Professional Documents
Culture Documents
FORWARDING
PROJECT REPORT
by
AMAL ROY GEORGE
2009 2011
Table of Contents
ACKNOWLEDGEMENT ................................................................................................................... 6
DECLARATION...................................................................................................................................... 7
ABSTRACT............................................................................................................................................ 8
CHAPTER 1. INTRODUCTION .................................................................................................................... 9
1.1 THEORETICAL BACKGROUND ....................................................................................................... 10
1.2 PROBLEM STATEMENT ................................................................................................................. 11
1.3 NEED OF THE STUDY .................................................................................................................... 11
CHAPTER 2. REVIEW OF LITERATURE ..................................................................................................... 12
2.1. Service Quality Measurement: Theoretical Foundation ............................................................... 13
2.2 Service attributes of freight forwarding companies ...................................................................... 16
CHAPTER 3. INDUSTRIAL PROFILE .......................................................................................................... 19
3.1FREIGHT FORWARDING INDUSTRY ................................................................................................ 20
3.1.1 SEA FREIGHT FORWARDING .................................................................................................. 21
3.1.2 AIR FREIGHT FORWARDING ................................................................................................... 23
3.1.3 Customer Clearance Procedures............................................................................................ 24
3.2 DHL GLOBAL FORWARDING PROFILE .......................................................................................... 27
3.2.1 DHL AIR FREIGHT SERVICES .................................................................................................. 33
3.2.2 DHL OCEAN FREIGHT SERVICES ............................................................................................. 34
3.2.3 DHL CUSTOMS BROKERAGE .................................................................................................. 35
CHAPTER 4. RESEARCH DESIGN & METHODOLOGY ................................................................................ 36
4.1 RESEARCH METHODOLOGY .......................................................................................................... 37
2
LIST OF TABLES
Table No Description
Page No
5.1
41
5.2
42
integrity
5.3
43
5.4
44
5.5
45
5.6
46
5.7
47
5.8
48
5.9
49
5.10
50
5.11
51
5.12
52
5.13
53
5.14
54
5.15
55
5.16
56
LIST OF CHARTS
Chart No Description
5.1
Page No
42
integrity
5.2
43
5.3
44
5.4
45
5.5
46
5.6
47
5.7
48
5.8
49
5.9
50
5.10
51
5.11
52
5.12
53
5.13
54
5.14
55
5.15
56
ACKNOWLEDGEMENT
First of all I would like to thank Mr Tony Subin, Manager, OFR Pricing-DHL for referring me
to do the project in this prestigious company. I also thank the Regional Manager Mr Suresh
Nair for giving approval for doing this internship. I take this opportunity to express my deep
sense of gratitude to Ms Malini Bharathy, Regional HR DHL Global forwarding for her
guidance inside the organization sparing her valuable time in giving me all support for the
completion of the project. She has been a source of guidance and encouragement to me in this
venture of mine.
I am deeply indebted to each division heads and staffs of each division without which this
internship would not have been possible.
I solemnly express my sincere gratitude to Prof. Dr. Antony Gregory for the guidance and
valuable comments I received throughout my project. I was greatly benefited by his support and
encouragement.
Last but not the least; I bow my head before God Almighty who has blessed me with physical
and mental strength to complete the project.
Cochin
DECLARATION
I hereby declare that this report titled BENCHMARKING THE SERVICE QUALITY OF DHL GLOBAL
FORWARDING is a bonafide record of work done by myself during the academic year, 2010-2011 in
partial fulfillment of the requirements of MBA (FT) degree of CUSAT.
This work has not been undertaken or submitted elsewhere in connection with any other
academic course and the opinions expressed in this report are entirely my own.
Place: CUSAT
Date:
ABSTRACT
The importance of service quality in any service industry cannot be disputed. Recent political,
economic, and technological changes affecting the transportation industry have made service
quality a major concern for carriers and shippers alike. Customers have increased expectations
concerning the quality of service they receive and shippers are struggling to meet these
expectations. This struggle between shippers and customers would suggest that there is room for
improvement in carrier managements understanding of how shippers define service quality. The
topic of my internship is BENCHMARKING THE SERVICE QUALITY OF DHL
GLOBAL FORWARDING. This study is an attempt to analyze service quality of DHL
Global Forwarding, Chennai and to determine potential areas of improvement within the shipper
customer relationship. The objective of the study is to evaluate the service dependability and
accuracy of DHL performance, to determine whether DHL employees are willing to help
customers and provide prompt services, to study whether the employees of DHL have the ability
to inspire trust and confidence, to know whether DHL provide good equipment, right personnel
and communication materials to measure whether DHL provides individual attention to its
customers. The research design used for this study is descriptive type. It includes surveys and a
fact finding enquires of different training programs. The study is that of a quantitative analysis
where the data collected and studies is supported with the help of quantitative analysis. It
includes the collection of primary data from the customer or clients though distribution of
questionnaire. The data is collected by conducting interviews with mangers, directors and
executives of various customers or clients of DHL. The sample size set by the company was 50
customers and data was collected from these 50 clients or customers. The tool used for analysis
of the data is SPSS (Statistical Package for Social Sciences) which helps in proper analysis and
also help in determining the results. The test used for analysis is reliability test, frequency
analysis or percentage analysis and one way ANOVA test analysis.
CHAPTER 1. INTRODUCTION
assurance,
Empathy,
tangibles.
In
today's
competitive
environment,
organizations must earn the customer's trust by consistently meeting or exceeding expectations.
The disparity between expectation and perception is the major determining factor in a customer's
assessment of quality of service. Service quality and customer service is very important. One
of the most important customer service skills you can develop is the ability to understand and
effectively respond to the customer's needs and concerns. For a long time, a sale has been
perceived to be mostly about trying to convince the customer that he needs the product. Excellent
customer service starts by first taking the time to get to know the customer, their situation,
vision, frustrations, and goals.. Every company owner wants to get loyal customers which add to
repeating purchases and of cause increasing their maximum revenue. But to get there they need
to know about the 5 Service Quality Dimensions. Freight forwarding is certainly a service
activity that is one of the key logistics functions. The level of customer service relies very much
upon the quality of freight forwarders. This study provides directions for measuring service
quality performance and the study was conducted in DHL Global Forwarding, Chennai which
helps in determining and giving suggestions about the potential areas of improvement within the
customer- forwarder relationship.
10
11
12
Reliability: ability to perform the promised service dependably and accurately. The reliability
Service Quality Dimension refers to how the company are performing and completing their
promised service, quality and accuracy within the given set requirements between the company
and the customer. Reliability is just as important as a goof first hand impression, because every
customer want to know if their supplier is reliable and fulfill the set requirements with
satisfaction.
Responsiveness: willingness to help customers and provide prompt service. The responsiveness
Service Quality Dimension refers to the willingness of the company to help its customers in
providing them with a good, quality and fast service. This is also a very important dimension,
because every customer feels more valued if they get the best possible quality in the service.
Assurance: knowledge and courtesy of employees and their ability to inspire trust and
confidence. The assurance Service Quality Dimension refers to the companys employees. Are
the employees skilled workers which are able to gain the trust and confidence of the customers?
If the customers are not comfortable with the employees, there are a rather large chance that the
customers will not return to do further business with the company.
Empathy: caring, individualized attention the firm provides its customers. The empathy Service
Quality Dimension refers to how the company cares and gives individualized attention to their
14
customers, to make the customers feeling extra valued and special. The fifth dimension are
actually combining the second, third and fourth dimension to a higher level, even though the
really cannot be compared as individuals. If the customers feel they get individualized and
quality attention there is a very big chance that they will return to the company and do business
there again.
The identification of five dimensions of service quality has dominated the literature in the field
of service quality. There are now over 5500 research articles on this model (Kasper et al. 2006).
According to EBSCO database (30 Sept07), SERVQUAL as a keyword is appearing in 102
publications. Major published studies include Banking (Arasli, Katircioglu&Mehtap-Smadi
2005; Bexley 2005; Baumann et al. 2007; Aga &Safakli 2007), Education (Arambewela& Hall
2006), Health (Lam 1997; Kilbourne et al. 2004; Pakdil& Harwood 2005), Hotel (Antony,
&Ghosh
2004;
Juwaheer
2004),
Information
System
&
E-Commerce
(vanDyke,
Kappelman&Prybutok 1997; Cook 2000; Jiang, Klein & Carr 2002), Internal Marketing (Frost &
Kumar 2000, 2001; Straughan 2002), Public Services (Orwig, Pearson & Cochran 1997;
Donnelly &Shiu 1999; Wisniewski 2001; Brysland& Curry 2001), Retail (Finn &Lamb 1991;
Dabholkar, Thorpe, &Rentz 1996; Zhao, Changhong&Hui 2002) and Tourism & Hospitality
(Saleh& Ryan 1991; Kouthouris&Alexandris 2005; Home, Peter &Pikkemaat 2005),
Transportation (Crosby &LeMay 1998; Mehta &Durvasula 1998; Durvasula&Lysonski 1999).In
today's competitive environment, organizations must earn the customer's trust by consistently
meeting or exceeding expectations.
major determining factor in a customer's assessment of quality of service. Service quality and
customer service is very important. One of the most important customer service skills you can
develop is the ability to understand and effectively respond to the customer's needs and concerns.
For a long time, a sale has been perceived to be mostly about trying to convince the customer
that he needs the product. Excellent customer service starts by first taking the time to get to know
the customer, their situation, vision, frustrations, and goals.
15
explored
the
efficiency
of
the
shipping
industry
in
Thailand
(Suthiwartnarueput 1985). She showed that the most important service attribute was cost of
service, followed by punctuality, transit times, and frequency of sailings, directness of sailings,
and past loss and damage experience. More recently, Matear and Gray (1993) examined freight
transport services in the Irish Sea market. Among freight shippers, the most important items were
fast response to problems, on-time collection and delivery, value for price, and good
relationships with carriers. In contrast, for freight suppliers, the most important items were
punctuality of sea service, availability of freight space, high frequency of sea service, and fast
response to any problems. An extensive global survey published in 1995 revealed that shippers
16
considered overall cost and service reliability packages more important than freight rates, the
reliability of sailing schedules, port coverage, overland intermodal capability, and multi-trade
capability when selecting ocean carriers (Containerisation International, September 1995).
TengkuJamaluddin (1995) investigated liner shipping services with reference to Far East/Europe
trade. The five service factors to which shippers attached importance were freight rates, cargo
care and handling, knowledgeability, punctuality and transit time, and service frequency. In
contrast, the five service attributes to which carriers attached highest importance were
knowledgeability, freight rates, cargo care and handling, punctuality and transit time and service
frequency. Chiu (1996) found that service attributes of greatest importance to shippers were
prompt responses from a carrier to any problem, transit time reliability, documentation services,
notice of delay, and assistance of loss/damage claims from the carrier.
A study by Whyte (1992) examined the factors determining carrier selection and investigated the
importance of the different aspects of service provided by a road hauler. The buyers in the
sample rated the ability to provide a good service as the most important factor determining
hauler selection, followed by reputation for integrity, flexibility to customer future requirements,
and price. Gibson, Sink, and Mundy demonstrated a basic model of shipper strategies in the
transportation purchasing decision and the shipper-carrier relationship (Gibson, Sink, and Mundy
1993, 371-381). They indicated that key criteria for the selection of partner candidates were a
willingness to meet service expectation, an established track record of outstanding performance,
willingness to focus on continuous improvement, ability to handle special needs and
emergencies, and, finally, willingness to meet cost goals.
An important point documented in previous studies is that perceptional differences exist between
carriers and shippers concerning the importance of service attributes. Hopkins, Strasser,
Hopkins, and Foster (1993) examined service quality gaps in the transportation industry. An
analysis of respondents' attitudes toward seventeen of nineteen statements indicated that shippers'
expectations of service quality were higher than the perceived service they were getting from
carriers.
Jerman, Anderson, and Constantin (1989) also investigated differences between shippers' and
carriers' perceptions of carrier selection variables. Shippers' and carriers' ratings differed
17
significantly for twelve of twenty-six selection variables. The greatest differences were found
with regard to the following: regular calls by a carrier salesman, carrier reputation for quality
service, neatness of vehicle operators, courtesy of vehicle operators, knowledge of a shipper's
needs on the part of a carrier representative, and carrier reputation for dependability. Chiu
examined the differences between the importance carriers and shippers attached to service
attributes, and found that nine of the thirty-five service attributes differed significantly in
importance. These service attributes were notice of delay, assistance with loss/damage claims,
freight loss/damage experience, carrier's reputation, warehousing services, customs clearance
services, regular call by a salesman, long-term contract with carrier, and prepayment cash
discount.
18
19
To understand the trade lane business in terms of freight forwarding, understanding towards
these Inco terms is very essential.
Business Drive
Nominated Business: It is a business generated at the other end (other country / sales
lead), especially imports to India is termed as nominated business.
Exports are given top priority in India, as India needs foreign exchange due to adverse balance of
trade. In fact, practice of giving encouragement to exports is followed by almost all nations.
Government gives encouragement to export through various schemes. Exports are mainly
supported and supervised by Commerce Ministry of Government of India. Broadly, the export
incentives for manufacturers are
20
21
22
Airfreight transportation is becoming more economical with exporters for small volume
goods that makes use of consolidates airfreight.
However, air cargo is still very expensive for shipping goods that have a high weight or
cubic dimension to value.
Freight charges are based on weight or measurement whichever is the higher. The
contract between the airline and the exporter is called an airway bill.
Reduces working capital tied up in "goods in transit" and reduces packaging costs.
Avoids conditions of extreme heat, dampness which are often found in ocean-going
vessels.
Both scheduled and non-scheduled air carriers offer a great variety of air cargo flights.
Reduces pilferage and damage to goods being shipped compared with other methods.
Air freight-Terminologies
Air way Bill: The Airway bill is a document of contract for carriage of goods between the
shipper and the airline.
23
House Airway bill: Issued by Freight Forwarder: It is issued by the house of a consolidator for
individual components of goods covered under airline Airway bill.
Master Airway Bill: Issued by Airline: it is printed with issuing carriers identification.
IATA-International Air Transport association: it is a regulatory body for the transshipment of air
cargos from one origin to another. It issues license for those agencies who perform their
approved standard of performance and are called as cargo agents. A joint air cargo industry
programme involving all stakeholders of the supply chain including Customs and Government
Agencies
Codes: IATA has divided the world map into three zones .1.america 2.africa and Europe 3.asia
and Australia. Major countries are coded with two letter codes and city as three letter codes.
Weighing the cargo: Freight charges are calculated on the actual weight or the volumetric
weight, whichever is higher.
Currency: Imports from any country will be booked in the local currency only. If the country
currency value is found week then USD will be considered. Rounding of weight will always be
to the next nearest value.
Customs Clearance
A document given by customs to a shipper to show that customs duty has been paid and the
goods can be shipped.
Customs Duty: A tax, duty or tariff levied at the time of import upon goods entering a country.
Usually based on the value of the goods on the physical nature of the goods such as quantity or
weight, or on a combination of the value and other factors.
Inland Container Depot: ICD essentially function like a dry port. ICD functions as common user
facility offering all services for customs clearance like any other port. It has facilities for
handling and temporary storage of imported / export goods and empty containers.
Container Freight Station: ICD is normally located outside port towns, whereas no site
restrictions apply to CFS. The CFS is treated as extension of a port / ICD / air cargo complex. An
ICD may have CFS attached to it.
24
Goods or cargo from the shipper office to the airport( pick up)
Custom Clearance
Permission to be obtained from the port/airline to take the cargo inside port/airport.
Cargo to be scanned
26
DHL is a global logistics company. DHL satisfies the increasingly sophisticated needs of
international trade through a worldwide network of responsive, highly-trained professionals and
integrated information systems. Services include, air and ocean freight forwarding, customs
brokerage, distribution and value-added services.The DHL bundles all the logistics expertise and
transport modes required by variety of customers. What sets DHL apart from the rest is its
peerless expertise in managing integrated transport services.DHL is a logistics partner big
enough to deliver freight of any kind, to any place via air, ocean, road or rail, but capable of
giving its customers the personal attention they need. DHL helps customers constantly improve
their transportation networks and gain a competitive advantage, by giving them the means to get
products to market faster and more efficiently.
DHL works with more companies, in more countries, than any other logistics specialist. DHLs
long-established capability in large markets such as Europe, the US and China is matched by a
long term commitment to every territory in which DHL operate. So, wherever customers goods
need to be, one can be sure DHL already have the expertise and capability in place. Whatever be
the product, DHL takes total responsibility for making sure freight arrives on time and in perfect
condition.DHL can handle from microchips to oil rigs. Whether customer are a first time shipper,
or need a complex shipment of large goods moved to different locations, DHL have the specialist
resources to manage.
DHL have the expertise in handling the following special freight type
DHL are the first letters of the last names of the three company founders, Adrian Dalsey, Larry
Hillblom and Robert Lynn.In 1969, just months after the world had marveled at Neil
Armstrong's first steps on the moon, the three partners took another small step that would have a
profound impact on the way the world does business. The founders began to personally ship
papers by airplane from San Francisco to Honolulu, beginning customs clearance of the ship's
cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbor.
Customers stood to save a fortune. With this concept, a new industry was born: international air
express, the rapid delivery of documents and shipments by airplane. The DHL Network
continued to grow at an incredible pace. The company expanded westward from Hawaii into the
Far East and Pacific Rim, then the Middle East, Africa and Europe. By 1988, DHL was already
present in 170 countries and had 16,000 employees.
At the beginning of 2002, Deutsche Post World Net became the major shareholder in DHL. By
the end of 2002, DHL was 100% owned by Deutsche Post World Net. In 2003, Deutsche Post
World Net consolidated all of its express and logistics activities into one single brand
DHL is the global market leader in international express, overland transport and air freight. It is
also the world's number 1 in ocean freight and contract logistics. DHL offers a full range of
customized solutions - from express document shipping to supply chain management. The reason
for the success of DHL is due to its very effective and efficient way of carrying out the process
of project management. The basic steps in it are as follows.
INTEGRATED LOGISTICS
Logistics is viewed as the competency that links an enterprise with its customers and suppliers.
Information from and about customers flows through the enterprise in the form of sales activity,
forecasts and orders. As products and materials are procured, a value added inventory flow is
initiated that ultimately results in ownership transfer of finished products to customers. Thus the
process is viewed in terms of two inter-related efforts, inventory flow and information flow.
The management of logistics is concerned with the movement and storage of materials and
finished products. From the initial purchase of a material or component, the logistical process
adds value. By moving inventory when and where needed. Thus the material gains value at each
step.
For a large manufacturer, logistical operations may consist of thousands of movements, which
ultimately culminate in the delivery of the product to an industrial user, wholesaler, dealer or
customer.
DHL is completely service oriented therefore it does not have its own material movement but
that of the customers the sender, the receiver and also the intermediaries. That means it only
28
involves physical distribution and procurement. Procurement also includes the material needed
for packaging such as paper, moulded trays and boxes, wooden crates, standard containers
wraps, plastic inlays etc. The materials or the goods collected from the senders (including
papers, documents, physical goods like clothing, household good, chemicals, exotic animals etc)
are weighed, checked for condition, and depending upon its various characteristics it is packed.
The goods are then dispatched to their destinations. There is no value addition to the material
itself but it is done to the service which is provided
Information flow identifies specific locations within a logistical system that have requirements.
Information also integrates the three operating areas. The primary objective of developing and
specifying requirements is to plan and execute integrated logistical operations.
DHLs whole business is dependent on the vital point of timely delivery. Based on the distance
to the final receiver, the accessibility, the documentations and procedures that need to be handled
etc they have fine tuned the process of delivery. They can accurately gauge how much time it
will take for the goods to reach its end destination.
DHL owns its success for the efficiency with which the operations are carried out. Here not only
the company but the sender and sometimes the receiver can track the goods through their
information center. They are given a certain password which they can use to trace via online or
their customer service helpline.
DHL WEB SHIPPING is the on-line express shipping tool that helps customers prepare
documents, book pick-ups, store contact details and track their deliveries. Ideal for busy office
managers, business travelers or receptionists, DHL WEB SHIPPING needs no special software
or training. DHL WEB SHIPPING's new, simplified navigation guides customers, quickly and
easily, through the entire process. So they can respond to any shipping request within minutes
Good design is at the heart of an effective supply chain solution. DHL has developed a
reputation for consistently developing innovative solutions that streamline operations and
improve control. Their in-house teams have contributed to the solutions design of some of the
world's leading brands and enabled to win key contacts. DHL solutions design team offers a
wide portfolio of expertise and services, from logistics network strategy, transport design,
warehouse design and simulation, through to operational improvement and inventory analysis.
DHL helps customers:
Give visibility of the upstream supply chain, and enable earlier decision making
Create a more agile supply chain, better able to respond to changes in consumer demand
Reduce lead times, inventories, and associated storage costs
29
Logistical services that are offered are Reverse Logistics, Service Logistics, Inbound to
Manufacturing, Medical Device Distribution, Distribution to Stores Management, Engineering
Response
DHLs reverse logistics solutions help customers plan, implement and control flow of materials
and manage related information, back up the supply chain to recapture values and ensure the safe
disposal of goods. Items include the recovery of obsolete or non-operational white goods such as
refrigerators, plus the removal of old furniture on delivery of new or replacement products.
DHLs service and replacement parts service involves the management of manufacturers'
replacement parts delivered to and from customers according to pre-defined service levels or
warranty agreements on a one-, two-, four- or eight-hour and next-day basis, 24 hours a day,
seven days a week.
DHL works closely with customers to overcome common issues such as:
Outbound delivery
Key to the service is integrating manufacturers' forecasting, order management and supply chain
execution processes with their component suppliers. DHL implements warehouse management
and supply chain event management systems to manage just-in-time deliveries and allow supply
chain participants to exchange forecast requirements in real time.
Value is created for manufacturers and component suppliers throughout the world by:
o enabling a robust and cost-effective supply chain
o Providing the necessary visibility so that the location of all components within the
supply chain is known to all supply chain participants
o Reduce inventory and investment costs
o Improve delivery times
o Co-ordinate multiple components more efficiently
DHL country-based warehouses for a number of manufacturers to service a local customer base.
This includes the receipt of product from local or global manufacturing sites and downstream
distribution to hospitals.
DHL distribution to store services are focused on helping retailers create efficient and flexible
supply chains to deliver product to retail outlets at high levels of service.
These solutions are built from several core services: reverse logistics collections; sortation;
processing; repair/refurbishment; value recovery; disposal and compliance.
Through our Engineering Response services, we manage the materials supply chain from works
planning and inbound goods through to on-site works, delivering stock out to engineers, builders
and construction workers in the field.DHL not only provides physical ogistics services but also
manages other enhanced supply chain services, improving efficiencies and reducing costs.
Receipt, management, execution, sequencing and dispatch of orders in a timely manner. A Call
Centre manages orders, monitors sales activities, provides customer services and functions as a
31
Help-desk. DHL gives the customer a global view of inventory, thus enabling informed decisions
regarding the disposition of stock. The creation of a consolidated and categorized invoice, based
on all services performed in a specific time-period by more than one service provider, made
available in an agreed format. DHL's many years of experience with international trade
requirements and formalities, combined with the European Competence Centre and country
expertise, gives customers the leading edge in service, quality and management in cross border
transactions.
Total Quality Management is a management strategy that integrates quality orientation into the
whole structure and workflow of a company by using methods and techniques of quality
management
Corporate Policy for Quality, Environment, Health and Safety (QEHS) is based on five corporate
values:
Customer satisfaction: Providing our customers and their customers with excellent, high
value logistics solutions
Employee motivation: Building on the know-how and stimulation of individual potential
in multi-cultural teams
Operational excellence: Continuous improvement of processes and services to fulfil or
exceed expectations
Corporate citizenship: Acting as a responsible corporate citizen in all countries
Shareholder reward: Developing a sustainable business to provide increasing shareholder
value
DHLConsolidation is the practice of combining diverse cargoes into single shipments, to achieve
substantial savings on freight costs. In road freight, this is known as groupage.
Unlike many of DHLs competitors DHL own overland road network, ensuring coherent
procedures at all times
DHLs global scale allows us to provide cost-effective consolidation and groupage
services for customers worldwide
With an unrivalled timetable of international departures, plus door-to-door tariffs and
tracking capabilities, DHLs consolidation service is ideal for palletized and loose loaded
shipments
DHL can support customers with customs brokerage and customs declarations, cargo
inspection, quality control and sorting
DHLs standardized security procedures ensure customers freight receives the highest
level of protection.
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The advantage in both intermodal and multimodal transport is that they use the most efficient
combination of transport modes, keeping your freight costs down. Both services are more
environmentally sustainable than some single mode transport methods.DHL is flexible partner
for overland freight transport. DHL ensure reliable and efficient international transportation for
customers of all sizes, all supported by their customs expertise. When the customer need a
quicker mode of transport than pure ocean freight, but need a more economical alternative to air
freight then DHLs multimodal solution, DHL SEAIR is the answer. DHL SEAIR offers
customers real-time visibility at every step of the transport process. DHLs aim is to be the
logistics partner of choice to the oil and gas, mining, power generation and construction
industries. Its expertise in cargo scheduling and materials management means we can offer
tailored solutions for unique outsize cargoes and heavy lifts. DHLs specialties cover such areas
as feasibility studies and risk management, packaging design, document process management, to
the safe transportation of heavy lifts and out-of-gauge cargo. For more than 45 years, DHL has
specialized in transport for trade fairs and events. DHLs expert, multi-lingual staff has delivered
exhibits, stands and promotional materials all over the world. DHLs complete portfolio of
flexible exhibition services ensures a perfect show. One can choose preferred mode of transport
to and from the trade fair site. We can also offer you a complete range of document handling and
customs clearance services, to help smooth the import/export process. We live in an increasingly
global economy where products are sourced from low cost production locations to meet
consumers demands at prices they can afford. From fashion to consumer electronics, auto parts
to FMCG, supply chains are lengthening, yet consumers are becoming ever more demanding,
Changes in world economics mean that sourcing decisions are continually changing, which
places additional stresses on the supply chain. As a global leader in freight forwarding and
contract logistics DHL has the experience, capabilities and reach to help change buying terms
with your suppliers, improve control of inbound supply chain, and reduce product costs, logistics
costs and inventories.
competencies in its international freight forwarding and domestic distribution network, DHL
eliminates the need for costly warehousing. This straightforward door-to-door service picks up
your goods, transfers them to an export facility, and transports them via air before distributing
them to multiple end-users at destination. Its unique features can help you effectively streamline
your operations which all translate into large cost savings depending on your activity profile.
When customers freight requirements dont allow for consolidation, because of the goods size
or volume, then chartering may be the best option. Procuring global air freight capacity on
dedicated aircraft is ideal when product launch coincides with seasonal peaks in air freight.
Every day, DHL charters at least one plane somewhere in the world, for oversized cargo and
items for new product launches.
34
Carrier supported EDI messaging enables DHL to streamline the process with a paperless
environment to provide booking and shipping instructions to the shipping lines. This simplifies
the documentation process and ensures the highest degree of data accuracy and efficiency. All of
DHLs services are enhanced by a range of web-enabled IT solutions, providing complete
visibility of freight in transit, updating your in-house IT systems and, where required, notifying
custom authorities and contractors of your shipment details.
DHLs conventional cargo services are ideal for the transport of oversized freight and Roll-on
Roll-off (RoRo) cargo.DHLs conventional load services are ideal for the transportation of
oversized goods too large to fit into containers. Cargo such as vehicles, pipeline sections and
turbines often require special vessels and loading equipment. DHLs specialized teams will
ensure cargo is in safe and secure hands by providing tailor-made solutions. All these services
are supported by risk management and sophisticated IT solutions, to ensure reliable performance
and cost optimization. Regardless of the logistical complexity, transportation requirements, DHL
will exceed demands with all its expert resources at your disposal, all the way through to
delivery.
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36
whether
DHL
communication materials
To measure whether DHL provides individual attention to its customers
37
2. Tangibility
Null Hypothesis (H0): There is no significance difference in the opinion among the
respondents of different designation groups with regards to tangibility.
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to tangibility.
3. Responsiveness
Null Hypothesis (H0): There is no significance difference in the opinion among the
respondents of different designation groups with regards to responsiveness.
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to responsiveness.
4. Empathy
Null Hypothesis (H0): There is no significance difference in the opinion among the
respondents of different designation groups with regards to empathy.
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to empathy.
38
5. Assurance
Null Hypothesis (H0): There is no significance difference in the opinion among the
respondents of different designation groups with regards to assurance.
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to assurance.
39
Reliability test
One way AVOVA test analysis: In statistics, one-way analysis of variance (abbreviated
one-way ANOVA) is a technique used to compare means of two or more samples (using
the F distribution). This technique can be used only for numerical data. The ANOVA
tests the null hypothesis that samples in two or more groups are drawn from the same
population. To do this, two estimates are made of the population variance. These
estimates rely on various assumptions. The ANOVA produces an F statistic, the ratio of
the variance calculated among the means to the variance within the samples. If the group
means are drawn from the same population, the variance between the group means should
be lower than the variance of the samples, following central limit theorem. A higher ratio
therefore implies that the samples were drawn from different populations.
40
41
Table 5.1
Alpha Value
No of cases
.8527
50
No of items
15
Q.1
Table 5.2
Valid
disagree
Frequency
1
Percent
2.0
Valid Percent
2.0
Cumulative
Percent
2.0
neutral
8.0
8.0
agree
34
68.0
68.0
78.0
strongly agree
11
22.0
22.0
100.0
Total
50
100.0
100.0
10.0
Chart 5.1
Interpretation
From the above table and chart, 68% agree that DHL maintains schedule and transit integrity and
22% strongly agree that DHL maintains and schedule and transit integrity and only 8% as a
neutral opinion to the same. As the mean is above 2.5 i.e. 4.1, the analysis is accepted.
43
Q.2
Table 5.3
DHL maintains good pick up and delivery
Chart 5.2
Interpretation
To the statement asked whether DHL generally maintains good pickup and delivery, around 66%
agree that DHL maintains good equipment supply and as the mean is above 2.5 i.e. 3.9, the
analysis is accepted.
44
Q.3
Table 5.4
Chart 5.3
Interpretation
From the above table and chart, 54% agree that DHL sales staffs have good product knowledge
and 22% each are of the opinion strongly agree and neutral. As the mean is above 2.5 i.e. 3.9, the
analysis is accepted.
45
Q.4
Table 5.5
Valid
strongly disagree
disagree
neutral
agree
strongly agree
Total
Frequency
1
4
12
20
13
50
Percent
2.0
8.0
24.0
40.0
26.0
100.0
Valid Percent
2.0
8.0
24.0
40.0
26.0
100.0
Cumulative
Percent
2.0
10.0
34.0
74.0
100.0
Chart 5.4
Interpretation
To the statement asked whether customer service is easily accessible, 40% agree that customer
service is easily accessible and only 26% strongly agree to the same.As the mean is above 2.5 i.e.
3.8, the analysis is accepted.
46
Q.5
Table 5.6
Valid
strongly disagree
neutral
agree
strongly agree
Total
Frequency
1
10
28
11
50
Percent
2.0
20.0
56.0
22.0
100.0
Valid Percent
2.0
20.0
56.0
22.0
100.0
Cumulative
Percent
2.0
22.0
78.0
100.0
Chart 5.5
Sales and customer service staff are friendly
30
20
Frequency
10
0
1.0
2.0
3.0
4.0
5.0
Interpretation
From the above table and chart 56% agree that DHL sales and customer service staff are friendly
and only 22% strongly agree and 20% as a neutral opinion. As the mean is above 2.5 i.e. 4.0, the
analysis is accepted.
47
Q.6
Table 5.7
Valid
strongly disagree
disagree
neutral
agree
strongly agree
Total
Frequency
3
3
15
22
7
50
Percent
6.0
6.0
30.0
44.0
14.0
100.0
Valid Percent
6.0
6.0
30.0
44.0
14.0
100.0
Cumulative
Percent
6.0
12.0
42.0
86.0
100.0
Chart 5.6
20
Frequency
10
0
1.0
2.0
3.0
4.0
5.0
Interpretation
To the statement asked whether customer service is proactive and prompt, 44% agree that DHL
customer service is proactive and prompt and 30% as a neutral opinion.As the mean is above 2.5
i.e. 3.5, the analysis is accepted.
48
Q.7
Table 5.8
DHL maintains good pickup and delivery
Chart 5.7
Interpretation:
From the above table and chart, 50% agree that DHL is competitively priced on rate offers and
32% as a neutral opinion to the same. As the mean is above 2.5 i.e. 3.5, the analysis is accepted.
49
Q.8
Table 5.9
DHL service is value for money
Chart 5.8
Interpretation
To the statement asked whether DHL service is value for money, 64% agree that DHL service is
value for money. As the mean is above 2.5 i.e. 3.7, the analysis is accepted.
50
Q.9
Table 5.10
DHL website is user friendly
Chart 5.9
Interpretation
To the statement asked whether DHL website is user friendly, 64% agree that DHL website is
user friendly and only 22% strongly agree to the same. As the mean is above 2.5 i.e. 4.0, the
analysis is accepted.
51
Q.10
Table 5.11
DHL senior management is accessible
Chart 5.10
Interpretation
To the statement asked whether DHL senior management is accessible, 52% agree that DHL
senior management is accessible and 30% as a neutral opinion to the same. As the mean is above
2.5 i.e. 3.6, the analysis is accepted.
52
Q.11
Table 5.12
DHL claim settlement is good
Chart 5.11
Interpretation
When asked do the claim settlement of DHL is good, 62% as a neutral opinion that DHL claim
settlement is good and only 30% agree that DHL claim settlement is good. As the mean is above
2.5 i.e. 3.2, the analysis is accepted.
53
Q.12
Table 5.13
DHL operations support at terminals is good
Chart 5.12
Interpretation
From the above table and chart, 44% agree that DHL operations support at terminals is good and
40% as a neutral opinion and 14% strongly agree to the same. As the mean is above 2.5 i.e. 3.7,
the analysis is accepted.
54
Q.13
Table 5.14
DHL DO release is easy and prompt
Chart 5.13
Interpretation
When asked whether DHL BL/DO release is easy and prompt, 54% agree that BL/DO is easy
and prompt and 20% are of neutral opinion and only 16% strongly agree to the same. As the
mean is above 2.5 i.e. 3.7, the analysis is accepted.
55
Q.14
Table 5.15
DHL invoicing is accurate and user- friendly
Chart 5.14
Interpretation
To the statement asked whether DHL invoicing is accurate and user- friendly, 62% agree
invoicing is accurate and user- friendly. As the mean is above 2.5 i.e. 3.8, the analysis is
accepted.
56
Q.15
Table 5.16
DHL is truly your forwarder of choice
Chart 5.15
Interpretation
From the above table and chart, 58% agree that DHL is their true forwarder of choice. As the
mean is above 2.5 i.e. 3.94, the analysis is accepted.
57
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to reliability.
Descriptives
RELABLTY
N
director
executive
manager
Total
11
9
30
50
ANOVA
RELABLTY
Between Groups
Within Groups
Total
Sum of
Squares
.670
10.932
11.602
df
2
47
49
Mean Square
.335
.233
F
1.440
Sig.
.247
Interpretation
Since the significant value is more than 0.05, so we accept the null hypothesis which states
thatthere is no significance difference in the opinion among the respondents of different
designation groups with regards to reliability.
58
Dimension 2: Tangibility
Null Hypothesis (H0): There is no significance difference in the opinion among the respondents
of different designation groups with regards to tangibility.
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to tangibility.
Descriptives
TANGIBIL
N
director
executive
manager
Total
11
9
30
50
Mean
Std. Deviation Std. Error
3.8788
.77850
.23473
4.0741
.22222
.07407
3.9667
.51305
.09367
3.9667
.53980
.07634
ANOVA
TANGIBIL
Between Groups
Within Groups
Total
Sum of
Squares
.189
14.089
14.278
df
2
47
49
Mean Square
.094
.300
F
.315
Sig.
.731
Interpretation
Since the significant value is more than 0.05, so we accept the null hypothesis which states
thatthere is no significance difference in the opinion among the respondents of different
designation groups with regards to tangibility
59
Dimension 3: Responsiveness
Null Hypothesis (H0): There is no significance difference in the opinion among the respondents
of different designation groups with regards to responsiveness.
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to responsiveness.
Descriptives
RESPONS
N
director
executive
manager
Total
11
9
30
50
Mean
Std. Deviation Std. Error
3.6364
.84924
.25606
3.7037
.45474
.15158
3.6889
.69994
.12779
3.6800
.68664
.09711
ANOVA
RESPONS
Between Groups
Within Groups
Total
Sum of
Squares
.028
23.074
23.102
df
2
47
49
Mean Square
.014
.491
F
.029
Sig.
.972
Interpretation
Since the significant value is more than 0.05, so we accept the null hypothesis which states
thatthere is no significance difference in the opinion among the respondents of different
designation groups with regards to responsiveness.
60
Dimension 4: Empathy
Null Hypothesis (H0): There is no significance difference in the opinion among the respondents
of different designation groups with regards to empathy.
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to empathy.
Descriptives
EMPATHY
N
director
executive
manager
Total
11
9
30
50
Mean
Std. Deviation Std. Error
3.6970
.75210
.22677
3.9630
.45474
.15158
3.7667
.54068
.09871
3.7867
.57444
.08124
ANOVA
EMPATHY
Between Groups
Within Groups
Total
Sum of
Squares
.380
15.789
16.169
df
2
47
49
Mean Square
.190
.336
F
.566
Sig.
.572
Interpretation
Since the significant value is more than 0.05, so we accept the null hypothesis which states
thatthere is no significance difference in the opinion among the respondents of different
designation groups with regards to empathy.
61
Dimension 5: Assurance
Null Hypothesis (H0): There is no significance difference in the opinion among the respondents
of different designation groups with regards to assurance.
Alternate Hypothesis (H1): There is significance difference in the opinion among the
respondents of different designation groups with regards to assurance
Descriptives
ASSURANC
N
director
executive
manager
Total
11
9
30
50
Mean
Std. Deviation Std. Error
3.5152
.58431
.17618
3.4815
.24216
.08072
3.5667
.50401
.09202
3.5400
.48041
.06794
ANOVA
ASSURANC
Between Groups
Within Groups
Total
Sum of
Squares
.059
11.250
11.309
df
2
47
49
Mean Square
.029
.239
F
.123
Sig.
.884
Interpretation
Since the significant value is more than 0.05, so we accept the null hypothesis which states
thatthere is no significance difference in the opinion among the respondents of different
designation groups with regards to assurance.
62
63
6.1 FINDINGS
1. From the above table 5.2 and chart 5.1, 68% agree that DHL maintains schedule and transit
integrity and only 22% strongly agree that DHL maintains and schedule and transit integrity and
only 8% as a neutral opinion to the same. As the mean is above 2.5 i.e. 4.1, the analysis is
accepted. From this we can come to a conclusion that the company is able to satisfy their
customers by maintaining their schedule and transit integrity.
2. To the statement asked whether DHL generally maintains good equipment supply, around
66% agree that DHL maintains good equipment supply and as the mean is above 2.5 i.e. 3.9, the
analysis is accepted. From this we can come to a conclusion that DHL is able to maintain the
equipment supply and the company is able to meet the customer or clients equipment
requirements at right time.
3. From the above table3 and chart3, 54% agree that DHL sales staffs have good product
knowledge and 22% each are of the opinion strongly agree and neutral. As the mean is above 2.5
i.e. 3.9, the analysis is accepted. So majority of respondents agree that sales staffs have very
good product knowledge and have the ability to clear the doubts and requirements of the
customers or clients of DHL.
4. To the statement asked whether customer service of DHL is easily accessible, 40% agree that
customer service is easily accessible and only 26% strongly agree to the same.As the mean is
above 2.5 i.e. 3.8, the analysis is accepted. So when it comes to the accessibility of customer
service of DHL, majority of the respondents agree and strongly agree i.e. 40% and 26% to the
statement whether customer service is easily accessible.
5. From the above table 5.6 and chart 5.5, 56% agree that DHL sales and customer service staff
are friendly and only 22% strongly agree and 20% as a neutral opinion. As the mean is above 2.5
i.e. 4.0, the analysis is accepted. So when it comes to relationship maintenance and friendly
behavior DHL sales and customer service are able to deal with the customers or clients in a
friendly manner which is a motivation for the clients to do business with DHL.
6. To the statement asked whether customer service is proactive and prompt, only 44% agree that
DHL customer service is proactive and prompt and 30% as a neutral opinion.As the mean is
above 2.5 i.e. 3.5, the analysis is accepted. According to the respondents opinion the customer
64
service of DHL can be little more proactive and prompt in order to provide good and better
services towards the customers or clients.
7. From the above table 5.8 and chart 5.7, 50% agree that DHL is competitively priced on rate
offers and 32% as a neutral opinion to the same. As the mean is above 2.5 i.e. 3.5, the analysis is
accepted. So regarding the rates, majority of the respondents agree and have a neutral opinion,
but still they are of the opinion that DHL should come out with competitive rates which motivate
the customers to do business with DHL.
8. To the statement asked whether DHL service is value for money, 64% agree that DHL service
is value for money. As the mean is above 2.5 i.e. 3.7, the analysis is accepted. So majority of the
respondents are of the opinion that DHL service is value for money
9. To the statement asked whether DHL website is user friendly, 64% agree that DHL website is
user friendly and only 22% strongly agree to the same. As the mean is above 2.5 i.e. 4.0, the
analysis is accepted. From this we can conclude that the website of DHL is user- Friendly and
the customers are able to get all necessary information in DHL website.
10. To the statement asked whether DHL senior management is accessible, 52% agree that DHL
senior management is accessible and 30% as a neutral opinion to the same. As the mean is above
2.5 i.e. 3.6, the analysis is accepted. From this we can come to conclusion that the senior
management is accessible, but still accessibility to the senior management can be improved for a
better understanding and solving the problems of the customers or clients.
11. When asked do the claim settlement of DHL is good, 62% as a neutral opinion that DHL
claim settlement is good and only 30% agree that DHL claim settlement is good. As the mean is
above 2.5 i.e. 3.2, the analysis is accepted. The majority respondents agree that DHL claim
settlement is good.
12. From the above table 5.13 and chart 5.12, 44% agree that DHL operations support at
terminals is good and 40% as a neutral opinion and 14% strongly agree to the same. As the mean
is above 2.5 i.e. 3.7, the analysis is accepted. From this we can come to conclusion that DHL
support at terminals is good, but still can improve the support at terminals.
65
13. When asked whether DHL DO release is easy and prompt, 54% agree that BL/DO is easy
and prompt and 20% are of neutral opinion and only 16% strongly agree to the same. As the
mean is above 2.5 i.e. 3.7, the analysis is accepted.
14. To the statement asked whether DHL invoicing is accurate and user- friendly, 62% agree
invoicing is accurate and user- friendly. As the mean is above 2.5 i.e. 3.8, the analysis is
accepted.
15. From the above table 5.16 and chart 5.15, 58% agree that DHL is there true forwarder of
choice. As the mean is above 2.5 i.e. 3.94, the analysis is accepted.
66
6.2 SUGGESTIONS
Service quality is something which is very important when it comes to freight forwarding
industry. The analysis or the study proves that the services provided by DHL are satisfactory to
their customers or clients. But there are certain areas of concern which can be improved by DHL
1. There should be little more improvement in DO release because the time taken for releasing
the DO is high. So DHL has to make sure that DO is released on time which can be motivation
for the clients to do more business with DHL.
2. DHL customer service and sales staffs should not delay in giving the right information for the
customer enquires i.e. there should be no delay in reply to the customers mail or providing
information at right time. A delay in reply to customer enquiry can result in customer shifting
towards the competitors.
3. When comes to DHL rate offers, the company has to come out with competitive rates.
4. Some customers were criticizing that DHL showing clear discrimination between big
customers and small customers.
5. Dispute management has good room for improvement
6. Billing system needs to be improved further.
7. Customers have serious complaints about DSR updating. This needs to be addressed
67
6.3 CONCLUSION
In today's competitive environment, organizations must earn the customer's trust by consistently
meeting or exceeding expectations. The disparity between expectation and perception is the
major determining factor in a customer's assessment of quality of service. Service quality and
customer service is very important. The study in overall reveals that the customers are satisfied
with the services provided by DHL. It shows the service quality measurement dimensions i.e.
reliability, tangibility, responsiveness; empathy and assurance are found satisfactory and was
proved by using one way ANOVA test. Even the percentage analysis or frequency analysis
shows the item wise analysis which shows that the majority of the respondents are of the opinion
agree and strongly agree which again proves that the customers are satisfied with overall services
provided by DHL Global Forwarding. So in overall we can conclude that DHL services are
satisfactory to the customers.
68
Bibliography
Books and Authors
1.Zeithaml, V.A., Bitner, and M.J. (2003) Service Marketing: Integrating Customer Focus across
the firm, 3rd Edition, New York: McGraw-Hill.
2. Levis, B. (1995) Customer care in services, in Davies,B., Baron,S., Gear,T., and Read,M.
(1999). Measuring and managing service quality, Marketing intelligence & Planning, Vol 17,
No.1 Pp.33-40.
3. Stock, J.R. and Douglas, L.M. (2001) Strategic Logistics Management, 4th Edition, New
York, NY, McGraw-Hill.
4. Parasuraman, Zeithaml, V.A., and Berry,L.L. (1990) Delivering Quality Service in Balancing
Customer Perception and Expectation.
7.Fitzsimmons, J.A., Fitzsimmons, M.J. (2004). Service Management: operations, strategy and
information technology, New York, NY: McGraw-Hill.
69
Websites
www.aviofreight.com
70
APPENDIX
Questionnaire
A Study on Service Quality of DHL Global Forwardings service in Chennai
Name of the Company:
Name of the Person:
Designation:
No:
Statements
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Strongly
Disagree
Disagree
Neutral
Agree
Strongly
Agree
71