Effectiveness of Logistics, Distribution, and Customer Satisfaction

This report investigates the crucial role of logistics and distribution in enhancing customer satisfaction within the courier industry. It explores the significance of service quality, timely delivery, and the impact of effective logistics strategies on customer perception. The research delves into the challenges faced by courier companies, such as untimely deliveries and loss of shipments, and examines strategies implemented to improve customer satisfaction. The study incorporates a literature review covering service quality, logistics systems, and customer satisfaction models like SERVQUAL and SCOR. The research methodology includes a detailed discussion of research philosophy, approach, purpose, strategy, data collection, and analysis, culminating in findings, data analysis, conclusions, and recommendations for improving logistics and customer satisfaction within the courier sector. The report highlights key factors for courier companies to consider, such as timely and safe delivery, and specific geographical coverage, and suggests areas for future research.

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.