For the analysis of the data collected, the analysis will be done on the Statistical Package for social sciences (SPSS), as it is the descriptive research, so on the basis of the data collected through questionnaires, their percentages, mean and standard deviation calculation will be done. H04: There is a positive relationship between logistics and customer satisfaction in the retail industry of Pakistan. Achieving this level of coordination without Hiver would take 50-100% more time. It's the logistic company's responsibility to shorten the link from return origination to the time of resell. AIRcable Gateway, Aruba BLE, and AT&T Shipping Container as a few of the top IoT devices for tracking inventory. portion deals with the demographic items and then the first part In this post, we tell you how you can Suite 203, 2880 Zanker Rd, Transportation and Distribution 33 (12): 4550. They get a complete overview of actions taken on an email, whether it has been resolved or not, and comments from other team members. In the end, your profitability relies on keeping that end-customers business. H02: There is a positive relationship between lead time and customer satisfaction in the retail industry of Pakistan. There have been some companies that have done work in this area, but a large number of companies are only now beginning to realize the benefits of designing and managing the entire supply chain. Means, standard deviations, and correlations test. Satisfaction is related to the fulfillment of the wants of the customer, and in the eyes of organization it means that does the product or service is fulfilling the wants of the customer or not, if it is then the customer will be satisfied, which also includes the stages to the fulfillments which can be over or under both. and Rawalpindi in the present research therefore; to have more better The purpose is twofold: (1) to investigate how business customers perceive the LSQ dimensions in business-to-business (B2B) relationships, with a particular focus on the role of logistics service providers and (2) to analyse the manner in which such dimensions, when combined, lead to high levels of customer satisfaction. 1988. Delayed deliveries, half-filled containers, and empty trucks on return journeys are a result of poor planning and prediction. How many fleets would you need to add to keep up with demand? For measuring the relationship between the variables, the correlation analysis is used. The satisfaction of the customer is shown from the reaction from the customer after purchasing or using the offerings of the organization which has offered to him. The difference in lead time can incur for items which are in the purchased list and the ones which are manufactured in house. In other words, the better products get, the more it takes to satisfy consumers. Design/methodology/approach Removal of products which are not required by the customers is also very important, as new products can be placed in the shelves and which can contribute in the satisfaction of the customers. These can be attached to parcels or fitted inside cargo vehicles. Lower transportation costs. As studied by Egg and Reiner (2007), the investment increases due to increase in inventory levels that increases the opportunity cost. Universal Logistics Holdings, Inc. Quality relates to value and satisfaction (Innis and La Londe 1994). Don't ask customers leading questions like, "Are you satisfied with our award-winning products?" It makes customers feel obligated to say yes, rather than give their honest opinion. If the forecasting is not done accurately then lead time can create problems as products are not on the shelves resulting in the loss of the customers and also loss of sales indirectly. Its uses a Likert scale which uses the following categories which are, 5 which is equal to Strongly agree, 4 is equal to agree, 3 is equal to neither agree nor disagree, 2 is equal to disagree and 1is equal to strongly disagree. There is a positive confirmation if the services or the product has provided more than the expectation of the customer or equal to the expectation level resulting in the satisfaction, and on the other hand if there is a difference between expectations of the customer and the services or the product and they are not matching then the result is negative, and this negative result as a dissatisfaction of the customer Satisfaction is a function of positively evaluating the quality and value of service elements. And as the main objective of every organization is maximizing the profitability and along with the profitability the performance of the organization should also at its best so that the customer can be satisfied, whos satisfaction will result in the profitability of the organization. 2.2.1. And last-mile delivery is the final step in the journey, from the distributor to the customer. Similarly, there is a significant positive impact of logistics management on customer satisfaction (B = 0.202, P 0.05). A customer satisfaction questionnaire entails a series of questions that inquiries your customers about your services, customer support, and everything related to your brand. It is in this context that logistics has to be considered in India. In this post, well delve into how companies can improve customer communication, internal processes, and deliveries with the help of technology. 2022 Springer Nature Switzerland AG. According to Gil-Saura et al. Good Customer Service Helps in Earning Customer Loyalty and Maintaining a Client Maintaining a client results in an automatic increase in profits. Essentially, automation in logistics customer service helps reduce the manual effort for your customer support representatives, allows them to focus on more complex issues, and provides quicker resolutions for your customers. customer satisfaction is (r = 0.685, p = 0.000), the last relationship between the last independent variable and dependent variable which are logistics management and customer satisfaction has a value of (r = 0.632, p = 0.000). Youve probably bantered a bit with Siri. The main aim of this questionnaire is to determine what the market thinks of your product and how it can be improved to meet their expectations. Furthermore, being able to offer no-worries replenishment of goods via world-class logistics services is part of how you compete for and retain business. Cronbachs alpha, is the coefficient of consistency or reliability, its a technique to check and compute the internal evenness between the questions or items used in the survey questionnaire, and it also determine the internal relation between the items of the questionnaire. And supply chain incorporates the transporters, retailers and the customer as well. Supply chain practitioners will benefit from this study since it studies supply chain management in service sector. This helps them increase efficiency across all areas of their logistics business. A recent KANE blog argued the virtues of the invisible 3PL a provider that operates so seamlessly -- anticipating and proactively solving the inevitable problems and hiccups that occur in any supply chain -- that theres no need for you as a customer to even think about them on a daily basis. Measuring Customer Satisfaction with Logistics Services: An Investigation of the Motor Carrier Industry. Predictors: (Constant), LOGISTIC, INVENT, T_MGT, L_TIME. Now as there are four independent variables and one dependent variable, and all are measured with a 5 items Likert scale questionnaire, which makes a total of 25 item, for all the five variables of the study. For lack of a better option, teams juggle multiple external chat apps or lengthy email threads to collaborate with other team members and departments. What Does Great Customer Service Mean to You? A study conducted by Blackburn et al. You can also set up automated replies for common customer queries such as transit times, prices, location inquiries, and pick-up scheduling. And in all these stores total of 230 questionnaires were distributed out of them 200 questionnaires were returned. And the results of the correlation made it evident that the independent variables effect the customer satisfaction. Here are some ways logistics companies can harness technology to improve their customer service: Communication is a cornerstone of great customer service. Drawing on these evidences it is hypothesized that: H01: There is a positive relationship between inventory and customer satisfaction in the retail industry of Pakistan. and generalizable insights future studies must include investors from other According to Eltantawy et al., 2015, if inventory, safety stock at buyers facility needs to be reduced and development reliable of forecasts along with decreasing the lead time for the products, if all this is needed then the supply chain in any organization or retail sector should be coordinated [25]. OMEGA International Journal of Management Science, 16 (1): 1724. As a result, customers are always in the know about the position of vehicles, weather and traffic conditions, as well as the temperature of the vehicle. A customer satisfaction survey aims to understand customer needs and expectations, identify areas where . 1 The tests which were applied on the data was Cronbach alpha and spearmans ranking correlation statistics. transportation and logistics. The irony in the concept of safety stocks is that although sufficient stocks may exist in the system, the product mix demanded in a particular region may not exist in the regional godown. AS this is a cross sectional survey, so for more generalized and accurate findings longitudinal studies should be done as it is necessary for the causal studies. The industrial policies in India have prompted manufacturers to build plants in remote, backward areas due to inexpensive land and tax benefits. . Here are some ways to simplify communication with your customers: In a study by Toister Solutions, customers stated they expect companies to reply to their email within an hour. And the behaviour of human is not always the same, 100% accuracy is very difficult to find. Communicate quickly and thoroughly to build trust Whether it's a new business inquiry or a question about an existing order, your customers want one thing when they reach out to you: Answers. As studied by Day 1994, the customers awareness is increasing day by day and due to this they always need special treatment in design, how the products will be produced and delivered to them, and all this involves supply chain and within this supply chain, flexibility is one of the major factor to consider, so flexible supply chain perspective is more important than an equipment or the process perspective. Logistics forms the system that ensures the delivery of the product in the entire supply pipeline. Umair, A. , Zhang, W. , Han, Z. and Haq, S. (2019) Impact of Logistics Management on Customer Satisfaction: A Case of Retail Stores of Islamabad and Rawalpindi. * 7-day free trial | No credit card required, Ocean Freight Operations Manager, Flexport, Heres what a seamless customer service experience should look like: from the moment you pick an order from sellers to the time it is delivered to the end customer , Theyre informed of the location of their shipment (using a service such as, ut did you know that artificial intelligence tools can do a lot more than book tables for dinner? In the study through convenient It is the customer's evaluation of a product or service for determining whether that product or service A study conducted by Larid 2012, stated that the value of the product is more increased and maximum when it is in the retail store in time than the same inventory in the warehouse as it offered for sale in the retail store, as in retail store the customer needs are fulfilled if the product is there in time [36]. Customer Satisfaction And Loyalty In Logistics Services. + We Asked 8 Experts. To examine the importance of the logistics management in the satisfaction of customers in retail sector. Innis, Daniel and Bernard J. In the study there were four hypothesis developed which were H1, H2, H3 and H4, and after applying all statistical analysis of correlation and regression and also after checking the reliability of the measuring instrument used, which in this study was Likert 5 Scale. These departmental stores are having branches all over the twin cities in different sectors in Islamabad and areas of Rawalpindi. Logistics performance is extremely important in achieving customer satisfaction. Lead Time and Customer Satisfaction. For instance, with the help of tools such as, , companies can analyze data from various sources such as weather conditions, warehouse data, and on-the-road data to better plan routes, last-mile, also help companies track metrics such as delivery times, pickup times, warehouse capacity, and more. According to retail historian, Robert Spector, good inventory system is one of the main factor to consider in the retail sector. For its examination its value lies between +1 and 1. Nordas et al., 2006 [26] , there are number of factors on which lead time matters like SCM, the planning, the logistics management and the remoteness from customer to the supplier. Exceptional customer service should be a priority, not an afterthought. Expectancy-Disconfirmation Paradigm (EDP). Other companies especially in the service industry will be able to understand the significance of logistics in improving the level of customer satisfaction. And the variables which were included in the research were inventory stock outs, product information, returns and ease shopping and their effect on the satisfaction of the customer, and the results stated that the logistics performance effect positively the customer satisfaction in the retail sector. The service offers real-time GPS locations, temperature information, and power alerts to its customers. The factor which decides for the purchasing a product or services has changed from only price to reasonable prices along with high quality and services, along all this lead time needs to be minimized as well for the satisfaction of the consumer (Kimberley, n.d.). And the value of the variables transportation and. Lead time is the time which is spend between the ordering and the receiving the order, the time can be different for different products as it depends on the nature of the product as products can be made to order or it can readily be available for the shelf. Table 1, also shows the results of Pearsons Correlation coefficient, and according to the results shown in the table all the variables are positively correlated among each other. From the explanation given above (Table 1, Figure 2), it is evident that half of the stores for the research are located in Islamabad and half are located in Rawalpindi. Camcode lists AIRcable Gateway, Aruba BLE, and AT&T Shipping Container as a few of the top IoT devices for tracking inventory. Copyright 2022 by authors and Scientific Research Publishing Inc. Importance of Customer service The importance of customer service in any organisation and the transport industry as a whole cannot be over emphasized. A study conducted by Wicks & Roethlein 2009 reported that any organization can be consistent in satisfying its customers, and customers will be retained with the organization which will result in more profitability only if there are more and more loyal customers [11]. Having an efficient supply chain means you can beat your competitors on retail price and improve your profitability. In a study conducted by Hopp et al., 1990, it is stated that just in time in supply chain management is the reason of smooth workflow as it reduces the inventory levels and lead time both. 2010 [4] , When it comes to the success and growth of a retail store or any business relating to the retail sector, then the role of logistics is very important as it plays a very important role. Services are characterized by intangibility, heterogeneous requirements, simultaneity of production and demand, schedules, etc. A customer satisfaction survey is a tool used to collect feedback from customers. 8000+ teams use Hiver to delight their customers! In this changing market, where customer dynamics are also changing along with increasing competition, customer satisfaction has become a necessity of many businesses that is becoming hard to fulfill. - Inbound Logistics Magazine Your supply chain is far and away your most effective customer service tool. According to Tavakol and Dennick 2011, the index of reliability, i.e., Cronbachs alpha takes measure of questionnaire items accuracy and validity [42]. Convenience, great pricing, flexibility, simplicity, and a deeper personalized approach. These are some of the most successful tips for reducing costs and increasing customer satisfaction. According to Chambers, Lacey, 2011, there always is a competition among the benefits of holding the inventory which will be taken in future and the cost of keeping the inventory, when it comes to the benefits then at the time of need the goods availability, and when it comes to the costs it involves the opportunity cost which means that the finance which has been used for getting the inventory, ordering it and handling it [17]. International Journal of Physical Distribution and Logistics Management 20 (6). The more you compete on quality and value, the more important satisfaction becomes in finding out whether or not the firm is delivering what customers want (Marketing News, February 17, 1992, p. 5). By examining the facts and figures and all the relationship of the variables it is proved that all of the variables are positively correlated with each other and have significant effect. For future research the industry can changed like the manufacturing industry. And this study will also offer the opportunity for a logical structure of the inquiry into the problem of the study. What separates established logistics companies from their not-so-successful counterparts is a longstanding reputation for reliable and trustworthy customer care. https://doi.org/10.1007/978-3-319-13141-2_39, Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference, Developments in Marketing Science: Proceedings of the Academy of Marketing Science, Shipping restrictions may apply, check to see if you are impacted, Tax calculation will be finalised during checkout. Where the sample size (N = 200) and the value of alpha i-e ( = 5%) is in the study. Automated replies are not only useful for acknowledging customer service emails, but they are also handy in a few other situations. As already explained the analysis used will be descriptive, due to applying this, the re-searcher will be enabled for the summarizing, organizing, evaluating and interpreting the numerical results from SPSS. Reliability Test of Instruments/Scales. The review of the theories of the firm results in the explanation of the role of the logistics which includes the providing of boundary-spanning, coordinating capabilities regarding demand and supply as the organization main goal is to create profit and which is always related to the value creation in the eyes of the customer which results in the satisfaction of the customers. The study covers only the geography of Islamabad The most important factor in the buying decision of the customer is logistics, and not only the decision of the buying but also of visiting the retailer again also is affected by the logistics. 3. In the context of supply chain lead time is defined as, whenever customer place an order for any product or services then from the time the customer orders to the time customer receives the product or services is called lead time, if it is not final product or an intermediary (say work in progress), so here lead time is the time taken to actually manufacture the order without any inventory other than raw material, if it studied from the point of view of manufacturing then it is very simple that the definition will remain the same but it will also incorporate time taken by the supplier to ship the raw material, stated by Job Louis Mfwaya 2013 [25]. T & C Apply. 2.3.2. How to Improve Customer Service in Logistics Using Technology. = Logistics is largely a level playing field. So all these developments requires the mode of transport to be changed as this will also affect the lead time [27]. As the environment is changing day by day and the competition increases in the environment, organizations must cater all these changes timely, studied by Zhang 2005 [13]. The signs + and , shows the positivity and negativity of the relationship among the variables in the analysis. This eliminates miscommunication and helps teams move faster. Customer loyalty & retention improves. So in other words it measures the percentage of change in dependent variable due to the independent variables. The reliability test is applied on each of the variable and the results through SPSS is given below in the Table 5. Also, the retail stores need to make sure that all the required inventory is available in time, and there should a minimum inventory level of every product according to its requirement by the customer, communication between the supplier and the store manager should be strong so that the lead time will be less and the transportation is managed according to required inventory, and the transportation should be managed in such a way that it should help in reducing the lead time, cost reduction and making the inventory available in time. Discover 6 best practices for internal communication for your customer service teams and their top three benefits. To begin with, set up an auto-responder that lets customers know youve received their request and an agent will get back to them as soon as possible. Instructor: Dr. Bock. While manufacturing processes provide form utility, logistics related activities provide time and place utility to a product. Indian Institute of Materials Management (IIMM) with its Headquarters at Navi Mumbai, is the National Apex body representing a wide spectrum of professionals engaged in various facets of Material Management, responsible for planning, sourcing, Logistics & Supply Chain Management. aDependent Variable: C_SAT; bPredictors: (Constant), LOGISTIC, INVENT, T_MGT, L_TIME. Cronbach alpha is used to measure the reliability in other words internal consistency. And the result which they got from the data after applying tests that determinants of inventory management like inventory management, information technology both influence the customer satisfaction a lot, and the third determinant in the study which was strategic supplier partnership was a weak factor in determining the satisfaction of the customers [36]. 2005, leading to cognitive evaluation of services experience [40]. But did you know that artificial intelligence tools can do a lot more than book tables for dinner? Plan your customer survey correctly. To provide the best experience, we are always looking for ways to improve, innovate and grow. Other variables like the needs of the customers, how early a product can be in hand to fulfill those customer needs, partnership and relationship with the suppliers, which is, the information sharing about sales, future sales, the stock of inventory to be kept, and reliable and interconnected data, which will act as a helping hand in overall inventory management, all this has been studied by Lee & Kleener, 2001 [10]. For example, you can set up auto-responders to inform customers when their cargo has left your warehouse, when it reaches its destination, and if the weather conditions turn unfavorable along the way. In the same . customer satisfaction towards reverse logistics in e-commerce in the surrounding area of Klang Valley. To successfully fill up the gaps and satisfy the customer the managers have to focus on few statistics and act accordingly. A framework will give logistics operations practices guidelines to employees and how they can be integrated to their routine operations at a minimal cost. Medium to long-range forecasts is used for budgeting, planning new purchases, and building storage facilities. The retail sector can also be benefited from the study, as the study will help them get substantial findings on the impact of logistics on customer satisfaction. Most of this demand comes from the B2C e-commerce sector. So its proved that first of all there is a positive relationship between inventory, lead time, transportation and logistics management on the customer satisfaction, the study will help managers to improve the customers satisfaction of their stores, it can be retail store or it can be any other store which has logistics management involvement, these all create the value chain which results the satisfaction of the. In Pakistan there has been research done on the logistics and the company performance and also environmental effects which included different aspects of logistics including the costs, warehousing and outsourcing the logistics operations and their effect on the company performance and the result which was concluded from the research that although sustainable logistics operations are difficult to obtain but if they are properly implemented including the environmental effect as well then the company and the country can be sustainable in different ways like economic social and environmental Abbasi Noman Muhammad et al., 2013 [8]. inform providers if they will be available to collect a parcel. IoT trackers are physical devices that monitor and transfer real-time GPS location data. Last mile deliveries are especially significant as they have the greatest impact on customer satisfaction. 18-24, 25-35, etc. As we have inventory levels high then the sales cannot be lost and also increase the production outputs, as due to the availability of inventory. As Alp and John 2003, stated that when inventory is kept at different points in supply chain then it will work as reducing the risk factor when there is variation in demand. Warehouses have to stay on their toes by embracing the latest technology trends to . The respondents were also asked about their age, as from the above (Table 3, Figure 4) representation of the date on a pie chart and the numerical data given in the table above shows that there were total 200 Respondents, and out of those 200 respondents, the highest percentage of 44.50% are in the age bracket of 20 29, and the second highest percentage lies in the bracket of 30 to 39 years which are 34%, and the third highest percentage in age bracket is between 40 - 49, which are 15.50% and the least is the highest bracket starting from 50 and above and the percentage in this age bracket is 6%. You might also offer different types of services such as end-to-end deliveries, last-mile deliveries, and so on. If you ask a customer for their age, give them a range to select (e.g. Heres What They Said. This is descriptive study along with hypothesis testing on the impact of logistics on the customer satisfaction in retail sector of the twin cities, and the basic research will be. Logistics customer service is a part of a firm's overall customer service offering, customer service elements that are specific to logistics operations including fulfillment, speed, quality, and cost. 1 As a research conducted by Hague & Islam 2013, the selection of brand by customer will depend on the customer upon the perception and satisfaction level given by that brand by his prior experience with the brand, and if the experience is good he would always go for that brand [12]. 4.2. Customer service is the most critical aspect of the whole supply and distribution chain (Ron). Whenever the customers perception about any brand is good then it is an obvious fact that he would always want to avail the brand, because that brand has made its image and perception in the mind of the customer and he would always go for.
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