchase situation indicating the customer's trust in a 3PL provider firm as well as its contact person. information quality. the SERVQUAL approach is demonstrated. Doney and Cannon (1997) consider trust as an important pre-requisite for building long-term relationships. Timely delivery: Customers care most that the orders must arrive at the customer's premises as promised. complain handling. help to solve problems. staff and officers. order receipt and satisfaction. The questions that are used to assess the reliability gap covers the areas like. Mentzer et al (2001) extended Mentzer et al's (1999) study by conceptualizing the six dimensions of LSQ as a process. The motivation behind this definition is explained below. Assurance: Consistent with the previous research in social psychology and marketing channel relationships. The reliability dimension is deemed to be the most important among all the dimensions.keeping promise. Service provider‟s ability to handling complains. perform right the first time. In a third party logistics alliance study Moore (1998) demonstrates that trust is crucial in 3PL's relationship with the customers.7 quality. deliver services on time. Through these items. 1. Empirically validated on the customers of a single large logistics provider firm. assurance. LSQ is a scale for measuring logistics service quality that is conceptualized as six dimensions: reliability. inform about events and services have been taken as the variables of reliability dimension by different researchers. served at the promised time.

Straddle trucks. These situations are represented by the timeliness dimension. Manual cart. Extensible. Parasuraman et al (1985) argue that in most service encounters. Most authors recognize that customers care about whether customer service personnel are knowledgeable. This delivery time can be affected by the problems during transportation that may delay the transportation time. Single pallet jack. forms the information quality construct. The vehicles are Pallet trucks. Powered roller. textiles. Slip sheeter. Having considered the fact that logistics services involve personnel who often take orders and deliver products. Information quality: The way customers perceive the information given by the suppliers/ service providers with regard to the variety of products that the customer may choose. Tow line. Skate wheel. quality perceptions are formed during the service delivery. AGVs. and help them resolve their problems. empathies with their situation. Physical facilities: In this dimension. which involves personnel contact. the service provider must provide the following range of vehicles and conveyers. Turret trucks. than to the resulting service outcome. Double pallet jack. Similarly. Powered belt. As such. Walkie stackers. Rail-guided order pickers. 4. Suprenant and Solomon (1987) suggest service quality perceptions are tied more to the service process. Tugger etc. Stand-up counterbalance. Hybrid trucks. It could also be influenced by back-order time when products ordered are not available in stock. The conveyers are Non-powered roller. electronics and construction) in their study. staffs and officers is an important aspect of the employee-customer interface. Pallet conveyer.8 order placement and receipt. Manabroad pallet jack. 5. Wireguided order pickers. Side-loader trucks. 6. Tilt-tray sorter etc. and are involved in procedures for placing orders and handling discrepancies. . PalletASRS machines. Staffs and officers: Staffs and officers refer to the customer orientation of the supplier's logistics contact people. The quality of the information especially in terms of adequacy and availability of the products is very important to customers so that they are able to use the information to make decisions. Mentzer et al (2001) highlight the positive influence of staffs and officers on perceptions of timeliness in all four segments (general. staffs and officers becomes one of the most vital variables in delivering service. Sitdown counterbalance.

Perceived service is the customers' perception of the service level received. Kano's model categorizes the attributes of a product or service based on how well the attributes are able to satisfy customer needs. therefore. Their research made a major contribution to the study of service marketing. additionally. Zeithaml et al. customer satisfaction. They expanded SERVQUAL to include the relationships among customer service expectation. able to help SERVQUAL to prioritize the improvement of an organization's weaknesses based on the category of need that can lead to the highest customer satisfaction. defined two additional gaps in service quality. .9 SERVQUAL SERVQUAL is used as a diagnostic technique for uncovering broad areas of an organization's service quality strengths and weaknesses. While service quality is a function of the perceived service gaps. Perceived service was previously defined. It is. The present research differentiated service quality from customer satisfaction. Adequate service refers to the minimum level of service that customers are willing to accept. addressed what they viewed as a lack of consensus among researchers on the enlarged definition base of customer service. This research focused on how to improve service quality and at the same time provide input into an innovation process. Kano's model is proposed to be integrated into SERVQUAL in order to eliminate the linearity assumption and to also provide innovative inputs. The following section describes how Kano's model categorizes the attributes of a product or service based on their ability to satisfy customer needs. In 1993. Desired service is that which customers want or desire before encountering a service. The other gap is the perceived service adequacy gap which arises from a difference between perceived service and adequate service. service level antecedents.1. Kano's model can. and other intervening factors. enable SERVQUAL to focus on the attractive attributes that are most favored in the product/service innovation process. One is the perceived service superiority gap which arises from a difference between desired service and perceived service. perceived service. service quality. customer satisfaction results from comparing predicted service to perceived service. while perceived service is how they feel after receiving the service. Predicted service is the level of service that customers believe they are likely to get.9 1. Zeithaml et al.

customer satisfaction increases super-linearly with increasing attribute performance.2: Kano‟s Model for these needs.10 1. but may be more satisfied if a bonus is provided. For example.10 KANO‟s model Kano et al. (2000) discussed another important implication of Kano's model concerned with the timely delivery of products and services. The following are the popularly named Kano customer need categories (see also Figure 2): The must-be or basic needs: For these needs. having unfriendly sales assistants causes customer dissatisfaction.1. however. (1984) developed a model to categorize the attributes of a product or service based on how well they are able to satisfy customer needs. Considering Kano's model. There is. one sees how it may not be enough to merely satisfy customers by meeting only their basic and performance needs. Having friendly sales assistants. customers become dissatisfied when performance of the service attribute is low. a discount is likely to be a performance need where . For instance. a cosmetics customer may not be dissatisfied if there is no free bonus. Kano's model posited that attributes that had . not a corresponding decrease in customer satisfaction with a decrease in attribute performance. customer satisfaction is a linear function of the performance of the service attribute. customer satisfaction does not rise above neutral even with a high performance of the service attribute. The attractive or excitement needs: Figure 1. In a highly competitive marketplace. however. However.larger discounts result in higher customer satisfaction. High attribute performance leads to high customer satisfaction. Shen et al. organizations need to adopt strategies and to create service attributes targeted specifically at exciting customers and over-satisfying them. in consumer shopping.within limits . The one-dimensional or performance needs: For these needs. For instance. does not raise the level of customer satisfaction.

can be determined.1. customers would still accept without dissatisfaction.11 once been attractive. but does not quantify either the numerical or the qualitative performance of the attributes. The corresponding element in Herzberg‟s theory is the motivator factor. 2. The first is that it classifies. This is where quality function deployment can be useful. Attractive quality: when present. With further time. become one-dimensional. Thus. The attractive attributes are the key to beating the competition in the marketplace. the timely and continual development and introduction of services with innovative and novel attributes are important. If two service attributes cannot be promoted simultaneously due to technical or financial reasons. customers would be satisfied. The attributes that have the greatest influence on customer satisfaction can be identified.11 five categories of quality elements 1. they are taken for granted and fall into the category of meeting only customers' basic needs. integrating it into SERVQUAL can help the latter to prioritize which service gaps to focus efforts on. Kano's model promotes understanding of product/service requirements. Despite the above benefits. 3. 1. The use of Kano's model can lead to developing a wide range of product/ service differentiation by examining the attractive attributes. and what the customers' behavioral intentions are. the attribute that has greater influence on customer satisfaction. Kano's model is restricted by several limitations (Bharadwaj and Menon. It provides valuable guidance in the following trade-off situation. Based on publications of Kano's model. yet when it is not present. Considering the functions of Kano's model. Matzler and Hinterhuber (1998) summarized its following benefits: 1. over time. 1997). The entire service development process can be further improved if periodic measurements can be systematically deployed into pragmatic ways for improvement. why the particular attributes are important to the customers. . The second is that the model does not provide an explanation of what drives customers' perceptions.

12 2. customers would be dissatisfied. 3. higher the level of satisfaction. . it varies in intensity. customers would be satisfied. when it is not present. One-dimensional quality: when present. and vice versa. and vice versa. Indifferent quality: customers would be indifferent whether the quality is present. customers would be dissatisfied. more the quality. customers would be dissatisfied. yet when it is not present. Must-be quality: customers believe that this quality is a necessity. 4. The corresponding element in Herzberg‟s theory is the hygiene factor. Reverse quality: when present. 5.

there is a positive future outlook for the Indian Logistics Industry and it is estimated that the industry will grow at 15-20% over the next few years. Logistics costs in India are estimated to be approximately 13% of GDP which is considerably high when compared to the corresponding figures for other major economies of the world (as per World Bank 2010 report). Domestic companies are willing to expand their efficiency to meet rising demand globally according to a study by industry body ASSOCHAM. Globalization of manufacturing sectors . Backed by strong economic fundamentals. 1. Infusion of qualified work force 5. The three major contributors for the growth of logistics industry are: emergence of organized retail. air freight.13 1. Investment in transportation infrastructure 4. For example in 2011 the logistics costs in the European Countries accounted for 7.15% of GDP (as per an article in „The Hindu‟). Recognition of logistics management as a strategic tool 6. The current size of the Indian Logistics Industry is estimated around $225bn and is expected to reach around $350bn by 2015. FMCG and retail .2 LOGISTICS INDUSTRY PROFILE The Logistics industry includes five broad segments – ocean freight. As per industry estimates as provided by the Fitch Rating Agency. The higher logistics cost represents higher products/services cost in the international market. the Indian Logistics Industry is slated for a 15% CAGR to size up to USD $350bn by 2015. Increased demand of 3PL services 2.1 Growth drivers 1. Streamlining of indirect tax structure 3. 70% of the total domestic product is transported through the road network and 15% through the rail network. Several factors helped the growth of logistics industry in India over the last decade that include changing tax system as well as a rapid growth in industries such as automobile. pharmaceuticals.2. increase in foreign trade and India becoming a global manufacturing hub Growth in the logistics industry depends on infrastructure availability and involvement of private players and increased government spending which will catalyze the growth in the industry. rail freight. The country‟s organized logistics market represents 6% of the total market. trucking and third party Logistics (3PL) services. Higher logistics costs are mainly due to poor infrastructure facilities in the country.

3 Key trends Rising investment in the rail and port spaces also fuels growth in allied industries like wagon manufacturing.14 1. On the domestic front. Express Logistics: Organized players have a monopoly over the express logistics industry. 2. 5. port handling equipment. while semiorganized and unorganized players account for 25% and then the remaining 10% of the market by EMS Speed Post. Rivalry among competitors: Lack of differentiation in services leads to commoditization and further price erosion. unorganized players hold . inventory management. are also leading to consolidation of the industry at various levels and segments. 3PL Services: Logistics services like transportation. the 3PL activity is limited to only few industries like automotive.2. 2. Reliance and Bharti group. the automobile industry) are able to significantly squeeze transporters. A series of mergers and acquisitions like DHL acquiring Blue Dart. IT hardware. packing and freight forwarding are all part of third party logistics services. 65% of express business is in the hands of organized players. Bargaining power of consumers: A few large users of the industry and companies (e. and telecom and infrastructure equipment. 1. CH Robinson and Kerry logistics and large Indian Corporate houses like Tata. Threat of new entrants: No entry barrier in terms of requirement for licensing needs and industry is vulnerable to easy scale –up and intense competition. Companies in India currently outsource an estimated 52% of logistics. Bargaining power of Suppliers: Government influence on fuel prices makes it difficult for players to predict. TNT acquiring Speedage Express Cargo Service and Fedex buying over Pafex. warehousing. 1. Global Players: The industry is becoming more competent with entry of global giants like Gazeley Broekman (Walmart‟s Logistics partner). control and pass through fuel costs to customers.2 Forces impacting logistics industry (Porter‟s five forces model) 1. As of now. 3. railway electrification systems and construction companies. cross docking. and 3PL represents only 1% of logistics cost. 4. Threat of Substitutes: The industry is highly customer oriented with multiple vendor options available to customers.2.g. 3.

NMDP would be addressing the challenges of the growing international traffic demand of the country along with developing the port facilities at par with world class standards.2. but also provides value-added services like consolidation and breaking up of cargo.15 41% of the market share based on price advantage and organized players account for 45% and EMS Speed Post the remaining 14%. Logistics Parks: About 110 logistics parks spread over approximately 3. Multimodal transport operation (MTO) is introduced which helps exporters with less documentation (for instance single document for all modes of transport). labelling. 4. availability of large land parcels at relatively low cost. To reduce the transportation cost and for quicker movement of cargo. Warehousing and related activities account for approximately 20% of total logistics industry and as per KPMG. In order to liberalize the railway services. bar coding and reverse logistics etc. especially in the port sector The major initiative in transport infrastructure is an introduction of National Maritime Development Program (NMDP) with an investment of Rs 568bn. 5. Warehousing does not only provide conventional storing services. . an additional 120million square feet of warehousing space is needed in 2013 to meet demand gap in storage space. 1. Warehouses: Warehouses have become key growth drivers in the logistics industry.500 acres at an estimated cost of $1bn are expected to be operational and an estimated 45mn sq.4 Government initiative in the sector To emphasis the significance of government initiatives in the logistics industry and to increase the competence in the sector the government has introduced private sector participation. Majority of these logistics parks are planned in close proximity to state capitals. packaging. Our view is that warehousing will see a lot of investment in the coming years. However.ft of warehousing space with an investment of $500mn is expected to be developed by various logistics suppliers in the coming year. the government opened its doors of container business to private parties The Government has removed the differential statelevel taxes that were causing higher unit and inventory carrying costs. connectivity to multiple markets across states and industrial clusters has led to the emergence of some Tier 2 and Tier 3 cities as favoured destinations for the development of logistics parks and warehouses. and introduced uniform Goods and Services Tax (GST) to reorganize warehousing system in India.

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FDI Regulations In general 100% FDI under the automatic route is permitted for all logistics services. 1.2.5 Key opportunities
Service Container Haulage Capital Requirement Capital Intensive Entry Barrier High entry barrier in road segment Customer Needs Scheduled services and strong ICD network Drivers • Government approval for privatization of rail container operation • Establishment of dedicated freight corridor •Standardization of containers • Growing trade volume Opportunities • Approval to private players for rail operation and rising demand from the railways – to boost demand for wagon manufacturers • CFS/ICDs that run their own container terminal, freight forwarder or shipping line are likely to gain from the surge in ocean freight

CFS

The CFS Medium business is characterized by high capital intensity. The requirements are dependent on facilitating infrastructure development such as railroads etc Less Capital intensive Low

Quick turnaround time

MTO

Network strengths and service quality

• Growing international trade • Expanding Domestic demand for efficient supply chain • Growing need for door to door service and integrated services • Booming oil demand, and rising trade flows

• Being less capital intensive and with neutral working capital requirement, the MTO business gives higher return on equity and return on capital employed

Bulk Liquid

Capital Intensive

High

Port Connectivity and integrated service offerings

•Less competition in the market

TABLE 1.1: Key Opportunities Logistics Industry

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Consolidation, entry of private players, growth in MTO business, and surge in ocean freight – are some major opportunities to be tapped. 1.2.6 Key challenges 1. Geographical Coverage Insufficient: Insufficient distribution channels or

infrastructure bottlenecks restrict the scope to reach consumers of products nationwide. 2. Over-burdened ports: India has a long coastline. However, the country‟s port system isn‟t utilized properly. 70% of the seaborne trade is managed by 2-3 of its 12 major ports. Remaining 185 minor ports in the country are largely underutilized. 3. Warehousing investment is low: The infrastructure including roads, airports and seaports are preliminary the main target areas of investment. However, warehousing, a facilitator for the agricultural sector, has attracted lower investment that reduced its pace of growth in comparison to rising farm output. 4. Technology Usage: Technology usage is still very low in India, which restricts the scope of increasing efficiency and productivity. 5. Cost/Quality of Service: According to industry analysts, logistics costs in India are among the world‟s highest and outside of the metros and a few cities, the delivery time is very uncertain. Overburdened physical infrastructure is a major bottleneck currently faced by the Indian Logistics and Transportation players. 1.2.7 Major players Road Freight Express Container Haulage CONCOR Blue Dart Gati Transport Corporation Gateway Distriparks All Cargo Aegis Table 1.2: Major Players Logistics Industry CFS MTO Bulk liquid

18

1.2.8 Organized players Multimodal Transport Operation (MTO) : Key Players in shipping liners: 1. APL Ltd 2. A.P. Moller Maersk 3. Compania Vepores Key players in Domestic Freight Forwarders: 1. AFL Ltd 2. Alpha Cargo Express 3. Air & Sea Cargo Systems Key players in International Freight Forwarders: 1. Geologistics 2. Kuehne + Nagel 3. Exel Kay players in Custom House Agents: 1. Tulsidas Khimji Pvt. Ltd 2. Velji Dosabhai & sons. Pvt. Ltd 3. Atlantic Shipping 4. N G Bhanushali & Company 4. Bax Global 5. Panalpina World Transport 4. Container Carriers international 5. Countrywide Express 6. Express Forwarders Sundamericana de 4. Wan Hai Lines Ltd, 5. K Line (America) Ltd, 6. Hanjin Shipping Co.Ltd

Container freight Station: Key players at JNPT: 1. Maersk India Private Ltd 2. Gateway Distriparks Ltd 3. Balmar Lawrie & Co 4. Punjab State Warehousing 5. Container Corporation of India Key players at Chennai: 1. Allcargo 2. Gateway Distriparks Ltd 3. Container Corporation of India 4. Central Warehousing Corporation 5. Maersk India 6. Sical Distriparks 7. Sun Global 8. Balmar Lawrie 6. Central Warehousing Corporation Distripark 7. Hind Terminal 8. Allcargo.

19 Third Party Logistics: Key players: 1. TVS logistics 2. DIESL (TATA) 3. Panalpina 4. TCI 5. Gati Express logistics: Key players: 1. DHL 2. FedEx 3. TNT 4. UPS 5. AFL 6. DTDC 7. First Flight Couriers 8. TCI Express 9. Gati 10. VR 6. Allcargo 7. V Trans 8. Total 9. VRL

Container Rail Business: Key players in Rs 100mn license fee category (sector-specific routes): Company Pipavav corporation Delhi roadways corp. Boxtrans (JM Baxi 12 and Co) Inlogistics (B2B) 12 Vizag & rajasthan; Tie ups 5-6 sidings planned with CFS/ ICD operators Kalamboli (JNPT); Tie ups 3 sidings planned with CFS/ ICD operators Table 1.3: Key Players In Rs 100mn License Fee Category assam 2 N/A N/A No of rakes Current infrastructure rail 0 N/A Planned N/A

1.2.9 Mumbai ranks highest; Nagpur, Gurgaon, Vizag the new emerging logistics destinations According to a recently released report by Cushman & Wakefield - Logistics Industry – Real Estate‟s New Powerhouse – the Indian logistics industry is expected to grow annually at a rate of 15 to 20 per cent, reaching revenues of approximately US$ 385 billion by 2013.

These centres have a direct bearing on the real estate developments in and around such locations. Kochi makes it to the last category of „Nascent Hub‟ largely due to its strategic location which allows it to connect effectively throughout southern India and through maritime routes and internationally due to the presence of the international airport.20 Cushman & Wakefield estimates that the market share of organized logistics players is also expected to double to approximately 12 per cent during the same period. Ahmedabad and Ambala of being developed as logistics hub. existing and proposed manufacturing clusters. existing and proposed manufacturing clusters and SEZs and accessibility. providing a thrust to the real estate market. Vizag and Gurgaon have been rated which currently lagging behind in support infrastructure but are promising logistical hubs due to high ratings on other parameters such as geographic location. Alwar. With most of these developments concentrated in 14 locations. . “Since almost one-third of the total realty development in the sector is expected to take place in emerging locations. have moderate retail penetration and limited presence of multi layered manufacturing industries. Heightened manufacturing activities. Yet challenges including infrastructure development. of warehousing space with an investment of US$ 500 million is expected to be developed by various logistics companies by 2012 the same timeframe.500 acres at an estimated cost of US$ 1 billion. These locations however are touted to be emerging as major manufacturing hubs in the near future. There are many infrastructural developments taking place in these locations which would be increase the attractiveness of these locations in the next 3-5 years. Cushman & Wakefield identified the front runners based on various parameters such as the existing logistical infrastructure. presence of manufacturing and government initiative rate this location lower than other destinations. Joint Managing Director for Cushman & Wakefield in India adds. consumer markets. Indore. and proposed SEZs increase the potential of locations like Bangalore. While. However. which be critical in promoting the logistics industry in these regions. Sanjay Dutt. ft. are expected to be operational and estimated another 45 million sq. investment in infrastructure. Jamshedpur . currently these locations do not rate high on parameters like geographic location.” Emerging hubs include locations such as Nagpur. spread over approximately 3. The report reveals that by 2012 there will be 110 logistics parks operational. many tier-2 and tier-3 cities and peripheral locations that offer good connectivity to multiple markets will witness increased activity from logistics players. state and union government initiatives and geographical location.

while Japan occupies the eight spot. World Bank Vice President for Poverty Reduction and Economic Management (PREM). as it released the "Connecting to Compete 2012: Trade Logistics in the Global Economy" report. The United States is ranked ninth. Hong Kong. the Bank said. "Unfortunately. Germany and Netherlands in the list of 155 countries. whose top five slot are occupied by Singapore. have improved their global trade logistics performance despite the slowdown in progress in the sector over the last two years amid the global recession. Nevertheless.4: Market Potential Analysis Nascent Hubs Kochi 1. the World Bank has said. China and the US. Finland. Morocco. Turkey and the US all improved their previous performance. India now ranks 46th in global trade logistics performance. as many countries across different income groups have done better than their peers. high-income economies dominate the top logistics rankings. which pursued aggressive reforms. According to the LPI. .10 India 46th in global trade logistics: World Bank Countries like India. South Africa." Otaviano Canuto. Countries like Chile. "Trade logistics is key to economic competitiveness." he said.2. said. the logistics gap between rich and poor countries continues and the convergence trend experienced between 2007 and 2010 has stalled as events like the global recession. the World Bank said. logistics performance is not simply determined by the level of per capita income. India. small islands or post-conflict states.21 Location Attractiveness/ Market Potential Analysis Established Hubs Mumbai Kolkata Chennai Hyderabad Emerging Location Nagpur Gurgaon Vizag Promising Hubs Bangalore Indore Ambala Ahmedabad Jamshedpur Alwar Table 1. and the European debt crisis shifted attention away from logistics reform. China. citing a study based on a comprehensive global survey of international freight forwarders and express carriers. growth and poverty reduction. while the economies with the worst performance are least developed countries that are also often landlocked.

Malawi and Madagascar. In the lower middle income category. Sector Manager of the World Bank's International Trade Department. also found that green logistics is quickly gaining prominence in high-income and emerging economies . Morocco and the Philippines have above average performance improvements." said Mona Haddad. India. followed by improvements in logistics services and customs and border management. "Infrastructure stands out as the chief driver of progress in top performers.22 In the upper-middle income country category. . top performers include South Africa. the Bank reported. And among low-income countries.a positive development since logistics and freight-related activities may account for up to 15 per cent of human carbon dioxide emissions. which for the first time included environmental indicators. outperformers included Benin. China and Turkey. The survey.

Network Logistics Pvt. All service offerings from Network Logistics are subject to rigorous process monitoring and continual improvement in line with our stringent quality policy.42159953 Email operations@networklogistics.Their Chennai Office is the control centre for operations worldwide. NLPL is one of the oldest licensed Custom House Agency (CHA) companies in India. Noorul Ameen India Asia.in nlpl. offers a wide array of services thus providing a single stop logistics provider for companies. . Network Logistics Pvt. The service offering has been designed to deliver efficient and on time logistics solutions in a cost effective manner. Chennai – 600001. Steamer Agent 23.in Table 1.5: Details of Network Logistics Private Limited .. Ltd (NLPL) is a rapidly growing International Freight Forwarding Company with worldwide network and partners across the globe. is a leading freight forwarding and 3PL Logistics Company specializing in Oil & Gas and Offshore Logistics. Network Logistics is part of the reputed Admiral Marine Group established in 1968 and operate from our fully owned offices including ownership of their office infrastructure at 18 major ports in India. Legal Representative / CEO Country Main Markets Certificates Mr.23 1. Moore Street. CHA license. India Tel : +(91)-(44). It is also a member of local and international freight forwarding associations and networks.3 ORGANIZATION PROFILE Network Logistics Pvt.in Website www. Ltd. Middle East ISO 9001:2008.enquiries@networklogistics. NLPL has been accredited with the ISO 9001:2008 DNV certification. Ltd.43475050 Fax : +(91)-(44). Head Office Tamil nadu.networklogistics.

port and vessel agency. import and export clearances. We have been awarded the D&B-Axis Bank Business Gaurav SME Award 2011 in the Logistics Category.3. NLPL owns and leases open storage yards and closed warehouses at various ports. It is an asset backed company wherein it operates from its own warehouses at strategic logistics hubs and deploys company owned transportation and material handling fleet including low bed trailers and cranes.1 Ownership pattern Figure 1.3: Ownership Pattern of NLPL . 1. equipment and man power supply. shore base management. Our fleet of P&M includes 20A and 40A trailers and material handling equipments which include forklifts and cranes from 10MT to 180 MT. statutory clearances and liaison from various ministries. etc. NLPL are one of the leading specialist in oil and gas logistics service providers in India covering air and sea freight forwarding including air/ sea charters. transportation.24 NLPL operates from their fully owned offices including ownership of their office infrastructure at 14 locations across India with strength of 180 dedicated staffs.

Mitigate risk through issue resolution.4: Logo of NLPL 1.3. Implement controls to manage international expenses for import and export activities. education and strategic planning.3 Network of NLPL Figure 1. 4. 3.3.2 Logo of NLPL Figure 1.3.5: Network of NLPL 1. 2.25 1.4 Mission of NLPL 1. Meet on time delivery while ensuring global trade requirements are met. . Provide direction to the development of new international business opportunities. Affect global trade controls through established policies and processes.

6: Chronology of Vessel / Rig Clearance .5 Chronology of vessel / rig clearance Figure 1.3.26 1.

at the right time. We provide proper safety to our employees 4. Reliability: Your consignments – at the right place. Comply with all regulations to preserve the environment 10. Impartiality. or comparable benefits to obtain business favors. We provide proper environment conditions 6. Fairness. gift. Our ethical dimension of business rests on the three key aspects of “legitimacy. Honesty. religion etc. Employees shall not falsely or maliciously attempt to injure the reputation of others. Neither gives nor takes any illegal payment. 9.6 Policies Quality policy of NLPL 1. equitability & transparency”. Precise Logistics Management: Our expertise coupled with the latest technology and integrated operations ensure a comprehensive logistics solution customized to your needs 2. Information about our employee’s personal lives. meeting all statutory and regulatory requirements 3. 2. We make regular measurement of employee satisfaction 8. color.3. import and trade compliance laws of our country and the country in which we do business. donations. Integrity. We strictly implement ISO procedures without any deviations. It is the policy of Network Logistics to . Employee should report to management any actual or possible violation of code or an event that could affect the business or reputation of the company. at the right cost. Loyalty. Trade compliance policy We comply with all applicable export. 11. Global Solutions: Partnering with equally reliable partners world wide makes us an effective global operator Business ethics 1. health and work evaluations are kept confidential 7. 12.27 1. remuneration. Our policies are fair and transparent 3. Fidelity to trust and inviolability of confidence are incumbent upon every employee of our organization 5. No discrimination on the basis of caste.

without being certain. state and local laws. Drug and alcohol information and treatment program resources. The company’s business goals never under any circumstances justify the violations of these laws. In furtherance of this policy. 1. This knowledge of the industry. combined with established relationships. That such export/import may lawfully be made to the intended recipient in the intended country of destination. 1. is therefore committed to having a campus that is free of the illegal or abusive use of drugs and alcohol. Drug and alcohol abuse policy Network Logistics Pvt. and to meet the responsibilities as set forth the following information is provided: 1 2 3 4 5 Prohibited conduct. Ltd. hand carry or in any other way export / Import any products (whether new or used. mail. Ltd. and is adverse to the development of our business. will not employ/hire anyone who is known currently to abuse drugs or alcohol. is dedicated to the pursuit and dissemination of goods and services.28 comply strictly with Indian Government and host government laws and regulations when importing. Ltd. Oil & Gas Logistics: Strategically located in all major ports around India. or knowingly cause or permit any other person to do so. Network Logistics is a key provider of Oil & Gas logistics services.3. Ltd. exporting or re-exporting. Network Logistics Pvt. Network Logistics Pvt. That the export/import is either covered by a license exception or an export/import license has been obtained. or any technical data. Health risks associated with the use of illegal drugs and the abuse of alcohol. In order to inform all employees of their responsibilities under this policy. entire units or parts). 2. Our network of experienced team manages the logistics and supply chain requirements for your oil and gas materials and equipment. will impose on Employees. Disciplinary sanctions that Network Logistics Pvt. means .7 Services of NLPL 1. The illegal or abusive use of drugs or alcohol by employees of our Organization jeopardizes the safety of the individual or a group. That all documentation required for the export/import has been properly prepared and accompanies the export/import. 3. no person acting for or on behalf of Network Logistics will ship. Applicable legal sanctions under federal.

when you need them. Air & Sea Freight: we have an excellent network with several ocean carriers throughout the world. Some of these are: a) b) c) d) e) Procurement and Expediting Warehousing and Distribution Air. Our experienced professionals also provide customized solutions as per the clients' requirement thus avoiding unnecessary delays.29 your equipment and supplies. Wide international network of partners to expedite cargo movement. bulk or packaged goods. rigs. Providing you with efficient and cost-saving solutions is the goal of our team of dedicated and innovative professionals. This partnership network is spread across 80 countries and 150 locations worldwide. Range of services that cover every aspect of supply chain solution. Practical options for your cargo transport are the common sense answers you need to the complex challenges of the oil and gas market. Freight Forwarding: The Company has a worldwide partnership network of professionals who are engaged in all aspects of shipping and international transportation. and heavy lift transports are delivered where you need them. a) b) c) d) Ability to offer customized solutions based on individual customer requirements. 3. Our customized services include: a) b) Full-container-load (FCL) Less-than-container-load Consolidation c) Multimodal Sea/Air/Road d) e) Worldwide Consolidation Service Dry or liquid bulk shipments Transportation by (LCL) g) h) i) j) f) Refrigerated Services for perishable products Cargo / Freight Insurance Packing Options Cargo Tracking System Fumigation Services . Sea and Road Transport Export Compliance Line Item Material Tracking g) h) f) Export Packing – Domestic and Foreign 24-hour Site Management Customs Clearance and many more activities 2. Excellent relationships with shipping lines to achieve priority shipping.

Custom Clearance: Indian customs procedures are complex and involve various documents. vendors and industry in situations where heavy lift solutions are desired with mobile cranes and crawlers. windmills. and construction. Plant & Machinery rental: We offer point to point. We have consistently and successfully served the onsite heavy lift requirements of refineries. We also cater: a) b) c) d) Documentation for custom clearance Carting / Receiving Goods Examination Of Shipments Registration of the contract with customs for the project clearance e) Custom clearance of the import cargo at the port of entry f) g) Port handling Reconciliation of the contract after completion of import. Being in the logistics industry it was only logical for Network Logistics that investing in warehousing formed a very vital part of growing the business and expanding the service portfolio. expert handling of over dimensional and heavy industrial equipments over land and sea. power projects. well ventilated and clean they are used for the storage of both . incentives/concessions in duty. To this end we have made very prudent and strategic investments in creating a chain of warehouses. manpower and expertise is of immense service to clients. supported by fully computerized documentation and armed with the latest communication equipment. set up close to vital transport hubs and outside octroi limits. Our combination of equipments. Huge in size.30 4. These warehouses are well maintained. well staffed and are secured by vigilant round the clock staff. Warehousing: Warehousing & Distribution services whereby the customer can manage their inventory efficiently thereby reducing costs & at the same time maintain a effective & faster delivery schedule. j) i) h) Port handling and arranging bonded warehouse as and when required by the client Suggestion for effective packing for economic handling and safety Stuffing containers and at De-Stuffing Ports. ICD's of and Customers warehouse 5. Our services in cargo handling are flexible and customized to match client requirements. Our team consists of well experienced and trained staff. infrastructure and oil/gas sectors in India. 6.

That’s our forte in Transportation. we arrange for customized transportation concepts for the entire route on a door to door basis. b) Adequate insured private warehousing space. with proper Security in place. committed to researching all options. We specialize in project freight management and all associated planning and implementation services. most reliable and economic manner possible We work tirelessly to ensure that any problems that may arise are dealt with in a logical manner and in line with our clients requirement . and well-equipped e) Computerized Inventory Control System & Reporting f) Long & Short term Storage Facilities g) Pick-Up / Delivery service TO – FROM major locations in India h) Less Than Truckloads (LTL) to Full Truck Loads (FTL) i) Cargo Tracking System 7. any weight. Project Cargo Movements: We have the personnel’s to manage complex transportation of large projects with experience. We have specialist advisers who become fully conversant with the requirements of . 8. every time. and to their final port of destination in the fastest. safest. surveying potential problems. This service has served to push us up the value chain considerably. and extra large cargo exceeding the standard size regulations Furthermore. and reacting to extraordinary circumstances with quick and decisive actions. small and large sized truck shipments. Our warehousing services include: a) Modern warehouses. anywhere. intelligence and knowledge. we use computer network software to manage bonded shipments. Transportation: We do our best to transport your goods from their port of origin. across oceans. These warehouses have helped to add a competitive edge to our portfolio as they have served to give our customer that sense of security during transit and also reduced the chances of damage during storage. we have expertise in the handling of perishable goods as well as hazardous cargo. c) Safe storage of goods. anytime. The success of our Cargo team lies in its commitment to understanding what is required.31 consumer and industrial consignments. d) Control checks on entry & exit of goods. anyhow. Whether you are moving an individual heavy lift or complete industrial plant. government construction materials. containers and shipments. Any size.

5. Network support at all major ports in India across East and West coasts through fully owned offices. These services have been appreciated by the principals. Further we have handled the dry dock of this jack-up rig at HSL Yard. 6. safety aspects and special instructions are strictly adhered 1. . Liaison with various Ministries and processing of licenses and permits for Offshore and Oil Field projects including Ministry of SHIPPING/ PETROLEUM/ FINANCE/ HOME AFFAIRS. 2. where handled with due efficiency. etc. 1. Saipem (Portugal) Comercio Maritimo.32 a project and ensure that customer-specified deadlines. efficient and economic manner. at Kakinada in 2004. Defense and Naval clearances for Drill Ships.3. 8. Licensed CHA & Steamer Agency by respective Customs House. MOD. Ships. Vizag in 2008. Customs and Port liaison. 4. and can execute the customs clearance and inspections in a smooth. DSV Marine Spread. Complete Logistics support for Offshore projects including operation and management of Offshore Supply and Shore Bases.3. Fully integrated Oil & Gas Logistics and Support service provider. 9.8 Specialization in rig / vessel / marine spread clearance We have handled the Rig clearance of Jack-Up Rig PN3 for both inward and outward for M/s. Import / Export/Clearances of Platforms. 3. Port. Customs. etc.9 Domain specialization and scope of activity in the indian oil and gas industry: Support activities: 1. SPL permissions. the tow plans approvals. DSV and Marine Spread 7. Liaison and support with principal contractors. MMD. Drill Rigs. Ships. Drilling Rigs & Vessels. Husbandry services to Ship Owners/Fleet Owners/OSV/DSV Operators. OSV. The complete scope including attendance and clearance of the imported AHT. and Statutory Authorities including Customs. the MOHA. 24x7 attendance to Drill Ships. OSV. CBDT. Drill Rigs. We also have a good rapport with the ODAG and the Cuddalore Customs. Immigration. Excise.

12. Sign-on & Sign-off and Meet & Greet services.10 clients of NLPL Figure 1. 2. Ministry of Home Affairs clearances for Foreigners working in Indian Offshore and Oil Fields. 1. Crew and Officers travel arrangements. Freight forwarding. Operating & Management of Offshore Supply & Shore Bases including Material Storage and Handling Yards fully equipped with cranes and trailors. 3.3.7: Clients of NLPL . Multi-axle trailors for ODC. travel permits and related works. Liaison and processing of Essentiality Certificates from Directorate General of Hydrocarbon. Door-to-Door and Door-to-Deck Delivery services. 4. Arranging and providing handling equipment like Cranes. International & Domestic Clearing & Forwarding/ Customs House Agency services for imports and exports and transshipment of cargo. 5.33 10. Ex-Works Collection. Trucking etc. Trailors. 11. Warehousing and Customs Bonding facilities. Tracking of cargo. booking of Ocean and Air freight. Logistics activities: 1. Forklifts.

Base Management.Yards. Total Logistics. Guard Boat. Shore base Support Services at Kakinada Hindustan Oil Exploration Company Ltd 1. MI Swaco 1. Rig Clearance & Dry Dock Movements . Sign On & Sign Off.GEO Hindsagar . SPL SHELL India 1. Shore base Management Services. 2. All India transportation and delivery contract for marine lubricant deliveries on board vessels ABAN Offshore Ltd 1. SPL. Logistics Support Services & Facilities for ENI exploratory activities in Block ANDWN-2003/2 Andaman Sea. 40FT. Freight Forwarding. Customs Clearance. Operations & Maintenance of Shore Base Equipments. Maintenance of Casings SAIPEM 1. Logistics. Rig Import Clearance. ECs. Vessel Clearance. Vessel Clearance.Shore Base Management. Chopper Coordination. Equipments including Port Cranes.3. Ltd (R. Warehousing & Manpower . Port Clearance. Manpower. Manpower. Plant & Machinery.34 1.11 Details of contracts Reliance Industries Ltd 1. Shore Base Management. Port operations. Karaikal Gujarat State Petroleum Corporation Ltd 1. Equipment Supplies. NED passes etc. Kakinada 2. Freight Forwarding. Clearing House Agent Services at various Indian Ports 4. MOHA. ECs. Total Logistics.V. and Mechanical Installation Work for Tie-In job for Gas Compressor Package ENI India Ltd 1. Karaikal 3. Kakinada 5. MOHA. Low Bed Trailer 20MT. MOD.. Custom Clearance & Freight Forwarding Hind Offshore Pvt. MOD.First Private Indian Seismic Survey Vessel) 1.

Agency services related to Import/Export. Marine Logistics & Port Terminal Services 2. Logistics. Laying of 114. husbandry and other ship agency services .35 Transocean Offshore International Ventures Ltd 1.80 mm W. Warehousing & Manpower Shapadu Malaysia 1. Providing of 10 wells Group & Test Manifolds at KALI #2 EPT for development of KALI fields 3.T ERW 3 LPE coated underground flow line at Karaikal (By our Group Company Admiral Marine Services Pvt. Equipment and Skilled Manpower Supply ONGC 1. Chennai Greatship (India) Limited 1.30 mm OD x 4. Ltd.) 2. Offshore Construction. Replacement of PLEM assembly & Dunlop Hoses job at Ennore Offshore FBMS. Providing of Future wells provisions for new wells & oil manifold modification at GCS at Kuthalam Great Offshore 1.

4 OBJECTIVES OF THE STUDY 1. To determine the extent of gap between customer’s expectations and perceptions. To determine customer’s expectations and perceptions of the quality of Network Logistics. . 2. 4.36 1. 5. 3. To determine the service functions on the basis of which customers of Network Logistics evaluate the quality of service. To categorize the service attributes based on how well it is able to satisfy customer needs. To locate areas of performance where improvements are needed.

3.37 1. Network Logístics plans different market strategies in the trade-off situation. Network Logistics need to differentiate the service offering to various customers.5 NEED OF THE STUDY 1. 2. their customer satisfaction and the relationship between them. To understand the level of service quality provided by Network Logistics. To attract more customers Network Logistics need to improve their service quality. So they need some valuable imformation on customers perception. . 4.

.38 1. So there is possibility for further research based on different industry and overall customers of logistics industry.6 SCOPE OF THE STUDY This study will focus only on the customers of NLPL. Incase customers asking different service from logistics firms. So NLPL need to understand the entire market. NLPL able to know identify the various market strategies to satisfy all logistics customers. This study not differentiates the industry which customer belongs to. These study extents upto NLPL customers.

2. accepting that relationship intensity may be modified according to the company’s sector of activity. works relations between the variables proposed would be analyzed contemplating the sectored nature of the sample. in subsequent research. Since NLPL is a medium sized company. The survey is done only among NLPL customers. The accuracy of the data might be doubtful. In future. the results are generally only applicable for NLPL only. the results cannot be used to picture the condition of the whole Logistics industry. it would be useful to obtain a more representative population sample. As non-probabilistic sampling methods have been used.7 LIMITATIONS OF THE STUDY 1. the outcome of the test will not perfectly follow the normal statistical conditions. 4.39 1. the customer population is relatively small. and not sufficient to produce a reliable result. The sample size is small to be analyzed statistically. As a result. Since the scope of the survey is very small. Inaccuracy of data in these cases will often cause inconsistent results. thus. . 3.

Parasuraman. Although SERVQUAL was developed within the marketing sector. & Peter. some in response to problems identified by other researchers. accurate and reliable instruments that assess service quality are of great interest to companies whose revenues come from service delivery. it is appropriate to calculate service quality by subtracting expected from perceived service.40 CHAPTER II LITERATURE REVIEW As the service sector of the global economy grows. Perhaps the most popular and widely used service quality instrument is SERVQUAL. assessment. 1992). Zeithaml. Researchers have continued to use SERVQUAL instruments. it also is used in a variety of organizational settings. As a result. However. and Berry have made numerous changes to SERVQUAL. others disagree about whether the service quality should be the difference between expected and perceived service. Kappelman. Churchill. Van Dyke. Zeithaml. some researchers question the appropriateness of using SERVQUAL in an IS or IT context. as did Landrum and Prybutok in 2004. and Berry developed a generic instrument called SERVQUAL to measure service quality based on input from focus groups. 2. 1994. One then achieves an overall measure of service quality by averaging the scores of all items (Brown. the study of services and innovation are becoming increasingly important. including libraries and information centers (Kettinger & Lee. 2008). and Berry (1988) stated that since service quality depends on the relationship of customer expectations with customer perceptions. 1996). in 1994 they reported on three different SERVQUAL formats. Still. knowledge intensive business services aimed at enhancing performance require reliable methods of measurement. this procedure gives also rise to two issues: the first is disagreement over what really is being . For instance. nationally. while in 2002 Banwet and Datta measured IT service quality in a library service. Nitecki. they recommended that researchers use a format that separated customer expectation scores into tolerance zones. Zeithaml. and improvement (Spohrer & Maglio. In 1997. and Prybutok employed SERVQUAL in an IS context.1 SERVICE QUALITY In 1988 Parasuraman. Since 1988 Parasuraman. Service products distributed regionally. and globally have become larger portions of company revenue streams.

2002. who recommended that expectation ratings be eliminated altogether. 2008). other studies suggested that SERVQUAL has unstable dimensions. we used only performance scores to perform analysis on the five SERVQUAL service quality dimensions. Bolton and Drew (1991) stated that assessments of overall service quality are affected only by perceptions of performance levels. Parasuraman. Strutton. Jiang. The performance only approach to service quality utilizes the five of the seven SERVQUAL dimensions—the five performance dimensions. Cronin and Taylor (1992). Klein. They suggested that direct measures of disconfirmation are more important than expectations. and Berry in 1990. They found that SERVQUAL displayed three responsive dimensions. In addition.& Zhang. As we have noted. Landrum. while Landrum and Prybutok (2004) used five. Nitecki (1996) proposed a three-dimensional SERVQUAL model.. Performance alone provides better predictive validity than SERVQUAL which is gap-based (Brady. called this performance only subset instrument SERVPERF. rather than the five dimensions originally proposed . Cronin. Kalra. Furthermore. as opposed the five dimensions proposed by Zeithaml. Based upon these findings. Brady et al. These two issues are resolved if one follows Cronin and Taylor (1992). their results supported the dissenters: performance scores alone account for more variation in service quality than performance minus expectations. and Zeithaml (1993) also suggested that perceptions alone influence overall service quality. and Teas (1993). Staelin. When Cronin and Taylor (1992) compared SERVPERF to SERVQUAL.41 measured in SERVQUAL with expectations and the second is the problematic nature of the resulting difference scores. these issues are all resolved if customer expectations are eliminated from the model. Boulding. 2002. Landrum & Prybutok 2004. Prybutok. and Carr (2002) used four dimensions in their study.‖ Cook and Thompson (2000) investigated the reliability and validity of SERVQUAL instrument in the context of library service. We next discuss adapting the SERVQUAL instrument to library information services be-cause the test facilities were designated by the US Army Corps of Engineers as ―libraries. Liljander (1994) states that there is more support for performance only models than for the disconfirmation model of service quality. Cronin & Taylor 1992) and other studies show that performance scores alone exhibit better reliability and validity than difference scores (Babakus & Boller 1992. & Brand. For example.

these lie outside the scope of the present study. 2004. have been identified as influencing system success (Myers. & Zhang. such as individual impact. Goode. Van Dyke. work group impact. 2008). 2008). usefulness. the overlap among the five dimensions. By discarding the expectations portion in the SERVQUAL model. Kappelman. & Kappelman. uses only the first five of the seven SERVQUAL dimensions – measuring only customers’ perceptions of service provider performance. The SERVQUAL and SERVPERF versions used in this study were tested and validated over a ten year period with a series of studies since its refinement in 1994 (Landrum & Prybutok. & Prybutok. Prybutok. Prybutok. and user satisfaction (Parasuraman et al. they concluded that responsive. user self-sufficiency. Landrum. Cronin and Taylor (1992) justify the SERVPERF or performance only instrument in place of the gap measurement approach. information quality. a SERVQUAL performance only instrument subset of SERVQUAL. 1992. Churchill. As a result. The issues questioned include the use of gap scores. poor predictive and convergent validity. the performance only measures are used and suggested by many scholars in various industries (Gilbert. 1997). Carman. & Zhang. Although the SERVQUAL instrument is ubiquitously employed.42 by Parasuraman et al. & Peter. Although additional dimensions. user involvement. & Zhang . Veloutsou. it has received heavy criticism from both a theoretical and practical perspective. In addition. Kappelman. Nitecki and Hernon (2000) used SERVQUAL to assess library services at Yale University and found that among the five dimensions of SERVQUAL. Landrum. system quality. Strutton. and unstable dimensionality (Babakus & Boller 1992. Brown. Prybutok. empathy. and assurance dimensions overlapped in this particular service domain. and organizational impact. 1990. (1988). they show that the SERVPERF instrument empirically outperforms the SERVQUAL scale across several industries. 2008. SERVPERF. 2. Prybutok. 1999). & . and the ambiguous definition of the ―expectation‖ construct. 1994). As a result of these issues. respondents considered reliability the most important and empathy least important among the five quality dimensions (Landrum.2 SERVQUAL INSTRUMENT AND ITS CONSTRUCTS The SERVQUAL instrument used in this study is based on a model of library success that includes the following seven dimensions: service quality.. Kappelman.

camp. we did not use them in this study because we focused on the performance (SERVPERF). Hui. 1997). one-dimensional and must-be). several things become evident. We made minimal wording changes to the original content of the instrument. equipment. KANO’S MODEL When analyzing the growing body of the Kano model literature. 2004. the majority of authors who base their studies on the Kano model.. respondents were instructed to allocate 100 points among the five dimensions.and the ―quality-precedes-satisfaction‖. focus their research primarily on the identification of the first three quality elements (attractive. Second. Section 1). This is in line with the traditional polarization between the ―satisfactionprecedes-quality‖. there is an evident polarization between authors defining the model either as a satisfaction or as a quality model. 2004. & Kandemir. 1985).Oliver. 1994. although we did measure the customer expectations.. 2004. and personnel. We selected a library information system and adapted Parasuraman et al. Law. 4) four items are used to measure assurance (questions 15-18) – assurance is the ability of employees to inspire trust and confidence in customers. Van Dyke et al.PZB. The 21 questions are distributed among the 5 SERVPERF performance dimensions as follows: 1) five items are used to measure tangibles (questions 1-5) – tangibles refer to physical facilities. Parasuraman et al. 2.’s 1994 version of SERVQUAL with 21 questions in 5 dimensions of service performance to study it (Appendix. We also collected point data from each respondent indicating the perceived relative importance of each of the five SERVPERF dimensions. and 5) three items are used to measure empathy (questions 19-21) – empathy refers to the amount of caring and individualized attention provided to customers. Keillor. which roots in the persistent overlap of the dominating theories of customer satisfaction (disconfirmation paradigm .43 Moutinho. & Zhao. 2) five items are used to measure reliability (questions 6-10) – reliability refers to the ability of a firm to perform promised service dependably and accurately.3 . 3) four items are used to measure responsiveness (questions 11-14) – responsiveness is the willingness to help customers and provide prompt service. This focus was deemed appropriate because the in-tent was to examine the relative importance of the performance dimensions. Hult. 1980) and service quality (gap model . First.

The relationship between the needs in this categories and the customer satisfaction are one way linear relationship. the needs that falls in these categories are actually the expectation of the customer towards the product function or the services that been provided by the service provider. In other words they lead to satisfaction of customers when present but do not lead to any dissatisfaction if not present (Berger et al. they are expected but unspoken and unarticulated (Cheng Lim et al. the product or service provider creates the expected quality for their product or services. In other words while a low performance on such attributes leads to dissatisfaction in a customer.By integrating the Kano Model and . their level of satisfaction will increase. and providing the customer with these. the attractive quality (Kano et al. 1995. Both the customer and the service or product provider agreed on the importance of the needs in these categories. These needs are very well expected.44 Kano et al. 1999).. 2006). 1984.the categories are must be. customer needs can be classified into three categories (Kano. Bergman and Klefsjo.. According to Kano. expressed and articulated by the customer. Lastly would be the attractive dimension. Busacca and Padula.. the product or service provider creates what can be called. 2003) and by providing for such needs. 1993) and by discovering such needs and expectations. If the product or service provider are able to provide the unexpected towards the customer. Lilja and Wiklund. For the needs in this categories it can be expressed in a linear relationship. For the must be categories the need can be considered as the basic requirements for the product or services.. It is important for the product and service provider to focus their resource to compete with their competitor in order for them to sustain themselves in the market. however if the satisfaction level will not been effected if the product or service provider attribute in this category are not performed well. one dimensional and attractive. The needs that fall in this categories are the customer needs that they themselves doesn’t realize that the need it. 2001. In other words the needs are unexpected and unspoken. 1984. For these categories of needs the level of satisfaction for the customer will not raise above the normal level if the product or service provider able to fulfill those needs but the customer will felt very disappointed if the needs are not fulfilled. 1998. Meanwhile for the one dimensional categories. (1984) developed a model for improvement and enhancement of a product or service. Matzler and Hinterhuber. whereby if the customer needs are not fulfilled the level of satisfaction will be low and in other hand if the needs are fulfilled the level of satisfaction will become high (Redfem and Davey. a high performance does not lead to satisfaction (Kano et al. 2003). 2005).

The first one to introduce the basic concept was Herzberg (1959). In his study on work motivation he presented the M-H (motivator-hygiene) theory of work satisfaction.g. . some define it as model of customer requirements (e.. For instance.g. Nilsson-Witell and Fundin. 1996) or model of customer needs (e. Jonsson Kvist and Klefsjo. Motivators are work A direct analogy can be drawn to Kano’s factors that primarily lead to employee satisfaction. numerous names/definitions for the Kano model have emerged. one dimensional and attractive category. 2005).and must-be quality elements. (1984) were the first to present an integrated model of quality that incorporates different possible impacts of certain product attributes in the creation of customer satisfaction and dissatisfaction. This information will be an important input towards the creating a training courses model. Lee and Newcomb. whereas hygiene factors primarily contribute to dissatisfaction with a job. which represents the rationale of the Kano model. it has to be pointed out that the phenomenon of product/service attributes.g. although Kano et al. attractive. while others define it as two-way model on quality (e.45 SERVQUAL we would able to determine the service quality criteria that falls into the must be. Accordingly. Third.g. 2006). 2003). some of the most prominent Kano-authors define the model as theory of three-factor structure of customer satisfaction (e. Fuchs and Weiermair. showing an asymmetric and nonlinear impact on OCS.g. Schvaneveldt et al. had already been studied earlier. 1991) or simply as theory of attractive quality (e.

physical facilities) and service (i. Using the questionnaire obtain the score for each of the 40 attributes both expected and perceived level of customer. The research started by identifying the companies to be studied. 3.. This core is the unweighted measure of service quality for the area being measured. their diagnostic ability to provide insights for managerial interventions in case of quality shortfalls.e. and. At the analysis stage. For ensuring a greater generalizability of service quality attributes. .1 SERVQUAL (PROCEDURE TO FOLLOW) Outlined below are the instructions for carrying out a SERVQUAL survey. The proposal was an ad-hoc questionnaire which permitted data collection by means of mail or postal. it was considered desirable to select a service offering that is comprised of both the good (i. Sum the averages calculated in step 2 above and divide by 5 to obtain an average SERVQUAL score. Calculate the Gap Score for each of the statements where the Gap Score = Perception – Expectation (see Table 6 below).. Then send the questionnaire to all other companies situated other then Chennai. 1. The sample consisted in 100 companies. collected data were pooled together thus constituting a total of 100 responses. more importantly. A first characterization of the companies examined shows large sized companies. 2. Data for making comparisons among the unweighted and weighted versions of the two scales were collected through a survey of the consumers of NLPL. safe and fast delivery of goods) components. spanning all sectors of business having head quarters in Chennai and around Chennai region.e. ability to explain variance in the overall service quality. Obtain an average Gap Score for each dimension of service quality by assessing the Gap Scores for each of the statements that constitute the dimension and dividing the sum by the number of statements making up the dimension (see Table 6 below). parsimony in data collection. power to distinguish among service objects/firms.46 CHAPTER III RESEARCH METHODOLOGY The present study is an attempt to make comparative assessment of the expected service and perceived service of NLPL. which were contacted by telephone to request for answering the SERVQUAL questionnaire.

6. Make sure the points add up to 100. 28 29 . 4. Dimension Statement Reliability Expectation Score Perception Score Gap Score Average for Dimension 1 . . The sum of the weights should add up to 100 (see Table 7 below). Please allocate 100 points among the six sets of features according to how important it is to you. 9 10 . 37 38 40 Unweighted Average SERVQUAL score: Info Physical facilities Staff and officers Timely delivery Assurance Table 3. 14 15 . 23 24 . Sum the scores calculated in step 5 above to obtain the weighted SERVQUAL score of service quality for the area being measured. We would like to know how much each of these sets of features is important to the customer. 5. calculate the importance weights for each of the six dimensions of service quality constituting the SERVQUAL scale.47 3. If you want to have a weighted score. Calculate the weighted average SERVQUAL score for each of the six dimensions of service quality multiplying the averages calculated in step 2 above by the weighted scores calculate in step 4 above (see Table 8 below).1: Calculation of SERVQUAL Scores SERVQUAL Importance Weights: Listed below are the six sets of features pertaining to logistical service providers and the services they offer.

3. Correlation test . in the same manner and without errors every time 2. 5. confidence and competence to perform the service.2 STATTISTICAL TOOLS (SERVQAUL) Score from Table 1 Points 100 Weighting from Table Weighted Score 2 1. The physical facilities. The clarity. Friedman test (mean) 2. The service is accomplished on time. Paired t-test 3.48 Dimensions 1.3: Calculation of Weighted SERVQUAL Scores 3. The knowledge and courtesy of NLPL and their ability to convey the trust. Attitude of officers and staff. The ability to provide safe and fast delivery 4. completeness and accuracy of both verbal and written information communicated to the customer Total: Table 3.2: SERVQUAL Importance Weights SERVQUAL Dimension Reliability Assurance Timely delivery Staff and officers Physical facilities Information Average weighted score Table 3. equipment and material handling facilities made available to the customer 6. The ability to perform the promised service dependably and accurately.

each participant is a case in the SPSS data file and has scores on K variables. Assumption 3: The Distribution of the differences scores between any pair of levels is continuous and symmetrical in the population.2 =…= M. .1 = M. The Friedman test is applicable to problems with matched-subjects designs..e. or in some greater number. For a matched-subjects design. . . Assumption 2: The Chi-Square values for the Friedman test yield relatively accurate results to the extent that the sample size is large. Assumptions underlying a Friedman test: Assumption 1: Each set of K observations must represent a random sample from a population and must be independent of every other set of K observations. .k against the alternative H1: Not all M. . . Each set of participants is a case in the SPSS data file and has scores on K variables. That is. .1 Friedman test (mean) The Friedman test allows for the analysis of repeated-measures data if participants are assessed on two or more occasions or conditions or to matched-subjects data if participants are matched in pairs. the treatment levels) have been selected from populations having equal medians. k) r is the number of independent blocks : k is the number of groups or treatment levels . 2. and each participant in a set is assessed once on a measure. the score obtained on each of the K occasions or conditions. A researcher is interested in determining if subjects changed significantly across occasions (or conditions).j are equal (where j = 1. . the scores obtained on the measure by the participants within a set. k) From the above. the following test statistic FR is obtained: FR = 𝑟𝑘 (𝑘 +1) 12 𝑘 2 𝑗 =1 𝑅𝑗 − 3𝑟 (𝑘 + 1) (3. triplets. 2. The Friedman rank test is primarily used to test whether k sample groups (i.2.1) Where 𝑅𝑗2 is the square of the rank total for group j (j = 1. you test H0: M.49 3. participants are matched in sets of K participants. With repeated-measures designs.

Paired observations are related in some way. That is. Calculation of test statistic: Estimated standard error of difference: S. Step I : let D = ( xi – yi ) .2) (3. it is equivalent to performing a one-sample t-test on the differences between the paired observations. Null hypothesis: H0: µ1 = µ2. (3.01 or α = 0. Reject H0 if FR > 𝜒𝑈 . Ratings of competing products from a single evaluator Working rule for estimated standard error of difference. (3. Examples include: 1.6) 𝐷2 − 𝑛(𝐷2 ) 𝐷 Test statistic: t = 𝑆.E. the upper-tail critical value for the chi-square distribution having 2 k– 1 degrees of freedom. Level of significance: let α = 0. the test statistic FR can be approximated by the chi-square distribution with k – 1 degrees of freedom.5) (3. A paired t-test can also be used to evaluate whether the mean difference is equal to a specific value.𝐸 . for any selected level of significance α. Statistically. Cycle times recorded for the same individual before and after a training session 2. 𝐷 Where 𝐷 = difference between each pair of observations 3. or α = 0.𝐷)2 and S = 𝐷− 𝐷 2 𝑛 −1 𝑆 𝑛 𝐷 (3.2. : calculate ∑(D . Thus.2.1 as the case may be.05. . Step II Step III Step IV : calculate 𝐷 = 𝑛 .E. ( i =1.2 Paired t test A paired t-test helps determine whether the mean difference between paired observations is significant.(𝑥1 – 𝑥2) = Where S2 = 𝑛−1 1 𝑆 𝑛 . 3. Alternative hypothesis: H1: µ1 ≠ µ2 (two tailed test). … n ) denote the difference in observations for the unit.50 As the number of blocks in the experiment gets large.4) : calculate standard error of difference: S. the decision rule is to reject the H0 if the computed value 2 of FR is greater than 𝜒𝑈 .3) . 2. otherwise do not reject H0.(𝑥1 – 𝑥2) = Working rule for paired t-test 1.

Step IV:square these deviations and write them under the columns headed by dx2 and dy2. then x and y are perfectly positively correlated. They do not have an apparent linear relationship.n-1 5. Step II : calculate 𝑥 and 𝑦 of the x and y series respectively. Find from the table the value of t at the level of significance α for (n .3 Correlation analysis Correlation transformer to determine extent to which changes in value of an attribute are associated with changes in another attribute.𝑦 . .e. 3.51 4.7) Where n is the number of observations in x or y series. The possible values of x and y all lie on a straight line with a positive slope in the (x. Decision.𝑥 . y) plane. then x and y are not correlated. The Correlation transformer can calculate various measures of association between the two input columns.n-1 then the null hypothesis is rejected and alternative hypothesis is accepted. 2. You can select more than one statistic to calculate for a given pair of input columns.1) degrees of freedom for the one tailed or two tailed test (for the case given by alternative hypothesis) i. Critical value. find td. Step III: take the deviations of the observations in x-series from 𝑥 and write it under thecolumn headed by dx = x . The coefficient of correlation is calculated by the following steps: Step I : denote one series by x and other series by y. Step V : multiply the respective dx and dy and write it under the column headed by dxdy. If r = 0.. Each column contains values for one of the attributes of interest. Consider two variables x and y: 1. If r = 1. σx and σy are the standard deviations of x and y. However. Step VI: apply the following formula to calculate r or rxy . the coefficient of correlation r= 𝑑𝑥𝑑𝑦 𝑑𝑥 2 ∗𝑑𝑦 2 (3. this does not mean that x and y are statistically independent.2.n-p then the null hypothesis is accepted and in case of calculated value of |t| > tα. The data for a correlation analysis consists of two input columns. Take the deviations of the observations in yseries from 𝑦 and write it in a column headed by dy = y . If the calculated value |t| < tα.

1984). We mainly take 40 attributes of six dimensions in SERVQUAL instrument as the principal and refer to service quality features (question items) of rapid transit system contained in each dimensions presented on Su (2001.This is a basic requirement I---This would not affect A--This would be a minor inconvenience U--This would be a major problem and I can‟t accept it 3. the second concerns his reaction if the service does not have that feature (dysfunctional form of the question).g. if we provide technical expertise to customers. (1988) and Su (2008) evaluation instrument on NLPL service quality. The questionnaire is close-ended and anonymous for measuring customers‟ service quality requirements of NLPL service and comprises two sections. respondents are required to answer functional and dysfunctional scales by choosing one of five alternatives and answer their individual satisfied level. For each service feature a pair of questions is formulated to which the customer can answer in one of five different ways (see also Kano..52 If r = -1. The first question concerns the reaction of the customer if the service has that feature (functional form of the question). The first section of questionnaire is question items used to assess customers‟ perceived importance and performance to 40 service qualities attributes of NLPL. The possible values of x and y all lie on a straight line with a negative slope in the (x.2008) researches to obtain the 40 amended question items in the questionnaire and take as the NLPL service quality features in this study. y) plane.This would be very helpful M-. Following table shows single example Kano question Functional form of the question (e. then x and y are perfectly negatively correlated. Construction of the Kano questionnaire Must-be. To each item. one-dimensional and attractive requirements as well as service requirements towards which the customer is indifferent can be classified by means of a questionnaire. KANO’S MODEL The measurement instrument in this study is based on the SERVQUAL‟s six distinct dimensions of 40-item attributes proposed by Parasuraman et al. how do you feel?) Answer      H-.3 .

This is a basic requirement I---This would not affect A--This would be a minor inconvenience U--This would be a major problem and I can‟t accept it Table 3. if we don‟t provide technical expertise to customers. indicating that providing technical expertise to customers is an attractive customer requirement from the customer‟s viewpoint. Questionable scores signify that the question was phrased incorrectly or that the person interviewed misunderstood the question or crossed out a wrong answer by mistake.This would be very helpful M-. 6). He does not care whether it is present or not. how do you feel?" . however. how do you feel?" .The dysfunctional form of the question." as regards” if we provide technical expertise to customers. Category Q stands for questionable result. for example.the functional form of the question. Evaluation and interpretation The questionnaire is evaluated in three steps.g. the answers do not fall into this category. how do you feel?)      H-.4: Functional and Dysfunctional Question in The Kano Questionnaire By combining the two answers in the following evaluation table. If combining the answers yields category I. “This would be very helpful. the combination of the questions in the evaluation table produces category A. not willing to spend more on this feature. the service features can be classified: Figure 3. the results of .1: KANO Evaluation Table If the customer answers.53 Dysfunctional form of the question (e.. Customers are. this means that the customer is indifferent to this service feature. and answers " This would not affect. Normally. After having combined the answers to the functional and dysfunctional question in the evaluation table (see fig." as regards " if we don‟t provide technical expertise to customers.

and its right classification will be labeled.3. the results can be used as the ideal basis for market segmentation and thus differentiation of services according to utility expectations of the different customer segments. Figure 3. which are between 0 to 1 or 0 to -1. 3. Berger (Berger. depending on the quadrant in which each items fall in. If the questionnaire includes sufficient customer-oriented variables. The next step is to analyze and interpret the results.2: KANO‟S Model Evaluation Process The easiest method is evaluation and interpretation according to the frequency of answers. excitement. The quadrants classify the attributes as neutral.54 the individual service criteria are listed in the table of results which shows the overall distribution of the requirement categories. These two ratios. it could easily be identified. The CS coefficient is indicative of how strongly a product/service requirement (inquired . Hence. CSC calculates the ratio of the number of subjects that get satisfied with the presence of an item to the number of the subjects that get dissatisfied with the absence of that item. proposed the Customer Satisfaction Coefficient (CSC). are plotted in a scatter diagram divided in four quadrants. 1993).1 Customer satisfaction coefficient (CS coefficient) In 1993. performance and basic factors.

The customer satisfaction index states whether satisfaction can be increased by providing quality elements. it can be deemed that the effect on dis/satisfaction is low. 2004). the items with higher absolute values are demonstrating greater influences. plus the one-dimensional quality ratio of the item. A minus sign is put in front of the DDI to emphasize its negative influence on customer satisfaction if this quality element is not fulfilled. which are to measure the extent that the presence/absence of an attribute will evoke dis/satisfaction. and are the ones we should pay attention to (Tontini. the DDI is the one-dimensional quality ratio plus the must-be quality ratio of that same item in inquiry. 2003). . or whether fulfilling quality elements only prevents the customer from being dissatisfied. we can find which items can influence customer satisfaction.9) After the SII and DDI are calculated.8) (3. 𝑨+𝑶 𝑨+𝑶+𝑴+𝑰 𝑶+𝑴 𝑨+𝑶+𝑴+𝑰 −𝟏 SII = DDI = (3. dissatisfaction. By knowing the SII and DDI of an attribute (enquired item). Consequently. the SII can be measured by the attractive quality ratio of an item. we can figure out how to manipulate that quality element to achieve maximum outcome.55 item) may influence customer satisfaction or. According to CQM (1993). in case of its „non-fulfillment‟. it means that the item has a positive effect on increasing satisfaction (provided that it is rendered). while its approximation to -1 implies that the item can decrease dissatisfaction ( in case of fulfillment). if the value of an item is close to 0. This will equip us with an index (Consumer Satisfaction Index: CSI) which will reinforce our analysis abilities (Kuo. Based on these two indexes. When it is close to 1. CSI comprises two indices: Satisfaction Increment Index (SII) and Dissatisfaction Decrement Index (DDI).

956 0. In most cases.1: Reliability Statistics for P and (P-E) Scores The attributes were segregated on the basis of logical reasoning and clubbed to form dimensions for which the reliability tests were done and the Cronbach Alpha scores calculated through SPSS reliability analysis.955 0. Whatever the reliability analysis gives positive results.80 to 0.942 0.96 across six dimensions.947 0.56 CHAPTER IV ANALYSIS AND INTERPRETATION 4.826 Dimensions Reliability Assurance Safe & fast delivery Personnel Physical facilities Information N of Items 9 5 9 5 9 3 Table 4.921 0. Reliability Statistics for P scores Cronbach's Alpha 0. A comparison of the alpha values for both performance and GAP scores is shown in Table 11. the alpha values were comparable.906 0.849 Reliability Statistics for (PE) scores Cronbach's Alpha 0. The iterative sequence of computing alphas and item-to-total correlation. the sample size is too small to calculate the test. The reliability tests were done on both perceived performance scores (P) and GAP scores (P-E).1 RELIABILITY ANALYSIS Reliability analysis allows you to study the properties of measurement scales and the items that make them up.956 0. . followed by the deletion of items.919 0. So we cannot say that provided information about the perception on NLPL and gap score is reliable.950 0.933 0. with alpha values ranging from 0. was repeated several times which resulted in a set of six dimensions with 40 items. The Reliability Analysis procedure calculates a number of commonly used measures of scale reliability and also provides information about the relationships between individual items in the scale.

543 -0.206 3.257 6.222 -0.683 3.524 3.984 3.460 3.873 3.698 1 0 0 13 2 0 0 3 0 1 RELIABILITY 4 0 0 5 0 0 6 0 0 8 0 0 9 0 0 1 0 0 ASSURANCE 3 0 0 4 0 0 2 9 9 6 8 10 23 15 21 10 7 9 8 19 4 9 9 7 8 13 0 1 2 17 20 11 16 14 0 20 11 11 2 10 27 7 4 3 2 1 6 2 12 10 11 4 8 2 16 12 7 7 7 0 1 15 18 7 5 18 12 22 12 9 22 17 11 23 11 0 10 11 12 AVERAGE OF RELIABILITY = -0.492 SAFE & FAST DELIVERY 2 0 0 4 0 0 5 0 0 6 0 0 8 0 0 9 10 21 9 12 14 14 11 6 6 13 7 3 0 0 18 3 7 5 16 11 19 1 14 24 28 10 0 4 8 5 5 5 3 1 1 2 10 19 8 16 10 5 5 6 11 10 18 7 5 20 7 0 0 16 10 15 3 16 25 17 10 12 7 12 9 0 0 17 16 10 15 12 AVERAGE OF DELIVERY = -0.651 -0.714 3.200 -0.114 0 0 0 0 0 2 18 8 8 13 10 8 4 6 10 4 1 2 0 2 3 6.381 -0.508 3.371 -1.286 2.571 -0.444 3.492 3.651 3.411 6 19 20 4 6 4 4 5 1 5 3 6 2 6.603 -0.698 3.381 -0.460 3.492 -0. EXPECTATION FREQ OF RESPONSES 1 2 3 4 2 29 PERCEPTION AVG 3.538 .968 3.429 -0.460 3.111 GAP -0.651 3.730 3.746 -0.032 -0.952 3.524 -0.397 3.686 5.254 3.127 2.063 3.229 5.222 3.2 SERVQUAL OUTPUT SERVQUAL instrument is used to calculate service quality gap score for 40 quality of attributes.086 -0.317 0 0 0 0 0 0 0 0 0 10 17 3 18 6 11 6 10 7 8 4 7 4 11 5 6 4 0 0 3 1 1 0 2 0 0 2.032 3.886 6.016 3.270 3.886 5.730 3.571 -0.810 FREQ OF RESPONSES 1 0 0 0 0 0 0 0 0 0 5 28 6 6 7 7 0 2 1 1 19 6 3 4 5 6 1 14 4 6 6 8 4 4 6 7 0 0 3 1 4 2 1 3 2 AVG 3.429 -1.429 6.731 4 8 6 3 2 5 3.175 3.127 3.825 -0.508 -0.333 -0.635 3.57 4.397 -0.571 2 0 0 16 13 10 8 7 25 10 11 22 15 11 8 15 3 3 4 27 20 13 12 3 7 10 5 0 0 15 15 13 1 0 0 11 20 12 AVERAGE OF ASSURANCE = -0.000 5.508 -0.314 6.317 2.

gap score is -0.538) and physical facilities (-0.411) . Reliability (-0.143 -1.206 -0.032 3.984 -0.476 -0.429 -0.000 3.238 0 6 16 7 14 13 8 11 9 6 9 4 8 6 4 1 1 9.460 -0. .771 5.286 6.921 -0.457 -0.58 1 0 0 PERSONNEL 2 0 0 4 0 0 5 0 0 6 8 27 10 8 27 5 3 9 8 3 2 4 0 3 1 6. All dimensions are having negative results.771 6.952 3.333 -1.571 3.317 2.587 -0. safe & fast delivery (-0.952 0 11.349 3.886 -0.780 Table 4.984 3.841 3.317 3.000 0 10.473 8 6 7 14 21 23 11 10 25 3 5 6 4 5 2 11.731 1 0 0 15 16 2 0 0 PHYSICAL FACILITIES 3 0 0 4 0 0 5 0 0 7 0 0 8 0 0 4 8 9 7 8 7 4 3.000 17 10 7 6 5 3 0 0 17 12 12 3 5 29 7 10 12 11 4 5 20 24 9 6 17 24 AVERAGE OF PERSONNEL = -0. This indicates great opportunity for network logistics to improvement their service.514 -0.413 2.810 9.333 -2.086 6.514 -0.333 14 12 19 1 7 23 9 5 2 5 7 9 2 3 2 2 1 2 3 1 13 14 3 6 14 21 9 4 23 10 12 10 8 8 3 14 11 9 24 10 13 26 6 0 0 16 16 12 6 4 24 11 13 21 24 12 8 9 9 0 0 16 13 18 1 0 0 14 11 AVERAGE OF TANGIBILITY = -0.473) are the dimensions which got low negative gaps shows that three dimensions makes good quality of service from network logistics.905 INFO 2 0 0 3 0 0 14 13 AVERAGE OF INFORMATION = -1. Information (-1.556 -0.111 2.476 3. Expectations from customers are high when compare to perceptions and there are faults in the service that are generating unsatisfactory results among the customers.886 5.444 3.635 3.794) dimensions got very big gap when compare to other dimensions.873 3.514 0 0 0 0 0 5 8 13 15 7 9 8 5 8 10 8 0 3 2 1 2 5.317 0 0 0 0 0 0 0 0 0 11 12 9 6 15 5 4 18 5 9 14 6 3 8 4 7 6 4 9 4 6 1 0 4 0 3 2 2 1 2 3.780.667 8.984 3.794 OVERALL GAP = -0.743 5.800 -1.2: SERVQUAL Output (Attribute) From the SERVQUAL instrument.543 6.286 -0.629 5.

594 6.3: SERVQUAL Output (Dimension) REL 12 10 8 INFO 6 4 2 0 AS E P TAN SAFE PER Figure 4.731 -0.1: SERVQUAL Output (Dimension) A radar chart was generated based on the mean scores on SERVQUAL dimensions. thus indicating poor service quality performance.270 G -0. Chart reveals that gap exists on SERVQUAL dimension of information (-1. According to Table above.473 -1.201 5.669 3.794).2.538 -0.400 3. Negative value simply means the quality of service received by the customers is less than the customers expected level.1 SERVQUAL OUTPUT (DIMENSION) SERVQUAL instrument is used to calculate service quality gap score for 6 quality of dimensions.59 4.411 -0. Assurance and personnel dimensions got -0.056 5.612 6.063 P 3.131 9.731 gap score between perception and expectation. it indicates that NLPL is performing below the expected level of their customers.603 11.794 Table 4. .709 3. the difference of mean between the customers’ perception and expectation yields negative values for all dimensions.440 3.731 -0. DIMENSION RELIABILITY ASSURANCE SAFE & FAST DELIERY PERSONNEL TANGIBILITY INFORMATION E 3. Generally.

60 20.86 17.85 19.02 22.60 4.99 14.12 17. rigs etc.35 23.65 23.37 21.50 18.74 22. trucks. The mean rank for 40 attributes is shown in following table.56 20.48 15.04 19.13 23.64 18..4: Friedman Test (Mean) INFO PHYSICAL FACILITIES PERSONNEL SAFE & FAST DELIVERY ASSURANCE RELIABILITY Mean rank 23. Having the most suitable vehicle for transport Provides flexible in combining two or three destination Having proper documentation for custom clearance Provides Customer Specific Free Time Restricts multiple handling between terminals Takes care on duty and refund for goods Settles the issues on merit Specializes at various custom guidelines of other countries Sets clear Interpretation of Rules Inspects the materials after and before given to clients Having speed and consistency of transport Delivers the shipments on time Plans and schedules easy route for transportation Ensures vehicle safety Having safety precautionary items are well in condition Provides vigilance and securities for warehouse Examines the shipments for safety Concentrates on safe Transit of Goods Provides technical expertise to customers Having expert Labor force to handle materials Experts on port handling Having dedicated shipping professionals Having highly qualified.68 22.67 16.26 17.72 19.52 19.74 19.43 23. ATTRIBUTE REL1 REL2 REL3 REL4 REL5 REL6 REL7 REL8 REL9 AS1 AS2 AS3 AS4 AS5 SAFE1 SAFE2 SAFE3 SAFE4 SAFE5 SAFE6 SAFE7 SAFE8 SAFE9 PER1 PER2 PER3 PER4 PER5 TAN1 TAN2 TAN3 TAN4 TAN5 TAN6 TAN7 TAN8 TAN9 INFO1 INFO2 INFO3 Dim Attributes Supplies the materials as per your indents Provides proper supplier’s details and documentation Maintains proper receipt and accounting details Having flexible payments methods and conditions Informs accurate description of pipelines.39 22.13 25.64 17.07 19.93 .73 23.31 21.13 19. cranes to handle materials Establishes agents worldwide Sticks Labels to materials while packing Having wide space area to store material Always having covered sheds in warehouse Having warehouse layout that suitable for vehicle in and out Tracks exact location of materials Having warehousing Facilities at Good sheds Provides Reliable Information while communication Having proper Communication from Top to Bottom Provides information of Placement in Advance Table 4.61 24.52 21.3 FRIEDMAN TEST (MEAN) Friedman test is analyzed for perceived score given by customers for SERVQUAL 40 attributes of NLPL.75 23.98 21.11 20. experienced staff Provides multimodal transportation Provides trailers.74 18.43 18.95 19.66 20.

SAFE3. There is an overall statistically significant difference between the mean ranks of the related groups. Providing multimodal transportation.61 NULL HYPOTHESIS (H0): no significance difference between mean of perceived level of responses. Takes care on refunds for goods. AS2. .05. ALTERNATIVE HYPOTHESIS (H1): significance difference between mean of perceived level of responses. These ten attributes comes from the following question in the questionnaire (REL3. TAN9. Null hypothesis is rejected. Alternative hypothesis is accepted. SAFE9. layout of warehouse suits for transportation. SAFE5. a good sheds and proper communication. Delivers the shipments on time. N 50 Test statistic Chi-Square 109. 0 Table 4.537 DF 39 Asymp. TAN7. TAN1. Sig. INFO2). TAN4. According to mean ranks of Friedman test the 10 least are most important attributes and operations manager should take into consideration while they make a decision in future marketing strategy to reduce the Gap. That are Maintains proper accounting details. labeling. Ensuring vehicle safety. safe transmit of goods.5: Test Statistic for Friedman Test (Mean) From the asymptotic significances value is less than 0.

. So that the service quality isn’t improved.4 PAIRED T TEST Paired t-test is conducted between expected average value from 40 attributes and perceived average values.6: Paired T Test From the above results. The responses of customers before service get from provider is differed from responses after serviced. This indicates customers got different service what they expected.06615 . Alternative hypothesis is accepted.50330 t DF Sig.630 39 .62 4. So null hypothesis is rejected. (2-tailed) . Std. ALTERNATIVE HYPOTHESIS (H1): there is significance difference between expected and perceived level of service.63712 . NULL HYPOTHESIS (H0): there is no significance difference between expected and perceived level of service.77094 9. Paired Samples Test Paired Differences Mean Std. 95% Confidence Deviation Error Interval of the Mean Difference Lower Upper Pair 1 E&P . test statistic (t) is less than 0. The SERVQUAL gap shows negative value. But the change of feel happened.41842 .000 Table 4.05. So we can get whether customer feel any difference between expected and perceived service. We can’t say the service is improved.

000 100 AVG OF PER 100 .921 .000 100 .930 .924 .905 .889 . ALTERNATIVE HYPOTHESIS (H1): there is significance difference between service dimensions.926 .000 100 .5 CORRELATION TEST Correlation analysis is between averages of all dimensions.000 100 .000 100 .000 100 .905 .63 4.925 .910 .935 .000 100 .000 100 .916 .000 100 1 . (2-tailed) N Pearson Correlation Sig.959 .921 .889 . (2-tailed) N 1 AVG OF AS . (2-tailed) N Pearson Correlation Sig.000 100 AVG OF AS 100 .000 100 . (2-tailed) N Pearson Correlation Sig.935 .939 .959 . Correlation transformer to determine extent to which changes in value of an dimension is associated with changes in another dimension.923 .000 100 1 AVG OF INFO .000 100 .000 100 AVG OF TAN 100 .000 100 .000 100 AVG OF INFO 100 Table 4.000 100 1 AVG OF AVG AVG OF SAFE OF PER TAN .923 .922 .000 100 .000 100 .000 100 .000 100 1 .916 .924 .000 100 1 100 .925 .000 100 .910 .930 .000 100 .000 100 . (2-tailed) N Pearson Correlation Sig.922 .000 100 .000 100 .926 . NULL HYPOTHESIS (H0): there is no significance difference between service dimensions.000 100 .939 .000 100 . AVG OF REL AVG OF REL Pearson Correlation Sig.924 .000 100 AVG OF SAFE 100 . (2-tailed) N Pearson Correlation Sig.7: Correlation Test .924 .

13. From this analysis reliability dimension has strong relationship with physical facilities (0.8742).33.20.24.31.34.16. Physical facilities have good relationship with personnel dimension (0.30.8817 and r2 = 0. Maximum 15 attributes shown as indifferent category.5.935). There is no significance difference between the averages of dimensions.6 KANO’S MODEL OUTPUT Kano category Attractive Must be One dimensional Indifferent Reverse Attribute number Total 9 10 6 15 0 Total attributes 40 1. 4.18. This is substantiated by the coefficient of determination (r2 = 0. And also repeatedly same projects are done through network logistics to customers. All significance value is less than 0. So null hypothesis is rejected. which indicates that 88. meaning the more sufficiency of those are the more customer satisfaction will result in and vice versa and 9 service quality attributes are categorized into attractive.12. the physical facilities dimension has more relationship with safe & fast delivery (0.36. So all service providers not given as much different from others.35.6.4.21.42 of the variation in physical facilities dimension can be explained by the timely delivery and personnel dimensions respectively.9.8: KANO’S Model Output One There are 10 service quality attributes.8. So they feel that 15 service quality attributes are similar to other service providers in India. indicating this attractive delights and attracts customers.29.05.19.26.939).38 2.28.10.15. .23.39 3. occupied most. 6 service quality attributes are categorized into one-dimensional.25.22.11. Alternative hypothesis is accepted. because of nearly thousands logistics service providers in Chennai.64 All Pearson correlation coefficient for dimensions are highly positive correlated. representing indispensable of service quality.32.17% and 87.959). categorized into must-be quality attributes.14.40 7.37 -- Table 4. furthermore.27.17.

9: KANO’S Model Output Two .65 No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 ATTRIBUTE REL1 REL2 REL3 REL4 REL5 REL6 REL7 REL8 REL9 AS1 AS2 AS3 AS4 AS5 SAFE1 SAFE2 SAFE3 SAFE4 SAFE5 SAFE6 SAFE7 SAFE8 SAFE9 PER1 PER2 PER3 PER4 PER5 TAN1 TAN2 TAN3 TAN4 TAN5 TAN6 TAN7 TAN8 TAN9 INFO1 INFO2 INFO3 A 72% 4% 12% 6% 14% 12% 26% 34% 20% 16% 14% 46% 24% 14% 20% 18% 42% 8% 14% 16% 38% 16% 72% 44% 4% 14% 26% 38% 16% 22% 22% 10% 16% 8% 16% 10% 12% 22% 56% 22% KANO CLASSIFICATION O M I 16% 4% 8% 2% 40% 54% 12% 46% 30% 6% 36% 52% 12% 18% 56% 2% 44% 42% 32% 18% 24% 14% 20% 32% 12% 40% 28% 8% 6% 70% 10% 36% 30% 10% 14% 30% 2% 12% 62% 8% 40% 38% 6% 10% 64% 44% 8% 30% 14% 18% 26% 8% 34% 50% 10% 30% 46% 6% 42% 36% 16% 12% 34% 2% 22% 60% 8% 8% 12% 6% 10% 40% 4% 34% 58% 4% 44% 38% 38% 18% 18% 14% 14% 34% 14% 6% 64% 48% 20% 10% 6% 10% 66% 6% 72% 12% 8% 24% 52% 8% 18% 66% 66% 12% 6% 8% 46% 36% 6% 16% 66% 46% 14% 18% 6% 12% 26% 4% 62% 12% R 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% KANO CATEGORY A I M I I M O A M I M A I M I O A I I M A I A A I M O A I O I M I I O M I O A M Table 4.

660* SII 0.140 0.820* 0.240 -0.180 0.240 0.420 -0.267 0.480 0.080 0.500 -0.780* -0.560 -0.240 0.420 -0.66 4.260 0.180 0.380 -0.180 0.620* 0.340 -0.520 0.320 -0.220 0.060 0.220 -0. Attributes REL1 REL2 REL3 REL4 REL5 REL6 REL7 REL8 REL9 AS1 AS2 AS3 AS4 AS5 SAFE1 SAFE2 SAFE3 SAFE4 SAFE5 SAFE6 SAFE7 SAFE8 SAFE9 PER1 PER2 PER3 PER4 PER5 TAN1 TAN2 TAN3 TAN4 TAN5 TAN6 TAN7 TAN8 TAN9 INFO1 INFO2 INFO3 DDI -0.680* 0.880* 0.400 -0.280 -0.480 -0.260 0.269 0.180 -0.480 -0.300 -0.320 0.260 0.700* 0.10: CS Coefficients .620* 0.520 -0.240 0.500 0.680* -0.260 -0.220 0.140 -0.260 Table 4.200 -0.540 -0.240 -0.200 -0.480 -0.140 -0.580 -0.180 0.160 -0.240 0.160 -0.160 0.540 0.560 0.120 0.520 -0.160 -0.300 0.320 -0.580 0.460 -0.160 0.1 Customer satisfaction coefficient (CS coefficient) CSC calculates the ratio of the number of subjects that get satisfied with the presence of an item to the number of the subjects that get dissatisfied with the absence of that item. The CS coefficient is indicative of how strongly a service requirement may influence customer satisfaction or.280 -0.420 -0.6.160 0.560 0.800* 0.780* -0.640* 0.154 -0.600* -0. in case of its dissatisfaction.511 -0.

or whether fulfilling quality elements only prevents the customer from being dissatisfied. revealing that attributes REL2. PER4 and TAN8 do not have much influence in the satisfaction or dissatisfaction of the customers However CS coefficients yields some further evidence with respect to the nature of ServQual items. we can find out which quality element can result in maximum outcome.5) while their absolute DDI level is low (less than 0. For instance. that evoke surprise and pleasant satisfaction in case being sufficiently delivered (Kuo. Supply of the materials as per customer’s indents which have a high absolute level of DDI. REL1 with a positive CS-coefficient of 0.88 can only slightly increase satisfaction.78 leads to more than proportional dissatisfaction. In addition the items which enjoy high SII levels (more than 0. .PER2 and TAN4 tend to be a weak excitement factors (Table 20). The SII and DDI (satisfaction increase and dissatisfaction decrease indices) of our attributes can be seen in the Table for each SERVQUAL attributes. 2004).5) are considered as attractive. Based on the above criteria attributes REL3. The items which demonstrate both low absolute SII and DDI levels fall into the indifferent category since their effect in inducing either satisfaction or dissatisfaction is rather on the low end. Based on satisfaction increment index (SII) and dissatisfaction decrement index (DDI). SAFE2.REL7.AS2. a TAN7 with a negative CS-coefficient of -0.67 The customer satisfaction index states whether satisfaction can be increased by providing quality elements.

2: SII & DDI .68 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 -100% -80% -60% -40% DDI -20% 0% 20% 40% SII 60% 80% 100% Figure 4.

1 FINDINGS This overall SERVQUAL gap (-0.473) are the dimensions which got low negative gaps shows that three dimensions makes good quality of service from NLPL. The difference of mean between the customers’ perception and expectation yields negative values for all dimensions.8817 and r2 = 0. From the Friedman test the 10 least are most important attributes. Physical facilities have good relationship with personnel dimension (0.538) and physical facilities (-0. NLPL must concentrate on accuracy of information and order of communication. Reliability (-0. safe & fast delivery (-0. layout of warehouse suits for transportation. safe transmit of goods. the physical facilities dimension has more relationship with safe & fast delivery (0. NLPL have very well records on quickest delivery and handling materials in well. a good sheds and proper communication. so whenever taking decision providing any excess facilitating goods to customer NLPL must concentrate on whether enough workers are there and timely delivery is possible for that facilitating goods.935).8742). proper documentation for custom clearance.17% and 87.959). Generally. it indicates that NLPL is performing below the expected level of their customers. This is substantiated by the coefficient of determination (r2 = 0. The correlation test between dimensions explains that the reliability dimension has strong relationship with physical facilities (0.69 CHAPTER V FINDINGS. This indicates customers got different service what they expected. Ensuring vehicle safety.42 of the variation in physical facilities dimension can be explained by the timely delivery and personnel dimensions respectively. settles the . That are Maintains proper accounting details.411) . Delivers the shipments on time.939). Definitely the service from NLPL makes customers satisfaction. Takes care on refunds for goods. which indicates that 88.780) indicates great opportunity for network logistics to improvement their service. According to KANO’s model results The Attractive(A) attributes are supplies the materials as per customer indent. labeling. Providing multimodal transportation. Paired t-test explains the responses of customers before service get from provider is differed from responses after serviced. SUGGESTIONS & CONCLUSIONS 5. furthermore.

customer specific free time. The rest of 15 attributes are categorizes as Indifferent (I). sticks labels. provides technical expertise. cranes to handle materials. dedicated shipping professionals. . provides trailers. trucks. sets clear interpretation of rules. The Must-be(M) attributes are maintains proper accounting details. reliable information while communication. The One-dimensional(O) attributes are provides flexible in combining two or three destination. speed and consistency of transport. proper communication from top to bottom. safe transit of goods. dedicated shipping professionals. reliable information while communication and proper communication from top to bottom. cranes to handle materials. That are supplies the materials as per your indents. having warehouse layout that suitable for vehicle in and out. cranes to handle materials. takes care on duty and refund for goods. safe transit of goods. speed and consistency of transport. trucks.70 issues on merit. safety precautionary items are well in condition. reliable information while communication and provides information of placement in advance. Seven attributes decreases the customer dissatisfaction. That are provides trailers. delivers the shipments on time. most suitable vehicle for transport. vigilance and securities for warehouse. provides trailers. sticks labels to materials. having warehouse layout that suitable for vehicle in and out. tracks exact location of materials. warehousing facilities at good sheds and provides information of placement in advance. experts on port handling. trucks. highly qualified and experienced staff. The customer satisfaction coefficient explains five attributes increases the customer satisfaction.

On safety concerns. . One-dimensional (O) requirements are usually explicitly demanded by the customer. NLPL having agents only on Asia and Middle East countries. Fulfilling these requirements leads to more than proportional satisfaction. the customer will not be interested in the service at all. Attractive (A) attributes are neither explicitly expressed nor expected by the customer. and if they are not fulfilled. While concentrating on export and import. Handling materials like trailers. So NLPL need to avail agent’s worldwide level. inspects the materials after and before given to clients. NLPL avoids multiple handling goods between terminals totally. cranes for various sizes and various dimensions need to be focused. Air and shipping cargo workers able to attain their level of competency. however. Must-be (M) attributes are in any case a decisive competitive factor.2 RECOMMENDATIONS NLPL must maintain accuracy of information while communicating with customers. there is no feeling of dissatisfaction. If they are not met. Take care on duty and refunds of the goods. Because safety leads to good quality of service.71 5. Whenever taking decision providing any excess facilitating goods to customer NLPL must concentrate on whether enough workers are there and timely delivery is possible for that facilitating goods.

The results shows that customers expect that six dimensions of SERVQUAL for delivering excellent service get high levels. It also became clear that all quality of dimensions need to be concentrated equally in logistics industry.be. the satisfaction portfolio can be drawn up and suitable measures taken. The long. In addition. and if one is aware of the relative significance of this service feature and assessment from the customer’s viewpoint compared to the competitors. Of utmost priority are those service requirements which the customer regards as important and which show disadvantages with respect to competitors’ products. it was found that in all six criteria of service quality model there are gaps between expectations and perceptions of customers. but their perceptions resulting from the perceived service are evaluated in moderate level. it means that the perceived services was nearly equal to expected needs of clients and customers get satisfaction with the perceived services.72 5.term objective is to improve customer satisfaction with regard to important service features in order to establish tenable competitive advantage.dimensional or attractive requirement). . one. If one knows to what extent a service feature influences the perceived service quality and in turn influences customer satisfaction (must . It is suggested that these SERVQUAL instrument is used to measure service quality continuously.3 CONCLUSION This study evaluated the situation of service quality based on the Service Quality gap Model to determine the fifth service gap in NLPL.

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"Research Note: More on Improving Service Quality Measurement~" Journal of Retailing. Shen. www. Mike. Diane. WEBSITES: 1. Walden.networklogistics. Gary.in 2. Charles.managementstudyguide.com 3.X. Shen. 67 (4). and XIE. pp. Allan.M. 3 No. 9. Vol.com . www. K. 4 (Fall 1993).defined Quality".. The Journal of the Japanese Society for Quality Control. Hinshitsu. Berger. X. F. and (1994). Timko. Richter. Reinhard. (April 1984). In: Center for Quality Management Journal. Kano. pp. Blauth. Takahashi and S. 12-37. “An integrated approach to innovative product development using Kano’s model and QFD”. European Journal of Innovation Management. 8. 91-9. David. www. Tan. David. N.be Quality". 111-24. Seraku. N..420-50 and (1993). 10. Vol.140-47. pp. Rubinoff. 63 ( I). William. Pouliot. Robert.' Journal of Retailing. Fred. 39 .com 4. 58 (January). and (1991). www. (2000). 2. Tsuji: "Attractive Quality and Must.36.74 Retailing. 3 .citeoperations.' Journal of Marketing. "Kano’s Methods for Understanding Customer . "Reassessment of Expectations as a Comparison Standard in Measuring Service Quality: Implications for Future Research. Christopher.financialexpress. Burchill.C.48. Bolster. DuMouchel. "Refinement and Reassessment of the SERVQUAL Scale. Boger. 69(1).

experienced staff Provides multimodal transportation Provides trailers. cranes to handle materials Establishes agents worldwide Sticks Labels to materials while packing Having wide space area to store material Always having covered sheds in warehouse Having warehouse layout that suitable for vehicle in and out Tracks exact location of materials Having warehousing Facilities at Good sheds Provides Reliable Information while communication Having proper Communication from Top to Bottom Provides information of Placement in Advance 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 .. please indicate your desired service level and your perceptions of Network Logistics Private Ltd by encircling one of the numbers in the third and the fourth column respectively.75 A.. trucks. For each of the following attributes. the level of service you desire. We would like your impression about the performance of Network Logistics Private Ltd relative to your desired service level. rigs etc.e. Having the most suitable vehicle for transport Provides flexible in combining two or three destination Having proper documentation for custom clearance Provides Customer Specific Free Time Restricts multiple handling between terminals Takes care on duty and refund for goods Settles the issues on merit Specializes at various custom guidelines of other countries Sets clear Interpretation of Rules Inspects the materials after and before given to clients Having speed and consistency of transport Delivers the shipments on time Plans and schedules easy route for transportation Ensures vehicle safety Having safety precautionary items are well in condition Provides vigilance and securities for warehouse Examines the shipments for safety Concentrates on safe Transit of Goods Provides technical expertise to customers Having expert Labor force to handle materials Experts on port handling Having dedicated shipping professionals Having highly qualified. My Desired Service Level is Low 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 High 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 My Perception of NLPL Service Performance is Low High 1 2 3 4 5 6 7 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 4 5 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 6 7 No Attributes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Supplies the materials as per your indents Provides proper supplier’s details and documentation Maintains proper receipt and accounting details Having flexible payments methods and conditions Informs accurate description of pipelines. i.

equipment and material handling facilities made available to the customer The clarity.76 B. The knowledge and courtesy of NLPL and their ability to convey the trust. The service is accomplished on time. Make sure the points add up to 100. Dimensions The ability to perform the promised service dependably and accurately. completeness and accuracy of both verbal and written information communicated to the customer Total 100 Points . We would like to know how much each of these sets of features is important to the customer. Please allocate 100 points among the five sets of features according to how important it is to you. The ability to provide safe and fast delivery Attitude of officers and staff The physical facilities. confidence and competence to perform the service. in the same manner and without errors every time.

how do you feel? Question 2: If the attribute doesn’t meet the need. Please choose any one among five options (H. Make sure that you must give answers for Question 1 and Question 2 separately. Functional (Q1): Dysfunctional (Q2): Question 1: If the attribute meets the need. We would like to know how much each of these 40 features is important to the customer. how do you feel? H-. U) if NLPL service has that feature and service does not have that feature.. M-Must be. M.This is a basic requirement I---This would not affect A--This would be a minor inconvenience U--This would be a major problem and I can’t accept it H--This would be very helpful M--This is a basic requirement I---This would not affect A--This would be a minor inconvenience U--This would be a major problem and I can’t accept it.This would be very helpful M-. U-Unhappy) Supplies the materials as per your indents Provides proper supplier’s details and documentation Maintains proper receipt and accounting details Having flexible payments methods and conditions Informs accurate description of pipelines. A-Acceptable. rigs etc. Having the most suitable vehicle for transport Provides flexible in combining two or three destination Having proper documentation for custom clearance Provides Customer Specific Free Time Restricts multiple handling between terminals Takes care on duty and refund for goods Settles the issues on merit Specializes at various custom guidelines of other countries Sets clear Interpretation of Rules Inspects the materials after and before given to clients Having speed and consistency of transport Delivers the shipments on time Plans and schedules easy route for transportation Ensures vehicle safety Having safety precautionary items are well in condition Provides vigilance and securities for warehouse Examines the shipments for safety Concentrates on safe Transit of Goods Provides technical expertise to customers Having expert Labor force to handle materials Experts on port handling Having dedicated shipping professionals Having highly qualified. Follow the below instructions. S No Attributes ( H-Happy. experienced staff Provides multimodal transportation Provides trailers. A. I-Indifferent. trucks. cranes to handle materials Establishes agents worldwide Sticks Labels to materials while packing Having wide space area to store material Always having covered sheds in warehouse Having warehouse layout that suitable for vehicle in and out Tracks exact location of materials Having warehousing Facilities at Good sheds Provides Reliable Information while communication Having proper Communication from Top to Bottom Provides information of Placement in Advance Q1:Functional Q2:Dysfunctional H M I A U H M I A U 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 . I.77 C.