Professional Documents
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Chapter 1234 March Najud Ko Graduate
Chapter 1234 March Najud Ko Graduate
CHAPTER I
INTRODUCTION
and thousands of products have been introduced. Correlatively, the size and
time. Physical distribution is the most visible aspect of any company’s marketing
efforts with regards to the production expansion. It provides the need of the
initiatives of the company with regards to delivery. That is by ensuring that the
entire delivery has successfully satisfied the consumers or buyers demand. This
study will look into the physical distribution of the company which specializes in
distributions are delayed in the day to day operations. Firstly, the drivers have to
beat heavy traffic in the city especially if the weather is bad. Traffic causes a lot
of troubles in regards to time setting. Secondly, there are clients who are setting
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city, the delivery drivers could not afford to meet the time set by the clients.
These hindrances are preventing the company to meet the satisfaction of the
customers to its delivery. And lastly, there are elements of physical distribution
The physical distribution issues of Strabo Import and Export, Inc. has
its customers. Most of the research environment are famous restaurants here in
Cebu mainly Cebu City, Lapu Lapu and Mandaue. Its nature of business is
supplying seafood products daily to clients who ordered day before the delivery.
elements of physical distribution are the main reasons why this study was made.
The researcher used to work in Strabo Import and Export, Inc. and
the interest of the researcher to assess the distribution practices of the company
to meet the customer’s demands. With its very limited transportation resources,
traffic and time setting of the clients, the researcher is making a proposal,
attentively. Thus, this study aimed to solve the problem of the company which
THEORETICAL BACKGROUND
Customer Service and Order processing which includes the transportation and
Delivery.
The first component, (Sinha, J.C., and Mugali, V.N.) information flow talks
involves the handling and moving of raw materials and finished products from
within an arm’s length of desire”. By administering its physical flow from the
organization to the customers at the time and place where they want them at a
Physical distribution objective as getting the right goods, to the right places, at
the right time, for the least cost. There are two dimensions to physical distribution
process, the flow of information form the producer to the consumer or the user. In
both these retailers and wholesalers are usually involved. The two dimensions
are inter-related, though information flow generally triggers the material flow into
proper amount of the right kind of product is made available at the place where
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demand for it exists. Viewed in this light, physical distribution is the key link
controlling the physical flow of materials and final goods from points of origin to
points of use of meet customer needs at a profit. It is not only a cost, it is a patent
Companies lose customers when they fail to supply goods on time. Major
order processing.
may at first appear to be a minor part of logistics and a rather routine activity that
does not require a great deal of thought to do well. In fact, order processing is
system can be far from routine. Its importance lies in its relationships with order
cycle time, which is the time between when an order is placed and when it is
time considerably. It can even increase the transportation costs if a faster mode
of transportation must be used to make up for the slow order processing time.
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and keeping customers happy or creating in the customer’s mind the perception
standards:
Bowersox and Closs distill what they refer as “ Basic Service Capability” into
al, have argued that the output of a firm’s logistical system or supply chain should
not only be aimed at providing superior customer service, but should also be
To align the behavior of individuals to the customer service and the order
measures.
supplier affects profitability for both firms, developing and/or checking into their
profit and loss statements is done in the third step of the framework. The
depicts the total cost analysis. It may vary when the revenue can be attributed to
changes in performance (Kurata, 2014). The management can compare the total
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revenues and costs for the current period to similar periods in the past, or even
compare to other suppliers. The statement can also be used to provide the best
processes. Through this, the business shall refer to the inventory management
system being implemented, and the previously-cited profit and loss statements.
By the P&L analysis, the business can decipher the impact and significance of
aligning their actions with the objectives of the supply chain. The results of the
improvements in the processes of the supply chain and ultimately, the objectives
of the whole system (Manuj and Sahin, 2011). In realigning the processes, one of
processes (Stavrulaki and Davis, 2010). By getting rid of them, the physical
complexities, and more importantly, costs are reduced. One example cited in
their study refers to opting to route products through internal distribution centers,
rather than shipping high volume products to the customers. By routing the
products through some centers, lesser human involvement is needed, and single
data entry for the information system shall be utilized. Badenhorst et al (2013)
technologies are a must. With the relevance of the information system, complex
decisions are broken down to simple, easy-to-solve ones, and network facility
8
The next step in the framework refers to the most important part of the
business: its employees. The above-cited economic value adding activities are
shall be inculcated among the employees for their effective implementation. Bulut
and Atakisi (2015) posited that human resource management, being essential
part of the supply chain, shall identify the employees as an asset, rather than
cost to the business. Since supply chain management gives greater weight on
fulfilling customer expectations, the company creates value for the customer with
the use of its human resources (Marshall et al, 2015). To properly measure the
set by standards, this could vary per company depending on their strategies, and
decision-making process in the business, and are helpful for firms to measure
and assess the right things and right people to take action in a supply chain
The last two steps point of comparing shareholder value, and replicating
the aforementioned steps in each of the processes in the supply chain. Ha-
brookshire (2017) asserted that supply chain should be sustainable, and shall
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edge. The business needs also to adapt to the fast-paced, and highly-demanding
a successful supply chain (Li, 2009). Through this, higher profit and greater
The INPUTS of the study were divided into two areas: profile of the
name of the company and classification for profiling. The areas of physical
the survey as well. Clients or customers were free to suggest and recommend
what they prefer for the delivery or distribution of the goods. The data were
The OUTPUT of the study were used to improve the existing physical
and Export, Inc. The output of the study was an improved physical distribution
system of the company. Specifically, the study intended to answer the following
questions:
managers receive the production distribution of Strabo Import and Export, Inc.
owners receive the physical distribution of Strabo Import and Export, Inc. based
Inc.?
13
external communities may benefit from this study. The sectors that may benefit
from this study are enumerated below and the details on how they are benefited.
Company
This study is beneficial to the company that the study will focus into. It will
provide the company with the distribution system that will ensure timely delivery
of goods and services to its clients. The data gathered in this study may be used
to create a more effective ordering and delivery system to avoid delays and
unnecessary expenses of the company and at the same time meeting the needs
of its clients.
Clients
beneficial to the clients for it will ensure the timely delivery of the company. It
would also help them to determine the order points and placing order of the
company. And in a way, it will give the clients opportunity to build their brand
Government
The findings will provide them feedback in terms of the operation of the
company that might help them in dealing with business clearances and permits.
quality.
Future Researcher
Researcher
knowledge about the nature of physical distribution and logistics. All the learnings
will be documented, having the data analysed correctly and effectively be put to
practice. This serves as a one-stop shop for the researcher to find practical
DEFINITION OF TERMS
Customer Advantage
These conditions allow the productive entity to generate more sales or superior
Customer Satisfaction
brand.
Customer Service
and keeping customers happy or creating in the customer’s mind the perception
Delivery
once could only mean the action of handling something to another but it has a
long history of being applied in other ways. For the company, it is the action of
Information Flow
handling and moving of raw materials and finished products from producer to
Multiplant operation
between alternate internal production locations, which can produce the same
Order Processing
The task of filling orders may at first appear to be a minor part of logistics
and a rather routine activity that does not require a great deal of thought to do
well.
Physical Distribution
It includes all the activities associated with the supply of finished product
at every step, from the production line to the consumers. Important physical
control, transportation and logistics, and packaging and materials. Also, this is
the handling, movement, and storage of goods from the point of origin to the
Point of origin
derives. The place at which a shipment received by a carrier from the shipper. In
supply chain management explores how goods are transformed from raw
materials to finished goods or move from the manufacturer to the end-user, the
customer.
Point of consumption
goods and services is the amount of them used in a particular time period.
Product Knowledge
training for executive management sales , marketing and customer service roles.
Product Quality
a saleable good which determine its desirability and which can be controlled by a
goods for sale have a product quality or assurance department that monitors
Single-plant production
together in sequence from one work station to the next. This is managing the
supply chain like one firm, with all partners operating on the same line.
Timeliness
time. It is a proprietary rating system used to rate stocks while taking into account
RESEARCH DESIGN
Research Method
This study, physical distribution of Strabo Import and Export, Inc used
the main instrument for data collection. Interview questions were also conducted
was also soliciting additional information about the physical distribution. The
Research Environment
The company, Strabo Import and Export, Inc. started last 2006 located
HJR International Corporation. There are two managers handling the company,
the sales and marketing managers. They are focusing mainly on the selling of the
seafood products rather than knowing the sales itself. There is only one
accounting clerk incurring the credits and collections. There is only one truck
driver and a helper that makes everything a hindrance for delivery distribution.
The capacity of the delivery truck is 10 cartoons or boxes, with 10 kilograms each
box. There is a weekly meeting of the managers and staff for sales and
marketing update.
Research Respondents
This study had two groups of research respondents. These were the
management of Strabo Import and Export, Inc. and its existing clients.
There were 32 clients located in the different cities, 15 from Cebu City, 10
from Mandaue City and 7 from Lapu-Lapu City as certified by the Managing
Table 1
Respondents
N=32
TYPE OF RESPONDENTS TOTAL NO. OF
CUSTOMER CUSTOMERS
Restaurant Manager 27
Retailer Owner 5
TOTAL 32
Sampling Techniques
customers of Strabo Import and Export, Inc. The list of customers is provided in
Research Instrument
A questionnaire was created to serve as the main tool for gathering data.
The questionnaire was composed of two parts. The first part included the profile
of the respondents. This dealt with the company’s norm of settling the business,
The second part required the assessment of the satisfaction of the physical
Processing.
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The questionnaire included the name of the company and position of the
representative. The next part asked the respondent to assess whether the
services were currently received from Strabo Import and Export, Inc. Each item in
description as follows:
4 Very Satisfied (VS) means that the company has always met
1 Not Satisfied At All means that the company has never met
Prior to the study, the researcher reviewed the list of current or existing
clients of Strabo Import and Export, Inc. From the list, the questionnaire were
distributed to the clients’ respective address. There was a brief explanation of the
purpose of the questionnaire of study will be done. Aside from the written
respondents.
Data Analysis
assessment with the data gathered. The respondent’s choice answers were the
company.
will be tabulated. The mean was used to provide average value of the data under
study. It was computed by dividing the sum of values or observations with the
number of observations.
∑𝑛𝑖=1 𝑥𝑖
𝑥̅ =
𝑛
The scores were the weighted mean scores, and the corresponding
T – Test Analysis
The T-test is used to compare the values of the means from two samples
and test whether it is likely that the samples are from populations having different
managers of the restaurants and the selected retail owners oof Strabo Import
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and Export, Inc. the T-test analysis was used. The result tallied that there was no
3.26 – 4.00 Very Satisfied (VS) means that the company has
the customer
the customer
1.76 – 2.50 Less Satisfied ( LS) means that the company has
of the customer
1.00 – 1.75 Not Satisfied At All means that the company has
customer
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The researcher studied and scrutinized the treatment of data carefully and
CHAPTER II
After all the pertinent data have been gathered, these are then tabulated,
analysed and interpreted to answer the general and specific objectives of this
study. Both descriptive and inferential statistics were utilized to suit this purpose.
Table 3
Information Flow
N=32
INFORMATION
Managers Description Retailers Description Average Description
FLOW
2. Purchase order
2.55 Satisfied 2.90 Satisfied 2.72 Satisfied
status update
3. Reports on supplier
2.41 Less Satisfied 2.80 Satisfied 2.60 Satisfied
performance
5. Presentation of the
2.91 Satisfied 3.00 Satisfied 2.95 Satisfied
company offers
was assessed by the chosen respondents and the table above shows their
respective perceptions. Both the managers of the selected restaurants and the
improved as it tallied the least rating of Less Satisfied by the managers. Based
on the researchers’ observation of the daily operation of the company, due to the
performance report is not obtained, the reason being the company has a least
number of people operating it. During the day, the Sales manager is busy in
contacting the dealers of the imported products and also managing the
should be noted that the company is held liable for their performance towards the
customers.
Under a Scheme rules of the parent company, all engaging companies are
the performance of and the services provided by the company are considered by
Table 4
Order Processing
N=32
ORDER
Managers Description Retailers Description Average Description
PROCESSING
1. Standard
3.23 Satisfied 3.44 Very Satisfied 3.34 Very Satisfied
order taking form
2. Customer
order 3.46 Very Satisfied 3.44 Very Satisfied 3.45 Very Satisfied
confirmation
3. Timeliness 1.14 Not Satisfied 1.30 Not Satisfied 1.22 Not Satisfied
4. Ask for
customer 2.09 Less Satisfied 1.90 Less Satisfied 2.00 Less Satisfied
feedback
5. Give details of
the order once 2.27 Less Satisfied 2.10 Less Satisfied 2.19 Less Satisfied
transported
Less Less
Factor Average 2.44 2.44 2.44 Less Satisfied
Satisfied Satisfied
distribution aspect as Less Satisfied. It can be verified above that the less
satisfaction emanated from the perception of the managers and retail owners
customers for feedbacks” and “giving details of the order once transported” also
received less rating from the two groups respectively. The company had least
initiative when it comes to following up the details of the order once transported.
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For as long as the product is delivered already, they won’t entertain questions
rated as “Not Satisfied “ by both managers and owners due to the company’s
lack of delivery truck and time constraints. The capacity of the delivery truck is 10
timely delivery offered by the suppliers. The company lacks the delivery schedule
suppliers. This is the main factor the company has to consider in their daily
operation.
Timeliness is really crucial to the company’s side. It can ruin their image
clients. As what the researcher had experienced during the delivery of the
from the customers are to be made together with the delivery. Sometimes, the
considering the time demanded by the customers waiting for the delivery. In
Import and Export, Inc. fails to consider the traffic conditions in the area of Metro
Cebu. The timing is critical to the buyers operations for supplier controls, on the
“Satisfied and Very Satisfied” by the selected retailers. The managers have a
cleanliness and orderliness. Strabo Import and Export is using only a basic
standard form without even a print or logo of the company. For the benefit of the
customers’ records, the company should consider in putting creative designs and
Table 5
Schedule
1. On-time delivery
of the firm’s
products directly to 2.36 Less Satisfied 1.30 Not Satisfied 1.83 Less Satisfied
the customers’
points of use
2. Customer’s
future needs are 4.00 Very Satisfied 2.00 Less Satisfied 3.00 Satisfied
determined
3. Clients’ needs
are immediately 1.50 Not Satisfied 2.30 Less Satisfied 1.90 Less Satisfied
answered
5. Distribution
planning schedule
2.50 Satisfied 3.50 Very Satisfied 3.00 Satisfied
as per request of
the clients
6. Order size
2.46 Less Satisfied 3.00 Satisfied 2.73 Satisfied
Constraints
7. Physical
3.52 Very Satisfied 3.50 Very Satisfied 3.51 Very Satisfied
condition of goods
Less
Factor Average 2.50 2.51 Satisfied 2.51 Satisfied
Satisfied
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Overall, the clients were “Satisfied” with the brand of customer service
However, the managers of the participating restaurants believed that the “Clients’
needs are immediately answered” and “Speed for order processing” were not
multiple tasks to each employee. Likewise, the retail owners were not satisfied
with the “On-time delivery of the firm’s products directly to the customers’ points
of use”. Most of the time the driver is considering the restaurants ( customers)
rather than the selected retail owners because they ( restaurant managers) have
more orders than that of selected retail owners. It is however, worthy to note that
the “Physical condition of goods” was rated very satisfactory by the two sets of
clienteles. This is because the company is using a four wheeled ATC refrigerated
truck.
It can be pointed that there are delays in the delivery of the order, still
ensures that they can deliver quality products which is the most important factor
manager and retailers will still order the goods for the company because of the
quality of the product, however, they emphasized that the company must improve
Table 6
Service in terms
Managers Description Retailers Description Average Description
of Transpo and
Delivery
1.Response time
Less
across the supply 2.36 Less Satisfied 2.50 Satisfied 2.43
Satisfied
chain is reduced
3.Frequency of Not
1.50 Not Satisfied 1.30 Not Satisfied 1.40
Delivery Satisfied
4. Satisfied as to Not
1.14 Not Satisfied 1.60 Not Satisfied 1.37
time demanded Satisfied
7. Specialized type
goods.
indicated a lower rating as it implied that they were Less Satisfied with the
services. This rating can be attributed to both group perceptions that “Frequency
the Strabo Import And Export, Inc. This is due to the system that the company
has. Just like what the researcher had stated in the previous chapter that the
company has one delivery truck to deliver the goods and the accountant collect
payments with the delivery. The task of both is a total disagreement with regard
to the time demanded by the customers. Sometimes, the driver has to make a
new route to avoid traffic in effect the capable customers are to be considered
first not the customer who ordered first and demanded time of delivery.
It should also be noted that the services can also be improved in terms of
“Response time across the supply chain is reduced” and the “firm’s ability to
meet delivery due dates”. In relation to this, there are customers who orders in
advance. Example is the case of 7 C’s Marine, a retailer of frozen goods, which
they order in advance and the payment is to be paid 3 months after delivery.
Sometimes the company fails to pay Strabo Import and Export, Inc., that is why
they won’t consider the additional delivery made orordered in advance by 7 C’s
Marine.
terms of “Specialized type of vehicle to deliver the type of goods”. The company
the company is currently having a specialized vehicle for the delivery. In return,
Figure 2
2.00
1.50
1.00
0.50
0.00
INFORMATION FLOW ORDER PROCESSING Customer Service in terms Customer Service in terms
of Schedule of Transpo and Delivery
Managers Retailers
It can be verified that the chosen respondents slightly differ in the way how
they perceived the level of satisfaction as the company tries to meet their
owners; the total average of the Order Processing is 2.44 percepted as Less
on the result of the survey conducted by the researcher. In this aspect, the order
processing received the least rating from the respondents followed by customer
then the null hypothesis of no significance can already be rejected. For this
purpose, the t-test (assuming unequal variances) was utilized to detect the
Table 7
Physical Distribution
Managers Retailers p-value Decision Description
Aspect
There is no
difference
There is no
difference
There is no
Customer Service in
2.50 2.51 0.97 Accept Null significant
terms of Schedule
difference
Delivery difference
the dimensions of physical distribution. That is, on the onset of the survey, there
be statistically significant. This also suggests that the level of satisfaction was
unanimously experienced not just by the restaurant managers but also to the
retail owners which strengthens more on the probable windows for the distributor
CHAPTER III
THE PROPOSALS
This chapter shows the proposals that were identified and developed to
address the different results of the survey and analysis of the data gathered.
The data was illustrated by a table containing the action plans for the
This chapter is composed of two parts. Part I presents the general outline
on the proposals for the specific practices rated to be less satisfied which needs
The budget for the implementation of the action plan would come mainly
presented in Part I.
Export, Inc., the researcher were required to take part in a quality evaluation
Part II
supply chain is at providing products and services to the customer. This proposal
performance right from supplier end to the customer end. After a critical review
on the results based on the previous chapter, it has been identified that the focus
the presentation of results that has resulted to a “Less Satisfied and Not
Satisfied” rating. The person who is responsible for this one is the Sales Manager
of the company.
II. Objectives
participation, but will also encourage active thought regarding continual customer
service improvement.
customers should have at least some ability to address their concerns or have a
superior address them when they are reported. This might be as simple as
credits.
Videos
Prequisites: None
A. Person Involved
B. Budgetary Resource
Export, Inc.
TOTAL Php5,100.00
42
C. Facilities Needed
Sound System
D. Venue
E. Time Frame
company.
Objective 2.2 To make everything easy for the drivers to carry the
Refrigerated delivery trucks have been such an integral part of the supply
chain, that’s it is impossible to imagine life without the products they transport. In
1938 Frederick McKinley Jones invented the Refrigeration unit. Later with the
sensitive products.
43
products while ensuring they remain fresh, kept from deterioration and losing
their value. The global trade of perishable items has increased in the past years
causing high demand for quick transportation. This is not only true for food, such
as produce, meat and dairy, but also for other sensitive items such as medical
products and pharmaceuticals. Strabo import and Export, Inc. has one delivery
1. 0.5T Refrigerated Van Truck for sale in Foton/Forland Brand for Frozen
Food Delivery
This truck is good for the Strabo Import and Export, Inc. for it will provide
Lapu-lapu, this is due to the reason that traffic is heavy between Mandaue area
purchasing. As there is no ‘right’ answer, the company needs to consider its own
specific needs before making a decision. Part of this decision would be to choose
the option that will provide the required space at the least net cost.
Some believe that leasing is cheaper than purchasing, but this is not
always the case, as the obligations on a lease can sometimes be similar to those
when you are buying. The preferable proposal for this study is to rent a lease.
3rd Avenue , Between 4th & 5th St., MEPZ 1 , Ibo, Lapu-lapu, 6015 Cebu
1975 under SEC reg. no.64038, we have diversified from our Primary Purpose of
client and the Sales Manager of Strabo Import and Export, Inc. the set of
questions that will be distributed are referenced from the survey questionnaires
performance in the long run, the same survey will be conducted by the Sales
Manager at the end of the week. By incorporating the results of the survey on the
Performance evaluation and the survey questionnaires given, this can provide a
CHAPTER IV
interrelated processes that are involved in the physical flow of traffic from the
SUMMARY
Strabo Import and Export, Inc. The output of the study sought physical
distribution system of the company. Specifically, the study intends to answer the
following questions:
receive the production distribution of Strabo Import and Export, Inc. based
owners as to the physical distribution of Strabo Import and Export, Inc. based on
Inc.?
the standard Strabo Import and Export, Inc. questionnaire was used as the main
tool in collecting data needed for the study. The questionnaire was subjected to
collected, the data was then processed, tabulated, presented, analyzed and
interpreted. The results of the study were used as reference in the improvement
of the physical distribution system that aim to help address the apparent issues
FINDINGS
The following are the findings of the study perceived from the survey
questionnaire of Strabo Import and Export, Inc. based on the satisfaction of the
customers.
Very Satisfied
48
b. The purchase order status update factor average was 2.72 and
interpreted as Satisfied.
interpreted as Satisfied.
Satisfied.
The overall Information Flow factor average was 2.91 and interpreted as
Satisfied.
owners.
a. The standard order taking form factor average was 3.34 interpreted
as Very Satisfied.
Satisfied.
d. The asking for customer feedback factor average was 2.00 and
The total factor average for Order Processing of Strabo Import and Export, Inc.
as less satisfied.
d. The speed for order processing factor average was 1.57 and
f. The order size Constraints factor average was 2.73 and interpreted
as Satisfied.
The total factor average of Customer Service in terms of Scheduling was 2.51
b. The free deliveries are offered factor average was 4.00 very
satisfied.
as Not Satisfied.
Satisfied.
f. The firm’s ability to meet delivery due dates factor average was
mainly Transportation and Delivery was 2.48 and interpreted as Less Satisfied.
CONCLUSION
Export, Inc. should deal with this factor. Since timeliness is the reason why
to the customer. It can also be concluded that the speed for order
Management (Sinha, J.C., and Mugali, V.N.) stated, the results provide
Physical Distribution System of Strabo import and Export, Inc. With the
RECOMMENDATION
Primary Recommendation:
must be implemented.
Secondary Recommendation:
potential suppliers