AKSUM UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGITICS AND SUPPLY CHAIN MANAGEMENT

A SENIOR REEARCH PROPOSAL ON ASSESMENT OF LOGISTCS ACTIVITY ON

CUSTOMER SATYSFACTION (IN CASE OF ALMDA TEXTIL FACTORY) IN
PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF
BACHLOR OF ARTS IN LOGISTICS & SUPPLY CHAIN MANAGEMMENT.

BY; MIHERET MATIWOS

ID NO. AKUR/ 0470/07

ADVISORNAME: MR.HAFTOM A.

JUNE, 2017
AKSUM, ETHIOPIA
 Aksum University

College of Business and Economics

DEPARTMENT OF LOGITICS AND SUPPLY CHAIN MANAGEMENT

Prepared By: MihertMatiwos

Approval board of examiners committee

Name signature

Advisor

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Examiner

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Department head name

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JUNE, 2017
AKSUM, ETHIOPIA
Acknowledgement

First and for most I would like to thank my Almighty God for all his charity and his Mother st,
Mary without whom I could never been what I am today.
My deepest love, appreciation and gratitude go to my family for their financial and moral
support I have immensely benefited not only in doing this paper but in all years of my education.
The most sincere and deepest gratitude goes to my advisor Haftom A. who really encourages and
helped me in correcting and giving advices from beginning of the study until the final draft.
My especial thanks are for my friends who are student of Aksum University for their love and
support in doing this project.
Last but not least I would like to extend my thanks to ALMEDA Textile factory manager and his
employees.
Table of contents Page
Acknowledgement……………………………………………………………………………………………………..

Table of contents ………………………………………………………………………………………………………

List of table………………………………………………………………………………………………………….

Acronym……………………………………………………………………………………………………………..

Abstract…………………………………………………………………………………………………………………

Chapter one…………………………………………………………………………………………………………

1. INRODUCTION……………………………………………………………………………………
……………………………….
1.1. Background of the
study………………………………………………………….................................................
1.2. Background of the
organization……………………………………………………………………………………
………
1.3. Statement of the
problem…………………………………………………………………………………………
………..
1.4. Research
question…………………………………………………………………………………………
……………………
1.5. Objective of the
study……………………………………………………………………………………………
……………..
1.5.1. General objective of the
study………………………………………………………………………………….
1.5.2. Specific study of the
study……………………………………………………………………………………
…..
1.6. Significance of the
study……………………………………………………………………………………………
…………
1.7. Scope (Delimitation ) of the
study………………………………………………………………………………………
1.8. Definition of key
terms……………………………………………………………………………………………
…………

Chapter two………………………………………………………………………………...

2. Review of related
literature……………………………………………………………………………………………
………...
2.1. Definition of
logistics…………………………………………………………………………………………
………………..
 2.2. History of
logistics…………………………………………………………………………………………
………………………
2.3. Operational objectives of
logistics………………………………………………………………………………………….
2.4. Definition of customer
satisfaction………………………………………………………………………………………
2.5. Customer satisfaction
model……………………………………………………………………………………………
…..
2.6. Logistic information
system…………………………………………………………………………………………
……..
2.7. Order
processing………………………………………………………………………………………
…………………………
2.7.1. Function of order
processing………………………………………………………………………………
…
2.8. Transportation…………………………………………………………………………………
…………………………………
2.8.1. Transport functionality and
principle…………………………………………………………………………
2.8.2. Transportation
documents………………………………………………………………………………………

Chapter Three…………………………………………………………………………………
3. Research Design and
Methodology……………………………………………………………………………………….
3.1. Research
design……………………………………………………………………………………………
………………………
3.2. Research
type……………………………………………………………………………………………
……………………
3.3. Source of
data……………………………………………………………………………………………
………………………..
3.4. Sample size and Sampling
technique………………………………………………………………………………..
3.4.1. Sample
size……………………………………………………………………………………
…………………………
3.4.2. Sampling
technique………………………………………………………………………………
……………….
3.5. Procedure of data
collection………………………………………………………………………………………
…………
 3.6. Data analyze tools/
methods…………………………………………………………………………………………
……

Chapter Four…………………………………………………………………………………….
4. Data presentation, Analysis and
Interpretation…………………………………………………………………………..
4.1. Results of interview
question…………………………………………………………………………………………
………

Chapter Five……………………………………………………………………………………
5. Summary, Conclusion and
Recommendation…………………………………………………………………………..
5.1. Summary………………………………………………………………………………………
……………………………………….
5.2. Conclusion………………………………………………………………………………………
……………………………………
5.3.
Recommendation………………………………………………………………………………
………………………………..

Reference…………………………………………………………………………………………..
Appendix…………………………………………………………………………………………..
List of table Page

Table 4.1: Demographic characteristics of respondents …………………………………………………..

Table 4.2: Performance measurement of transportation…………………………………………..

Table 4.3: Performance measurement of customer service……………………………………….

Table 4.4: identifying good preformed activities……………………………………………………………

Table 4.5 companies’ modern technology usage……………………………………………………………

Table 4.6 usage of effective transportation system…………………………………………………………

Table 4.7 employee training……………………………………………………………………....

Table 4.8 the logistics problem……………………………………………………………………..

Table: 4.9 the logistics activity problem……………………………………………………………

Table: 4.10 Logistics service fee……………………………………………………………………

Table: 4.11 Usage of modern transportation technology……………………………………………

TABLE: 4.12 Logistics time requirement………………………………………………………….

Table 4.13 Logistics place requirement…………………………………………………………..

Table: 4.14 standard of logistic service…………………………………………………………

Table: 4.15the current logistics information system of the company……………………………

Table: 4.16 Logistics performance measure……………………………………………………..

Table: 4.17 Logistics activity problem…………………………………………………………

Table: 4.18 logistics and customer service of the company………………………………………

Table: 4.19 the overall performance of Transportation…………………………………………

Table: 4.20 the overall performance of………………………………………………………….

Table: 4.21 the overall performance of…………………………………………………………

Abstract

This study was conducted to assessing the effects of logistics activity’s on

customer satisfaction in case of ALMEDA textile factory. The main objective
of this study is identifyingthe effect of logistics activities on customer
satisfaction and its significance was to give clear knowledge about the
relationship between logistics activity’s and customer service. To meet
the main objective of the study both primary and secondary data was used.
The primary source of data was collected through questionnaire and
interview. The secondary data was collected by referring different books and
websites. The study took in to account 25 employees who are selected
randomly from employees. The necessary information was gathered
through close ended and open ended questions and unstructured
interview. The sampling technique that the researcher used was
judgmental sampling since it was convince for the researcher. The
collected data was analyzed in percentage and tabulation. Finally the
researcher gives some recommendation for the company on how to improve
the performance of logistics activities and customer service.
 ChapterOne

1. INTRODUCTION
1.1. Back ground of the study

Logistics management is part of supply chain management that plans, implement and controls
the efficient, effective forward and reverse flow and storage of goods, services and related
information between the point of origin and the point of consumption in order to meet customer
equipment. Logistic management is an integrating function which coordinate and optimize all
logistics activity as well as integrated logistics activity with other function include marketing,
sales, manufacturing finance and information technology logistics can be studied as an individual
part of one company or as an integrated from of material through several companies.
(PartikJonsson, 2008).

Customer satisfaction is one of the vital factored that determines the competitiveness of the
organization thus do satisfy customer the objective is to ensure that customers are satisfies to
ensure their continued patronage before going in for a purchase customers product has delivered
value as per their expectation or and decide on the satisfaction level the expectation that
customers have form the product are created through as following, past experience promotional
clams, third party information and medic (JadisLN.Sheth 2007).

Customer satisfaction is the customer fulfillment of response to the customer experience or some
parts of there are:

Customer satisfaction is a pleasurable fulfillment t of response. Dissatisfaction is un pleasurable

fulfillment responded; the experience or some part their component of the definition suggests
that the satisfaction evaluation can be directed at any or all element of the experience this can
include product, service, process and any other components of the customer experience.

The most commonly way of quantifying satisfaction is to compose the customers perception of
an experience or some part of it with their exaltation. This known as the expectation
disconfirmation model of customer satisfaction. (francubuttke 2009).
The effect of logistics information system an customer satisfaction customer satisfaction is very
important for logistics company seeking competitive advantage because they realize that if they
do not satisfy they expectations of customers their place will be taken by other companies must
ensure every customer service related aspect not matter what it includes acceptance of order their
execution by the solution of problems activity of logistics company understand his needs.

Information technology resisted this transition rather more than the business did. People who had
been essential found themselves out of loop and this was a problem but there is an impact on the
business too as they now own a system that runs 24×7 and support becomes an issue. It is also
true that finding examples best practices and so on is hard with one were approach like decision
management and business rules management system.( Http;//:www.jtoncedm.com Retrieved
April 2011)

The effects of transportation of customer satisfaction transportation problem one of the most
important and successful application of quantitative analysis to solving business problems has
been in the physical distribution of products commonly referred to as transportation problems.
Basically the purpose is to minimize the cost of shipping goods from one location to another to
that the needs of each arrival area are meet and every shipping location operation within its
company. (dk agrawal2006).

The effects of order processing in cushy to were satisfaction order processing leaps ensure that
customers receive material when an where they require it problems with order processing have
involved accepting orders before detriment in adequate production capacity is available not
coordinating order providing with order scheduling and using internal production data’s rather
than customer prepared date to schedule the order, order processing is an important part of
supply chain management it represents the producer and the external customer. (Robert
M.mon(Zka).
 1.2. Background of the organization

Almeda textile factory is found at 07 kilometer far from the center of Adwa town. On the main
road to Aksum.1006, km from adissababa and 233 km from mekelle the capital city of
tigrayregion.almeda textile plc is standing proudly in the middle of beautiful mountainous area.
The factory is directly linked with the main sell port of Djibouti for import export icetives.in
addition the mill site is 236 km far from aseb seaport. Almeda textile has established in 1985 as
manufacturing wing of effort group. The company starts it operation since October 1999 G.C.

Currently altex have 5165 workers, from those 5070 are permanent and 95temporary.the vision
of altex plc become reference and leading textile garmenting industry and creating a hub par
excellence in the textile and garment field in general and in Ethiopia in particular.

1.3. Statement of the problem

Transportation is a fundamental to development and operation an organization industry society it

permit the specification of work effort necessary to achievement the fright in efficient and
production geographically distance resources became accessed to provide with transportation the
economic growth any society part of world is directly related to the validity of transportation.
(Bowers on 2010).

Transportation may be defined as movement of material and goods or people from one place to
another with a specific objective transportation is the fundamental to civilization to role of
transportation in socio economic development that it allows for division of tabor and labor
specification procumbent of raw materials from one tabor and labor specialization procumbent of
raw materials from various sources is patch of good to mark at place, personal mobility etc. (Dr.
Ayele Kuris 2006).

Order processing is the entry point for customer and inquiries it allows entry and materials of
customer orders by using communication technologies such as mail, phone; Fax and the internet.
As orders or inquiries are received order processing entry and retrieves required information
edits for appropriate values and retains acceptable order for assignment order processing can also
offer information regarding inventory availability and delivery data’s to establish and confirm
 customer expectation order processing in conjunction with customer service representation forms
the primary inter face between the customer and legally system (Donald J.Bowlesx 2004).

 Logistics information system the central purpose of management in general and logistics and
supply chain particular is to provide value to the customer the information divers from an
logistics information system can be also valuable as the base product or service which the firm
provides to its customers. In simple terms logistics information system is an integrated approach
for providing interprets and relevant date that can help mangers make decisions for the meet flow
logistical functions. In other word logistic information system refers to a set of inter related and
inter depend functions for calculation, storage analysis and retrieval of information in required
format so as to facilitate and out puts to their final destination of use. Logistics information
system is a sub set of a firms total information system, commonly known as management
information system. The major purpose of logistics information system is to collect process.
Store and manipulate data within a firm facilitating the diction to overcome any logistical
problems. Logistic information system is a set of computer hard ware & software that gathers,
summaries and report any information for use by manager’s customers and others. (dkagrawal
2003).

 Customer satisfaction is giving what is promised on time it refers to everything a company does
to satisfy it is customer and heap to realize the greatest possible value from the goods and
services they are purchasing it is the action a company can take to benefit to the basic goods and
services (Kotter 1997).

Customer satisfaction is a person feeling or disjointing resulting from company’s products or

services précised performance in relation to his/her expectations according to the above
definition customer satisfaction is the function précised performance and expectation customer is
dissatisfied. If the performance matched, the expectations the customers is highly satisfied
(Kottler 2006).

Does Logistics information system transportation and order processing have an impact on
customer satisfaction?
 Transportation is helpful for companies for reaching to their customers or for distributing their products to
the market and collect this inputs the lack of good transportation system leads to the lack of their
production the market and it caused customer dissatisfaction.

Order processing on customer satisfaction the delays that occur made customer satisfaction
because if causes increase in the head time of the overall process this leads to the customer
dissatisfaction.The researcher wants to identify problems and research solution on the impact on
logistics activities such as transportation order processing and logistics information system in
customer satisfaction in case of Alemda textile factory. There are different problems in the
organization such as

 The organization not provide fast delivery service,

 not give attention for logistics cost
 not recruit skilled man power
 not giving training
 not good infrastructure
 no used modern technology ,have not good facility

1.4 research question

Generally the researcher tried to answer the following questions; -

1) To what extent logistics activity, logistics information system order processing and
transportation affect customer satisfaction?

2) What looks like attitude of customer towards logistics activities logistics information
system transportation and order processing?

3) Does the organization have its mechanisms to identify the impact of logistics
activities on customer satisfaction?

1.5Objective of the study

1.5.1 General objective of the study

The general objective of the study is assessing the effects of logistics activities on customer
satisfaction in case of Almeda textile factory.

1.5.2 Specific objective of the study

In relation to the general objective of the study the specific objective

 To identify the impact of logistics activity, logistics information system transportation and order
processing.
 To know the attitude of customers to wards logistics activities
 To identify the organization mechanisms that the organization use to identifying logistics
information system transportation and order processing.

1.6. Significance of the study

The researcher believes that the research results have the following contribution:

It enables the organization to evaluate the logistics performance and its impact on customer
satisfaction.

 It serve as on reference for other researchers who investigate studies on this and related topic

 It used to the researcher to identify and solve problems and increase the ability on doing
researches.

 Itwill be used by the researcher to acquire BA degree.

1.7. Scope (Delimitation )of the study

As it has been show by different imperial evidence logistics is a broadest field of study which
consists various activities but this study is delimited to only logistics information system,
transportation and order processing to assess their effect on customer satisfaction in case of
Almeda textile factory.

1.8. Limitation of the study

These limitations were:

 Lack of experience on conducting research on the side of researcher.

 Time constraint to collect information.
 Lack of awareness towards to regarding for providing intended
information
 Unwillingness of the managers to corporate during the study
  Lack of adequate knowledge of the staff to answer the questionnaire
 More over there is no sufficient materials availability in the library. Therefore the
study was conduct specifically in ALTEX plc, Adwa, Tigray regional state, Ethiopia.

Chapter Two

2. Review of Related Literature

2.1. Definition of logistics
Logistics is the process of planning, implementing and controlling of the efficient and effective
flow and storage of goods, service and related information’s from point of origin to
point of consumption for the purpose of confirming the customer requirement. (Douglas Long,
2003).

Logistics has been defined by the council of logistics management (CLM) as “that part of the
Supply chain process that plans implement and controls the efficient, effective flow and storage
of goods, service and related information from point of origin to point of consumption in order to
meet customer requirement.” (Council of logistics management, 1993).

It was also defined by US Council of Logistics Management in 1986 as: The process of planning,
implementing and controlling the efficient, cost -effective flow and storage of raw materials, in -
process inventory, finished goods and related information from point of origin to point of final
consumption for the purpose of conforming to customer requirements. (Council of logistics
management, 1993).

2.2. History of logistics

Logistics was originally used in a military context, meaning all the support actions necessary to
keep an army in the field, fighting a war. Fifty years ago manufacturing and service companies
did not have a logistics function. Generally, customer service was handled by the sales
department. Inventory was managed by manufacturing or sales according to location. Suppliers
arranged inbound transport and outbound transport was booked by someone in the sales
department.

In the intervening period, many companies have created a logistics function to look after
an increasing proportion of movement and storage functions. Typically, logistics manages,
or is strongly involved in:
  order-processing,
 purchases,
 Inbound transport
 Production plans and schedules,
 Inventory management,
 Distribution and delivery transport,
 Warehouse management, and
 Several information systems such as customer response management, materials
requirements planning and distribution requirements planning.

According to Bowersox and Closs, there were three reason integrated logistics did not come at

First;

I. There was no role for computer seen in integrated functional areas

II. Volatile economic conditions lead management to concentrate on cost containment

III. There was difficulty in quantifying the return that could be gained

Since then, a variety of things have changed to the point where logistics is now a well recognized
profession, and a valuable part of the company. Why did things change? A few reasons:

 Computerization: - having the ability to manage vast amount of information is vital to many
logistics functions. Previously, the problem was too complex and there was limited level
of sophistication.
 Quality management: - companies have been looking at ways to improve their
operations and recognized that logistics was one area that had been historically
overlooked.
 Partnership and Alliances: a trained for companies to work closer wit h their supplier,
customers and other to improve efficiency.
 Deregulation: certain part of the logistics system profession were heavily regulated.

2.3. Operational objective of logistics

1. Rapid response: This is flexibility objective of an organization: Some companies measure this
as response time to customer’s order. On an average how much time do we need to fulfill one
particular type of customer’s order in a year?This is a measure of Rapid response Logistics
should ensure that the supplier is able to respond to the change in the demand very fast. Entire
production should change from traditional push system to pull system to facilitate rapid
response. Instead of stocking the goods and supplying on demand, orders are executed
on shipment-to-shipment basis. Information Technology plays an important role here as an
enabler. IT helps management in producing and delivering goods when the consumer needs
them. This results into reduction of inventory and exposes all operational deficiencies. Now the
management resolves these deficiencies and slashes down costs.

2. Minimum variance: This is delivery objective of an organization; this can be measured as ‘On
Time Delivery’ or If 100 deliveries are made in a month/quarter/year how many reached as per
the commitment made to the customer?

Any event that disrupts a system is variance. Logistics operations are disrupted by events like
delays due to obstacles in information flow, traffic snarls, acts of god, wrong dispatches, damage
in transit. Traditional approach is to keep safety stocks and transport the goods by high
cost mode. The cost of this approach is huge. Logistics is expected to minimize these events,
thereby minimize and improve on one time delivery.

3. Minimum inventory: This is component of cost objective of a company. Inventory is

associated with a huge baggage of costs. It is termed as a necessary evil. Objective of minimum
inventory is measured as Inventory Turns or Inventory Turnover Ratio. Americans call this
measure as turn velocity. Logistics management increases these turns without sacrificing
customer satisfaction. Higher turns ensure effective utilization of assets devoted to stock.
Logistical management should keep the overall well-being of a company in view and fix a
minimum inventory level without trying to minimize the inventory level as an isolated objective.
4. Movement consolidation: Transportation is the biggest contributor to logistics cost.
Transportation cost depends on product type, size, weight, distance to be transported etc. for
transporting small shipments just in time [reduction in inventory costs] expensive
transport modes are used which again tend to hike the costs. Movement consolidation is
planning several such small shipments together [of different types of shipments] by integrating
interests of several players in the supply chain. Generally, large shipment size and long
distances reduce transportation cost per unit. Movement consolidation shall result into
reduction in transportation costs.

5. Quality: If the quality of product fails logistics will have to ship the product out of customer’s
premises and repeat the logistics operation again. This adds to costs and customer
dissatisfaction. Hence, logistics should contribute to TQM initiative of management. In fact,
commitment to TQM has made the management’s world over wake up to the significance of
logistics function. Logistics can play a significant role in total quality improvement by
improving the quality of logistics performance continuously and continually.

6. Life cycle support: Logistics function is expected to provide life cycle support to the product
after sale. This includes.

A. After sales service: the service support needed by the product once it is sold during its life
cycle.

B. Reverse logistics Product recall as a result of (Martin Christopher, 2005)

2.4. Definition Customer satisfaction

Customer satisfaction is defined as the extent to which a product perceived performance in

delivering vale links a buyer expectation (Philip.2000).

According to Kottler 2000. Satisfaction is a personal feeling of pleasure or disappointment

resulting from comparing a product perceived performance outcomes in relation to his/her
expectation.Satisfaction is an internal state. This means accounts of satisfaction must highlight
the meanings that operation in the customer field of accurateness. The satisfaction buying group
member often contributes to an individual customer’s satisfaction.

The main two intangible assists of the company are customer lovely and corporate image are
obtained from real reward of customer satisfaction. If organizing wants customer satisfaction,
they must be willing to invest in it. In order to help employee understand their role in developing
customer satisfaction training and motivation allow vital role and critical to customer satisfaction
is an organization comprehensive fasting customer satisfaction does not just occur. It takes close
flow up and professional attitudes. As the saying good, better, best and so on.

2.5. Customer satisfaction model

It is a model which used to show the basic customer satisfaction is called expectation
confirmation disconfirmation model.
Fig 2.1 Customer Satisfaction model. Source (Russels 2000).

Experienced quality shows how the product or service actually performance has to deft the
customer is assumed to from an expectation about the service performance.

2.6. Logistics information system

The central purpose of a management general and logistics and supply chain in particular is to
provide value to the customer. The information delivered from and logistics information system
can be as valuable as the base product or service which the firm provides to its customers. It
simple terms a logistics information system is an integrated approach to providing interpreted
and relevant data that can help managers make dictions for the smooth flow of logistical
functions. In other words logistics information system refers to a set of inter related and inter
dependent functions for collection. Storage, analysis and retrieval of information in required
format so as to facilitate a smooth flow of input goods from these sources to the processing
facilitate and outputs to their final destination of use. Logistics information system is a subset of
the firms total information system commonly as the major purpose of logistics information
systems to collect process store and manipulate data within a firm facilitating the diction to over
time.

Logistics information system is a set of computer hard ware and soft ware that gathers organizes
summaries and reports any information for use by mangers customer and other.

Logistics information system consists of four distinct elements.

i) The inputs ii) The data base and its associated manipulation

iv) The resources iii) The out puts and

i) The inputs:- the first elements of logistics information system is a sources of data which
after processing in the information system. Assists the decision making process. The
major sources of data needed for planning and operating the logistics systematic
customers, company records, published data and management.

Customers provide a lot of useful data while placing an order, which helps in forecasting
and operating dictions such as sale volume timing and location of sales, and order size
 farther more, freight bills, purchase order and invoice are additional sources of this type
of data.

Database management:- is the heat of any information system which converts data in
to information and its interface with diction assisting methods. It refers to selection and
identification of data to be stored and retrieved, choice of methods of analysis to include,
and choice of the basic data processing procedures for implementation (Ball all, 1992).

The design of the data base determines the nature of the data to be retained or stored in a
computer memory for quick access. The selection of data to be stored computer is judged on the
following four points.

1) How critical the information is to the dictions the logistical must make in a
particular firm.

2) How rapidly the information needs to beret received

3) How fragrantly it is to be accessed and

4) How much effort may be required to manipulate the information in to the

form needed (Ball ave 1992).

ii) The out puts:-is the output which has a final interface with the logistical decision
makers. The output of any logistics information system is the professed and manipulated
form of output data. Those output data (information) facilitates diction makers top
itemize the logistical resources and ensures a smooth flow of total logistics system.

iii) The resources

There are four types of resources required (Brien 1994)

1. Human Resources

Specialists – System analyses, programmers and computer operations

End users - Anyone who uses an information system.

2. Hard ware resources: it includes

 Machines _ computers, video monitors, magnet disk drivers, printers, optical
scanners.

Media – floppy disk, magnetic type, optical disks etc

3. Soft ware resources: it includes

Programmers_ operating system programmers, spread sheet programmers – world

processing programmers, supply chasing management.

- Procedures- data entry procedures data processing procedures, error correction

procedures, procedures for inter face of logistics information system.

4. Data resources: it includes product description customer records inventory data

bases.

5. Air planes: are every fast made of transport and are very responsive. This is also that
most expensive mode and it is somewhat limited by the availability of appropriate air
port facilities.

2.7. Order processing

Order processing is a set of activities for receiving recording, assembling of products for
dispatch to fill the customer order. Order cycle is a related term having several meaning’s
depending up on one perspective order processing is the key to the customer service and
satisfaction, so with in the marketing perspective, the focus of logistics and supply chain
management are on three key system out puts and three characteristics.

Systems out puts include:

 Responsiveness or speed in order handling fulfillment

 Lowest possible delivered costs for products or service

 Minimal wastage in the system.

System characteristics routinely targeted for:

 Continuous improvement of the system

  Proficiency

 Efficiency related to minimizing the handling of paper work or products. (dk

agrawal2003).

2.7.1. Function of order processing

- Order planning - Order picking and assembly

- Order transmittal - Order delivery

- Order handling

1. Order planning

Order planning refers to designing an efficient order handling system. i.e it determines how a
customer order is recorded and by whom what technique should be adopted (centralized or
decentralized.

2. Order transmittal

Order transmittal refers to a series of events that occur bet wean the time a customer
places an order or sends an order and the time the seller receives the order. In the present
day’s era of real time customer responsiveness, this aspect has received, an increasing
attention of most of the enterprises mainly due to two reasons, namely.

i. UN reasonably long order transmittals time is a bottle neck in the firm capability
to ensure better customer service.

ii. Fixed and smaller replenishment cycle time is the need of the hour for both seller
and customer.

3. Order handling

After the receipt of the order by the seller, order handling process starts, which includes
the following activities.

i) The checking for completeness and accuracy of the order.

ii) A credit check by the credit department.

 iii) Recording of transaction by the accounting departments

iv) Allocation products by inventory department and advices in the pick the shipment
and updates the firm master inventory file, and

v) Transportation of shipment from the ware house by the traffic department.

4. Order picking and assemble

Order picking and assembly function of order processing involves giving instruction to a
specific ware house to assemble a given order for a customer.

The order picking and assembly function includes all the activities from the time the ware
house receives an order to ship items until goods are loaded on out bound carriers.

5. Order Delivery

The last function of order processing is order delivery. The time form when a carrier picks the
shipment until it is delivered to the customer receiving dock, transit time. This transit time has a
direct and major impact on sellers total order cycle time or customers, replenishment cycle time.
Hence, proper load planning and fleet management are essential functions of total order
processing system failing which transportation cost.

2.8. Transportation

TRANSPORTATION: is a key logistics activity to provide movement of material from point of

origin to point of consumption, and to its ultimate point of disposal. It is largest single cost
among logistics activities. (Donald waters, 2003).

2.8.1. Transport Functionality and Principles

Transportation is a very visible element of logistics. Consumers are accustomed to seeing trucks
and trains transporting product or parked at business facilities. Few consumers fully understand
just how dependent our economic system is upon economical and dependable
transportation.

This section provides a foundation by reviewing transportation functionality and the underlying
principles of transport operation. (Donald waters, 2003).

 Transport Functionality

Transportation enterprises provide two major services: product movement and product storage.
Product Movement

Whether in the form of materials, components, work-in-process, or finished goods, the

basic value provided by transportation is to move inventory to the next stage of the business
process.

The primary transportation value proposition is product movement up and down the
supply chain. The performance of transportation is vital to procurement, manufacturing,
and market distribution. Transportation also plays a key role in the performance of reverse
logistics. In the United States approximately 59 % of total logistics cost consists of
transportation services.' Transportation cost results from driver labor, vehicle operation, capital
invested in equipment, and administration. In addition, cost results from product loss and
damage. (Donald waters, 2003).

Transportation uses environmental resources both directly and indirectly. In direct terms,
transportation represents one of the largest consumers of fuel and oil in the U.S.
Economy.

Although the level of fuel and oil consumption has improved as a result of more fuel efficient
vehicles, total consumption remains high. Indirectly, transportation impacts the environment
through congestion, air pollution, and noise pollution. (Rahul van altekar, 2005)Product Storage.

Transport Principles
There are two fundamental economic principles that impact transportation efficiency: economy
of scale and economy of distance. (Rahul van altekar, 2005).

Economy of scale

In transportation is the cost per unit of weight decrease as the size of a shipment increases. Fo r
example, truckload shipments that utilize an entire vehicle's capacity have lower cost per pound
than smaller shipments that utilize a limited portion of vehicle capacity. It is also generally
truethat larger capacity transportation vehicles such as rail and water are less costly per
unit of weight than smaller capacity vehicles such as trucks and air. Transportation economies of
scale exist because fixed cost associated with moving a load is allocated over the increased
weight. Fixed costs include administration related to scheduling, cost of equipment, time
to position vehicles for loading or unloading, and invoicing. Such costs are considered fixed
because they do not vary with shipment size. In other words, it costs as much to administer a 100
pound shipment as one weighing 1000 pounds. (www. Wikipedia.com)

Economy of distance

It refers to decreased transportation cost per unit of weight as distance increases. For example, a
shipment of 800 miles will cost less to perform than two shipments of the same weight
each moving 400 miles. Transportation economy of distance is often referred to as the
tapering principle. The rationale for distance economies is similar to economies of scale.
Specifically, longer distances allow fixed cost to be spread over more miles, resulting in
lower per mile charges.

These scaling principles are important when evaluating transportation alternatives. The goal from
a transportation perspective is to maximize the size of the load and the distance being shipped
while still meeting customer service expectations. (Donald waters, 2003).

2.8.2. Transportation Documents

There is several documentation required to perform each transport movement. The three primary
transport documents are as follows. (Douglas m. lambert et al, 1998).

 BILL OF LADING
This is the basic document for using transport service. It serves as a receipt, and documents that
commodities and quantities that are shipped. Accurate description and count are essential. In
case of loss, damage or delay the bill of lading is basis for damage claims. The designated buyer
on the bill of lading is the only receiver of goods. A carrier is responsible for proper delivery
according to the instruction contained in the document. In effect, title is transferred with
completion of delivery. The bill of lading specifies terms and conditions of carrier liability and
documents responsible for all possible cause of loss or damage. (www. Wikipedia.com).

 FREIGHT BILL
Freight bill represent a carrier method of charging for transportation service performed. It
is developed using information contained in the bill of lading .the freight bill may be prepaid or
collected. Prepaid bill as the name indicates means that the transporter is paid prior to
performance. On the other hand a collected bill shifts the responsibility of payment on
the consignee. (www. Wikipedia.com).

 SHIPPING MANIFEST
It lists individual consignees when multiple shipments are placed on single vehicles. Each
shipment requires a bill of lading. The manifest lists the stop, bill of lading, weight and
case count for each shipment. The objective of the manifest is to provide a single document
which defines the contain of the total load without requiring review of each individual bill of
lading , for single stop shipments the manifest is the same as the bill of lading. (www.
Wikipedia.com).
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research type
The Research type used under the study is a cross sectional approach. its involve the data
collected at defined time, they takes place different group at one particular time. And careful
examination of phenomenon. The study also use descriptive type of research to
conduct the study. Descriptive research helps to identify and obtain
information on the characteristics of certain particular qualities and detailed
describing a phenomenon they exit. Therefore, the study would use such
type of research detailing to obtain reliable data on data on assessing of logistics
activity on cvustomer satesfaction in Almeda textile share company.

3.3. Source of data

The researcher is conducted in assisting effects of logistics activities on customer satisfaction so

that the needed information is collected by using both primary and secondary data sources. So
that the primary data is collected through questioner ,interview and observation the questioner
was both open ended and close ended questioner and the interview also starched interview and
face to face interview a researcher collected raw data the secondary source of data books and
intranets the data were collected from the secondary sources are studies from other related issues
the use of the secondary sources are helpful for the researcher for the comparison of results and
for review of literature.

3.4. Sample and Sampling technique

The researcherused the non-probability sampling method of tenement sampling technique it has
low coast conventional to use and less time consuming.

Non-probability sampling designs the elements in the population do not have any probabilities
attached to their being chosen as sample subjects.Judgment sampling involves the choice of
subjects who are most advantageously priced or in the best position to provide the information
required.

The target population of the researcher is Alemda textile factory are 5070 permanent workers
and 95 temporary workers among these, the researcher picked purchasing and supply chain
department of the company the sample which are 9 in number, transportation department which
are 6 in number,marketing department which are 10 in number there for the researcher took
judgmental sampling method for selecting its samples. Judgmental sampling gives freedom for
the researcher to select its best suited samples and the researcher select 25 samples randomly.

3.5. Procedures of data collection

1) researcher designed the questionnaire first

2) The questionnaire organized properly

3) Appointing the interview and informing the employees that the questionnaire have be
given them

4) Management to conduct interview and questionnaire instruction

5) The response of the questionnaire are organize properly

6) Having taken important not during interview and observation

7) Analysis of the collected data.

3.6. Data analyze tools/methods

After gathering a relevant data the research interpreted by quantitative and qualitative methods
such as percentage, tabulation alsothe researcher used descriptive method of data analysis to
summarize and present the collected data gathers with their frequency and the data changed into
percent use to analyze the data this research helps to present all the collected data in descriptive
from and in order to arrive at logical interpretation and conclusion.
 Chapter Four

4. Data Presentation, Analysis and Interpretation

This section of the study deals with the presentation, analysis and interpretation of data that has been
gathered through questionnaire and interview. The objective of the study is to assess the effects of
logistics activity on customer satisfaction in case of Almeda Textile Company. The researcher has a
target respondents thus are the employees of the enterprise. By using judgmental sampling, the
researcher selected 25 samples. Therefore, data gathered through the aforementioned tools were presented
using tabulation and percentage.
No Description Response in
1 Age Number Percentage
A. 18-25 years old 12 48%
B. 26-32 “
8 32%
C. 33-45 “
5 20%
D. >46
0 0%

Total 25 100%
No Description Response in

2 Educational level Number Percentage

A. Below 12
B. certificate 0 0%
C. diploma 0 0%
D. first degree 11 44%
E. > Master’s degree 14 56%
0 0%

Total 25 100%
No Description Response in

3 Profession number Percentage

A. Supply chain mgmt.
B. Marketing
C. Management
D. Logistic and supply chain mgmt. 0 0%
E. Others 5 20%
2 8%
4 16%
14 56%

Total 25 100%
No Description Response in

4 Work experience Number Percentage

a. < 3 years
b. 3-5 years 13 52%
c. 5-7 years 7 28%
d. over 7 years 3 12%
Source: own survey, 2017
According to the above tables out of the total respondents 48% of the respondents are in age
category between 18-25, 32% are between 26-32, 20% are between 33-45, 0% are above 46 and out of
25respondents 0% has below 12, 0% have certificate, 44% holds college diploma,56% hold first degree
and no one who holds master’s degree. When we see the employee professional status nobody who has
graduated in supply chain mgmt., 20% marketing, 8% management, 16% in logistics and 56% in
other fields. It also shows that 52% have work experience of less than 3 years, 28% between 3-5
years, 12% between 5-7 years and 8% have over 7 years work experience.

From the above analysis we can easily inferred that the majority of the respondents are age
group between 26-32, having first degree, marketing management graduate and other fields and most of
them have less than 3 years’ experience.

Table 4.2: Performance measurement of transportation

No description Option Response in

Number Percentage
5 What performance measures that is Ease of access 1 4%
use in measuring transportation Comfort 5 20%
performance in your company? Safety 9 36%
Speed 6 24%
Others 4 16%

Total 25 100%
Source: Own survey, 2017
According to the above table, respondents are required to answer the measurement of
transportation performance and 4% replied ease of access, 20% replied comfort, 36% replied safety,
24% replied speed and 16% replied others. From this we can understand that, the organization highly
measures the performance of transposition by its safety and speed.

Table 4.3: Performance measurement of customer service

No Description option Response in

 Number percentage

6 What performance measures that use in Speed 9 36%

operational performance of customer
Satisfaction in the company? Constancy 4 16%

Flexibility 10 40%

malfunction recovery 1 4%

others 1 4%

Total 25 100%

Source: Own Survey, 2017

In the above table 4.3, respondents are asked to answer the performance measurement of customer
satisfaction in the organization and 36% of respondent replied that speed, 16% replied constancy,
40% flexibility, 4% replied malfunction recovery and the other 4% replied others like hospitality and
accuracy. From this we can understand that, the organization use flexibility and speed to measure
the performance of customer satisfaction.

Table 4.4: identifying good preformed activities

No Description option Response in

number percentage

7 Which logistics activities are well order processing 1 4%

performed in the company in related with
customer satisfaction? Logistics information 8 32%
system

Transportation 13 52%

other 3 12%

Total 25 100%

Source: Own Survey, 2017

The above table 4.4 reveals that, the logistics activities that is well performed in the organization in
related with customer satisfaction and 4% of respondent replied that order processing, 32% replied
logistics information system, 52% replied transportation and 12% replied that others. From this we
can conclude that, first transportation is well performed activity in the organization and next to
transportation, the second one is logistics information system.

Table 4.5 companies’ modern technology usage

No Description option Response in

number percentage

8 Dose the company’s transportation system YES 20 80%

use modern technologies?
NO 5 20%

Total 25 100%

Source: Own survey, 2017

From the above table, most of the respondents 20(80%) Saied that the organization use modern
transportation technologies’ and 5(20%) of them not agree that the organization use modern
technologies’. from these we can understand that the organization try to use modern technologies’.
Table 4.6 usage of effective transportation system

No Description Option Response in

Number Percentage

9 Does the company use effective Yes 20 80%

transportation system?
No 5 20%

Total 25 100%

Source: Own Survey, 2017

The above table displays that, 20(80%) of the respondents replied that, the company use effective
transportation system and 5(20%) of the respondents replied that, there is no effective usage of
transportation system in the company. From these we can understand that the organization use effective
transportation system.

Table 4.7employee training

No Description option Response in

number percentage

10 Do you take any kind of logistics related Yes 11 44%

training before?
No 14 56%

Total 25 100%

Source: Own Survey, 2017

According to the above table 3.7 out of the total respondent 11(44%) take professional training on
logistics and 14(56%) or the majority of the respondent doesn’t take training. From this we can refer
that, the professional logistics training does not equally distributed among employees of the company.

Table 4.8the logistics problem

No Description option Response in

number percentage

11 Have you ever face logistics problem? Yes 13 52%

NO 12 48%

Total 25 100%

Source: Own Survey, 2015

According to the above table, employees are required to answer weather they face logistics related
problems or not and 13(52%) respondent replied that yes and 12(48%) respondent replied no. From this
we can understand that over half of the respondents face logistics problems.

Table: 4.9the logistics activity problem

No description option Response in

number Percentage

12 If you say yes for the above question Logistics information system 11 44%
number 11 in which area of logistics
activity? Transportation 8 32%

order processing 0 0%

Other 6 24%

Total 25 100%

Source, Own Survey, 2017

According to the above table, respondents say that they face logistics related problems and among this
11(44%) says in logistics information system, 8(32%) says in transportation, 0% says in order processing,
6(24%) in other activities of the logistics. e. g. customer handling. So that we can easily understand that
majority of the problems are in logistics information system and transportation.
Table: 4.10Logistics service fee

No Description option Response in

Number percentage

13 How do you see the logistics service Very high 2 8%

fee?
High 10 40%

Fair 8 32%

Low 5 20%

Total 25 100%

Source, Own Survey, 2017

The above table reveals that, out of the total respondents 8% of the customer sees the company service
charge as very high, 40% respond high, 32% respond fair and 20% respond low. From this we can
conclude that the majority of the company customer perceives the logistics service charge is
comparatively high.

Table: 4.11Usage of modern transportation technology

No Description option Response in

Number percentage

14 Does the organization use modern Yes 10 40%

transportation technology?
No 15 60%

Total 25 100%

Source, Own Survey, 2017

According to the above table, out of the total respondents 40% respond yes and 60% No, from this we can
easily infer that Almeda Textile company lacks advanced transportation technology and information
system.

Table: 4.12Logistics time requirement

No Description option Response in

number percentage

15 Do you agree that the companies’ logistics Strongly agree 8 32%

service reach at the right time?
Agree 12 48%

Disagree 5 20%
 Strongly disagree 0 0%

Total 25 100%

Source, own survey, 2017

According to the above table, out of the total 25 respondents 32% replied strongly agree, 48% replied
agree, 20% replied disagree and there is no (0%) replied strongly disagree about the availability of
logistics service in the required time. From this qualitative data it is possible to understand that majority
of the enterprise customer is satisfy their time requirement.

Table 4.13Logistics place requirement

No Description option Response in

Number percentage

16 Do you agree that the company logistics Strongly agree 3 12%

service reach at the right place?
Agree 20 80%

Disagree 2 8%

Strongly disagree 0 0%

Total 25 100%

Source, Own Survey, 2017

According to the above table, out of the total 25 respondents 12% replied strongly agree, 80% replied
agree, 8% replied disagree and 0% replied strongly disagree about the availability of logistics service in
the required place.
From this qualitative data it is possible to understand that majority of the enterprise customer is satisfy
their place requirement.

Table: 4.14 standard of logistic service

No Description Option Response in

Number percentage

17 How do you rate the standard of logistics Have improved a little 12 48%
service provided by the company
compared to the last 3 years? Have improved tremendously 8 32%

Deteriorated 0 0%

Have no change 2 8%

Do not know 3 12%

Total 25 100%

Source, Own Survey, 2017

With reference to the above table, customers are requested to compare the present logistic service with
previous last 3 years. 48% replied the service is improved a little. 32% of the respondents respond it has
improved tremendously, 0% respond deteriorated, 8% has no change and 12% of the respondent say do
not know. From the above expression we understand that the company tries his best more, to improve
logistics service by integrating third party logistics service providers.

Table:4.15the current logistics information system of the company

No Description Option Response in

Number percentage

18 How do you see the current logistics Very good 5 20%

information system of the organization?
Good 18 72%

poor 2 8%

very poor 0 0%

Total 25 100%

Source: Own survey, 2017

The above table shows, the customer’s outlook toward the current logistics function of the company. Out
of the total respondents 20% replied Very well, 72% good, 8% replied poor and 0% very poor. From this
we can understand that, the majority of the company logistics service users agreed that, now days the
company logistics performance is good and it improve form time to time.

Table: 4.16Logistics performance measure

No Description Option Response in

Number Percentage

19 Which operational performance measure Speed 12 48%

lacks the logistics service of the enterprise?
Consistency 3 12%

flexibility 10 40%

Total 25 100%

Source: own survey, 2017

According to the above table, the majority of the respondents 48% replied the current logistic
activity of the company lack speed, 12% consistency and 40% flexibility. From the above analysis we can

easily understand that, the logistics service of the company lack almost all elements of operational
performance measures. But speed is the major one.

Table: 4.17Logistics activity problem

No Description Option Response in

number Percentage

20 Which logistics functions have more Transportation 9 36%

problem than others?
logistics information 4 16%
system

order processing 12 48%

Total 25 100%

Source: own survey, 2017

The above table shows that, the specific logistic activity problem that is faced by the customer
and 36% replied the transportation,16% replied logistic information system, 48% replied the order
processing have a problem. From this we can understand that, the Transportation system and logistic
processing has more problem than others.

Table: 4.18logistics and customer service of the company

No Description Option Response in

number Percentage

21 Does the company logistics activity Strongly agree 2 8%

sufficiently fulfill customer needs?
Agree 15 60%

Disagree 8 32%

Strongly disagree 0 0%

Total 25 100%

Source: own survey,2017

According to the above table, respondents are requested weather they agree or not about the Company
logistics activity fulfill the customer needs and 8% replied strongly agree, 60% replied agree and 32%
replied disagree. From this we can easily understand that, majority of the respondents agree on the
enterprise ability to sufficiently fulfill customer needs.

But among those who replied disagree says that, there are some hindrance that affect the
fulfillment of customer satisfaction. This are the problems which is emerged from due to lack of
good infrastructure development and custom clearing process and this kind of problems crate
dalliance and long lid time of the needed materials which is delivered to customers of the
company. Because of the above factors in some what it is not possible to say the company fully fulfills
the customer needs.

Table: 4.19 the overall performance of Transportation

No Description Option Response in

. Number percentage

22 What looks like the overall performance Excellent 2 8%

Of Transportation? Very good 12 48%

Good 8 32%
 Bad 3 12%

Very bad 0 0%

Total 25 100%

Source: own survey,2017

According to the above table, respondents are requested to identify the overall performance Of
transportation 8% respond that it is excellent 48% it is very good 32% it is good and 12% it is bad this
indicate that the organization transportation is mostly lies between very good and good. And from these
we conclude that the organization transportation performance is very good.

Table: 4.20the overall performance of

No Description Option Response in

. Number percentage

23 What looks like the overall performance of Excellent 4 16%

order processing?
Very good 4 16%

Good 15 60%

Bad 2 8%

Very bad 0 0%

Total 25 100%

Source: own survey, 2017

From the above table, 16% of the respondents respond that the performance of the organization
order processing is excellent, and also other 16% of the respondent’s response that it is very
good, most of the respondents 60% of respond that it is good and the remaining 8% of them
respond that it is bad. From these we can conclude that the organization order processing
performance is good.

Table: 4.21 the overall performance of

No Description Option Response in

Number percentage

24 What looks like the overall performance of Excellent 2 8%

logistics information system?
Very good 5 20%

Good 16 64%

Bad 2 8%

Very bad 0 0%

Total 25 100%

Source; own survey, 2017

According to the above table, 8%(2) of the respondents respond that the organization logistics
information system is excellent, 20% (5) of the respondents respond that it is very good, 64%(16) of the
respondents respond that it is good and 8% (2) of the respondents respond that it is bad. From this we can
easily understand that the organization logistics performance is good.

4.1. Results of Interview Question

According to the manager response the organization run the three logistics activities as the main part of
the organization because the three logistics activities are crucial to the organizational objective
attainment and the organization face some problems in conducting these activities and we try to improve
them because we cannot be competent without them.
According to the managers response currently those activities are performed in a very good manner and
those activities affected by time constraint and infrastructure but the organization try his best to improve
them. And now we try to improve the problems by giving training to our employees and coordinating
with our transportation service providers and working with government bodies.
Based on the managers response the logistics activities have a great impact on customer satisfaction we
can see the three activities differently and can look their effects let’s look transportation have a big impact
because some dalliance in inputs can interrupt production and also after production in distribution the
delay can create customers dissatisfaction, LIS also a big impact on the lead time, and also order
processing have a big impact.
We provide training for employees related to logistics and still we are try to use modern way of
performing activities and we try to hire more of logistics professionals.

CHAPTER FIVE

5. Summary, conclusion and recommendation

5.1. Summary
This section presents the summary of the major findings identified in this study. Therefore, the
following are the major finding of the study.

The main purpose of the research was assessing effect of logistics activity on customer
satisfaction.Logistics activity has a big impact on customer satisfaction. Therefore, according to
the discussion and analysis of data presented under chapter four major findings with issues
related to the three logistics activities the organization faced some problems in transportation,
logistics information system and order processing. The problems are associate with lack of
training in the organization, lack of professionals in the needed work place and the infrastructure
of the country affect the organization transportation performance.

Finally with related to the logistics activity the company practice the logistics function as part of
the company the three logistics activity are performed in the organization in a good manner.
These logistics activities have a big impact on customer satisfaction and the organization
improve this activities time to time.

Finally the research found as the following

 The organization not provide fast delivery service,

 not give attention for logistics cost
 not recruit skilled man power
 not giving training
 not good infrastructure
 no used modern technology ,have not good facility
 5.2. Conclusions
Generally, from this finding the researcher reached at the following points:
 Majority of the respondents are youngsters and the researcher concludes that most of the ALTEX
employees are relatively young.
 Based on findings regarding other demographic characteristics almost all employee are educated
and large number of employee have first degree and less than 3 years’ work experience.
 The Company highly measures the performance of transposition by its safety and speed.

 According to the above table: 4.8, employees are required to answer weather they face logistics related
problems or not and 13(52%) respondent replied that yes and 12(48%) respondent replied no. So that,
over half of the respondents face logistics problems.
 Table: 4.10 reveals that, out of the total respondents 8% of the customer sees the company service charge
as very high, 40% respond high, 32% respond fair and 20% respond low. Generally, the majority of the
company customer perceives the logistics service charge is comparatively high.

 Based on the finding, the companies use flexibility and speed to measure the performance of
customer service.
 Majority of the respondents agree that, transportation is well performed logistics activity in the
enterprise and it try to use modern transportation technologies.
 Based on the finding Majority of the respondents of company agree that, the company lacks
advanced transportation technology and information system however in somewhat the company
is satisfying their time and place requirement.
 According to table: 4.9 respondents say that they face logistics related problems and among this 11(44%)
says in logistics information system, 8(32%) says in transportation, 0% says in order processing, 6(24%)
in other activities of the logistics. e. g. customer handling. Therefore, we can easily understand that
majority of the problems are in logistics information system and transportation.
 Based on the finding, the current logistics performance of the company is good and it improves
form time to time compared to the last 3 years but it still lacks flexibility and speed and
transportation has more problem than others.
 Based on the finding, the enterprise try to improve its logistics performance and customer
satisfaction by providing training for employees, by using modern way of performing activities
and by hiring more of logistics professionals.Based on the finding Majority of employees of the
company are marketing professionals and other fields of business.

 According to Table: 3.7 reveal that, out of the total respondent 11(44%) take professional training on
logistics and 14(56%) or the majority of the respondent doesn’t take training. Generally, the professional
logistics training does not equally distributed among employees of the company.

5.3. Recommendations
Based on the findings of the study and the conclusion made, the following recommendations are
made by the researcher.
- ALTEX should work hard by making fast delivery for customers and improve its service
performance more than the current situation.
- The COMPANY should clearly understand and give due attention for logistics cost because
logistics is concerned with getting product and service where they are needed and precise time
desired with low cost .The company should hire more of logistics professionals.
- The company must recruit skilled man power.
- Training plays a crucial role in upgrading the employee skill and knowledge. So, the company
should strictly schedule for training to achieve operational improvement.

- The logistics problem of the company is solved by integrating other third party logistics service
providers to reduce cost and to focus on its core competencies.

- It is better if government work on infrastructure to increase the effectiveness of transportation.

- The company logistics services should be supported by modern information technologies.
- Internal structure and systems that allow free and timely flow of information between individuals and
departments should be put in place.
- Since physical distribution of finished products is essential if an organization is to realize its full potential
and achieve customer satisfaction, a channel that enables faster distribution of goods and at lower cost
should be put in place.
- The company must have adequate storage facilities with modern materials handling equipment.
- Employees must be involved and constantly trained on the use of modern tools and machines so as to
improve the speed and efficiency of opration.
 Reference
 Ag Rawal (2003) Logistics supply chain management

 Bowerson (2010) Introduction to transportation

 Councel of logistics management (1993) Introduction to logistics
 Donald waters. (2003). Logistics, an introduction to supply chain management.New York:
Palgravemacmillan
 Donald J.BOWLEX (2004) Supply chain management 1sted
 Douglas Long. (2003). an introduction to logistics. London: Wiley& sons Ltd.

 Douglas. M. Lambert, James. R.Stock& Lisa. M. Ellram. (1998). Fundamentals of

LogisticsManagement.

 DR. Ayele kuris (2006) Ethiopian economy

 Jadislnsheth (2007)Patricjonsson Logistics supply chain management
 Kotler (1997)
 www.Jtoncedm Marketing management

.com retrieved April 2011.

www.Thomasnet.com

 Kotler (2006) Principle marketing management.

 Martin Christopher. (2005). Logistics And Supply chain Management: Strategies.for reducing cost
and improving service (2nded.). New Delhi: Pearson educational limited.and improving service
(2nded.). New Delhi: Pearson educational limited.

 Rahul van altekar.(2005). Supply Mhain Management (2nded.). New delhi: prentic-HallPtd.
Appendix

AKSUM UNIVIRSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT PROGRAM

QUESTIONNAIRE ON ASSESSING EFFECT OF LOGOSTICS ACTIVITIES ON

CUSTOMER SATISFACTION

Dear respondents!

The purpose of this questionnaire is to collect information for a research entitled assessing effect
of logistics activities on customer satisfaction, for the success of completion of the study you’re
honest and kind response is very important. The information obtained from the response will be
used only for research purpose. Your response will be kept confidential. Please don’t write your
name on the questionnaire. Thank you in advance for your kind cooperation and time.

Note: - You can answer the close and open-ended part of the questionnaire just by putting “ X”
marks in the space provided.
1. Age A) 18 -25 years C) 33-45 years

B) 26-32 years D) >46 years

2. Educational level

A) Below 12 C) diploma

B) Certificate D) first degree E) above masters

3. Profession

A) Supply chain mgmt . C) Management

B) Marketing D) logistics & supply mgmt . E)

Others

4. Work experience

A) < 3 years C) 5-7 years

B) 3-5 years D) over 7 years

5. What performance measures that is use in measuring transportation performance in

your company? (You can indicate more than one)

A) Ease of access C) Safety

B) Comfort D) Speed E) others (if any)

6. What performance measures that use in operational performance of customer satisfaction in

the company? (You can indicate more than one)

A. Speed C) flexibility

B. constancy D) malfunction recovery

E) Other (if any)

7. Which logistics activities are well performed in the company in related with customer
satisfaction?

A. order processing

B. Logistics information system

C. Transportation

D. others

---------------------------------------------------------------------------------------------------------------------
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8. Does the company’s transportation system use modern technologies?

A) Strongly agree C) disagree

B) Agree D) strongly disagree

9. If you say “(A or B)” for the above question, what are those modern technologies?

…………………………………………………………………………………………………

10. Does the company use effective transportation system?

A) Strongly agree C) disagree

B) Agree D) strongly disagree

11. Do you take any kind of logistics related training before? (If you are graduated in other field
of study)

A) Yes B) No

12. Have you ever face logistics problem? (e.g., lack of experience…)

A) Yes B) No

13. If you say yes for the above question no 13 in which area of logistics activity? (You can

Indicate more than one)

A) Logistics information system

B) Transportation

C) Order processing

D) Other

14. How do you see the logistics service fee?

A) Very high C) Fair

B) High D) Low

15. Does the enterprise use modern transportation technology? (Like GPS...)

A) Yes B) No

16. Do you agree that the enterprise logistics service reach at the right time?

A) Strongly agree C) disagree

B) Agree D) strongly disagree

17. Do you agree that the enterprise logistics service reach at the right place ?

A) Strongly agree C) disagree

B) Agree D) strongly disagree

18. How do you rate the standard of logistics service provided by the enterprise compared to

the last 3 years?

A) Have improved a little C) Deteriorated

B) Have improved tremendously D) Have no change

E) Do not know

19. How do you see the current logistics performance of the enterprise?

A) Very good C) poor

B) Good D) very poor

20. Which operational performance measure lacks the logistics service of the enterprise?

(You can indicate more than one)

A) Speed B) Consistency C) flexibility

21. Which logistics functions have more problem than others?

A) Transportation B) logistics information system

C) Order processing
22. Does the enterprise logistics activity sufficiently fulfill customer need?

A) Strongly agree C) disagree

B) Agree D) strongly disagree

23. if you say”(C or D)” for the above question no 8, why?

……………………………………………………………………………………………..

24. What looks like the overall performance of the logistics activity’s(Transportation,

Order processing and logistics information system)

A) Excellent C) Good D) bad

B) Very good E) very bad

Interview questions for manager

1. The organization can perform logistics activities. What are they such logistics activities?
2. What are the problem related to logistics activities?
3. Does the customer satisfied in logistics activities?