Reduction of Service Response Delays

REDUCTION OF SERVICE RESPONSE DELAYS
AND ITS IMPACT TO SF LOGISTICS LANKA (PVT)

LTD
K. A. D. Imanthi Anuradha
2022
LTD
By
K. A. D. I. Anuradha
B.Com. (Delhi)
A Management Field Research Project report submitted to the Postgraduate

Institute of Management, University of Sri Jayewardenepura, in partial
fulfilment of the requirements of the Master of Business Administration
Degree
Colombo - Sri Lanka
2022
ii
This is to certify that the Management Field Research Project Report on

LTD
By
(MBA/20/5385)
has been accepted by the Postgraduate Institute of Management of the University of Sri
Jayewardenepura, in partial fulfilment of the requirements of the Master of Business
Administration Degree
……………………..…………… ……………………..……………
Supervisor Director
……………………..…………… ……………………..……………
Date Date
iii
Declaration
I certify that this Management Field Research Project report does not include any material
submitted earlier for a diploma or degree without acknowledgement, in any university. It
does not contain any material that has been formerly written or published by any other
person, to the best of my belief and knowledge except where due reference has been made
in the text.
25.06.2022
iv
TABLE OF CONTENTS
LIST OF TABLES ....................................................................................................... viii
LIST OF FIGURES ........................................................................................................ix
LIST OF ABBREVIATIONS .......................................................................................... x
ACKNOWLEDGEMENTS ............................................................................................xi
EXECUTIVE SUMMARY .......................................................................................... xii
Chapter 1: INTRODUCTION.......................................................................................... 1
1.1 Background .......................................................................................................... 1
1.2 Project .................................................................................................................. 1
1.3 Significance of the Study ..................................................................................... 1
1.4 Methodology ........................................................................................................ 2
1.5 Limitations ........................................................................................................... 2
1.6 Chapter Framework ............................................................................................. 3
Chapter 2: ORGANIZATIONAL ANALYSIS AND PROBLEM IDENTIFICATION . 4
2.1 Introduction .......................................................................................................... 4
2.2 Organizational Profile .......................................................................................... 4
2.3 Organizational Analysis ....................................................................................... 6
2.4 Key Problem(s) .................................................................................................. 10
2.5 Description of the Problem(s) ............................................................................ 11
2.6 Analysis of Key Problem ................................................................................... 14
2.7 Doing Business Index (DBI) Foot Print............................................................. 15
2.8 Summary ............................................................................................................ 15
Chapter 3: LITERATURE REVIEW............................................................................. 16
3.1 Introduction ........................................................................................................ 16
3.2 Theoretical Background to the Problem ............................................................ 16
3.3 Study Framework ............................................................................................... 32
v
3.4 Description of Techniques ................................................................................. 32
3.5 Summary ............................................................................................................ 33
Chapter 4: THE PROJECT/METHODOLOGY ............................................................ 34
4.1 Introduction ........................................................................................................ 34
4.2 Field Project Objectives ..................................................................................... 34
4.3 The project: Project Components....................................................................... 35
4.4 Resource Allocation ........................................................................................... 41
4.5 Cost Estimates.................................................................................................... 43
4.6 Summary ............................................................................................................ 44
Chapter 5: FINDINGS ................................................................................................... 45
5.1 Introduction ........................................................................................................ 45
5.2 Benefit ˗ Cost Analysis ...................................................................................... 45
5.3 Projected Outputs and Outcomes ....................................................................... 46
5.4 Summary ............................................................................................................ 47
Chapter 6: DISCUSSION OF FINDINGS, RECOMMENDATIONS AND

CONCLUSION .............................................................................................................. 48
6.1 Introduction ........................................................................................................ 48
6.2 Discussion of finding ......................................................................................... 48
6.3 Recommendation ............................................................................................... 52
6.4 Conclusion ......................................................................................................... 55
References ...................................................................................................................... 58
Bibliography .................................................................................................................. 67
Appendices ..................................................................................................................... 68
Appendix I: Interviews with an Employee and a Customer .......................................... 68
Appendix II: How the Solutions will be Implemented: Method Improvement ............. 69
Appendix III: How the solutions will be implemented: Technology Improvement ...... 72
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Appendix IV: How the solutions will be implemented: Manpower Improvement ....... 77
Appendix V: Benefits Calculation Tangible Benefits ................................................... 79
Appendix VI: Indirect Tangible Benefits ...................................................................... 80
Appendix VII: Intangible Benefits................................................................................. 82
Appendix VIII: Questionnaire ....................................................................................... 82
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LIST OF TABLES
Table 2.1: SWOT Analysis ................................................................................................ 7
Table 2.2: Response Time to Client Inquiries for period of six months in 2021 ........ 12
Table 2.3: Revenue Report of SFL ................................................................................. 13
Table 4.1: Project Objectives .......................................................................................... 34
Table 4.2: Resource Allocation ....................................................................................... 41
Table 4.3: Cost Estimates ................................................................................................ 43
Table 5.1: Benefits............................................................................................................ 45
Table 5.2: Benefit Cost Analysis ..................................................................................... 45
Table 5.3: Projected Outputs and Outcomes ................................................................ 46
Table 6.1: Time Frame .................................................................................................... 54
viii
LIST OF FIGURES
Figure 2.1 Organization Structure .................................................................................. 5
Figure 2.2: SFL’s Environment ........................................................................................ 6
Figure 2.3 Ishikawa Analysis of the Response Delays ................................................. 14
Figure 3.1 Dimensions of Service Quality ...................................................................... 17
Figure 3.2 Study Framework .......................................................................................... 32
Figure 4.1 Decision Makers of the Proposed Solutions ................................................ 41
ix
LIST OF ABBREVIATIONS
ABBREVIATION - DEFINITION
AHP - Analytical Hierarchy Process
CC - Customer Care
COO - Chief Operating Officer
DBI - Doing Business Index
EDI - Electronic Data Interchange
ERP - Enterprise Resource Process
ETA - Estimated Time of Arrival
ETD - Estimated Time of Departure
GM - General Manager
KPI - Key Performance Indicator
LSP - Logistics Service Provider
MBA - Master of Business Administration
MBO - Managing Business Operations
MD - Managing Director
MFRP - Managerial Field Research Project
RFID - Radio Frequency Identification
SFL - SF Logistics Lanka (Pvt) Ltd
SC - Supply Chain
SCM - Supply Chain Management
SCS - Specialist Courier Service
SOP - Standard Operating Procedure
XML - Extensible Markup Language
3PL - Third Party Logistics Service Provider
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ACKNOWLEDGEMENTS
With the successful completion of the Managerial Field Research Project, I would like to
express my special thanks of gratitude to my supervisor Mr. Jithendra Gunatilake who gave
me the golden opportunity and immense support to do this wonderful project on the topic
the reduction of service response delays and its impact on SF Logistics Lanka (Pvt) Ltd.
My warmest thank you goes to the PIM Institute and University of Jayawardenepura that
encourage such special value adding and life changing courses to youth paving many paths
of opportunities and possibilities in life to acquire and win.
A special thank you to Dr. Kelum Gamage and Prof. Ajantha Dharamisiri, entire lecture
panel, all staff at PIM and my dear learning partners for parting with information,
knowledge and team work given helping me to document the project.
I will also like to give a special thanks to my employer Mr. Nishantha Rathmalvinne for
approving the proposal to continue with the project and my colleagues at SF Logistics
Lanka (PVT) Ltd for giving their fullest co-operation in providing me with required data
and information to complete the project in time.
Last but not least my parents, family and friends who continuously put up with me during
my journey of MBA life for the past two years giving their fullest support in helping me to
finish the project while enjoying life while learning.
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EXECUTIVE SUMMARY
In line and with the consent of the top management of SF Logistics Lanka (PVT) Ltd (SFL)
which is a subsidiary of SCS Express (PVT) Ltd, the author engages in an in-depth and an
interactive field project to improve the aforementioned entity’s overall performance by
offering pragmatic solutions to a prevailing operational issue/s having a significant impact
to its overall performance.
Belonging to a highly volatile service sector in general, SFL’s path to success as a

competitive and a reliable logistics service provider (LSP) solely depends upon its ability
to be highly responsive to its clients. The overall responsiveness to client inquiries has
several phases such as quotation phases with accurate ETD/ETA schedules, on time
booking arrangements, shipment status updates, so on so forth. As a third-party LSP, the
entity’s output which is the effective distribution of the client’s physical goods from one
destination to another, plays a vital role to many organizations as it is part of the total supply
chain management process. Hence, on-time responsiveness, availability, effective
communication and engagement between relevant parties involved in fulfilling the service
offering to client-base are some of the key success factors of SFL.
However, at present, there exists certain operational challenges at SFL, impeding its
successful performance and growth, owing to several reasons which will be analysed and
unveiled in this project. The author attempts to resolve these issues by following certain
steps such as, firstly identifying the present scenario by extracting the available information
of the company regarding its performance, then, how the identified issue is impacting SFL’s
revenue which has a significant impact on its overall performance, afterwards harnessing
existing knowledge on probable solutions by researching various published literature
information, followed by further acknowledged recommendations that the author finds
suitable in providing the most viable and pragmatic solution to overcome the issue and
direct the entity towards successful performance.
The identified issue is thoroughly analysed using Ishikawa diagram which is a sophisticated
tool of problem analysis, there upon the author would systematically resolve the identified
operational issue by deploying various techniques and mechanisms, resource allocation
within a projected timeline.
By deriving at such pragmatic solutions to the identified problem, the author would be able
to utilize the finished project as a practical guiding manual that can be offered to the
xii
management of the company for effective implementation of solutions to the same or
similar issues that may arise in the future. The project components have been discussed
along with the resources and the cost estimates. The variables for consideration include
processes, technology and human resource with the cost of Rs 1.2 million for process
improvements, ERP systems and human resource development.
The identified components are then further analysed to identify areas of improvements
whereby the identified resources in order to solve the problem can be utilized as per the
project plan and implement overtime within the short and long term periods to achieve the
increase in overall performance of the entity.
xiii
Chapter 1
INTRODUCTION
1.1 Background
Chapter 1 highlights the gist and overview of the author’s Managerial Field Research
Project (MFRP) in brief context which describes the expected objective of the project, its
significance, the utilized methodology, limitations and chapter framework.
1.2 Project
The following project report consists of identifying a crucial operational problem in the
organization considerably impacting the entity’s financial performance and finding the
most viable solution/s to overcome the problem by researching on the available solutions
through published literature, understanding the root causes of the identified problem and
thereby arrive at a clear pathway with the required and relevant resources to arrive at the
solution.
Accordingly, the project studies the impact of service response delays and its effect on the
revenue of the organization under discussion, SF Logistics Lanka (PVT) Ltd (SFL).
1.3 Significance of the Study
Response time taken for client inquiries plays a crucial role to win orders and increase the
revenue of the company. However, at present, the response time takes more than 24Hrs as
a result of which clients switching away to competitors having received the competitors’
responses in time. Responding to freight inquiries as early as possible enable customers to
make their purchasing decisions and place orders through SFL leading to increase the
revenue of the entity. Due to high response delay SFL remains below its monthly revenue
target of 8 million rupees without any improvement. Hence, it is essential to find immediate
effective solutions to this issue as it has a direct impact to entity financially.
As per the author, the subjected project can be closely connected to a few study courses in
the studied MBA program, mainly Managing Business Operations, Human Resource
Management, Business Communication, etc. the knowledge of which can be utilized in
resolving the major reason of the key issues leading to entity’ overall success.
1
1.4 Methodology
The researcher uses both quantitative and qualitative approach in analysing the cause and
effect of the problem identified. The researcher engages in an interactive observation while
gathering the available data leading to the identified problem. The project uses components
relevant to the organization’s process of service delivery, resources used, technology and
environmental factors in developing the identified issue’s root cause analysis and
developing the framework in deriving at effective solutions. The project focuses to deliver
results within short, medium and long term frame by addressing the areas of the project
components to achieve the intended results of performance improvement of the entity.
1.5 Limitations
In the process of resolving the identified operational issue, the author faces certain
limitations such as the unavailability of adequate empirical and historical data for a proper
evaluation and relating to the performance of the organization, Non-availability of common
industry wide standards to measure the actual service performance, Complexities of various
external factors that has a major impacts towards the internal functioning of the
organization are some of the limitations in conducting the project.
Another important factor to consider is that, in service offerings, unlike physical products,
perceptions stands out as a crucial factor of customers in deciding to continue utilizing the
company’s service as a value added LSP. Hence, an effective communication must be
thoroughly maintained in order to manage customers throughout the entire service offering
process, which in most cases fail to be offered due to high dependency on external parties
in the supply chain system.
Furthermore, even though there are considerable amount of research literature available on
general service response and customer loyalty to produce effective solutions to enhance
organizational performance, research literatures focusing on LSP’s are limited and is
currently under further research to be done, hence no specific permanent solutions are
available.
2
1.6 Chapter Framework
Chapter 1 provides a holistic view of the chosen project stating its overall objectives,
significance, methodologies used to gather data and its limitations.
Chapter 2 offers an in-depth view of the project in terms of the detailed information on the
organization, its identified problem’s direction, intensity and persistence towards SF
Logistics Lanka (PVT) Ltd as well as its impact on the performance.
Chapter 3 entails a detailed analysis of the available published literature which identifies
concepts, models, definitions related to the identified problem in order to better understand
find solutions to the existing problem or its root causes.
Chapter 4 sets the objectives of the project based on the study framework. Also, it consists
of the estimation of resource allocation and the required costs in order to implement the
project.
Chapter 5 describes on the findings of the conducted project and further recommendations
to improve which can be of high value as a guiding tool that can be effectively applied by
the entity.
Chapter 6 consists the summary of various findings from the project through the perspective
of literature articles and moreover provides further recommendations of the in line with the
findings with a conclusion to the project.
3
Chapter 2
ORGANIZATIONAL ANALYSIS AND PROBLEM

IDENTIFICATION
2.1 Introduction
Chapter 2 studies the selected organization in detail in order to be better aware of its internal
as well as external aspects in identifying the problem with a significant impact to its
performance. This chapter further analyses the problem’s root causes to which the solutions
must be identified in order to overcome the problem.
2.2 Organizational Profile
SF Logistics Lanka (PVT) Ltd (SFL) is an international freight forwarding and logistics
solutions provider, established in 2016 to provide customized international transportation
solutions to a wide array of clients belonging to various market sectors such as apparel,
construction, automobile and spare parts importers, medical and healthcare sector etc. It is
a subsidiary of SCS Express (PVT) Ltd, a well-established global air express courier
company. SFL is a member of the Global Logistics Alliance, which is the global network
of over 5000 certified logistics agents around the world.
Belonging to one of the highly volatile and dynamic industries in the world shipping and
air freight trade as a logistics service provider, SFL must be open and focused to both of its
internal and external environmental factors in order to keep up with its progress towards
achieving its organizational goal, to maximize its top line and bottom and share value in
the market
2.2.1 Structure of the Organization
The existing organizational structure which depicts how the human resources are allocated
in order to conduct the core activities required towards a proper functioning and progress
of SFL can be shown as below.
4
MD
COO
General
Manager
Customer Care Accounts Clearance Transport

Sales Team- 8
Team-2 Team-1 Team- 3 Team- 10
Figure 2.1 Organization Structure
Source: Author
2.2.2 Offerings of SFL
Overall offerings of SFL can be categorized into Freight Air and Sea as well as Clearing
and Forwarding Services. In both sea and air freight, there are several mechanisms that can
be chosen depending on the customer requirement and the situation. One common mode of
freight is on door to door basis or on Ex-works basis. Here the freight rate includes the total
movement of consignment from supplier door step to consignee door step. Second being
Freight on Board basis where SFL responsibility is to move the cargo from the respective
Air or Sea Port to consignee door step.
2.2.3 Organizational Context
The entity’s total environment consists of both internal and external and it is highly
influenced by the external environmental factors.
5
Internal Environment:-
Directors, Top
Management, Employees, Micro Environment- Customers,
Culture Suppliers, Air/Sea global agents,
Competitors, Shipping and
Airlines, Sri Lanka Customs.
Macro Environment-
Natural factors, political
factors, Technological
factors,Social factor,
Government Authorities
Figure 2.2: SFL’s Environment
Source: Author
2.3 Organizational Analysis
As a sales-driven entity whose success depends on adequate generation of revenue and

profits that is declared as targets to be achieved monthly, the teams are expected to work in
continuous co-operation with each other in delivering the service offering to the clients in
terms of rates and service. As any organization, SFL too being a part of the society, can
identify its’ environment as internal and external. An internal analysis at SFL conducted to
identify the existing situation in terms of all the resources that are utilized in order carry
out the required operations in deriving at the standardized results, shows that there exist
performance inefficiencies mainly from human resource aspect. This can be further
understood by reference to the table 2.1 which shows SFL’s Strengths, Weaknesses,
Opportunities and Threats in its external as well as internal environment. Therefore, it is
essential to clearly identify the internal factors and strengthen the internal environment to
remain operational amidst the external factors which are mostly uncontrollable.
6
Table 2.1: SWOT Analysis
Strengths Weaknesses
1. Capability to generate strong customer 1. No dedicated sales personnel for Air and
leads directed from the courier entity Sea freight.
(SCS). 2. High rate of employee turnover in the
2. Sales pitch done easily as being customer care division.
representative of the SCS entity as 3. Insufficient number of personnel in the
well. customer care division.
3. Possessing a strong global network of 4. Lack of integration among teams
agents in order to acquire the best rates. especially, sales, customer care and
4. Possessing all the required licenses to clearance.
operate as a fully-fledged logistic and 5. Due to lack of integration, inability to
freight service provider. provide timely information to
5. Use of the reputed Gensoft logistics customers.
ERP system to get up to date 6. Lack of experience in the customer care
information related to shipment orders department with the Gensoft System.
Opportunities Threats
1. International trade is always going to 1. Various Import restrictions and Bans

exist even among pandemics which have impacted local importers as a result
would mean there is always potential impacting SFL business as well.
clients/ requirements and needs. 2. High regulations imposed by Sri Lanka
2. Being a member of GLA, as well as Customs for clearance process making
local authorities would offer a strong adversely impacting negatively to the
position among competitors. overall operations of SFL.
3. New requirements such as Face Masks, 3. Prone to adhere to different custom rules
Temperature Measuring Equipment, and regulations of other nations.
etc.as a result of Covid-19 Pandemic. 4. High volatilities in back channel
4. SFL’s main importation line is from costings such as airline and shipping
China to Colombo and considering the liner charges.
close ties between the two nations, SFL 5. External factors imposed on importers
is at a strong position in providing and exporters by government with
regards to payment terms have also
7
stronger service and rates to and from reduced such imports/ exports
China- Colombo and vice versa. impacting SFL business again.
Source: Author
2.3.1 Summary of the SWOT Analysis
It is evident from the SWOT Analysis that SFL’s financial performance which is measured
in terms of profits is impacted by both internal and external factors however, mostly owing
to certain internal factors that has a direct adverse impact to the revenue generation leading
to poor performance which would last on long-term scale if not addressed and resolved.
Among the existing problems or issues that exist internally, the main problem causing a
significant adverse impact to the entity must be identified and addressed thoroughly in order
enhance the performance and progress, amidst the uncontrollable external factors that any
entity operating in the world faces.
2.3.2 PESTEEL Analysis
SFL can be further analysed from its macro-economic factors that has an impact to its
operations and functionality. PESTEEL analysis which is an extension of the traditional
PEST analysis focuses on political, economic, societal, technological, environmental,
ethical and legal factors that affects SFL as an entity in operating in the society. PESTEEL
factors are macro-economic factors that may be common throughout the respective industry
an entity belongs to, as compared to internal SWOT analysis which differs from entity to
entity within an industry.
2.3.2.1 Political Factors. Political factors play a significant impact in the

external environment arena of SFL. As a part of international trade, political factors are
crucial factors affecting the entity, anti-trust laws related to air and freight services,
prevailing political conditions and tension risks, laws and regulations of tariff and other
decisions arising due to the prevailing political situation, taxations, are some of the key
factors that SFL needs to be constantly in touch with in managing its operations towards
to the standards.
8
2.3.2.2 Economic Factors. Factors such as foreign exchange rates, fuel
surcharges, inflation, interest rates, industry growth rates, business cycle period,
disposable income, are some key factors to be alerted on in order to survive and thrive
amidst extreme competition in the industry.
2.3.2.3 Societal Factors. Social factors are highly important as all operations
of the firms as well as the total industry is catered to consumers who are a part of the greater
society. Hence, thorough study of the relevant social factors is essential in interacting with
respective individuals who are highly diversified in terms of many aspects such as gender,
culture, education, language, skills, experience, etc.
2.3.2.4 Technological Factors. Technological environment can be

considered as the one with rapid changes owing to continuous innovations and
improvements that are being made to reach competitive edges. By adopting an ideal mix of
technological factors in to the entity, SFL can gain several advantages towards a positive
progress rather than otherwise such as automated live tracking system, real time order
processing system, online shipment tracking, etc. The higher the firm is able to grasp and
utilize the technology to own use, the higher chances of winning over its rivals leading to
high competence. Technology can be used positively to lower down unnecessary costs
which may be used to induce profitability.
2.3.2.5 Environmental Factors. A firm must be conscious of its

surroundings in its whole exchange of give and take to and from society and the larger
environment. The higher a firm is aligned to the standard environmental policies, better for
its own image as well as overall. Ensuring that organizational activities have minimum
drawbacks towards the environment and more of contributions by way of protecting the
environment, implementation of green activities to promote advocacy for clean
environment are highly crucial in the company’s long-term success.
SFL must be vigilant of its physical environment that it operates in, in order to ensure that
its existence is contributing positively to its surrounding. Weather, climatic conditions,
Anti-pollution laws, waste-management policies, Air and water pollution regulations,
ensuring offering of services in the most environmentally friendly manner, Usage of bio-
degradable packaging are some factors and activities under environmental factors that has
a major impact on its functioning.
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2.3.2.6 Ethical Factors. Ethical factors mainly focus on the best practices
such as fair pricing, genuine information sharing, maintaining healthy relationships with
back and forward parties in order to cater genuine and trustworthy service to the clientele.
As a social entity, SFL is responsible in conduct its operations in an ethical and genuine
manner in order to generate, retain and enhance a loyal customer base.
2.3.2.7 Legal Environment. Focuses on the persisting legal framework

related to rules and regulations that has a major impact on the company. Anti-trust laws of
air and ocean freight services, adherence to certain rules of consignment validations,
ensuring the health and safety laws, consumer protection laws, labour laws, are some
factors that affects and by underlying each of the factor’s importance, each function or role
can be clarified and ensure proper execution of actions in adhering to legal factors.
2.4 Key Problem(s)
The main operational problem that can be identified as critical to effective performance of
the organization are frequent service response delays to client inquiries that exists in the
frontline as well as from the back-end operations.
In order to become competitive in the logistics service industry, SFL must always furnish
on time responses for all client inquiries beginning from quotations to booking
arrangements and ensuring an effective transportation and delivery of subjected shipments
from supplier location to consignee location. In this whole process, activities vary
depending on various aspects. The customer care department is responsible for the
continuous rapport and engagement with back channel agents for rates, ETA schedules and
other respective freight forwarding and logistics solutions provided by SF Logistics Lanka
(PVT) Ltd.
There seems to be a few obvious reasons such as lack of effective communication and
negotiation skills between the company and other agents when requiring information
pertaining to a client inquiry. Owing to such gaps of communication and understanding,
entity ultimately face overall delay in response of the required information hence losing
opportunities due to delays and incomplete information.
The value addition of SF Logistics as an LSP should be un-parallel service in terms of

effective communication, availability, and rates as compared to rivals. Since this is an
10
industry with high dependency of other 3rd party agents of shipper or consignee destination
for communication and information sharing, firm must ensure to maintain effective
operation within the entity and with other entities, in order to secure its market position and
enhance. Service response status and customer satisfaction goes hand in hand where the
ultimate decision to continue the service solely depends on the customer.
Hence, communication gaps, higher than target rates of customers or competitors, service
response delays are some of the key problems that goes hand in hand having a diverse
impact on the ultimate outcome of the entity.
2.5 Description of the Problem(s)
2.5.1 Direction of the Problem
At SFL, the customer care (CC) department operates together with the sales team. CC
department’s responsibility is to respond to the client inquiries at earliest, with the required
information such as the quotations, ETA schedule, Vessel/ Carrier details, etc. Upon
receiving the inquiries of customers via the sales team, customer care person/s engage with
the respective agent or agents in getting the rate cost, cut off details and the estimated time
of arrival (ETA) and departure (ETD) details. SFL’s expected standard time of response to
clients is 1 to 3 hours for Asian/ Far East nations considering the global time difference and
within 24 hours for Western nations.
2.5.2 Intensity of the Problem
At present, there are extreme delays surpassing 24 hours to respond to customers from the
CC team surpassing the standard time. These delays affect the organization by impeding
front line sales team’s ability to retain clients due to insufficient responses being delivered.
Table 2.2 depicts the monthly total inquiries received and the response time taken for the
inquiries.
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Table 2.2: Response Time to Client Inquiries for period of six months in 2021
Source: Company Data
As per shown in table 2.2, the longer the response time, the higher the chance to lose the
order inquiries. More than 50% of the total inquiries received per month is not successful
in terms of turning in to win orders. In order to win shipment orders, the company should
be able to offer the service in correspondence with customers’ expectations in terms of the
rates and transit times and ensure the communication without any disruptions. Delaying to
respond to such critical information required by the clients to make their internal supply
chain decisions can easily affect the customers’ perception towards the service provider.
As a result,
2.5.3 Persistence of the Problem
The company’s expected monthly revenue target stands at LKR 8,000,000.00 per month.
however, owing to the drawbacks in responses to customer inquiries, SFL lags behind in
the achievement of its monthly top line target, which resulted in poor financial growth and
performance. The actual performance as against the established target is shown in the table
2.3.
Table 2.3: Revenue Report of SFL
Month/ Sales 2019 (LKR) 2020 (LKR) 2021 (LKR)
January 2,091,198.81 4,547,523.39 5,844,612.54
February 856,952.22 6,681,279.73 6,448,932.21
March 2,311,322.45 Not Available 5,214,189.82
April 538,957.64 Not Available 6,487,017.65
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Month/ Sales 2019 (LKR) 2020 (LKR) 2021 (LKR)
May 915,892.81 1,081,353.01 3,487,391.95
June 1,464,445.31 681,703.00 4,318,938.13
July 2,684,058.27 1,406,290.50
August 2,419,792.09 1,636,843.94
September 3,011,754.93 2,505,384.78
October 3,113,661.46 3,461,075.45
November 4,142,097.15 3,107,664.24
December 2,136,619.10 2,559,982.88
Total 25,686,752.24 27,669,100.92
Year on Year Growth 7.72%
Expenses
Administration 6,122,063.50 7,566,000.77
Finance 1,540.00 8,705.00
Total 6,123,603.50 7,574,705.77
Year on Year Growth 24%
Source: Company Data
Addressing and resolving these issues which are directly impacting the entity’s financial
performance by implementing corrective actions internally, SFL can drastically improve
its position in the local market.
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2.6 Analysis of Key Problem
Figure 2.3 depicts the cause and effect relationship of the main identified issue having a
significant impact to the organization and the root causes of why it is existing, which is
known as Ishikawa or the fish bone diagram. Ishikawa diagram is a graphical illustration
between a given outcome and the related influencing factors in unveiling possible
fundamental causes (Ishikawa, 1982). The reader can get a thorough idea on the issue and
its causes therein.
Figure 2.3: Ishikawa Analysis of the Response Delays
Source: Author
2.6.1 Method/ Process Challenges
One of the main key factors that is identified by the author in related to the problem is in
the method or procedure. SFL as a third-party logistics service provider is highly dependent
on the process of interacting with back end agents which is done by the customer care team.
The delays that are occurring in the team leads to an overall response delay. The waiting
time in between customer inquiry to respond delays further due to the challenges in the
process which is shown by the Ishikawa diagram in figure 2.3.
2.6.2 Technology / System Challenges
The GenSoft ERP system is not efficiently and accurately utilized and used mainly for
accounting purpose. Customer care is mainly coordinating through manual email system
14
and not using the GenSoft Logistics ERP system in its intended purpose. Hence there are
challenges in monitoring the operations such as booking details, no live ETA updates to be
shared with customer. This leads to various miscommunications and gaps in
communications misleading the client. This has become a major issue internally among
between the sales and customer care team and has posed challenges to sales team in
delivering value.
2.6.3 People/Manpower Challenges
From people perspective, the main challenges are lying with lack of motivation and
understaff issues in customer care division and this has increased the work load of the
person handling all the order processing of sales team.
This has led to poor coordination, weak relationships between SFL and the back-end agents
in getting accurate and beneficial rates in order to convert orders from competitors to SFL.
Consequently, it has opened relationship and lack of synergy challenges between internal
teams has led to poor results in securing sales of existing clients as well as acquiring new
sales in a smooth manner.
2.7 Doing Business Index (DBI) Foot Print
SFL has contributed to DBI in several aspects of proper incorporation of the entity under
company’s act as well as registering with relevant government authorities such as Inland
Revenue Department, Customs and other Institutional bodies governing corporates in Sri
Lanka. Also, SFL is a member of the Global Logistics Alliance and using a common global
banking system (HSBC Bank) in order to ease global transactions among agents worldwide.
2.8 Summary
This chapter contains the organizational profile of SF Logistics Lanka (PVT) Ltd and its
environmental factors internally and externally impacting to the overall performance of the
entity. The identified problem of service response delay to client inquiries has been
described using the available company data. The main causes of the problem have been
identified by root cause analysis.
15
Chapter 3
LITERATURE REVIEW
3.1 Introduction
Chapter 3 contains the author’s narration of published literature articles related to service
response delays in third party logistics entities. Further navigates the reader through the
gaps between the existing knowledge of the area versus author’s viewpoints towards
extending the knowledge further ahead in search of better clarification regarding the
problem that is identified.
3.2 Theoretical Background to the Problem
3.1.1 Improved Response Time leading to Revenue Growth and Profitability
Sarel and Marmostein (1998) states that waiting during a service experience has been
identified as a common incident that consumers face during a service consumption and
owing to its unique requirement of real time nature, many factors could create the problem
of delay. Delays in service entail situations where delivery of service does not transpire at
the originally planned time leading to waiting time (Hui et al., 1998). For services, one-
time experience can create lasting perceptions for which the consumers would revise their
judgements about the service provider (Parasuraman et al., 1991).
Kilibarda et al. (2016), states that logistics service providers’ profitability and
competitiveness in the markets depend not on the price of the service but the overall service
quality and logistics excellence offered in order to gain and retain new clients. SERVQUAL
model is a significant service measurement tool to gauge the service quality of logistics
services providers (Parasuraman, et al., 1991, 1998). Cronin and Taylor (1994) suggests
the use of SERVPERF model as the service quality is motivated by perceived performance
and user satisfaction. Durvasula et al. (1999) highlights that SERVPERF model provides a
more convenient base to assess the service quality in maritime logistics. Juga et al. (2010)
uses SERVPERF for to measure the impact of logistics service quality (LSQ) under three
dimensions: personal service quality, technical service quality and operational service
quality, which leads to customer loyalty and satisfaction in the logistics arena. Kilibarda et
al. (2016) states that owing to the specific differentiating features for logistics services that
its essential to apply different models to assess the service quality and SERVQUAL has
16
proven to be a suitable application for the same. The SERVQUAL Model has been derived
from the 1985 study of Parasuraman, ZeithamI, and Berry and originally 10 dimensions of
service quality were courtesy, responsiveness, access, credibility, competency, security,
reliability, communication, tangibles, understanding and knowing the customer. Later,
ZeithamI, Berry and Parasuraman (1988) tested the variables reducing them to 5 factors
that included responsiveness, reliability, tangibles, assurance (merging credibility,
communication, security, competence and courtesy) and empathy (that combined knowing
and understanding the customer with accessibility.
Figure 3.1: Dimensions of Service Quality
Source: (Juga, Juntunen & Grant, 2010).
Retaining and nurturing existing business with active clients is cheaper than the acquisition
of new clients for LSPs to improve market share in the market (Wagner,2008; Wallenburg
& Lukassen,2011). However, the significance of innovativeness of LSPs in terms of long-
term relationship between client-LSP has not been researched both in theory and practically
but arrived to prominence only recently (Wallenburg & Lukassen, 2011). LSPs
innovativeness through client-LSP relationship on long term scale, enables the LSP to gain
competitive advantage compared to rivals (Flint et al.,2005; Murphy & Wood, 2004;
Wagner, 2008). Pro-active improvement which is understood as client-oriented innovations
within the client -LSP relationship, increases the potential to add value, increase customer
loyalty and market share (Cahill,2006; Wallenburg & Lukassen, 2011).
Possessing a strategic and versatile nature, LSP's must use their competencies to enhance
competitive position in the market (Bhatnagar & Viswanathan, 2000). Logistics system
17
must be established in order to support value-provisioning for the client based on
effectiveness (performance result) and efficiency (Cost element) in the client's system
(Korad,1991; Stainer,1997; Wallenburg & Lukassen, 2011). Customers of LSPs gain value
from relationship and operational aspects of the service provided (Woodruff & Flint, 2003).
Wallenburg and Lukassen (2011) further states that in changing dynamic environments,
customers focus more on efficiency improvement (cost element) as compared to
effectiveness (performance improvement).
In light of the statements it can be understood that success factor in freight and logistics
services providers depend on the ability to function as a customer-dedicated and value-
added freight service provider to cater to customized requirements of the clients.
Sarel and Marmostein (1998) states that prior experience shapes current perceptions and
future expectation of a service depends on past experience.
Sarel and Marmostein (1998) further elaborates on the employee effort and its effects
during and after to apologize for delays on consumer reactions. Longer waits are
categorised under customer dissatisfaction (Bitner et al., 1990). Literature on consumer
behaviour, services marketing and managing service waits is divided into 3 broad sections
of focus (Sarel & Marmostein, 1998).
1. Reduce actual wait time through ops techniques

2. Reducing perceptions of the length of the wait
3. Managing the negative impact of the delay.
Impact of service delays on perceived quality and satisfaction can be learned through the
above stated areas under reducing actual waiting time, forecasting tools, staffing and
resource allocation techniques to match demand by forecasting techniques/ staffing &
allocation of resources to meet on demand patterns to reduce actual waiting time through
operational techniques. However, gaps exist such as physical space constraints, availability
of trained and skilled staff, IT and digitization challenges, fiscal concerns, inability to
forecast demand patterns, owing to high market dynamism.
In reducing perception of length of the wait, Katz et al. (1991) states that indulging
customers during waiting with activities such as entertainment, enlighten and engaging
tools to distract customers to bear along the waiting period. However, the length of wait
has its own inherent limits (Katz et al., 1991).
18
Negative impact of delays occurs in three phases either before, during or after the service
delay (Sarel & Marmostein, 1998). It must be noted to stay alert and attentive to customers’
past experiences in order to provide better experiences in the future. According to Sarel and
Marmostein (1998), the key is to focus on factors that increase consumer certainty of the
service and by improving the waiting environment.
Even though service delays are common, consumers can quickly respond negatively with
continuous frustrations with past bad experiences and this can result in frustration with
disadvantageous outcomes (Baranishyn et al, 2010). If consumers expect service delays
they tend to react less negatively only when the service provider is proved to be faultless
(Taylor, 1994). Thus, providers are likely accustomed to deliver transparency about the
reasons for delay and by doing so ensures a less negative reaction by clients and avoid any
blames to be passed on to them (Ketron & Naletelich, 2020). Ketron and Naletelich (2020)
further adds that happy faces in consumer responses about delays has no impact of benefit
to the expected research goal of matching as a factor. However, it is harmful when the
provider delays as it affects the expected goal (Ketron & Naletelich, 2020).
Factors such as nature of waiting and timeliness of updates, can have an influence on
responses to delays (Baranishyn et al., 2010). Consumers tend to react more negatively
with firms at fault (Britto et al., 2012). When apologizing during a delay the message must
be communicated in a sincere and true manner in the concerning of consumers. They must
use cues that level up the concerns for customers there by persuading them to be more
understanding of the situation (Ketron & Naletelich, 2020). The study aims to achieve the
effectiveness of anthropomorphic cues in consumer responses to service delays (Waytz et
al., 2010), which includes creating a face in inanimate objects (Aggarwal & McGill, 2007).
In the modern-day business conversations with social media, online chat platforms, emails,
emojis etc. could be utilised to anthropomorphize objects like cardboard boxes.
Anthropomorphism is seen as a positive influential factor to consumer responses in several

contexts, effectively changing consumer responses (Aggarwal &McGill, 2007). But
anthropomorphism is not always positively taken as highlight by Aggarwal and McGill
(2007). At such instances these can mitigate negative responses which depend on how
consumers attribute blame (Ketron & Naletelich, 2020). Researches have extensively found
that service failures tend to affect harshly on providers when consumers believe providers
has greater control in the entire process that led to the service failure (Hess et al., 2003).
Consumers respond differently to providers depending on number of factors such as styles
19
of attachment (Whelan & Dawar, 2016), social distance (Mantovani et al., 2018), online
contexts (Harriset et al., 2006) or self-efficacy (Chen,2018). Also, researches have
investigated firms’ response during delays include apologizing as a key factor in recovery
preference of consumers (Chang & Wangs, 2012).
Hence, it is important that to be creative in responses during waiting times that may lead to
a delay by engaging with clients to build rapport, and ensure customers are given the
necessary required transparency in terms of their orders. Freight and logistics generally
involve longer waiting time than any other general services hence actions such as rapport
building activities, introduce incentive and rewards, discounts from future orders to
generate more volumes. Potential buyers learn about the entity's existence through industry
peers, independent sources, social media, email marketing, etc. Hence, a strong interaction
with clients thought rapport building would be useful.
3.2.1 Method Improvement
It is vital to study the LSP's conduct on performance management process as critical factor
for the creation of logistics performance in supply chains. There is an increase seen in the
use of LSP's in supply chain activities (Larson & Gammelgaard,2001). The term LSP is
similar to terms such as carriers, forwarders, 3PL providers, logistics service companies as
has been suggested by Fabbe-Costes et al. (2009).
3.2.1.1 No Back Channel Incentives. LSP's provide traditional log services

as transport, store, as well as supplementary services like order administration, track and
trace services (Van Hoek,2001). LSPs also act as mediators in supply chains (Hertz &
Alfredsson, 2003). Logistics performance such as flexibility, on-time delivery and lead
time is created by customer, suppliers as well as LSPs and is considered as a shared
responsibility (Forslund et al., 2009). As the globalized environment is getting ever
changing with high uncertainties, it is important to gather performance data, report them
and analyses for success for LSPs and customers (Wilding and Juriado, 2004).
Performance capabilities are of high vitality for LSP's competitiveness. Currently a major
share of customers claim that formalized performance measurement is done by LSPs
(Wilding & Juriado, 2004).
Performance management process (PMP) includes five main activities namely, the
selection of measuring and analysing performance variables, setting targets, and defining
20
metrics (Forslund & Jonsson, 2007). However, knowledge on how LSPs are handling
performance management with their supply chain is still limited (Forslund,2012).
Performance management process activities are divided amongst LSP and customers that
lead to synergies (Hertz and Alfredsson, 2003). Forslund (2012) indicates that integration
of LSPs in to supply chain would gain competitive advantage, stressing on the significance
for LSPs to manage their relationships with other SC partners.
As per Forslund and Jonsson (2009), obstacles are shown as obstructions like partners'
conflicting objectives, requirement of IT knowledge and being short of trust and
understanding. Larson and Gammelgaard (2001), states that co-ordination obstacles like
inconsistent metrics definition between customers and LSP, using metrics rather than
customers’ demands as obstacles.
On-time delivery is the factor of dominance for performance development measures

(Wilding & Juriado, 2004). Environmental metrics gain priority among LSPs and defining
of metrics could be conducted in a number of methods and is very often differently handled
by partners of the supply chain (Larson & Gammelgaard, 2001). It further implies that
partners get different results for measuring and analysis. To define clearly, example for on
time delivery decision criteria factors must be aligned - measurement point – where it takes
place, the measurement of the object, what to measure, time quantity frequency etc. time
units – hours, days, weeks, delivery window (Forslund&Jonsson,2007). Thirdly, setting
targets - this process requires the comprehension of targets and expectations of other
partners (Lai et al., 2002). Performance targets are utilised by many customer companies
but goals differ between customers and suppliers (Soltani et al., 2004). Forslund (2007)
states how performance targets are handled by companies with their suppliers and that the
majority of them use average target levels. Performance targets relates with pricing
structure (Schneewiss & Zimmer, 2004). Fourthly, measuring which is the capturing of the
data, creating readable reports and correspond those to shareholders highlighted by
Forslund (2007). Furthermore, Forslund (2007) shows that many organisations rely
capturing of manual data. Mortenses and Lemoine (2008) states that there is an increase in
the use of RFID and barcodes for performance data capturing in LSPs. Lastly, analysing
the performance reports is essential for logistic performance enhancements but there is a
significant gap in the practical implications amongst client firms (Forslund, 2010).
Mortenses and Lemoine (2008) states that number of LSPs utilise regular meetings and
follow ups to use enhanced IT tools in the future to develop and analyse their consumer
21
relationships. According to Langley and Capegemini (2009), 46% of the studied reports
lack improvement capabilities by LSPs, while 75% of manufacturers considered conduct
improvement work with their suppliers (Forslund & Jonsson, 2010). Performance
management systems with broad scope of SC scope is inclusive of LSPs and customers.
This entails synergies of activities within the supply chain (Hertz & Alfredsson 2003).
Gaps or obstacles to this study such as inn selecting variables, Forslund (2010) identify and
obstacle where LSP selecting performance variables that are differ from customer demands,
conflicting priorities is also an obstacle. The lack of capability to understand in defining
metrics is an obstacle (Brewer & Speh, 2001). In turn, they limit the capabilities of the ERP
systems (Forslund and Jonsson 2007). Further, various limitations of IT, ERP system not
supporting supply chain integrations are found as some obstacles by Bourne et al. (2000).
Handling PMP activities such as defining metrics and data capturing LSPs play a vital role
to identify themselves form rivals. PMP is handled with internal approach. Obstacles that
empirically supported for handling performance measurement are lack of understanding,
poor capabilities, and lagging IT solutions. Divide the overall performance management
activities to the LSP partner with the best possible capacity to avoid duplicating the work.
As per Brekalo and Albers (2016), logistics alliances are systemized, persistent and
cooperative relationships between two parties mainly the LSP and the independent agent
namely supplier or consignee in the supply chain process, built for mutual competitive
advantage. In order to analyse the logistics alliance, both vertical / horizontal alliances and
their respective research offers a wider outlook of LSP alliance and management (Brekalo
& Albers, 2016).Vertical logistics alliances are persistent systematic relationships between
shippers/consignees and logistics service providers to provide all or a part of the total
logistics activities of the shipper / consignee and research on this grew as many companies
outsources logistics services to LSP's in 1980 (Bagchi & Virum, 1998).
Since there are no proper alliance and incentives schemes with back end agents, SFL lacks
priority in receiving the correct information on time to be shared with its clientele to secure
orders.
22
3.2.1.2 Poor Communication Skills. Outsourcing is an added advantage to
companies to focus on demands of customers for quality, reach, affordability and speed, of
logistics services (Daugherty, 2011). The rationale to have LSP's is that customers can
focus on core activities and LSPs have specialization, process related expertise and ability
to consolidate shipments and services (Daugherty, 2011; Wagner, 2008). However vertical
alliances research grew through widely limited practical knowledge base with results that
are contradictory have not done justice yet (Daugherty 2011; Wagner, 2008). Horizontal
logistics alliances are initiated long term relationships created voluntarily by a group of
independent LSPs to gain benefits of supply chain activities that one couldn’t achieve alone
(Schmoltzi & Wallenburg, 2012). These benefits are realized through leveraging and
pooling partner's competencies and resources (Schmoltzi & Wallenburg, 2011) to derive
efficiency gains. Some horizontal alliances focus on efficiency gains through increased
productivity and reductions in cost and: reduction of empty mileage and better utilization
of assets (Cruijssen et al., 2007). As per Brekalo and Albers (2016), so far, the major two
research streams of logistics alliances are horizontal and vertical though these are two
independent streams with differences, it would not mean they should be studied
independently and they go together.
Owing to weak horizontal alliance with the agents led by poor communication skills in CC
team, SFL fails to be competitive in terms of the initial rates received hence taking a longer
time to negotiate and respond to customers.
23
3.2.1.3 Poor Bargaining Strength by CC. Knowledge and insight about
partners create a strong relationship yielding positive expected outcomes and client
performance Hence all additional efforts that been invested in gaining insights (Zacharia et
al., 2009). Required knowledge that clients should possess on LSP's their level
competences, reputation in the industry, profiles of employees working, which enhance the
standard of LSPs (Bagchi & Virum, 1998). From LSP perspective knowledge on clients
include understanding their overall business further leading to having three features, firstly,
being able to be open and understanding clients’ perspective leading to transparency
(Bagchi & Virum, 1998). Secondly, understanding clients would enable LSPs to cater
customized solutions and gain operational improvements (Bagchi & Virum,1998). Thirdly,
knowledge of clients enables the gaining of required skills and capabilities to fight the ever-
changing consumer demand patterns reaching value creation (Bagchi &Virum, 1998). This
value creation is a must prerequisite as a decision criterion for clients to engage in business
with LSPs (Chen et al., 2010).
Corporation among partners build leading to alliance by unfreezing transforming and

continuously improving their actions yielding high level of competitive advantages
(Fawcett et al., 2008). From of clients, their top management leadership and direction
facilitate the LSP -client collaboration. and LSP client alliance fosters consumer loyalty
(Hartmann & De Grahl, 2011). Exchanging valuable information is also considered vital
for alliance improvement (Bagchi & Virum, 1998). To gain information, face to face
meetings, free flow of ideas, transparency, etc. emphasized as motivating drivers of
employees and training is vital sources to service excellence.
However, empirical discoveries state that alliance as a way of joint exploitation of

opportunities to foster clients’ market performance it does not significantly impact logistics
performance, which was criticized later (Sinkovics & Roath, 2004).
LSPs operational flexibility is treated as a critical factor to improve LSP performance and
a main decision criterion in selecting qualified LSPs to gain competitive advantage.
(Hartmann & De Grahl, 2011). This flexibility positively impacts alliance improvement
(Bhatnagar & Viswanathan,2000). However, clients are hesitant to be transparent with
LSPs fully owing to their concerns on the ability of LSP to design their own logistic strategy
to gain control (Makukha & Gray, 2004).
24
To cope with modern complexities, a strong operational excellence and competence is
required where LSP client interactions are optimized. LSP Integration is the trademark of
logistics (Bagchi &Virum, 1998). Makukha and Gray (2004) states that as of yet the client-
LSP relationship is at operational stage and not strategic stage where LSPs have been
identified as true strategic partner unable to provide their services required.
Formalization refers to job profiles, designations, roles to handle specific actions and task
related to the overall logistics operation to improve its performance as it helps to
synchronize broad range of activities and systemize to gain better advantages and alliance
(Gibson et al., 2002). However, empirical evidence shows that less contractual
arrangements with ambiguity, has supported as a critical factor in gaining alliance owing
to each-others’ dependency levels to operate (Frankel & Whipple, 1996).
In operational process design, logistics scholars have accepted evident for positive
relationship between joint planning in alliances between clients and LSP, leading to
profitability (Lei et al., 2006). To promote joint planning integration of LSPs in to planning
process is essential (Lambert et al.,1999; Makukha & Gray, 2004). Performance control -
it is important to implement efficient systems for measuring alliance performance over time
(Gibson et al., 2002).
Important performance variables should be developed and practiced so as to initiate the

changes needed to improve performance (Bagchi & Virum, 1998). Examples would be the
cost-based pricing tools, improved information exchange for clients as well as LSPs (Bo &
Hammervall, 2010). Adequate measurement tools for performance such as pie-sharing
mechanisms and risk sharing enhances the clients’ perception of LSPs due to fair
compensation agreements and guaranteed service (Gentry, 1996).
However, as per Gibson et al. (2002), empirical studies show that in both shipper and
carriers gave low importance to such measures. Horizontal logistics alliances also be
systematized along the same types used to explain the effectiveness of vertical alliance.
Operational process design in LSP alliances can be learnt in two ways (Cruijssen et al.,
2007). One way is Joint route planning amongst partnering LSPs is regarded as important
feature to increase alliance and operational performance allowing to reduce inefficiencies,
redundancies and overlaps (Cruijssen et al., 2007). Joint planning is comprehended as
pooling of resources in logistics operations process to efficiently answer to customer
requests adding to up to 30% in cost savings (Cruijssen et al., 2007). Pooling for resources
25
can reduce distance travelled up to 30% load factors by over 95%, reduce fleets by 50 %
(Cruijssen et al., 2007). Cruijssenetl al. (2007) finds that joint route planning is the most
advantageous in horizontal alliances require sufficient amount exchange of data among
partnering LSPs that is constrained by the misalignment of technology and information
(Cruijssen et al., 2007).
There exist gaps in this literature as well that knowledge of impediments for performance
management is lacking from LSP perspective. One is that it’s yet unknown that if obstacles
that client companies face are parallel to that of LSPs or if they struggle with other
obstacles. Knowing the obstacles for performance management is a critical part to improve
the performance in supply chain. Furthermore, more research is required to better
understand of how LSP can add up to improving the logistics performance in supply chain.
Also, IT related challenges to performance improvements in LSPs and customers
(Mortensen & Lemoine, 2008).
In light of the aforementioned published knowledge, author is of the view that a proper
integration among client-LSP as well as LSP-LSP in coordinating effectively and
accurately is essential towards gaining better market position through competitive
positioning.
3.2.2 Technology Improvement
One of the challenges in overall performance of LSPs is the lagging IT solutions to enhance
operational efficiency (Forslund, 2012). Studies show obstacles like conflicting objectives
of partners, lack of IT knowledge and requirement of trust and understanding (Forslund &
Jonsson, 2009).
26
3.2.2.1 Inefficient Use of ERP System. Various challenges of IT solutions
such as, lack of IT knowledge, insufficient ERP system not supporting supply chain (SC)
integration are found as some obstacles by Bourne et all. (2000). According to Langley and
Capgemini (2009), major number of LSPs demand for real-time performance data but only
42% are satisfied with LSPs IT systems. Customers of LSPs demand real time performance
capabilities (Langley & Capgemini, 2009) and hence LSPs can use the customer's data to
improve the integration and efficiency as highlighted by Hertz and Alfredsson (2003).
Using web portals to share information and performance reports is a success factor for LSPs
to be ahead of their clients (Forslund & Jonsson, 2010). According to the study conducted
within three LSP's namely LSP 1 LSP 2 and LSP 3, both LSP1 and LSP 2 without IT
support show infrequent and inefficient performance as compared to LSP 3 using improved
IT solutions with web portals and hence LSP3 has a greater room for improvement (Hertz
& Alfredsson, 2003). LSP who uses improved and integrated IT solutions for its clients
tends to be yielding high demand as they are considered to be more client-sensitive (Tian
et al., 2010; Forslund, 2012). Data capturing capabilities at LSPs enable them to be
"customer adapters" and support on improving the client's supply chain demands (Foslund,
2012).
Capturing of the lead-time would require methods such as RFID technology as suggested
by Mortensen and Lemoine (2008). However, Bourne et al. (2000) states that even with
skilled technical team and real-time portal access on live data, report-making and
communication is not yet improved and sees a lack of understanding resulting in
duplication of work in the supply chain interface.
Better report making capabilities would benefit the real-time data capturing which at
present, both customer and LSPs find as an obstacle hence required more cooperation
between the two parties (Forslund, 2012). It is further acknowledged by the Forslund (2012)
that a lot of development is required for future research and close coordination in
exchanging accurate information and knowledge would enhance overall performance of
LSP. Use of real time data capturing for track and trace is common among LSPs and
increased accuracy of data where information received by one partner is directly fed into
supply chain partners’ IT system is a prime motivation for IT investments (Piplani et al.,
2004). However, Piplani et al. (2004), finds that LSPs fear their IT skills and equipment be
obsoleted in face of rapidly changing technology. Also, financial justification for IT
27
investment can be an obstacle for LSPs to respond to changes in the market (Parego et al.,
2011).
Automated systems with high accuracy could minimize many human errors that could have
impacted clients’ business heavily if a shipment is processed wrongly hence the use of an
effectively, flexible system in offering real-time updates with accurate information is an
added advantage to be in par or above industry rivals.
3.2.2.2 Partly Subscribed System. Inkinen et al. (2009) highlights the

importance of companies engaged in supply chain to have information such as forecasts,
changes, estimated times of cargo and location details, etc. that needs to be shared with
clients as key information for both customer relationship management and supply chain
management that are interlinked.
The author is of the view that a fully-fledged ERP system to be deployed in order to share
real time information in order to enhance the customer confidence as a reliable and
trustworthy logistics service provider with accurate information.
Further, Inkinen etal. (2009) states that even though an efficient supply chain management
(SCM) is based on full visibility with information flow, large entities use closed SCM
models with no visibility at all. As per Fremont (2007) operators like Maersk use schemes
that best fits their own requirements, but for Small and medium entities (SMEs) visible
chains are advantageous owing to inadequate resources. Digital solutions in logistics are
required to be of higher reliability than other fields owing to extensive product information
exchange (Auramo et al.,2005; Salmi & Holmstrom, 2004). In light of this notion, depth of
vertical integration among LSP- client as well as Scope of data exchange meaning the
network structure of the partners constitutes as two aspects of study (Inkinen et al., 2009).
Both depth and scope dimensions are commonly analyzed with the utilisation of enterprise
resource planning (ERP) systems to integrate all the data relevant for clients’ information
purpose (Kang et al., 2008). ETA forecast information which is based on assumptions has
tendency to err hence the purpose of analytical ERP and CRM tools is to reduce this error
(Lysons & Farrington, 2006).
ETA changes are important to be shared for clients’ capacity planning (Jalasto et al., 2007).
As per Inkinen et al. (2009) real-time and high-quality information increases the efficiency
of flow of operations of logistics firms and thus proposes several IT tools such as EDI, tools
which refers to quantifiable, automated and electronic information exchange bringing high
28
benefits for large LSP entities. However, Inkinen et al. (2009) further states even though
EDI tools are mostly used for large entities, SME LSPs have initiated the use of EDI.
Logistics firms also use services based on XML owing to ease of use and flexibility and
competitiveness deriving clear benefits such as speed and accuracy of information (Inkinen
et al., 2009).However, it requires customers adoption to digital methods of information
transfer as well as confirmed by Chen et al. (2007) stating that operational and personalized
feedback is the answer to promote consumer satisfaction in the electronic business
environment and this could be achieved by automation of the operating environment to
yield benefits (Inkinen et al.,2009). Abels and Hahn (2006) suggest that an increasing
demand exists for standardizing processes to minimize overlapping systems. Utilization of
tools such as EDI together with ERP and CRM support systems enables to streamline and
develop the existing systems leading to higher profits (Batenburg et al.,2008).
Inkinen et al. (2009) uses a case of a logistic chain in Finland to explaining the feasibility
of the electronic information transfer in logistics and finds that over 80% of imports are
conducted using EDI owing to the nation's overall quality of information infrastructure
geographical placement.
In the Sri Lankan context where information infrastructure is not as developed as Finland,
remains as an empirical gap.
Bowersox and Closs (1996) identify three drivers in the development of logistical system
namely customer interface, good information resources to drive on demand service and
flexibility of the information resources to adapt to changing situations in the logistics
process.
In light of the suggestions given in published research articles, the author of the view that
SFL belonging to a SME entity to with high dependency on partner networks, to have
implemented a fully-fledged EDI and ERP system to enhance transparency among clients
and the LSP partners to provide clear and accurate information and thereby gain confidence
as a reliable service provider.
3.2.3 Manpower Improvement
It is vital for employees to be creative to remain flexible and successfully cope with
dynamic and challenging business environments and versatile market and technological
29
requirements (Gilson et al.,2005; Jeng, 2018). As per Shalley and Gilson (2004) employee
creativity is considered the key to gain competitive advantage in logistics industry for two
reasons. Firstly, employee creativity is vital in enhancing supply chain resilience in the
ever- growing complexities in global supply chains (Pettit et al.,2013; Jeng, 2018).
Secondly, logistics services' differentiating factor in gaining competitive position in the
market compared to its competitors depend on employee creativity results (Lindstad et al.,
2016; Maloni et al., 2016; Ralston et al., 2013). It is ultimately at the hands of the employees
to execute any mitigation tactics in response to various disruptions that occur in the logistics
business environment (Ambulkar et al., 2016). Owing to the nature of uncertainty of
disruptions in the logistics environment, it requires employees' creative problem-solving
ability to better react to such transformation in managing supply chain challenges
(Blackhurst et al., 2011). Based upon on the jobs-demands-resources theory (JD-R theory)
as suggested by Demerouti et al. (2001), job complexity has an influence over customer
orientation and thereby promotes creativity in employees (Jeng, 2018).
As frontline workers play a boundary role in acquiring direct knowledge of customers and
market information, they possess a creative potential that can be incentivized (Grawe et al.,
2015) and hence considered creativity as a prerequisite for logistics service differentiation
(Jeng, 2018). Jeng (2018) shows an example of employee creative behaviour during a delay
in service could mean the employees reach customer's customer in handling the situation
leading to creative ways to mitigate the impact.
Jeng (2018) further states in order to increase creativity, front line employees should be
autonomy in their jobs without the increased need to consult superiors. Managers may
increase job variety where enabling experienced order processing personnel to offer
customer service and act as inside salespeople thereby gaining a better understand of client's
needs (Jeng, 2018). Also, client feedbacks on employees as proactive or reactive and by
conducting frequent performance evaluations with supervisors (Jeng, 2018).
Managers enhance the task significance by increasing the scope of the job task from an
order receiver to a package deliverer (Hackman & Oldham, 1980). Hohenstein et al. (2014)
states that logistics industry suffers from talent shortage and Maloni et al. (2016) suggests
that college students are keen in jobs involving learning and desire for personal growth to
enhance future career opportunities.
30
Hence, logistics managers must create complex jobs requiring creativity which are more
compelling to millennials (Jeng, 2018). Jeng (2018) highlights a few gaps in the research
of job complexity leading to creativity on several grounds such as the research is conducted
on shipping service whereas other logistics services could be concerned. Next, JD-R theory
suggests an assortment of job resources leading to employee motivation, however future
research can include other types of job resources like optimism and self-efficacy in
enhancing employee creativity (Jeng, 2018).
Another gap identified by Humphrey et al. (2007) is that job complexity might be taken
negatively by employees.
Author is of the view that in the Sri Lankan context where shipping and logistics services
are booming owing to its geographical placement, the job market comprising young talent
is also on the rise hence adequate improvements can be made by aligning right talent to the
right task with imparting the required skills and knowledge.
As per Gupta and Singh (2020b), the logistics sector in India which is labour intensive and
unorganized, there are different levels of services offered from smaller to large logistics
entities creating the need for skilled labour. Gupta et al. (2021) further adds that owing to
low literacy rates in India, it’s a challenge to impart trainings to improve manpower.
The author is of the of the view that improving manpower in the Sri Lankan logistics
industry context is possible owing to high literacy rate thus enable to embed high quality
trainings to the available logistics workforce.
Firms must be employee-concerned to improve their well-being while enabling them to be

digitally transformative through technical skills as well as soft skills in the ways of
innovation, analytical thinking and learning (Jerman et al., 2020; Nam, 2019). Kumar et al.
(2020) states that manpower development is essential to enhance organization's
performance. Gupta el al. (2021) further adds that humans add value through creativity by
responding to complexity in the environment highlighting the vitality of manpower. Firms
must make adequate job designs and workforce strategy for better workforce management
(Bag & wood, 2020). Becker et al. (2013) states that firms must develop workforce
competencies under 4 features namely technical skills (job related), methodological
(problem-solving), organizational changes), social competencies (managing environmental
and personal levels of self-discipline, attitude and motivation. As per Bag et al. (2021b)
workforce in the logistics industry must be competent and developed in order to respond
31
better with automation of the systems in the industry. Organizational, behavioural and
technological factors are identified as critical to develop manpower to be in par with the
technological changes and fuzzy analytical hierarchy process approach (AHP) is used to
prioritize these factors (Gupta et al., 2021). Using the AHP approach, the sub factors such
as training employees, commitment, organizational cultures and top management support
take prominence in improving the manpower in logistics industry (Gupta et al., 2021).
Hence, it must be noted that manpower is one of the vital resources required in the service
industry and a lack thereof in terms of skills, knowledge and competencies, could impact
the performance as against the established targets to improve performance. Therefore,
effective ways to improve human skills must be applied to gain better results.
3.3 Study Framework
Method Improvement
Technology
Improvement Faster Response Time
Manpower
Improvement
Figure 3.2: Study Framework
Source: Author
3.4 Description of Techniques
3.4.1 Naturalistic Observation/ Simulation
There are steps that could be utilized for conducting a general naturalistic observation
through levels of a naturalistic observation that varies depending on the field. Researcher
participate actively in the study itself by participant observation. A researcher may take
notes and conduct interviews in addition to observing behaviour. It is the same process
followed under process and technology.
32
3.4.1.1 Determine the Scope of the Study. When commencing a naturalistic
observation, initially the scope of the study should be determined by deciding what aspects
should be included in the research by thinking of a topic that requires research and listing
all the elements relating to that topic.
3.4.1.2 Select Who to Observe. Next a selection should be made of who the
author wishes to observe during his naturalistic observation. It could be a specific client, or
one randomly selected for observation, based on the author’s topics of research.
3.4.1.3 Determine an Observation Time. Depending on the process that is

under observation, the author could select observation time where the author could observe
processes at his convenience, thus selecting a time to utilize the process to capacity.
3.4.1.4 Collect Data. On determining all the details for observation, it is time
for the author to use the observation process to gather data by using a type of naturalistic
observation that is the best method to be used when conducting the field observation.
3.4.2 Training/CSR Activities
Training, skill development and CSR activities are used in order to improve the quality of
input in the CC team. Since CC team engages in daily engagements with agents, the staff
should possess the required skills of communication and negotiation in order to be able to
offer competitive rates to be able to secure orders, as stated in literature reviews related to
the area under study. Also, overall training among the teams in order to enhance the
collaboration and co-operation is important to offer on time responses to clients’ demands.
3.5 Summary
The identified issue in the organization and its related root causes are structurally studied
through already established published knowledge sources in order to learn how such issues
have been impacted and solved in the past to gain a better understanding of the author’s
internal situation in solving the problem of service response delay impacting the revenue.
Upon gaining an understanding of the already published through the literature review
related to the logistics service industry the author intends to use certain techniques so as to
enhance the response according to the study framework that is laid out to improve the
overall performance.
33
Chapter 4
THE PROJECT/METHODOLOGY
4.1 Introduction
Qualitative data is collected by the field project that is conducted through customer
feedback and internal and top management interviews while quantitative data such as
historical revenue data is gathered from internal records of the company. An observation is
followed by the project that takes into consideration several dimensions of a social situation
especially at the start. Author pay attention to actors that are connected to the situation,
their physical location, their activities, goals, acts, events, physical objects, emotions felt
and expressed as well as the sequencing over time. The reduction of response delays to
customer service and the way it impacts SF Logistics Lanka (Pvt) Ltd are investigated by
the author proposes to improve its method, technology and manpower to enhance response
time.
4.2 Field Project Objectives
The main objective of this report is to reduce the response time taken to respond to client
inquiries at SF Logistics Lanka (Pvt) Ltd, which significantly impacts discovering viable
solutions and the entity’s finance performance to surmount the problem.
Table 4.1: Project Objectives
No Project component Project Objective Technique
1 Method Improvement Reduce the response time for client Naturalistic

inquiries less than 24 hrs Observation/
Simulation
2 Technology To upgrade the existing logistic ERP Naturalistic

Improvement system from current level of usage to Observation
up to 100% utilization Training
34
3 Manpower To improve the manpower resources in Training/
Improvement CC, sales and finance teams in order to Management
increase the order success rate above by Objectives
65% CSR activities
Source: Author
4.3 The project: Project Components
4.3.1 Project Component 1: Method Improvement
4.3.1.1 Current Situation of the Project Component. While belonging to a

viable and highly unstable service industry, success over competitors is dependent on the
rapidity of responses of rates as well as other communications that are subsequent clients
related to their accurate shipments to make it possible for customers to make wise decisions
on supply chain management. At SF Logistics Lanka (Pvt) Ltd, the responsibility of the
customer care department is to react early to client inquiries with information requested
such as quotations, details of vessel/carrier, ETA schedule, and other information that is
related, after interacting with agents at its destination. Once customer inquiries are received
through the sales team, customer care engages with respective agents in obtaining the cut
off details, estimated time of departure and arrival, and rate costs.
SF Logistics Lanka (Pvt) Ltd.’s expected standard time for responding to clients is within
24 hours to Western countries and one to three hours for Asian or Far East nations taking
into consideration the global time difference.
Presently however, there are extreme delays to be faced in responding to customers from
the customer care team which surpasses the standard time owing to several reasons. Some
of these are errors or a lack of information in flight and vessel schedules that cause taking
time to revise or lack of coordination with agents in obtaining time responses. The company
is affected by these delays by obstructing the ability of the front-line sales team to retain
their customers due to the delivery of insufficient responses’ Logistics Lanka (Pvt) Ltd can
improve its position in the local market drastically by addressing and resolving these
concerns that directly impact the financial performance of the entity by the internal
implementation of corrective actions. Tables 2.2 and 2.3 depicts the effects of the problem
of service response delays to customer inquiries that arise in the customer care department
35
of the company. This shows in quantifiable terms the impact towards overall performance
with no noticeable growth and stagnated sales.
The expected monthly revenue of SF Logistics Lanka (Pvt) Ltd stands at LKR 8,000,000
per month. Due to delays in customer rate inquires however, the company has fallen behind
its targets of monthly top line which has resulted in poor growth and financial performance.
The actual performance against its established target is depicted in table 2.3
4.3.1.2 Solution Development. The end goal of a logistics chain is customer

satisfaction as it affects the way an organization is viewed. The time that is taken from the
time of ordering to the time of delivery is the deciding factor and is most critical in forming
an opinion of the organization. Even if all other characteristics are handled well by the
company, when it comes to fulfilling the order, long lead times becomes the deciding factor
that forms the opinion of the client. Improving the lead times requires the organization to
deal with the fulfilment of the order as several divisions and workers are involved in this
process.
The simulation plays an important role is ensuring process improvements. The simulation
technique is an excellent way to improve the cost effectiveness while minimizing
invasiveness and, in a risk, free manner. The simulation can mimic the operations of a
proposed or real system. The simulation for such a project is time˗ based and takes into
consideration constraints and resources as well as interactions.
36
4.3.1.2.1 Evaluating and Redefining Standing Operating Procedures. Changes
need to be implemented to SOPs to minimize inefficiencies in production and in helping
the entire team as a consistent unit. Since small steps could yield high results, this is not so
much of a challenge as the focus should be on enhancing the flow of information across the
chain of logistics. A double-checking system for the reduction of duplicated shipments and
human errors, displaying and printing terminology of key policies across the facility, using
analytics reports for sharing trends of sales flow and market behaviour daily, weekly, and
monthly with the team, and making sure that employees are aware of their responsibilities
and roles should be implemented.
4.3.1.2.2 Examine Transportation, Redesigning for Cost / Time Efficiency.

Transportation, if not properly planned and implemented, often affects return on investment
and delivery time frames if the goods get damaged while in transit. Whatever the industry,
an increase in costs of transportation is normally translated to a raise in the price of goods.
Every aspect of the transport process should be analysed for determining the area
commanding the highest expenses. These include beginning with the delivery route,
planning the load, using truck scales to ensure that full loads are carried by vehicles picking
the safest and shortest route, while designing packaging of the product to minimize its
weight and size without compromising on its security.
4.3.1.2.3 Embracing automating and making the most of new technology.
Technological innovation, especially automation in the logistics business, has vastly

improved during the past few years. Modern systems and tools have been designed to
increase the company’s lead times and efficiency by eliminating human errors and reducing
manual interference. The organization should adopt them from smart weighing scales
integrating systems of warehouse management and tracking inventory to business
processes and communication software providing real times updates for the movement of
goods. A customized solution exists for almost every challenge in logistics that the firm
might presently face.
4.3.1.2.4 Developing human resource. The human resource needs to be

introduced to change through documented process. The change must be subtle and
informative. The employees must be trained meticulously in the set processes.
37
4.3.2 Project Component 2: Technology Improvement
4.3.2.1 Current Situation of the Project Component. It reveals that the

company profit and revenue are significantly impacted by shipment inquiries. The quickest
responses create enough time if any negotiations are required with rates, thereby confirming
the inquiries successfully. The fish bone diagram or Ishikawa is the cause-and-effect
affiliation of the key identified issue that significantly impacts the company and its existing
root causes. The Ishikawa diagram graphically illustrates between related influencing
factors that reveal possible fundamental causes and a given outcome from which a reader
could get an idea of the issues and causes therein.
The GenSoft ERP system is not accurately or efficiently used for the purpose of accounting.
The management of workflow and logistics is quite monotonous. Enterprise Resource
planning (ERP) is a definite tool, which permits an expedient flow of demand and supply
in the logistics industry. The system is able to easily handle turbulent new conditions and
operate various procedures.
Hence this gives rise to challenges in operation monitoring such as no live ETA updates or
booking details that could be shared with the customers, which leads to gaps and
miscommunications in miscommunication, which is misleading to the client. This has
become a big internal problem between the customer care team and the sales team, posing
disputes in delivering value among the sales team in.
4.3.2.2 Solution(s) Development. Data that is surfaced easily through an

ERP system can positively impact processes, bringing about the change in business,
enabled business to enhance their revenues and improve their responsiveness significantly.
The internal processes which are streamlined, result in a working model that is highly
productive.
The company can commence using this data by employing analytical tools, to accurately
predict the foundation of a more intelligent approach towards business strategy. Data that
surfaces meaningfully enhances employee engagement, which can visually see their
outcomes and objectives.
These insights can help in increasing the financial prospect and productivity of businesses.
The process of collection, analysis, and processing of structured as well as unstructured
data generated by businesses could be helped by integrating the ERP system with data. By
38
properly using data, business can gain much benefit over and above the already beneficial
ERP solutions.
There are immeasurable new technologies existing in every industry, that cover all possible
processes. They can be made compatible though in-house developments. The organization
will take time to analyse the benefits and features of different ERP systems, selecting the
finest one with care. Since technology will help the organization to thrive and develop, the
workers should be trained in the system and the processes aligned.
4.3.3 Project Component 3: Manpower Improvement
4.3.3.1 Current Situation of the Project Component. Managers and

supervisors wish to motivate employees and teams to assume certain behaviours. Extrinsic
motivational factors often affect behaviour in the short term, but in a stronger manner and
are therefore not considered as an option in the present scenario. The organization looks
for activities that are self-motivating for employees who are not motivated at the workplace.
Intrinsic motivation on the other hand takes place from the task itself, and it influenced by
factors considered to be important for themselves by individuals. Examples of this are
freedom of decision and design, meaningful and responsible activities, interesting work
content and opportunities of personal development. In an organization, employees
demonstrating certain behaviours out of intrinsic motivation are considered to possess a
higher level of job satisfaction. These workers are not good at coping at failures, are less
happy about attaining a goal, do not pursue goals more persistently with their supervisors’
support, and therefore do not lead to good feelings of rewards by the task itself.
Hence, the key challenges from the perspective of customers lie with the understaff issues
and lack of motivation in the customer care division, which has created an increase in the
workload of the individual handling the order processing of the sales team. This has caused
weak relationships and poor coordination between SF Logistics Lanka (Pvt) Ltd and the
back-end agents in obtaining beneficial and accurate rates for conversion of orders from
the company’s competitors. It has consequently opened challenges of lack of synergy and
relationship between the internal teams, leading to poor result in acquiring new sales as
well as securing sales of existing clients in a smooth manner.
39
4.3.3.2 Solution(s) Development. The wellbeing and health of employee
motivation is the point of commencement from the discussion of a component, being
necessary in order to close the gaps that exist in motivation. Low employee motivation and
poor health often lead to psychological factors such as workload and stress. The following
were identified as intrinsic and important methods of motivating employees. They are
facilitating and encouraging feedback, target agreement, discussions that were goal
oriented, targeted development and fair performance appraisals, avoiding interruptions at
work and improvement of the team climate. Other methods are role changes, structured
induction, employee-friendly optimized processes, quality circles, enrichment & role
expansion and transparent communication and information.
The leadership must manage by objective as a strategic approach to improve the

performance of the company where its goals have been conveyed and defined. The
organization structure drives achievement of objectives
Suitable functional work equipment and a pleasant working environment are prerequisites
for highly motivating employees. Bonuses, incentives, etc. can contribute towards
motivation up to a limited extend. They could often backfire and have the opposite effect
if not used correctly. The company can always get the employees involved in CSR projects
or put a carom board in the lunchroom allowing them to play during lunch and after work,
provide gym membership. Yet through it all the leadership must take responsibility for
motivating employees. Such interventions by the management must be appreciated in
appraisals and considered when their promotions are due.
40
4.4 Resource Allocation
Figure 4.1: Decision Makers of the Proposed Solutions
Source: Author
Table 4.2 depicts the expected resource allocation in the entity in order to implement the
proposed solutions to improve the response time to client inquiries.
Table 4.2: Resource Allocation

Component Project Team Member/s Expected Role
No Solution
1 Method Evaluate and Top management Map out existing

along with consultant
Improvement Redefine process, Develop the
SOP’s processes as per the
through established SOP in the
simulation CC department to
ensure the response
time is faster within
24 Hrs to increase the
success rate.
Review the process
and Collect
41
Information on the
contents and fast track
and record of data.
Once approved, new
instructions circulated
through intranet and
ensure latest
information are
updated.
2 Technology In-house IT Solutions Provider, Build and enhance

Consultant and Top best business practises
Improvement development
management pertaining to the
of the system
existing
logistics
ERP system
3 Manpower Training and Top Conduct and
Improvement organize various
skill management
CSR activities and
development along with training programs in
order to enhance
among the consultant
team relationships
teams and belongingness.
Source: Author
42
4.5 Cost Estimates
Table 4.3: Cost Estimates
Project
Proposed Solutions Reference LKR
Components
Method Map processes. Appendix II NIL
Improvement Analyse the process.
Redesign the process.
Implement and
communicate change.
Review the process.
Build KPIs
Acquire advice from

consultancy
Technology Consultancy to produce an Appendix III 500,000

in-house development for
Improvement
existing system
Manpower Introduce CSR projects, Appendix IV 700,000

Improvement Training and Skill
development, Motivational
Benefits, Staff Hiring
Total Cost 1,200,000
Source: Author
43
4.6 Summary
Chapter 4 overall exhibits detailing components, application of setting objectives, setting

of budgets in each practical context of problem solving, detailing components, development
of solutions, and allocation of resources, which are essential facets of value creation in the
knowledge and learning process of the MBA. The overarching strategy is referred to by
methodology, which relates to method and technology, rationale of the project and
manpower, and involves study of the methods that are used and their concepts to develop
an approach which matches its objectives.
44
Chapter 5
FINDINGS
5.1 Introduction
This chapter presents the findings derived from the various analyses performed in this
project. It presents the project's benefits and benefit-cost analysis. It also includes the
project's projected objectives, outputs, and outcomes.
5.2 Benefit ˗ Cost Analysis
Table 5.1: Benefits
Category Items Reference Value LKR
Direct Tangible Enhanced productivity Appendix V 4,600,000

and financial
performance by
improving the response
time
Indirect Tangible Per shipment Appendix VI 1,421,000

incentives from agents
for doubling orders
Intangible Benefits Effective CSR project: Appendix VII NIL

Market company name
Better customer Appendix VII NIL

retention and loyalty
Covering the required Rs 6,021,000

revenue
Source: Author
Table 5.1 summarizes the benefits discovered by the research project as a result of the
solutions considered. The benefit cost analysis for the research project is shown in Table
5.2.
45
Table 5.2: Benefit Cost Analysis
Detail Value LKR
Total Project Benefits (Table 5.1) 6,021,000
Total Project Costs (Table 4.3) (1,200,000)
Net Benefits of the Project 4,821,000
Benefit / Cost Ratio 5.01
Source: Author
5.3 Projected Outputs and Outcomes
Table 5.3: Projected Outputs and Outcomes
No Project Project Objective Output Outcome

component
1 Main project To find a remedy to

improved service response
30% Enhanced overall
leading to revenue growth
performance
and profitability.
2 Method Reduce the response time for Reduced cycle

24Hrs or
Improvement client inquiries less than 24 time/process and
less
hrs cost efficiency
3 Technology To upgrade the existing Enhanced

Improvement logistic ERP system from performance of
current level of usage to up information
100%
to 100% utilization exchange and
high accuracy
and timeliness
4 Manpower To improve the manpower

Improvement resources in CC, sales and Experienced and
Above
finance teams in order to engaged staff
65%
increase the order success cost reduction
rate above 65%
Source: Author
46
5.4 Summary
This chapter allows for the assessment of the various benefits that may result from this
research project. It also defines the benefit cost analysis for this project, which is expected
to have a positive net outcome. Finally, it describes the anticipated outputs and outcomes
of this research project's implementation.
47
Chapter 6
DISCUSSION OF FINDINGS, RECOMMENDATIONS AND

CONCLUSION
6.1 Introduction
This is the conclusion of this research. The researcher links the 3.2 literature discussion on
project components that have been identified, with 4.3 project component solutions. It
reveals the application of understanding and clarity as an MBA with practical scenarios and
key theoretical references to project areas. Each section has been discussed with the present,
important literature, which is connected to the core of the project area as well as its
proposed solutions. The fifth chapter will present what has been structured conceptually in
3.2 and what will be generated by the outputs in 5.3 displaying research linkage.
6.2 Discussion of finding
6.2.1 Improved Response Time leading to Revenue Growth and Profitability
Sarel and Marmostein (1998) state that many aspects could cause a hold-up during the
experience of a service consumption and is a general incident that is faced by consumers.
Service delays are situations where a delivery or service does not take place on time as
planned, and this leads to a delay (Hui et al., 1998). One-time experiences could create
lasting discernment causing a situation where consumers would change their opinion
regarding the service provider (Parasuraman et al., 1991).
Kilibarda et al. (2016), has stated that competitiveness and profitability of service providers
in markets does not depend on the price of the service, but the logistics excellence as well
as the quality of the overall service offered so as to retain and gain clients. SERVQUAL
mode is a service measurement tool of great significance, which is used to measure the
service quality of providers of logistics services (Parasuraman, et al., 1991, 1998). It has
been suggested by Cronin and Taylor (1994) that using the SERVQUAL model as the
service quality is motivated by user satisfaction and perceived performance. It has been
highlighted by Durvasula et al. (1999) that SERVQUAL model offers a more fitting base
to measure the quality of services in maritime logistics. Juga et al. (2010) makes use of
SERVPERF for measuring the impact of the logistics service quality (LSQ) under 3
48
dimensions which are personal, operational, and technical service quality leading to
customer loyalty and satisfaction in the logistics arena. Kilibarda et al. (2016) declares that
due to the precise differentiating features for logistics services, it is crucial to apply diverse
models for assessment of the service quality and SERVQUAL has proven to be suitable.
Nurturing and retaining existing business with clients is cheaper than acquiring new clients
for LSPs to enhance market share (Wagner, 2008; Wallenburg & Lukassen, 2011). The
significance of innovativeness of LSPs however in terms of long-term client – LSP
relationships has not been practically or theoretically researched, but only recently gained
prominence (Wallenburg & Lukassen, 2011). LSP innovativeness through the relationship
of client-LSP on a long-term scale makes it possible for the LSP to gain a competitive
advantage in comparison to rivals (Flint et al., 2005; Murphy & Wood, 2004; Wagner,
2008). Proactive enhancement that is comprehended as innovations that are client based
within the client-LSP relationship enhances the potential to increase customer loyalty, add
market share and value (Cahill, 2006; Wallenburg & Lukassen, 2011).
The impact that service delays have on perceived satisfaction and quality could be learned
by forecasting tools, reducing the actual waiting time, resource and staffing avocations to
meet on-demand patterns, reducing the actual waiting time through operational methods.
However, gaps such as availability of skilled and trained staff, constraints of physical space,
build-up of reputation, challenges of digitalisation and IT, fiscal concerns, process
improvement and inability to predict demand patterns because of high market dynamism
(Katz et al, 1991). Cahill, (2006) believes that operations need to be innovated. Wallenburg
and Lukassen (2011) shares that ERP systems need to instituted. The technology available
need to be upgraded if the company is to cater to the demands of the clients.
It is vital to be creative in responses during waiting times that could lead to delays by
engaging with customers to build a rapport and make sure that clients are provided the
necessary transparency in terms of their orders building reputation and creating awareness
through CSR projects.
Logistics and freight normally involve longer waiting times than other services, and as a
result actions like activities that build rapport, introduce rewards and incentives and
discounts from future orders generate bigger volumes of business. Future buyers learn
about the existence of the entity through independent sources, email marketing, industry
peers and social media etc. resulting in a strong interaction taking place through human
resource and technological improvements and process (Sarel & Marmostein, 1998).
49
Overall, there has been a reduction is cost and the company will be able to meet the revenue
objective in the long run. The company overall efficiency irrespective of whether it is the
process, human or technology will spike.
6.2.2 Method Improvement
It is fundamental to study the conduct of LSP on the process of performance management

as a crucial factor to create logistics performance in supply chains. An increased usage of
LSPs is seen in supply chain activities (Larson & Gammelgaard, 2001). Performance
management (PMP) is inclusive of 5 main activities being the selection of performance
variables, setting targets, analysing, defining metrics and measuring (Forslund& Jonsson,
2007). There is still a limited knowledge on how LSPs handle performance management
with their supply chain. (Forslund, 2012). As per Forslund and Jonsson (2009), show
impediments like conflicting objectives of partners, a lack of understanding and trust, and
a shortage of IT knowledge. Larson and Gammelgaard (2001), state that obstacles in
coordination like differing metrics definitions between LSP and clients who use metrics
other than those demanded by customers such as obstacles.
The dominating factor for performance development measures is on-time delivery.

(Wilding & Juriado, 2004). Hence, the process must be mapped, and the processes
evaluated. Once the new processes are drawn out approval is sought by the management
and therein the processes and procedures revamped. Environmental metrics is gaining
priority amongst LPS and metrics could be defined in several ways and is often conducted
in diverse methods which act as benchmarks by supply chain partners (Larson &
Gammelgaard, 2001).
Simulation techniques are used to test improvements in a cheap, risk free and minimally
invasive manner. A simulation imitates the operation of a real or proposed system,
considers interactions as well as constraints and resources and is time-based. Such software
could be utilised for instance to represent the assignment of staff within an organisation.
Simulation is a powerful tool that could check and try process changes as well as the
assignment of staff within a company at speed. The organization will reduce cycle
time/process and become cost efficiency. The organisation can gain fast insight to improve
the company.
50
6.2.3 Technological Improvement
One of the challenges of LSPs’ overall performance is the IT solutions that enhance
operational efficiency (Forslund, 2012). Studies reveal obstacles like the conflicting
objectives of partners, lack of understanding and trust and IT knowledge (Forslund&
Jonsson, 2009). Several challenges of IT solutions like the shortage of IT knowledge, an
insufficient ERP system that does not support the supply chain and integration are some of
the obstacles stated by Bourne et all. (2000).
LSP who use integrated and enhanced IT solutions for theier clients tend to be yielding
high demand since they are considered as being more client sensitive (Tian et al., 2010;
Forslund, 2012). Capturing lead time would need methods like RFID technology as
suggested by Mortensen and Lemoine (2008). However, Bourne et al. (2000) states that
even using a skilled technical team and real time portal access on live data, communication
and making of reports is not yet improved, and perceives a lack of understanding that results
in the duplication of work in the supply chain interface.
Capabilities of making better reports will not be of any benefit to the capturing of real time
data which both LSPs and customers at present see as an obstacle and as a result need more
cooperation between both parties (Forslund, 2012). He further acknowledges that a lot of
development is needed for close coordination and future research in the exchange of precise
knowledge and information would enhance the overall performance of LSP. Using real
time data capturing for trace and track is common amongst LSPs and increasingly accurate
data where the data that one partner receives is fed directly into the system of the supply
chain partners, being prime motivation for investors of information technology investments
(Piplani et al., 2004). However, Piplani et al. (2004), thinks that LSPs IT skills, fear and
equipment and fear are obsolete in the face of technology that is rapidly changing. Also
justification for information technology could be an impediment for LSPs to react to market
changes (Parego et al., 2011). Automated systems containing levels of high accuracy are
able to minimise several human mistakes that could badly impact the business of impacted
clients if a shipment is not processed correctly, hence it is an added advantage to use a
flexible effective system that offers real time updates, increased scalability with accurate
information to be above or on par with industry levels. Overall, there will be greater
efficiency and reduction of cost.
51
6.2.4 Manpower Improvement
It is important for workers to remain flexible and creative, successfully coping with
challenging and dynamic business environments and technological requirements as well as
versatile market (Gilson et al., 2005; Jeng, 2018). As per Shalley and Gilson (2004) state
that employee creativity is considered as the main component for gaining competitive
advantage in the logistics industry for 2 reasons.
Employee creativity is vital in augmenting the resilience of supply chain in the ever-
increasing complexities in global supply chains (Pettit et al., 2013; Jeng, 2018). The second
is that logistics services' differentiating factor gains a competitive position in the market in
comparison to its competitors which depends on results of employee creativity results
(Lindstad et al., 2016; Maloni et al., 2016; Ralston et al., 2013). It is eventually at the hands
of the employees to execute mitigation tactics in answer to disruptions taking place in the
logistics business environment (Ambulkar et al., 2016).
Companies should be employee-concerned so as to improve their well-being whilst making

them able to be digitally transformative through technical skills and soft skills in analytical
thinking, learning and innovation (Jerman et al., 2020; Nam, 2019). Kumar et al. (2020)
states that development of manpower is vital for enhancing the performance of a company.
Hence, it should be noted that manpower is one of the most important resources needed in
the service industry, and a lack in terms of competency, skills and knowledge could have
an impact on the established targets to improve performance. Therefore, effective ways of
improving human skills should be applied to gain better results. With the skilling, the
engagement and commitment among employees are heightened. The reputation of the
company is enhanced. The staff will grow in experience. They will be more engaged and
there will be an overall reduction of cost. Such motivated staff need to be encouraged to
service the community through CSR (Nam, 2019).
6.3 Recommendation
6.3.1 Outcome
There are extreme delays to be faced in responding to customers from the customer care
team which surpasses the standard time owing to several reasons. Some of these are errors
or a lack of information in flight and vessel schedules that cause taking time to revise or
52
lack of coordination with agents in obtaining time responses. The company is affected by
these delays by obstructing the ability of the front-line sales team to retain their customers
due to the delivery of insufficient responses. SF Logistics Lanka (Pvt) Ltd needs to improve
its position in the local market drastically by addressing and resolving these concerns
directly impact the financial performance of the organisation.
The company needs to evaluate and redefine standard operation procedures and processes.
Changes need to be implemented to SOPs to minimize inefficiencies in production and in
helping the entire team as a consistent unit. Since small steps could yield high results, this
is not so much of a challenge as the focus should be on enhancing the flow of information
across the chain of logistics. The changes and enhancements in process would require
process mapping, analysis of exiting processes, redesigning the process to maximize utility
of resources, acquire resources to fill gap, while communication change which would be a
catalyst for change. Once the redesigning has been evaluated and the outcome is
satisfactory in the eyes of the management, KPIs are developed.
The company needs to embrace automating and making the most of new technology. In
revamping the technology, the company needs to make sure they have the best practices in
place. Since the company is going in for an in-house development of the existing system
there is a need for a consultant. Modern systems and tools have been designed to increase
the company’s lead times and efficiency by eliminating human errors and reducing manual
interference. The organization should adopt them from smart weighing scales integrating
systems of warehouse management and tracking inventory to business processes and
communication software providing real times updates for the movement of goods. The
company ensures that the employees are provided with the system training. This is a
customized solution exists for almost every challenge in logistics that the firm might
presently face.
The employees must be motivated, inspired, encouraged, engaged, and trained to adapt to
new processes and systems. The company needs to facilitate feedback, target agreement,
discussions that were goal oriented, targeted development and fair performance appraisals,
avoiding interruptions at work and improvement of the team climate. Other methods are
role changes, structured induction, employee-friendly optimized processes, quality circles,
enrichment & role expansion and transparent communication and information. There in
encourage the employees to be more committed and engaged especially in sustainable
programs that will help with the growth of share.
53
6.3.2 Time Frame
Table 6.1: Time Frame
1st
2 3 4 5 6 7 8 9 10 11 12
Month
Process
improvement
Recruitment of
consultant
Gap analysis to
improve efficiency
while reducing cost
Software licencing
Building user
workstations
Secured network
printing
Cable installation
Recruitment of
specialized personnel
Draft process
improvement to be
presented to the
Board of Directors
Manpower
Improvement
Allocation of
employees for the
project
54
1st
2 3 4 5 6 7 8 9 10 11 12
Month
Allocation of
funding: physical
resources
Update sustainable
report
Technological
Improvement
Recruitment of
consultancy to
establish best
practices and produce
in-house
development
System overview
Software
enhancement
Tools and equipment

replacement
Training
Testing
Going live
Source: Author
6.4 Conclusion
With the blessing of the top management of SF Logistics Lanka (PVT) Ltd (SFL) which is
a subsidiary of SCS Express (PVT) Ltd, the author engages in an in-depth and an interactive
field project to improve the entity’s overall performance by offering pragmatic solutions to
a prevailing operational issue/s having a significant impact to its overall performance. The
company deals in a highly volatile service sector. The company is a logistics service
55
provider (LSP) solely depends upon its ability to be highly responsive to its clients. The
overall responsiveness to client inquiries has several phases such as quotation phases with
accurate ETD/ETA schedules, on time booking arrangements, shipment status updates, etc.
To attract and retain customers the company has to improve on-time responsiveness,
availability, effective communication and engagement between relevant parties involved
in fulfilling the service offering to client-base.
The author attempts to resolve these issues by following certain steps such as, firstly
identifying the present scenario by extracting the available information of the company
regarding its performance, then, how the identified issue is impacting SFL’s revenue which
has a significant impact on its overall performance, afterwards harnessing existing
knowledge on probable solutions by researching various published literature information,
followed by further acknowledged recommendations that the author finds suitable in
providing the most viable and pragmatic solution to overcome the issue and direct the entity
towards successful performance.
The identified issue is thoroughly analysed using Ishikawa diagram, which is a

sophisticated tool of problem analysis, there upon the author would systematically resolve
the identified operational issue by deploying various techniques and mechanisms,
processes, and procedures as well as resource allocation within a projected timeline.
By deriving at such pragmatic solutions to the identified problem, the author would be able
to utilize the finished project as a practical guiding manual that can be offered to the
management of the company for effective implementation of solutions to the same or
similar issues that may arise in the future. Methodology is the rationale and overarching
stratagem of a research project which is involved in studying techniques, principles, and
theories behind them for the development of an advance corresponding to objectives.
The recommendations are summarized under 5.4 where the company has evaluated and
redefined standard operation procedures and processes. Changes need to be implemented
to SOPs to minimize inefficiencies in production and in helping the entire team as a
consistent unit. Since small steps could yield high results, this is not so much of a challenge
as the focus should be on enhancing the flow of information across the chain of logistics.
The changes and enhancements in process would require process mapping, analysis of
exiting processes, redesigning the process to maximize utility of resources, acquire
resources to fill gap, while communication change which would be a catalyst for change.
56
Once the redesigning has been evaluated and the outcome is satisfactory in the eyes of the
management, KPIs are developed.
The company has embraced automating and making the most of new technology. This is
done in house under best practices. Since the company is going in for an in-house
development of the existing system there is a need for a consultant. Modern systems and
tools have been designed to increase the company’s lead times and efficiency by
eliminating human errors and reducing manual interference. The organization should adopt
them from smart weighing scales integrating systems of warehouse management and
tracking inventory to business processes and communication software providing real time
updates for the movement of goods. The company ensures that the employees are provided
with the system training. This is a customized solution exists for almost every challenge in
logistics that the firm might presently face.
The employees must be motivated, inspired, encouraged, engaged, and trained to adapt to
new processes and systems. The company needs to facilitate feedback, target agreement,
discussions that were goal oriented, targeted development and fair performance appraisals,
avoiding interruptions at work and improvement of the team climate. Other methods are
role changes, structured induction, employee-friendly optimized processes, quality circles,
enrichment along with role expansion and transparent communication and information
dissemination. There in encourage the employees to be more committed and engaged
especially in sustainable programs that will help with the growth of share. The process will
need a consultant’s expertise as such new to the company.
57
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Strategic Management. Advances in Strategic Management. Vol. 28. Emerald. ISBN 978-
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Conforto, E. C.; Salum, F.; Amaral, D. C.; da Silva, S. L.; Magnanini de Almeida, L. F
(June 2014). "Can agile project management be adopted by industries other than software
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Mesly, Olivier. (2017). Project feasibility – Tools for uncovering points of vulnerability.
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Morcov, Stefan; Pintelon, Liliane; Kusters, Rob J. (2020). "Definitions, characteristics and
measures of IT Project Complexity - a Systematic Literature Review" (PDF). International
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Paul C. Dinsmore et al (2005) The right projects done right! John Wiley and Sons, 2005.
ISBN 0-7879-7113-8. p.35
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2003. ISBN 0-07-223062-2 p.354.
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Congress 2006—North America, Seattle, WA. Newtown Square, PA: Project Management
Institute. Available at https://www.pmi.org/learning/library/bringing-pmbok-guide-life-
practical-8009
67
Appendices
Appendix I: Interviews with an Employee and a Customer
Purpose: To identify issues related to response delays to client inquiries Date:
24/05/2021
Employee: Customer Care Manager Pricing and Order Processing
1. How many Inquiries do you get from the sales team? 5-10 average daily
2. To how many do you and your team member respond on the same day? Less than
5
3. Is the work load manageable to respond to new inquiries along with handling
existing order processing? With less staff it is quite difficult
4. How is the collaboration with the sales team? Not very collaborative and regular
arguments due to delays for quotes
5. How well does your team member handle the workload? Not well as I have too
much of work and with 1 member it is not easy to handle all the work.
68
Appendix II: How the Solutions will be Implemented: Method Improvement
1. Mapping out existing processes
In examining processes, the obscure should be first translated into the concrete, while
mapping them and out writing them down are important. The organisation could make use
of a BPMN diagram flowchart, value stream maps or swim lane diagrams or use Lucidchart
for a more easily shareable and sophisticated approach, which would help to orchestrate
them and define processes to easy to understand completely transparent flowcharts.
Business Process Modeling Notation (BPMN) Diagram Example (Click on image to

modify online)
69
Business Process Flow Template (Click on image to modify online)
2. Identify bottlenecks and value add activities
A flowchart should be used to comprehend what works well with the current processes with
areas where process could be optimized highlighted. The organisation could layer data like
the metrics of process efficiency if it is using Lucidchart. When visualizing the processes,
the company could make informed decisions a management will be able to see the
bottlenecks and loopholes in the present process, and approach decision makers and
shareholders with evidence that needs to be optimized.
3. Build out the ideal process
Processes that scale easily could be developed by making changes to the diagram. If the
organisation if using Lucid chart without beginning from scratch, the process map could be
easily sent to shareholders, getting their input with in-editor commenting and adjusting the
process quickly based upon feedback. Improvements could even include hiring project
managers in addition to improving communication and implementing new software. It
would additionally involve a certain amount of creativity in order to determine different
approaches to present routines. If, for instance, team members spend most of their time
70
attending meetings, the organisation could designate some of the days of the week as being
meeting free, along employees to complete their work without the distractions. Accepting
stagnation as being the best practice is the real danger.
4. Communicate changes to the rest of the organisation
The organisation will become exponentially more inefficient as it scales. The process will
need to be documented, and shared for others who follows as the efficiency of the process
will improve only when the management acts. Hence after the organisation has gained
approval from its board of Directors and built a process that is more efficient, it should be
documented and shared by others. The process flowchart is very valuable, acting as a
guidepost and a source of truth, for the entire organisation to use as a reference, and the
visual created helps it workers to understand the way their role fit the process of the
company.
5. Set KPIs
The existing KPIs should be evaluated and performance measures taken to decide upon
what should be kept and which should be cut. If the organisation does not have a proper
and robust approach presently for developing measures and KPIs, they should commence
by setting up an evaluation framework or a spreadsheet containing the criteria for good KPI
measures. An audit needs to be performed for each KPI to ensure that all the essential
details needed by every measure. It should be borne in mind that having too many KPIs is
not good. Hence if the organisation discovers that everything that moves has a measure, it
may need to add an extra iteration to cull the evaluation process.
6. Get assistance from Consultancy
Business owners could be helped by business consultants with a specialization in operations

to enhance the quality of the daily processes. These consultants could help through
understanding how to optimize production and take an inventory of the present business
models to discover the best ways to produce high quality results at a fraction of the time
and cost.
71
Appendix III: How the solutions will be implemented: Technology Improvement
1. Full-fledged System
2. Identifying and engaging Stakeholders
Internal a well as external shareholders should be included along with end users, content
developers, support and hosting teams, trainers, administrators, QA and testing teams,
72
external suppliers, service partners and system owners. How upgrades will affect them,
how they interact with the system, and the level of ongoing engagement they may require
has to be worked out.
3. Undertaking and changing control planning
Effective change control as well as the technical work involved in upgrading the system
will probably be the biggest challenge that surrounds an upgrade in software. It can be quite
challenging to keep the balance between adequate consultation and communication as well
as overwhelming shares. A dedicated change control manager could be assigned to the
process while developing a communication plan for that role.
4. Performing a Site Review
This involves a stock take of customizations within the site. All bespoke developments
have to be identified as well as digging out the specifications and other relevant
documentation that relates to this work. Each development has to be assessed for re-
implementation or upgrading. The customization has to be checked as to whether it was
developed as a plug-in, if it is a core system, if this feature is available in the new software
system, if the present business or development needed for this feature is still applicable, or
whether the software is integrated with any other applications or systems etc.
5. Establishing Upgrade Requirements
It must be decided whether the organisation needs to re-develop integrations and

customisations, whether they need to make allowances for historical data from the
customisations, or upgrade their system, hence abiding in their best practices. It should be
assessed whether it could be upgraded from the present version to the latest version, for
which the organisation may need to hire consultancy. The Information Technology team
will then have to check technical specifications of the software and the organisation will
have to assess if they should install, upgrade, or make any purchases as a part of the
upgrade.
6. Make an Upgrade Plan
Numerous questions have to be answered as to who will perform the upgrade, what requires
to be upgraded or re-developed, whether anything needs to be developed newly, how the
upgrade will be performed, whether the software developer will provide any guidance on
73
the upgrade, what time, resources, budget and people are needed to apply the upgrade
process, etc.
7. Making a Roll out plan
In the same light, questions like when the upgrade will be performed, whether there will be
an outage, how long it will take, the type of message that should go out to the shareholders,
what the implementation process will be, what the rollback plan is, whether everything
should be backed up, etc. should be taken into consideration.
8. Everything should be backed up
One or two backups should be stored somewhere that is extremely safe and secure.
9. Running a Trial Upgrade
Upgrading a copy of the live site would be the best way to discover if any unforeseen issues
would crop up during an upgrade. This will identify any database or code conflicts, and
whether any more work would be needed. Plenty of time should be allowed for this step as
well as to engage with the relevant shareholders.
10. Upgrading a Staging Site
On completion of the technical aspects of the upgrade, and on resolving of any issues, it
would be time to upgrade a copy of the live site to a testing or staging environment. Any
email processes should be switched off so that users will not be sent messages as a part of
the testing, making sure that the staging site is available only to permitted users.
11. Perform Testing
This is inclusive of technical, functional and non-functional testing, data integrity, quality
assurance, theme and design testing that includes browser. It also includes technical testing,
performance, device testing and security while a shared mechanism is vital to the testing
process for tracking and capturing issues, which should have a unique identifier for
purposes of tracking, should be described in detail, be allocated to someone until resolved
fully and have a status. It is also vital to manage expectations around, allow time and user
acceptance for testing. An upgraded system may be function although it may not fulfil all
the business requirements that it was employed to address.
74
12. Undertaking Configuration
With the freshly upgraded staging site of the organisation now deployed, issues tested and
resolved, the site administrators would require some time for ensuring that any functionality
or that new features introduced by the updates have been properly configured, which may
involve updating settings or turning on or off ensures that would accommodate its users
best.
13. Preparing Documentation
Preparing technical documentation, user manuals or help files detailing deployment

requirements or custom developments are crucial to ensure the success of the present as
well as future upgrades. Documentation that has been provided by the technology vendor
or supplier of software should be leveraged, highlighting any differences between versions
to emphasise changes that are important, in the new release.
14. Providing Training
Providing training to the right personnel at the proper time requires adequate planning as
well as training resources. Trainees and trainers should be available at a suitable place
simultaneously. The kind of training, amount, and its length will depend on end user feature
changes within the upgraded software and facing functionality.
15. Preparing the Infrastructure
If a noteworthy number of significant changes are introduced by the upgrade, or the

software upgrade is being timed with a re-release of the system, the organisation will have
to make sure that it is hosting a setup that is able to cope with an increased usage and access
even if it would be for a short period of time.
16. Going Live
The organisation will have a few options around going live which includes running the old
and updated systems parallel for a complete switchover for a certain period. The rollout
plan of the company should be made aware so that all employees are aware of their roles
and responsibilities for the release.
75
17. Offering Support
After the release of an upgrade, there may be an initial demand for support resources, as
users become familiar with the new system. Changes may be required for ongoing support
due to the changes to policies and processes or new functionality or system features. It
should be ensured that the support team has ample training, coverage, and documentation
to meet the demands going for the upgrade release.
18. Performing an Upgrade Review
The upgrade project should be reviewed in retrospect so as to identify where improvements

should be made and what worked well, for the next time when an upgrade is needed.
76
Appendix IV: How the solutions will be implemented: Manpower Improvement
1. Team building sessions for 31 people x 5900 = LKR 182,900.00
2. Hiring two additional staff to CC Team
LKR 15,000 x 2 x 12= LKR 360,000
3. Arrangement of certification courses to staff
LKR 25,000 x 4 = LKR 100,000
77
4. Incentive allowances to CC team – LKR 14,275.00 x 4 = LKR 57,100
5. Skill Development
Everyone wants to learn new skills, especially the millennials. Businesses need to discover
new methods of incorporating skill development in order to retain the best talent. By
enabling them to negotiation skills, and through incentives schemes for agents, company
can save back end costs.
78
Appendix V: Benefits Calculation
Tangible Direct Benefits- Improving the components under consideration, organization
is able to respond to inquiries faster with complete and accurate details there by enabling
the entity to win more orders. As a result, the direct income of the company can be
increased.
By improving the manpower skills, overall method and technology to share real time and
more accurate data to clients for their decision making, the entity can expect to respond
faster and thereby increase the revenue.
Presently, with 2 members in the CC team, company is able to respond to less than 20
inquiries within 24 hours. By doubling the CC team members with enhanced negotiation
skills, full-fledged technology and method improvements, SFL can increase the wining
orders more than double.
Responses Responses Responses Won Orders Order

No.total Responses Unattend Lost
Month within 1 within 24 after 24 /Response success
inquiries within 3 hrs Inquiries Orders
hour hrs hrs within24hrs rate
Jan 45 3 4 9 24 5 16 29 36%
Feb 64 2 4 12 36 10 18 46 28%
Mar 50 1 4 10 30 5 15 35 30%
Apr 75 1 3 15 46 10 19 56 25%
May 40 0 3 7 25 5 10 30 25%
Jun 32 0 2 11 17 2 13 19 41%
Average value of an air shipment in 2021 Calculation: (weight range for air cargo 100kg-
500kg)
250kg rate - $4.50 per kg = $1125 /Approx. 230,000 LKR (USD 1 =LKR 203.00 in 2021)
By doubling the confirmed orders per month (from 20 to 40):
With 2 members responding to inquiries within 24 hrs average 20 orders:
20 x 230,000 = 4,600,000 LKR
With 4 members responding to inquiries 24 hrs
40 x 230,000 = LKR 9,200,000 SFLs’ revenue target can be increased compared to its
established target.
Average increment of revenue due to increase in responses within 24 hrs = LKR

4,600,000.00
79
Appendix VI: Indirect Tangible Benefits
By doubling the order placements with back end agents, SFL can acquire at minimum $1
per kg saving per air cargo shipment, $300 per container for sea cargo and
Hence, by doubling the confirmed orders from 20 to 40 average minimum indirect benefit
that can be gained is
For air cargo average for 10 out 20 incremental change:
1 x 250kg x 10 = $2500 x 203 = LKR 507,500 for average air cargo of 250 kg and per
Sea freight:
Full container sea cargo, $450 discount per container – considering the average container
number of orders being 10, 10 x 450 = $5000 x 203 = LKR 913,500
Total indirect benefits = 507,500 + 913,500 =LKR 1,421,000
80
Appendix VII – Intangible Benefits
1. Effective CSR project: Market company name
The purpose is to build a better tomorrow, by giving back to the community. The CSR
programmed leads to enhanced earnings, financial stability and improved employability in
addition to helping families to save and increase financial literacy rates. The CSR project
should be one that all employees would willingly work towards. The marketing department
can put out messages with a personal note to all departments and business units on what is
needed for the CSR project. The unique opportunities the company looks for must be in
sync with the company’s mission. Workers who feel as if they are merely another cog in
the machinery are not going to feel very positive about their work, but on the other hand,
employees feeling that they have an influence on business decisions or that their opinions
to be valued are going to be much more engaged. Team members should be given CSR
initiatives either through organising a regular survey, or through creating a working group,
and asked what they require the organisation to focus on next. This will help them to realise
that their opinion is valued, and that they have an impact on the direction of the business.
2. Better customer retention and loyalty
As a result of being highly responsive to client inquiries with accurate information and
competitive rates being offered, SFL can enhance its image being a competitive player
among other logistics service providers. By offering what the customers demand, leading
to delighting customers with expected information they require to make decisions SFL can
build customer loyalty, retention and through the word of mouth and satisfied experience
of the existing clients, can expand its market share as well.
81
Appendix VIII: Questionnaire
Do you believe that there is a service response delay?
Do you think that these service responses have an impact on SF Logistics Lanka (Pvt) Ltd?
What areas do you think needs remedying?
What are the remedies you believe would solve these issues in the most economical way?
What remedies do you think will enhance the effectiveness of the service response?
Reponses have been summarized from the voice recordings
Respondent Do you Do you think What areas What are the What
No believe that these do you think remedies you remedies do
that there service needs believe would you think
is a responses remedying? solve these will enhance
service have an issues in the the
response impact on SF most effectiveness
delay? Logistics economical of the service
Lanka (Pvt) way? response?
Ltd?
1 Yes Yes, most The process. There must be Implore on

certainly The brainstorming the
employees sessions for employees
need to be process the need to
through the improvement. ensure the
gravity of The processes effectiveness
their actions and the
have to be
efficiently of
revisited
their service
The
employees
can be given a
E-training
82
2 Yes Is not the Processes In house ERP Process gap
only factor need to be system assessment
for automated and
consideration enhancement
of systems
3 Yes Yes Train the Go for a CSR Train the

employees project. need to
the Experience commit and

Get
has shown engage
employees
to engage that CSR though
projects have external
more
a way of curriculum
bringing
teams
together
4 Yes Yes ERP system ERP system ERP system

to improve to improve to improve
process process process
5 Yes Yes Processes Processes Processes

must be must be must be
revisited revisited revisited
Process and Process and Process and

procedures procedures procedures
must be must be must be
automated automated automated
reducing reducing reducing
human human human
intervention intervention intervention
Employees Employees Employees

need to be need to be need to be
83
thought to thought to thought to
engage engage engage
There is no
cheap way of
doing it
Respondent detail
Respondent No Designation
Manager Customer care and pricing- Manager – connect to manpower and

Kalpani Batawala process- mainly for service response
delay reasons she is the person
coordinating with agents for order
management communications with
clients
COO – Asangi Jayaweera COO- Process and Technology

(approvals and etc)
GM – Priya Dharmaseelan Heading operations of SFL – Overall

Process, manpower
84

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REDUCTION OF SERVICE RESPONSE DELAYS

AND ITS IMPACT TO SF LOGISTICS LANKA (PVT)

A Management Field Research Project report submitted to the Postgraduate

Colombo - Sri Lanka

REDUCTION OF SERVICE RESPONSE DELAYS

LIST OF TABLES ....................................................................................................... viii

LIST OF FIGURES ........................................................................................................ix

LIST OF ABBREVIATIONS .......................................................................................... x

EXECUTIVE SUMMARY .......................................................................................... xii

1.1 Background .......................................................................................................... 1

1.2 Project .................................................................................................................. 1

1.3 Significance of the Study ..................................................................................... 1

1.4 Methodology ........................................................................................................ 2

1.5 Limitations ........................................................................................................... 2

1.6 Chapter Framework ............................................................................................. 3

Chapter 2: ORGANIZATIONAL ANALYSIS AND PROBLEM IDENTIFICATION . 4

2.1 Introduction .......................................................................................................... 4

2.2 Organizational Profile .......................................................................................... 4

2.3 Organizational Analysis ....................................................................................... 6

2.4 Key Problem(s) .................................................................................................. 10

2.5 Description of the Problem(s) ............................................................................ 11

2.6 Analysis of Key Problem ................................................................................... 14

2.7 Doing Business Index (DBI) Foot Print............................................................. 15

2.8 Summary ............................................................................................................ 15

Chapter 3: LITERATURE REVIEW............................................................................. 16

3.1 Introduction ........................................................................................................ 16

3.2 Theoretical Background to the Problem ............................................................ 16

3.3 Study Framework ............................................................................................... 32

3.5 Summary ............................................................................................................ 33

Chapter 4: THE PROJECT/METHODOLOGY ............................................................ 34

4.1 Introduction ........................................................................................................ 34

4.2 Field Project Objectives ..................................................................................... 34

4.3 The project: Project Components....................................................................... 35

4.4 Resource Allocation ........................................................................................... 41

4.5 Cost Estimates.................................................................................................... 43

4.6 Summary ............................................................................................................ 44

Chapter 5: FINDINGS ................................................................................................... 45

5.1 Introduction ........................................................................................................ 45

5.2 Benefit ˗ Cost Analysis ...................................................................................... 45

5.3 Projected Outputs and Outcomes ....................................................................... 46

5.4 Summary ............................................................................................................ 47

Chapter 6: DISCUSSION OF FINDINGS, RECOMMENDATIONS AND

6.1 Introduction ........................................................................................................ 48

6.2 Discussion of finding ......................................................................................... 48

6.3 Recommendation ............................................................................................... 52

6.4 Conclusion ......................................................................................................... 55

Appendix I: Interviews with an Employee and a Customer .......................................... 68

Appendix V: Benefits Calculation Tangible Benefits ................................................... 79

Appendix VI: Indirect Tangible Benefits ...................................................................... 80

Appendix VII: Intangible Benefits................................................................................. 82

Appendix VIII: Questionnaire ....................................................................................... 82

Table 2.1: SWOT Analysis ................................................................................................ 7

Table 2.3: Revenue Report of SFL ................................................................................. 13

Table 4.1: Project Objectives .......................................................................................... 34

Table 4.2: Resource Allocation ....................................................................................... 41

Table 4.3: Cost Estimates ................................................................................................ 43

Table 5.1: Benefits............................................................................................................ 45

Table 5.2: Benefit Cost Analysis ..................................................................................... 45

Table 5.3: Projected Outputs and Outcomes ................................................................ 46

Table 6.1: Time Frame .................................................................................................... 54

Figure 2.1 Organization Structure .................................................................................. 5

Figure 2.2: SFL’s Environment ........................................................................................ 6

Figure 2.3 Ishikawa Analysis of the Response Delays ................................................. 14