Analysis of Logistics and Supply Chain Research Papers

The provided document is a collection of research papers on logistics and supply chain management. It includes studies on various aspects such as service quality, flexibility, and innovation capability in the context of logistics and supply chain management. The papers are from reputable journals and provide insights into the impact of these factors on customer satisfaction, productivity, and overall performance in the logistics industry.

Running head: SUPPLY CHAIN
The effectiveness of Logistics, Distribution, and its relation to Customer Satisfaction
Name of the Student
Name of the University
Author Note

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Abstract
Most of the companies in the recent times have developed a base of customers that are loyal to
them so that it can help the companies in increasing their level of profits by delivering the best
quality of products in the market. There are various factors that help in increasing the customer
base for the companies such as the service quality of the logistics, satisfaction level among the
customers and the switching costs of the customers. The companies tend to gain a competitive
advantage in the market with the help of these factors as it helps them in increasing the output of
the firm and increase the level of profits as well.
The literature review has helped in identifying the different factors that logistics and distribution
plays in increasing the level of satisfaction among the customers so that they can be competitive
in the market and increase its rate of productivity as well. The analysis that has been done by
using the primary method of collecting the data helped in providing better insights regarding the
different factors in the supply chain of the products that will help in increasing the level of
satisfaction among the customers.

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Acknowledgement
I would also like to take this opportunity to thank my professor without whose, constant support
and guidance, the research would not have been possible.
Firstly, I would like to thank God the Almighty in giving me the strength and courage without
which I could not have completed the entire study. Secondly, I would like to thank my family
and relatives who gave me constant support mentally and physically so that I can complete the
study on time. Lastly, I would like to give thanks to my peers and the friends who have helped
me in providing the appropriate information throughout the project and helped me in doing the
in-depth analysis of the research. Without their proper guidance, it is impossible for me to
complete the project.
Thanks and Regards,
Yours Sincerely,

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Table of Contents
Chapter 1: Introduction....................................................................................................................7
1.0 Introduction............................................................................................................................7
1.1 Background of Study.............................................................................................................7
1.2 Problem Statement.................................................................................................................8
1.3 Significance of Study.............................................................................................................8
1.4 Research Aims and Objectives..............................................................................................9
1.5 Research Question.................................................................................................................9
1.6 Structure of Research...........................................................................................................10
Chapter 2: Literature Review.........................................................................................................11
2.0 Introduction..........................................................................................................................11
2.1 Service Quality and Customer Satisfaction.........................................................................11
2.2 Logistics and Distribution System in Courier Industry.......................................................12
2.3 SERVQUAL model of Customer Satisfaction....................................................................13
2.4 SCOR Model for Supply Chain Strategic Decision............................................................14
2.5 Issues in Logistics and Distribution within Courier Industry..............................................15
2.6 Impact of Effective Logistics and Distribution on Customer Satisfaction of Courier
Industry......................................................................................................................................16
2.7 Effective Logistic and Distribution Strategy in Courier Industry.......................................17
2.8 Conceptual Framework........................................................................................................18

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2.9 Summary..............................................................................................................................18
Chapter 3: Research Methodology................................................................................................20
3.0 Introduction..........................................................................................................................20
3.1 Research Philosophy............................................................................................................20
3.2 Research Approach..............................................................................................................21
3.3 Research Purpose.................................................................................................................21
3.4 Research Strategy................................................................................................................22
3.5 Data Collection....................................................................................................................22
3.6 Data Analysis.......................................................................................................................23
3.7 Ethical Consideration...........................................................................................................23
Chapter 4: Findings and Data Analysis.........................................................................................24
4.0 Theme Analysis...................................................................................................................24
4.1 Introduction..........................................................................................................................24
Chapter 5: Conclusion and Recommendation...............................................................................37
5.1 Conclusion...........................................................................................................................37
5.2 Linking with Objectives......................................................................................................38
5.3 Recommendation.................................................................................................................39
5.3.1 Timely Delivery of Couriers.........................................................................................39
5.3.2 Safe Delivery of Couriers.............................................................................................39
5.3.3 Specific Range of Pin Codes........................................................................................39

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5.4 Limitation of Research........................................................................................................40
5.5 Scope of research.................................................................................................................40
References......................................................................................................................................41

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List of Figures
Figure 1: SERVQUAL Model.......................................................................................................14
Figure 2: SCOR Model of Logistics and Distribution...................................................................15
Figure 3: Conceptual Framework..................................................................................................18

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Chapter 1: Introduction
1.0 Introduction
In this competitive business world, customer service is the most significant means for the
organizations to different them from their competitors. Proper settings of customer service
components and measuring the level of customer service facilitate organizations to gain high
level of competitive advantage (Ho & Chang, 2015). The purpose of effective logistics and
distribution is to provide better service to the customers than the competitors. More specifically,
effective logistics and distribution is extremely important for the customer service in Courier
industry. Moreover, time delivery of the couriers and parcels to the right persons is the main
bases of customer satisfaction in courier industry. Hence, such customer satisfaction is
completely dependent on the effective of logistics and distribution service of courier industry.
This research paper will investigate the impact of effective logistics and distribution services on
customer satisfaction of the courier industry.
1.1 Background of Study
The theme of courier service delivery is that it consists of carriers that transport courier
and shipments. Moreover, the courier and shipment are typically small in size, which can be
handled by one person. The logistics and distribution service of courier industry ensure smooth
movement of couriers and parcels within supply chain network (Hübner et al., 2016). Moreover,
improving service quality is of utmost important for the customer satisfaction in courier industry.
The measure of service quality is to compensate the time, money and effort of the customers
through the services of courier companies (Lan et al., 2016). The effectiveness of logistics and
distribution lies in timely and smooth delivery of couriers and parcels to the right persons.

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Hence, most of the courier companies use advanced technology in the collection of courier bags
and sorting and consolidating the parcels as per their destinations. The customers can also
sometimes get the status of their parcel delivery through PDA data uploaded from the courier
companies.
1.2 Problem Statement
Improving service quality is the basic ground of customer satisfaction in courier
companies. However, the service quality of courier industry is fundamentally based on
effectiveness of logistics and distribution. However, some companies are still ineffective in
providing high quality courier services to the customers. Moreover, these companies are being
claimed with untimely courier delivery, loss of shipments, delivery in wrong destination and
many more (Bhattacharjya et al., 2016). Such ineffective logistics and distribution is leading to
high level of dissatisfaction among the customers. Moreover, customers are being extremely
conscious to choose right courier Service Company for their courier service needs. This research
study will investigate the impact of effective logistics and distribution on the satisfaction level of
the customers in courier industry.
1.3 Significance of Study
In order to be competitive in courier service industry, the companies must be able to
provide smooth and timely delivery of couriers and parcels to the customers. Moreover, the
logistics and distribution service of the courier companies should be aligned with the customer
satisfaction strategy of the customers (Ramanathan & Gunasekaran, 2014). This research paper
will be highlighting on the effectiveness of logistics and distribution effectiveness of courier
industry, which is an integral part of customer satisfaction. Hence, this research paper will be
extremely beneficial for the courier service companies to identity the loopholes of logistics and

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distribution towards enhancing customer satisfaction. Moreover, this research paper will also be
helpful for the courier industry to get idea of customer service measurements. In this way, the
research paper will instigate the courier companies to improve their delivery time, cost,
smoothness and others for better customer service.
1.4 Research Aims and Objectives
Research Aim
The aim of the research is to explore the effectiveness of logistics and distribution system
for increasing customer satisfaction in courier industry.
Research Objectives
 To assess the impact of customer satisfaction that can be felt through proper supply chain
by the courier services
 To identify the issues and challenges faced by courier companies in their logistics and
distribution
 To understand the strategies implemented by courier companies to improve the customer
satisfaction
1.5 Research Question
The research will be based on the questions that are as follows:
1. What is the impact of the logistic supply chain on the level of customer satisfaction?
2. What are the challenges faced by logistics and distribution system of courier companies
which lead to low customer satisfaction?

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3. What are the strategies implemented by courier companies to improve the customer
satisfaction?

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1.6 Structure of Research
Chapter 1: Introduction: This chapter of the research paper will discuss the research
background and significance of the research area. The introduction section will highlight the
problem statement of the research paper on which the overall research will be conducted.
Furthermore, the chapter will also frame effective research objectives and research questions for
better collection of research information.
Chapter 2: Literature Review: This chapter of research paper will be associated with
the previous studies conducted on the particular research topic. Furthermore, the chapter will
also analyze the several theories and models related to the research topic for gathering useful
information about the research. Moreover, this chapter will build the theoretical foundation of
the overall research paper.
Chapter 3: Research Methodology: The research methodology chapter will choose
appropriate research methods and approaches for the research paper to collect useful and relevant
information regarding research topic. Moreover, the chapter will select approach research
approach, research design, data collection method, sampling technique and data analysis method.
Chapter 4: Findings and Discussion: The findings and discussion section will gather
the useful information through effective use of data collection method. Furthermore, the chapter
will also analyze the collected data from the respondents through proper data analysis method.
Chapter 5: Conclusion and Recommendation: The conclusion and recommendation
chapter will provide a brief conclusion of the overall research study. Apart from that, the chapter
will also provide effective recommendation for the mitigating the problems of the research.

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Chapter 2: Literature Review
2.0 Introduction
Literature review explains the theoretical background related to the topic of the research.
Moreover, this section will highlight the previous studies conducted on this particular research
topic. The literature review will also align some important theories and models with the topic of
logistics and distribution and customer satisfaction. Such theories and models will provide useful
and relevant information regarding the topic of the research.
2.1 Service Quality and Customer Satisfaction
In this contemporary business world, the quality of service is equally important to the
customers just like the quality of products. Improved quality of service actually builds the
foundation of customer satisfaction. According to Shah and Sharma (2014), in service quality
theory, most of the customers determine the quality level of the services based on their
expectation towards the organizations. Hence, the expectations of the customers serve as the
foundation to the organizations for improving their service quality. On the other hand, Hsu et al.
(2016) opined that nowadays, saving time and money seem to be best measures of customer
satisfaction in Courier industry. Hence, most of the reputed courier companies are highly
inclined to provide 100% movement of the shipments through containerized GPS enabled
vehicles, which are actually backed up by backend facilities such as customized MIS, one-time
tamper-proof lock, e-pod, e-billing, online tracking functionality and many more. Bolumole et al.
(2016) pointed out that premium service quality of the courier companies is boosted by a highly
optimized supply chain platform. Moreover, such service quality is highly dependent on
advanced technology, infrastructure and a wide geographical network. The integrated parcel

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driven business becomes the integral part of the customer leading to high level of customer
satisfaction.
2.2 Logistics and Distribution System in Courier Industry
Logistics and distribution organize the storage and distribution of goods of an
organization. Moreover, effective logistics and distribution system ensure right delivery of
products at right time to the right person. According to Cichosz et al. (2017), logistics and
distribution system of Courier industry considers both operational and relational aspects of
customer perception towards measuring its effectiveness. Moreover, the operational aspect of
courier industry is reflected upon the customer perception regarding the service providers’ ability
to deliver right courier in right manner. It includes several aspects of a courier company like
availability, on time delivery, reliable and conditional delivery. Furthermore, Hu et al. (2016)
stated that the relational aspect of customer perception includes the ability of service provider to
understand the needs and demands of the customers.
According to Karagöz and Akgün (2015), wide geographical coverage like wide and
specific ranges of pin codes of a courier company ensures effective delivery of shipments to the
right destination. Moreover, specific ranges of pin codes meet the customized needs of the
customers to deliver their parcels and couriers to anywhere they want. On the other hand, Chu et
al. (2016) opined that customized MIS and GPS enabled tracking system gives an opportunity to
the customers to ensure that their shipments are going to deliver at right time. Hence, the
advanced and effective logistics and distribution system enhances the satisfaction level of the
customers by meeting their unique expectation.

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2.3 SERVQUAL model of Customer Satisfaction
SERVQUAL model is considered as a service quality framework, which is used for
measuring the scale of service quality a service providing sector. As per this model, when the
expectation of the customers is greater than the actual performance of the service provider, then
the service is automatically perceived as low. Five key dimensions of this model ensure the
quality of service up to the satisfaction level of the customers.According to Kim et al. (2015),
responsiveness ensures the quality and willingness of the service provider to provide prompt
service. While considering the courier industry, the courier companies must be able to provide on
time delivery of the couriers and parcels to the customers. On the other hand, Wang et al. (2015)
opined that assurance ensures the courtesy and knowledge of the service providers to convey
confidence and trust to the customers. In case of courier industry, on time delivery, GPS tracking
system and low cost of delivery couriers build the trust and confidence of the customers.
The existence of tangibility also ensures the quality of service in a service providing
organization. Moreover, the appearance of physical equipments, facilities and communication
enhance the flexibility of the customers in taking service to the service provider. While
considering the courier industry, the physical postal hubs and online billing system ensure
customer trust and satisfaction. Furthermore, Wang (2016) opined that empathy of the service
provider adds a lot to the level of customer satisfaction in service providing industry. Moreover,
the service providers must be empathetic and caring by providing individual attention to the
customers. Availability and coverage of specific pin codes, special locking system of couriers
and affordable cost add to the loyalty level of the customers in courier industry. As per Wang et
al. (2015), reliability is of utmost importance for the service providers to gain high level of

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customer satisfaction. Moreover, the courier service providers must be able to provide promised
service accurately and dependably for gaining high level of customer satisfaction.
Figure 1: SERVQUAL Model
(Source:Wang et al., 2015)
2.4 SCOR Model for Supply Chain Strategic Decision
Supply Chain Operation Reference Model (SCOR) is considered as a management tool
for addressing, improving and communicating the supply chain management decision within the
company, it suppliers and the customers. This model defines the business process, which is
highly required for satisfying the customer demands. Moreover, this framework focuses on five
dimensions like plan, source, make, deliver and return for providing satisfactory service to the
customers. According to Valaei et al. (2016), proper supply and distribution planning is
extremely essential for balancing the resources with requirements and determining the method of
communication along the entire supply chain line. The second step is associated with sourcing

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material and infrastructure acquisition. Moreover, this planning decides upon the management of
inventory, supplier network, and supplier performance and supplier agreement. The main area of
courier industry deals with packaging and dispatching the couriers and parcels as per right pin
code attached with the courier. On the other hand, reliable and accurate delivery of couriers and
parcels on time enhances the satisfaction level of the customers. Otter et al. (2017) pointed out
that the courier companies must be able to take care of the returned parcels, defective parcels and
containers for being empathetic to the customers.
Figure 2: SCOR Model of Logistics and Distribution
(Source:Jeske et al., 2015)
2.5 Issues in Logistics and Distribution within Courier Industry
Reliable and accurate service delivery builds the foundation of success of the courier
companies. Moreover, effective and unreliable service delivery causes huge problems to the
customers. Hence, such ineffective delivery of courier and consignments leads to customer

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dissatisfaction. According to Scarsi and Spinelli (2017), inaccuracy of billing, inaccurate record
keeping and delayed completion of delivery services at designated time leads to high level of
customer dissatisfaction. Moreover, some companies in courier industry are getting repeated
complaints from the customers because of their mismanagement of consignment delivery. On the
other hand, Politis et al. (2014) opined that ineffective logistics and distribution leads to
inaccuracy in the order taking of the customers. Moreover, most of the companies are not able to
provide special attention to the regular customers. Most of the organizations do not use wide
geographical cover and special pin codes of destinations, which limit the service effectiveness
and leads to high level of customer dissatisfaction. As per Bolumole et al. (2016), some
companies are still lagging behind in terms of conveying quality information to the customers
regarding the courier services. Hence, such effective service leads to customer dissatisfaction.
2.6 Impact of Effective Logistics and Distribution on Customer Satisfaction of Courier
Industry
Logistics and distribution has been considered as the most important and supporting
function in courier industry for enhancing customer satisfaction. According to Lan et al. (2016),
with increasing expectation of the customers, timeliness has been considered as just the entry
level need of the customers. Moreover, timeliness is the basic needs of the customers for getting
their couriers delivered at right time. On the other hand, Bolumole et al. (2016) opined that
quality of information of the courier service company help the customers to grab best service
opportunities to avail courier service. Furthermore, availability of wide geographical areas and
specific pin codes of the courier companies helps the customers to reach their couriers and
parcels at any destination they want. Hence, ultimately enhances the level of customer
satisfaction in courier industry. Apart from that, Lan et al. (2016) stated that effective logistics

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and distribution also ensure safe and secure delivery of the couriers and consignments to the
customers. On other hand, effective selection of transportation medium to deliver courier and
parcels from postal hubs and ultimate destination ensure smooth delivery of couriers. It also adds
to the satisfaction level of the customers.
2.7 Effective Logistic and Distribution Strategy in Courier Industry
Effective logistics and distribution is primary and fundamentally important for increasing
the satisfaction level of the customers. The courier companies should enhance the geographical
coverage and incorporate special pin codes for delivery the couriers of the customers across wide
geographical network (Karagöz&Akgün, 2015). On the other hand, attaching the right pin codes
with the right courier ensure right delivery of couriers and parcels to the right person. Hence, the
logistic system of the companies must be effective enough for ensuring reliable courier service.
Furthermore, timely delivery of couriers to the end customers primarily contributes in
satisfaction level of the customers. On the other hand, the courier companies must include GPS
enabled tracking system, where the customers would be able to track their delivery status of
couriers through online mediums (Wang, 2016). Furthermore, the courier companies should also
use tamper-proof locks for ensuring the safety and security of the couriers until it is delivered to
the customers. Such tamper proof bags detect the unauthorized access of the products packed
inside the parcels. In this way, such effective logistics and distribution service will ensure high
level of customer satisfaction in courier industry.

Logistics and Distribution
Time Delivery
Order Accuracy
Online Tracking
Order Condition
Ordering Procedure
Information Quality
Personnel Quality
Customer Satisfaction
Customer Loyalty
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2.8 Conceptual Framework
Figure 3: Conceptual Framework
(Source: Created by Author)
2.9 Summary
While concluding the literature review section, it can be said that effective logistics and
distribution system is extremely important for the courier companies for gaining high level of
customer satisfaction. Wide geographical coverage provided by the courier companies ensures
high level of customer satisfaction. Time delivery of couriers and parcels meets the basics needs
of the customers. Furthermore, the courier companies must ensure secure delivery of the couriers

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and consignments to right destination. In this way, effective logistics and distribution system is
fundamentally important for enhancing the satisfaction level of the customers in courier industry.

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Chapter 3: Research Methodology
3.0 Introduction
Research methods are extremely useful for gathering most authentic information
regarding the research variables. Proper selection of research method ultimately enhances the
quality of rese4arch outcome. Moreover, this chapter will select most useful research method for
collecting most authentic research information. This section will select appropriate research
philosophy, approach, purpose, strategy, data collection method and data analysis method. This
research section will specifically select case study method for collecting authentic information
regarding the topic of the research.
3.1 Research Philosophy
Research philosophy deals with the nature, source and development of information
required for conducting research. It facilitates in gathering authentic and relevant information
regarding the topic of the research. Three types of research philosophies are mostly used for
conducting research, which are commonly known as positivism, realism and interpretivism
philosophy. Positivism philosophy helps in collecting factual data, which is highly trustworthy
and detailed and enhances the quality of ultimate research outcome (Choy, 2014). Interpretivism
philosophy helps in collecting socially constructed data, which is the reality associated with the
research topic. Realism philosophy is the mixture of positivism and interpretivism philosophy.
The research has chosen Realism philosophy for gathering both authentic as well as socially
constructed data. It helps in the data collection process to gather most authentic information for
getting high quality research outcome.

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3.2 Research Approach
Research approach is extremely important for gaining deep knowledge regarding the
topic of the research. The choice of research approach is completely dependent on the types of
research variable and research topic. The two most common types of research approach used in
conducting research are inductive and deductive approach. Inductive approach allows in
constructing new and innovative theories and models for collecting most relevant information
about the research variables (Dumay & Cai, 2015). This approach generalizes the information
from specific to general. On the other hand, deductive approach allows in using previous theories
and models for collecting most relevant information about the research area
(McCusker&Gunaydin, 2015). This approach generalizes the information from general to
specific. This research study has selected deductive approach, as it helps in saving time and
expenses through the usage of previous theories and models in collection of authentic research
information.
3.3 Research Purpose
Research purpose helps in proper understanding of research topic, which in turn
facilitates in gaining knowledge about research variables. Mostly three types of research
purposes are used in conducting research studies, which are explanatory, exploratory and
descriptive. Explanatory purpose recognizes the relationship among the different research
variables of the research topic (Fletcher, 2017). Moreover, it makes a link among the research
variables of the research. On the other hand, exploratory purpose assesses the background of the
research. It identifies the social cause and current issue associated with the research topic.
Descriptive purpose facilitates in accumulating the actual purpose of the research study. This
research study has selected descriptive research purpose for better understanding of the research

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topic. Moreover, such understanding has facilitated in formulating effective research objective
and questions for gathering most useful information.
3.4 Research Strategy
Research strategy helps in gathering most specific information regarding the topic of the
research. The most frequently used research strategies are survey, interview, focus group and
case study (Saunders &Bezzina, 2015). Such strategies are quite helpful to conduct various types
of research study. Case study and focus group are used in secondary research for collecting
authentic information (Žikić, 2016). The research study has chosen specific case studies relevant
to the research topic for collecting accurate and relevant research information.
3.5 Data Collection
Data collection is the most significant method of collecting data from the selected
respondents (Totawar & Prasad, 2016). It is extremely important to use both primary as well as
secondary method for collecting useful information regarding the topic of the research (Hickson,
2016). Moreover, secondary method is important for gathering theoretical information regarding
the topic of the research, which helps in constructing effective literature review. This research
paper has used authentic journal, newspaper, books and websites, as the secondary source of
gathering important information. From these secondary sources, the research has selected the
relevant case studies of logistics and distribution of Australian courier industry. Such case study
has provided most authentic information about the impact of logistics and distribution on the
customer satisfaction of courier industry.

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3.6 Data Analysis
Data analysis is extremely important method for evaluating the collected data and
extracting the right meaning of the collected data (Daniel et al., 2018). This method converts the
generalized information of the collected data into specific information. This research paper has
chosen thematic data analysis method for analyzing the data collected from the relevant case
studies. In this method, the collected information from the case studies has been divided into
several themes for extracting the right meaning of the information.
3.7 Ethical Consideration
Successful completion of research is completely dependent on the consideration of ethics
in data collection process. It was also ensured that the collected data would be used only for
personal purpose and not for any commercial purpose. The research has maintained the security
and authenticity right of the secondary sources. Furthermore, the data was protected against any
unauthentic access through applying data protection act.

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Chapter 4: Findings and Data Analysis
4.0 Theme Analysis
4.1 Introduction
This section is extremely important for extracting the actual information from the data
collected from the secondary sources. The data analysis section has divided the collected
secondary data into several themes. Moreover, the section will be associated with the thematic
analysis, where the data collected from the secondary sources has been divided into different
types of themes. Such themes will definitely lead to excellent evaluation of collected secondary
data.
Theme 1: Logistics and Supply Chain in Australian Courier Industry
Logistic and supply plays the most important role in Australian courier industry. The
courier companies of Australia take initiatives to ensure effective storage and delivery of parcels
to the customers. The large courier companies of Australia like Star Track, DHL, Fastway
Couriers and others have adopted almost all forms of transportation services for distributing
couriers and parcels to the customers properly. Furthermore, the intension behind selecting
almost all form of distribution channels is to deliver the couriers to the customers within timely
manner. Almost 60% companies of Australian courier industry have adopted wide geographical
coverage for grabbing major market and reaching wide huge customer section (Akamatsu et al.,
2017). More specifically, such courier companies have considered specific ranges of
geographical pin codes for effective delivery of shipments to even most remote area. The
selection of proper shipping employees and right vehicles support the organizations to consider

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such specific range of geographical pin codes. The extensive reach and huge network of
warehouse and postal hubs assist the courier companies to reach even at international markets.
75% companies in Australia courier industry have adopted expertise in ocean freight
Cross border and air freight have enabled seamless multi-modal logistic solution these courier
companies. The logistics and distribution system of Australian courier industry has also been
blessed with the technological advancement. Moreover, the most popular courier companies of
Australia have adopted customized MIS and GPS enabled tracking system. Such system enables
the customers to track their couriers for ensure that they are going to be delivered to right
customers at right time. The courier companies are intended to provide end to end logistic
solution to the customers. In such service, the customers are ensured with hassle free and
personalized flow of couriers from point of origin to the pint of consumption. DHL of Australia
has covered almost 95% of Australia for reaching major customer section (Wang et al., 2015).
Moreover, the organization has almost 450 pick-up points in the country, which ensure end to
end logistic service provide to the customers for hassle free courier delivery. On the other hand,
StarTrack covers almost 98% of Australian market for ensuring wide geographical coverage in
their courier service and provide effective courier service to almost all types customers dispersed
around the world. Hence, the organization has almost 500 pick-up points for delivering the
couriers and parcels from the point of origin to the point of consumption of the customers.
The logistics and distribution service of courier companies is also extremely important
for protecting the couriers and parcels of the customers from any kind of loss. Moreover, the
courier companies can avail tamper proof locks to ensure safety and security of couriers until
those are delivered to the right recipient at right time. The tamper proof technology of the tamper
proof bags can effectively detect the unauthorized access of couriers inside the parcel. However,

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only 47% courier companies started to use such technology for ensuring right deliver of couriers
and parcels to the right persons (Gruber et al., 2014). In this way, logical and supply chain has
become the most integral part of business in courier industry of Australia. Most of the big sized
courier companies have become highly concentrated on building several hubs for ensuring
proximity of most popular area having potential of huge courier delivery orders. Such hubs
results in larger regional consolidation centers near the key strategic location. It has ultimately
ensured hassle free courier delivery process for the customers. On the other hand, some courier
companies of Australia have also increased the limit of weight for the parcel and couriers for
delivering most valuable goods of the customers to their desired recipients.
Theme 2: Issues in Logistic and Distribution of Australian Courier Industry
Australian courier industry is highly affected with the issue of their logistics and
distribution service. Ineffective and inefficient delivery of couriers has become the most
important issue in the Australian courier industry. Inaccurate record keeping is most frequently
occurred issue in the courier industry of Australia. Moreover, the employees of the organization
often make mistakes in associating right pin number with right parcel or courier. In this way, the
parcels and couriers are sometimes delivered to wrong recipient. Frequent occurrence of such
courier service is actually damaging the reputation of the courier industry.

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Wrong Delivery
0%
5%
10%
15%
20%
25%
30%
20%
25% 23.76%
2013
2015
2017
Figure 4: Wrong Delivery of Couriers in Australian Courier Industry
(Source: Guo et al., 2017)
From the above figure, it can be seen that percentage of wrong courier delivery service is
quite fluctuating on the year on year basis. Furthermore, 23.76% wrong courier service delivery
means that a significant numbers of courier orders have been delivered to unauthentic recipients.
Hence, this issue has been highlighted significantly in the Australian courier industry. On the
other hand, most of the reputed courier organizations have adopted customized MIS and GPS
enabled tracking system. Such system enables the customers to track their courier orders for
ensuring their delivery to the right person at right time. However, more often, the customers are
being disappointed with the ineffectiveness of GPS enabled tracking system. The system often
does not function proper at crucial time (Karcz&Ślusarczyk, 2016). Hence, the customers
become failed to track their courier delivery properly with the failure of tracking system.

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StarTrack DHL Fastway Couriers
0
2
4
6
8
10
12
14
16 14
15
10
11
12
1313
14
9
2012
2014
2016
Figure 5: Distorted and Unauthentic Courier Delivery
(Source: Tosun&Uysal, 2016)
From the above figure, it has been found that three courier companies have big issue of
distorted courier delivery. Over the 3 years period, StarTrack has delivered 14%, 11% and 13%
distorted couriers. On the other hand, DHL Courier Company has delivered 15%, 12% and 14%
distorted couriers to the recipients. Hence, distorted deliveries of couriers of couriers and parcels
are actually damaging their actual meaning. In such situation, recipients and courier senders face
severe issues in case of losing their valuable couriers and parcels. The above figure is
demonstrating that Fastway Couriers is facing quite less issue in regards to distorted courier
delivery as compared with StarTrack and DHL. However, the organizations are improving
themselves in this regard and reduced the percentage of distorted courier delivery.

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The industry data of Australian courier industry demonstrates that only 60% of total numbers of
courier companies has included special range of pin codes for covering wide geographical
coverage (Abdullahi et al., 2017). Hence, limited numbers of customers are being able to send
their valuable couriers to remote areas. In this way, the consideration of limited numbers of
specific range pin codes has become a specific issue in courier industry. On the other hand, the
limited numbers of companies receiving courier orders for specific range of pin codes are
demanding high price for courier orders. Such companies are enjoying their competitive gains,
which is ultimately creating issue for the customers. Some customers are facing it extremely
difficult to pay such high price for sending their couriers to remote areas.
Theme 3: Impact of Logistic and Distribution on Service Quality of Australian Courier Industry
Effective logistics and distribution always ensure time delivery of couriers and parcels to
the right recipients. The contemporary courier companies allow the customers to choose their
preferred service delivery modes for their courier order delivery. However, some companies
often make wrong choice of service as per the context and urgency of the courier order delivery
(Wang, 2016). In this way, such organizations often become failed in providing time delivery of
couriers to the customers. On the other hand, technological breakthrough is directly related with
the delayed delivery of courier service in Australian courier industry. Moreover, the wrong
choice and low-quality transportation mediums are quite vulnerable to breakthrough in the
middle of the roads. It ultimately hampers the delivery time of the couriers to the ultimate
recipients. This issue is severely reducing the service quality of Australian courier industry.

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2010 2012 2014
0
2
4
6
8
10
12
14
Rating for Service Quality
Figure 6: Customer Rating Trends in Courier Companies
(Source: Valaei et al., 2016)
From the above figure, it can be seen that DHL and StarTrack are gradually being
affected by reduced service quality. The customer rating provided for the companies on year on
year basis has demonstrated that the service qualities of these companies are gradually
decreasing. The lack of adequate physical hubs near the recipient location is often causing
disruption of couriers and parcels (Cheng et al., 2017). Apart from that, the employees of most of
the courier companies are not trained enough to provide highly efficient courier delivery service
for the customers. Moreover, the untrained employees of the courier companies sometimes make
mistakes in their inputting right data associated with right couriers and parcels. In this way,
often, the couriers and parcels get delivered to wrong destination. In this way, the issue of
untrained employees is directly associated with the reduced service quality of courier industry.
Furthermore, the most of the 53% courier service companies do not use tamper proof bags for
delivery the right couriers to right persons (Lee et al., 2017). Hence, it also becomes difficult for

33SUPPLY CHAIN
the delivery staffs to identify the authenticity of the actual recipients of the couriers and parcels.
In this way, wrong delivery of couriers and parcels to unauthentic recipients is ultimately
hampering the service quality of overall Australian courier industry.
The medium sized courier service company like Australian Courier is often face with the
issue of inaccurate billing that hamper its overall service quality perception. Moreover, more
often, the untrained employees of such companies wrongfully calculate the billing of the
customers. Such inaccurate billing actually affects the perception of the customers regarding the
service quality. The issue of inaccurate billing is directly hampering the level of customer
satisfaction in the Australian courier industry (Guo et al., 2017). On the other hand, limited
numbers of Australian courier companies use special locking system for the safety and security
of the valuable couriers and parcels. Hence, losses and damages of couriers and parcels are more
likely to occur in Australia courier industry. Moreover, losses and damages of valuable couriers
and parcels results in severe loss of customers. Hence, the issue of security system is highly
affecting the overall service quality of the Australia courier service industry. Furthermore, lack
of responsive to prompt delivery service and customer courier delivery service is causing
negative customer perception regarding the quality of service of the courier companies
(Karcz&Ślusarczyk, 2016). Hence, such issues are severely impacting the overall service quality
of courier industry.
Theme 4: Impact of Logistic and Distribution Issue of Australian Courier Industry on Customer
satisfaction
The logistics and distribution service have huge impact on the customer satisfaction level
of Australian courier industry. Moreover, inefficient logistics and distribution is ultimately

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reducing the satisfaction level of Australia courier industry. The customers are often dissatisfied
with the delayed delivery service. The courier service organizations sometimes become unable to
deliver the couriers to right customers at time due to transportation breakthrough. In this way, the
actual meaning and value of the couriers and parcels get lost with their delayed delivery. Hence,
the customers become highly disappointed with the courier industry of Australia. On the other
hand, loss and distortion of couriers and parcel is also directly related to the dissatisfaction level
of the customers (Abdullahi et al., 2017). In this way, the unsafe and insecure delivery of
couriers and parcels is ultimately becoming the reason for customer disappointment.
Delayed Delivery Delivery to Wrong
Recipient Unsafe Delivery Ineffective GPS System
0
2
4
6
8
10
12
14
16
14.3
12.5
13.5
15.1
12
14.4
11.8 11.5
13.6 14.1
13
10.7
Customer Complaints
2013 2015 2016
Figure 7: Customer Complaints over the Years in Courier Industry
(Source: Abdullahi et al., 2017)
From the above table, it can be seen that most of customer complaints in Australian
courier industry is related to delayed delivery of couriers and parcels and delivery to wrong

35SUPPLY CHAIN
recipients. Hence, the customers are not getting any confidence in giving the responsibility of
delivering couriers and parcels to these types of courier service companies. On the other hand,
the unsafe and insecure delivery of couriers and parcels is severely hampering the customer,
when it is related to highly valuable couriers and parcels. Furthermore, most of reputed courier
service organizations have already reduced the issue of delayed delivery of couriers and parcels.
More often, the courier service organizations failed to provide constant and consistent GPS
enables tracking system for helping the customers in tracking their valuable couriers and parcels.
Hence, such customers are highly unwilling to adopt these organization in future for delivering
their highly valuable couriers and parcels. However, the issue of GPS tracking system has been
resolved quite a lot for ensuring right and consistent tracking system of valuable couriers and
parcels delivery service (Karcz&Ślusarczyk, 2016). Apart from that, the satisfaction level of the
customers is also being reduced by the issue of unsafe and insecure delivery of couriers and
parcels. However, still, the organizations are not focusing on this issue significantly. Hence, it
can be quite difficult for the courier service organizations to enhance and regain the level of
customer service.

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StarTrack DHL Fastway Couriers
0
5
10
15
20
25
30
35
40
45
45
42 4040
30.5
41.6
39.6
34
38.8
Repeat Customers
2012 2014 2016
Figure 8: Repeat Customers in Popular Courier Service Companies of Australia
(Source: Valaei et al., 2016)
From the above table, it can be found that the numbers of repeated customers are
gradually decreasing in popular courier service organizations of Australia. Moreover, the
customers of this industry are highly disappointed with the delayed delivery of highly valuable
courier and parcels. The actual values of their couriers and parcels are being lost with the
delayed delivery (Cheng et al., 2017). Hence, the customers are highly unwilling to repeatedly
adopt this service for delivery their highly valued parcels and shipments. However, the
organizations can still minimize the gaps in the satisfaction level and service level through
focusing on safe and timely delivery of couriers and parcels. On the other hand, the courier
service organizations are facing huge numbers customers complaints regarding several service
delivery issue of couriers. Apart from that, often, the organizations do not show minimum

37SUPPLY CHAIN
sympathy to the customers for the inconvenience caused to them for ineffective courier delivery
system (Guo et al., 2017). It is highly affecting the satisfaction level of the customers.
Theme 5: Solution Present in Logistics for Increasing Level of Customer Satisfaction
Effective logistics and distribution is primary and fundamentally important for increasing
the satisfaction level of the customers. Most of the courier service organizations are facing the
major issue of delayed courier delivery. Hence, the courier companies should immediately focus
on the resolving this issue. Moreover, the organizations should immediately be concerned about
timely delivery of valuable couriers and parcels to the right recipients at time. Proper selection of
vehicles as per the urgency level of the couriers and shipment can help the organization in
providing courier service at right time. On the other hand, the customers are also disappointed
with the unsafe courier and parcel delivery to the recipients. Moreover, such unsafety is severely
hampering the customers, when their valuable courier and parcels are lost and distorted before
they are delivered to the right recipient (Tosun&Uysal, 2016). Hence, the organizations should
immediately take measures for provide safe courier service delivery to the customers. The
courier service organizations should use proper tamper proof bags and special lock system for
safe delivery of valuable courier and shipments. The tamper proof bags can effective detect the
unauthentic access of couriers and parcel. Hence, it can help the delivery staffs to understand the
right recipient effectively for providing safe and secure courier service delivery.
The special lock system also protects the highly valuable couriers and parcels from any
kind of damages. Hence, the courier service organizations can use such special lock system for
protecting the couriers and shipments and providing secure courier service to the customers. On
the other hand, the empirical evidences of Australian courier industry have demonstrated that

38SUPPLY CHAIN
very limited numbers of courier service companies have considered specific range of pin codes
for covering wide geographical coverage. Hence, the people are facing extreme issue in
providing their valuable couriers and parcels to remote areas. In such situation, the customers are
being high disappointed with limited geographical coverage of these types of organizations
(Gruber et al., 2014). Therefore, the organizations should be immediately concerned about
considering specific ranges of pin codes for covering wide geographical areas. It would
ultimately minimize the disappointment level of the customers, while they will be able to send
their valuable couriers and parcels to even the remote areas on their needs. In this way, it can be
directly associated with the satisfaction level of the customers. It would also help the
organizations to enhance their overall customer section.
One of the most common problems of courier service industry is lack of empathy from
the part of courier service organization to the customers even in case of severe service issue
occurred to them. It is actually creating a service gap between the organizations and the
customers. Hence, the courier service organizations should immediately be concerned on this
regard. The organization should empathize the customers immediately in case of providing
inconvenient courier service provided to them. It would definitely somewhat reduce the
disappointment level of the customers and must contribute on the overall customer satisfaction
level.

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Chapter 5: Conclusion and Recommendation
5.1 Conclusion
While concluding the research, it can be said that logistics and distribution is an integral
part of courier service organization. Effective logistics and distribution can enhance the
satisfaction level of the customers in courier service industry. Moreover, proper and efficient
logistics and distribution ensure time delivery of couriers and parcels to the right recipients and
right time. However, Australian courier organizations are facing extreme issues and challenges in
their logistics and distribution that is ultimately lowering their service quality. Gradually, such
reduced service qualities of the courier companies are lowering level of their customer
satisfaction. Most of the courier service companies are being failed to provide timely delivery of
couriers to the right recipients. On the other hand, 53% courier companies have not considered
specific ranges pin codes for covering wide range of geographical coverage. Hence, the
customers are not being able to send their valuable couriers to the remote areas. It is also directly
associated with lowered level of customer satisfaction in courier service industry. Furthermore,
the findings of the research are also facing the issue of safety and security of couriers and parcels
before they are sent to right recipients. Hence, the couriers companies of Australia are suggested
to improve their logistics and distribution for enhancing the level of customer satisfaction.

40SUPPLY CHAIN
5.2 Linking with Objectives
Objective 1: To assess the impact of customer satisfaction that can be felt through proper supply
chain by the courier services
This research objective has been perfectly linked with the data analysis section.
Moreover, the research themes 1 and 3 have been perfectly linked with this research objective.
Specific range of pin codes available to the courier companies helps the customers to send their
couriers and parcels to the recipients residing in remote areas. However, the delayed delivery of
couriers and parcels is lowering the satisfaction level of the customers in Australian courier
industry. Furthermore, the companies of this industry are also facing huge customer complaints
due to their increasing dissatisfaction with courier service.
Objective 2: To identify the issues and challenges faced by courier companies in their logistics
and distribution
This research objective perfectly been linked with the research theme 2 in the data
analysis section. As per the analysis of the theme, Australian courier companies are facing major
issues of delayed delivery of couriers and parcels. Furthermore, the companies are often not able
to protect the couriers and parcels from unauthentic access.
Objective 3: To understand the strategies implemented by courier companies to improve the
customer satisfaction
This research objective has been perfectly linked with the research theme 5. As per this
theme, the Australian courier companies must have to adopt effective solution available in the
courier industry for mitigating the issue of logistics and distribution. Moreover, the companies

41SUPPLY CHAIN
should be highly concentrated on time delivery of courier and parcels to the right recipients.
Furthermore, the organizations should also use proper safety measures through using tamper
proof bags for the safety of valuable couriers and parcels.
5.3 Recommendation
5.3.1 Timely Delivery of Couriers
The courier industries need to provide an estimated date of delivery of the couriers and
parcels so that the customers can have a better idea regarding the time and the date of their
delivery. It will also help the customer in tracking down the order and the price of the product as
well. The cost of shipping the product also has to be mentioned so that the customers can get
prior information of it and the product needs to be completed with the checkout process as well.
5.3.2 Safe Delivery of Couriers
The overall research is indicating that the customers are often disappointed with the
unsafe and insecure delivery of their couriers and parcels. Hence, the courier companies should
be highly concerned about protecting the valuable couriers and parcels from any kind of loss and
damage. Moreover, the organizations should use tamper proof bags and special locking system
for the protection of valuable couriers and shipments.
5.3.3 Specific Range of Pin Codes
The research finding is indicating that limited numbers of Australian courier companies
have considered specific pin codes. It is limiting the facilities for the customers to send their
valuable couriers and parcels to the recipients in remote areas on their needs. Hence, the courier
companies should consider specific range of pin codes for enhancing their geographical

42SUPPLY CHAIN
coverage. Such specific facilities will definite help the customers to send their valuable couriers
and shipments to the right recipients in the remote area on their needs.
5.4 Limitation of Research
Every academic research is associated with some limitations that can hamper the quality
of ultimate research result. This research has also faced the issue of time and budget constraints
for reaching final research result. Moreover, due to time and budget constraints, it was not
possible to access more numbers of authentic secondary sources. It has somewhat affected the
ultimate research result.
5.5 Scope of research
This process of research has been completed in a successful manner, where the literature
used in this research can be taken up as a secondary source of data for other researcher. The
research has been done based on the effective methods used by the courier industries in
delivering the products to the customers so that it can result in increasing the level of
satisfaction. The literature review along with the analysis of data can be used in other researches
as well that are of different sectors and not particularly belonging to the same industry.

43SUPPLY CHAIN
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