Project Report Draft-Internship at DHL

BENCHMARKING THE SERVICE QUALITY OF DHL GLOBAL
FORWARDING
PROJECT REPORT
by
AMAL ROY GEORGE
Under the guidance of
Prof. Dr. Antony Gregory

Submitted in partial fulfillment of the requirement for the award of the degree of
Master of Business Administration (FT)

Cochin University of Science and Technology, Kochi
2009 2011
SCHOOL OF MANAGEMENT STUDIES

COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY
Table of Contents
ACKNOWLEDGEMENT ................................................................................................................... 6
DECLARATION...................................................................................................................................... 7
ABSTRACT............................................................................................................................................ 8
CHAPTER 1. INTRODUCTION .................................................................................................................... 9
1.1 THEORETICAL BACKGROUND ....................................................................................................... 10
1.2 PROBLEM STATEMENT ................................................................................................................. 11
1.3 NEED OF THE STUDY .................................................................................................................... 11
CHAPTER 2. REVIEW OF LITERATURE ..................................................................................................... 12
2.1. Service Quality Measurement: Theoretical Foundation ............................................................... 13
2.2 Service attributes of freight forwarding companies ...................................................................... 16
CHAPTER 3. INDUSTRIAL PROFILE .......................................................................................................... 19
3.1FREIGHT FORWARDING INDUSTRY ................................................................................................ 20
3.1.1 SEA FREIGHT FORWARDING .................................................................................................. 21
3.1.2 AIR FREIGHT FORWARDING ................................................................................................... 23
3.1.3 Customer Clearance Procedures............................................................................................ 24
3.2 DHL GLOBAL FORWARDING PROFILE .......................................................................................... 27
3.2.1 DHL AIR FREIGHT SERVICES .................................................................................................. 33
3.2.2 DHL OCEAN FREIGHT SERVICES ............................................................................................. 34
3.2.3 DHL CUSTOMS BROKERAGE .................................................................................................. 35
CHAPTER 4. RESEARCH DESIGN & METHODOLOGY ................................................................................ 36
4.1 RESEARCH METHODOLOGY .......................................................................................................... 37
2
4.2. Objectives of the study ............................................................................................................... 37

4.3. Hypothesis of the study .............................................................................................................. 37
4.4 RESEARCH DESIGN ....................................................................................................................... 39
4.4.1 Data Collection...................................................................................................................... 39
4.4.2 Sample Size ........................................................................................................................... 39
4.4.3 Tools of analysis .................................................................................................................... 40
4.4.4 Limitation of the study .......................................................................................................... 40
4.4.5 Period of Study...................................................................................................................... 40
CHAPTER 5. ANALYSIS & INTERPRETATIONS........................................................................................... 41
5.1 RELIABILITY ANALYSIS .................................................................................................................. 42
5.2 FREQUENCY ANALYSIS ................................................................................................................. 42
ANALYSIS OF HYPOTHESIS ONE WAY ANOVA TEST ............................................................................. 58
CHAPTER 6 FINDINGS, SUGGESTION AND CONCLUSION ........................................................................ 63
6.1 FINDINGS ..................................................................................................................................... 64
6.2 SUGGESTIONS .............................................................................................................................. 67
6.3 CONCLUSION ............................................................................................................................... 68
Bibliography ...................................................................................................................................... 69
APPENDIX .......................................................................................................................................... 71
LIST OF TABLES
Table No Description
Page No
5.1
Table showing the Alpha value (Reliability test)
41
5.2
Table showing whether DHL maintains schedule and transit
42
integrity
5.3
Table showing whether DHL have good pickup and delivery
43
5.4
Table showing DHL sales staff have product knowledge
44
5.5
Table showing whether DHL customer service is accessible
45
5.6
Table showing whether DHL sales are friendly
46
5.7
Table showing whether DHL service is proactive and prompt
47
5.8
Table showing whether DHL is competitively priced
48
5.9
Table showing DHL service is value for money
49
5.10
Table showing whether DHL website is user friendly
50
5.11
Table showing DHL senior management is accessible
51
5.12
Table showing whether DHL claim settlement is good
52
5.13
Table showing operations at terminals is good
53
5.14
Table showing DO release is prompt
54
5.15
Table showing whether DHL invoicing is accurate and prompt
55
5.16
Table showing DHL service is the forwarder of choice
56
LIST OF CHARTS
Chart No Description
5.1
Graph showing whether DHL maintains schedule and transit
Page No
42
integrity
5.2
Graph showing whether DHL have good pickup and delivery
43
5.3
Graph showing DHL sales staff have product knowledge
44
5.4
Graph showing whether DHL customer service is accessible
45
5.5
Graph showing whether DHL sales are friendly
46
5.6
Graph showing whether DHL service is proactive and prompt
47
5.7
Graph showing whether DHL is competitively priced
48
5.8
Graph showing DHL service is value for money
49
5.9
Graph showing whether DHL website is user friendly
50
5.10
Graph showing DHL senior management is accessible
51
5.11
Graph showing whether DHL claim settlement is good
52
5.12
Graph operations at terminals is good
53
5.13
Graph showing DO release is prompt
54
5.14
Graph showing whether DHL invoicing is accurate and prompt
55
5.15
Table showing DHL service is the forwarder of choice
56
ACKNOWLEDGEMENT
First of all I would like to thank Mr Tony Subin, Manager, OFR Pricing-DHL for referring me
to do the project in this prestigious company. I also thank the Regional Manager Mr Suresh
Nair for giving approval for doing this internship. I take this opportunity to express my deep
sense of gratitude to Ms Malini Bharathy, Regional HR DHL Global forwarding for her
guidance inside the organization sparing her valuable time in giving me all support for the
completion of the project. She has been a source of guidance and encouragement to me in this
venture of mine.
I am deeply indebted to each division heads and staffs of each division without which this
internship would not have been possible.
I solemnly express my sincere gratitude to Prof. Dr. Antony Gregory for the guidance and
valuable comments I received throughout my project. I was greatly benefited by his support and
encouragement.
Last but not the least; I bow my head before God Almighty who has blessed me with physical
and mental strength to complete the project.
Cochin
Amal Roy George
DECLARATION
I hereby declare that this report titled BENCHMARKING THE SERVICE QUALITY OF DHL GLOBAL
FORWARDING is a bonafide record of work done by myself during the academic year, 2010-2011 in
partial fulfillment of the requirements of MBA (FT) degree of CUSAT.
This work has not been undertaken or submitted elsewhere in connection with any other
academic course and the opinions expressed in this report are entirely my own.
Place: CUSAT
Date:
Amal Roy George
ABSTRACT
The importance of service quality in any service industry cannot be disputed. Recent political,
economic, and technological changes affecting the transportation industry have made service
quality a major concern for carriers and shippers alike. Customers have increased expectations
concerning the quality of service they receive and shippers are struggling to meet these
expectations. This struggle between shippers and customers would suggest that there is room for
improvement in carrier managements understanding of how shippers define service quality. The
topic of my internship is BENCHMARKING THE SERVICE QUALITY OF DHL
GLOBAL FORWARDING. This study is an attempt to analyze service quality of DHL
Global Forwarding, Chennai and to determine potential areas of improvement within the shipper
customer relationship. The objective of the study is to evaluate the service dependability and
accuracy of DHL performance, to determine whether DHL employees are willing to help
customers and provide prompt services, to study whether the employees of DHL have the ability
to inspire trust and confidence, to know whether DHL provide good equipment, right personnel
and communication materials to measure whether DHL provides individual attention to its
customers. The research design used for this study is descriptive type. It includes surveys and a
fact finding enquires of different training programs. The study is that of a quantitative analysis
where the data collected and studies is supported with the help of quantitative analysis. It
includes the collection of primary data from the customer or clients though distribution of
questionnaire. The data is collected by conducting interviews with mangers, directors and
executives of various customers or clients of DHL. The sample size set by the company was 50
customers and data was collected from these 50 clients or customers. The tool used for analysis
of the data is SPSS (Statistical Package for Social Sciences) which helps in proper analysis and
also help in determining the results. The test used for analysis is reliability test, frequency
analysis or percentage analysis and one way ANOVA test analysis.
CHAPTER 1. INTRODUCTION
1.1 THEORETICAL BACKGROUND

The importance of freight forwarding services has grown tremendously with the increase in
globalization, especially in the burgeoning Asia-Pacific market. Shipping services comprise of
different components or sub-services like sales and marketing, cargo booking, documentation,
operations and claims handling. The creation of customer satisfaction can provide several
benefits, including the relationship between companies and consumers are harmonious,
providing a good basis for the purchase and re-creation of customer loyalty, and form a
recommendation by word of mouth that can benefit the company. Service quality is a focused
evaluation that reflects the customer's perception of specific dimensions of service: reliability,
responsiveness,
assurance,
Empathy,
tangibles.
In
today's
competitive
environment,
organizations must earn the customer's trust by consistently meeting or exceeding expectations.
The disparity between expectation and perception is the major determining factor in a customer's
assessment of quality of service. Service quality and customer service is very important. One
of the most important customer service skills you can develop is the ability to understand and
effectively respond to the customer's needs and concerns. For a long time, a sale has been
perceived to be mostly about trying to convince the customer that he needs the product. Excellent
customer service starts by first taking the time to get to know the customer, their situation,
vision, frustrations, and goals.. Every company owner wants to get loyal customers which add to
repeating purchases and of cause increasing their maximum revenue. But to get there they need
to know about the 5 Service Quality Dimensions. Freight forwarding is certainly a service
activity that is one of the key logistics functions. The level of customer service relies very much
upon the quality of freight forwarders. This study provides directions for measuring service
quality performance and the study was conducted in DHL Global Forwarding, Chennai which
helps in determining and giving suggestions about the potential areas of improvement within the
customer- forwarder relationship.
10
1.2 PROBLEM STATEMENT

Freight Forwarding is certainly a service activity that is one of the key logistics functions. One of
the most important customer service skills you can develop is the ability to understand and
effectively respond to the customer's needs and concerns. However, quality of service is difficult
to identify. The competition in global forwarding and logistics industry is high and the services
provided by each competitor are almost similar. So when the competitors provide similar
services, it is necessary to know service quality of DHL freight forwarding services and to know
whether the clients are satisfied with services provided by DHL. This study provides directions
for measuring service quality performance i.e. reliability, tangibility, responsiveness, empathy,
assurance. To lift the level of quality, service customization for the customer in each country is
necessary. Customer know-how and strong commitment from management of all level is the
prerequisite for firms. So the importance of service quality in any service industry cannot be
disputed. Recent political, economic, and technological changes affecting the transportation
industry have made service quality a major concern for carriers and shippers alike. Customers
have increased expectations concerning the quality of service they receive and the forwarders are
struggling to meet these expectations. This struggle between customers and shippers would
suggest that there is room for improvement in carrier managements understanding of how
shippers define service quality.
1.3 NEED OF THE STUDY

The study is an attempt to analyze service quality of DHL Global Forwarding services, Chennai
and to determine potential areas of improvement within the customer/shipper relationship.
Service quality is a focused evaluation that reflects the customer's perception of specific
dimensions of service: reliability, responsiveness, assurance, Empathy, tangibles. This struggle
between customers and shippers would suggest that there is room for improvement in shipper
managements understanding of how customers define service quality. This study is an attempt to
analyze service quality of DHL Global Forwarding services, Chennai and to determine potential
areas of improvement within the customer/shipper relationship. This also helps in giving
valuable suggestions in order to improve the services of DHL shipping and to know what the
customers exactly expect from DHL services.
11
CHAPTER 2. REVIEW OF LITERATURE
12
2.1. Service Quality Measurement: Theoretical Foundation

"Service quality is a focused evaluation that reflects the customer's perception of specific
dimensions of service: reliability, responsiveness, assurance, Empathy, tangibles. Satisfaction, on
other hand, is more inclusive: it is influenced by perceptions of service quality, product quality,
and price as well as situational factors and personal factors (Zeithaml&Bitner (2003: 85)).Much
of the research in services marketing centers on understanding services and service quality from
customers point of view (Brown et al. 2006). The use of service quality as a competitive edge
has been extensively addressed in marketing literature (Shostack 1977; Lovelock 1983; Gronroos
1978, 2006; Parasuraman, Zeithaml& Berry 1985, 1988, 1991, 1994A, 1994B; Bitner, Booms
&Tetreault 1990; Rust, Zahorik&Keiningham 1995; Rust & Chung 2006; Kasper, Helsdingen,
&Gabbott 2006). However, service quality is an elusive and abstract construct that is difficult to
measure (Cronin et al. 2000). The disconfirmation model of service quality provides a customer
referenced method for assessing service quality. In this model quality is implied if the customers
expectations of the service experience beforehand are exceeded by the service when it is
delivered. Disconfirmation has had a huge impact upon service quality and has been subject to a
series of refinements. Grnroos (1978) identified that services are not one big amorphous event
but comprise of different components technical quality and functional quality which interact
to determine overall quality. SERVQUAL (Parasuraman et al. 1985; 1988) based service quality
approach in academic literature, takes into account disconfirmation and different service
attributes and links them together with management activity through a gap framework.
Delivering Service Quality , by Valerie Zeithaml, A. Parasuraman and Leonard Berry. The
development of SERVQUAL by Parasuraman et al. (1988) as a generalisable measure of service
quality was a seminal contribution that has been adapted and widely used across industries
around the world (Dabholkar et al. 1996). The instrument empirically relies on the difference in
scores between expectations and perceived performance. It consists of 22 items divided along the
5 dimensions, with a seven-point scale accompanying each statement to test the strength of
relations. These 22 items are used to represent five dimensions viz. reliability, responsiveness,
tangibles, assurance and empathy (RATER). After extensive research, Zeithaml, Parasuraman
and Berry found five dimensions customers use when evaluating service quality. They named
their survey instrument SERVQUAL.
13
Tangibles: appearance of physical facilities, equipment, personnel and communication materials.

The tangible Service Quality Dimension refers to the appearance of the physical surroundings
and facilities, equipment, personnel and the way of communication. In other words, the tangible
dimension is about creating first hand impressions. A company should want all their customers
to get a unique positive and never forgetting first hand impression, this would make them more
likely to return in the future.
Reliability: ability to perform the promised service dependably and accurately. The reliability
Service Quality Dimension refers to how the company are performing and completing their
promised service, quality and accuracy within the given set requirements between the company
and the customer. Reliability is just as important as a goof first hand impression, because every
customer want to know if their supplier is reliable and fulfill the set requirements with
satisfaction.
Responsiveness: willingness to help customers and provide prompt service. The responsiveness
Service Quality Dimension refers to the willingness of the company to help its customers in
providing them with a good, quality and fast service. This is also a very important dimension,
because every customer feels more valued if they get the best possible quality in the service.
Assurance: knowledge and courtesy of employees and their ability to inspire trust and
confidence. The assurance Service Quality Dimension refers to the companys employees. Are
the employees skilled workers which are able to gain the trust and confidence of the customers?
If the customers are not comfortable with the employees, there are a rather large chance that the
customers will not return to do further business with the company.
Empathy: caring, individualized attention the firm provides its customers. The empathy Service
Quality Dimension refers to how the company cares and gives individualized attention to their
14
customers, to make the customers feeling extra valued and special. The fifth dimension are
actually combining the second, third and fourth dimension to a higher level, even though the
really cannot be compared as individuals. If the customers feel they get individualized and
quality attention there is a very big chance that they will return to the company and do business
there again.
The identification of five dimensions of service quality has dominated the literature in the field
of service quality. There are now over 5500 research articles on this model (Kasper et al. 2006).
According to EBSCO database (30 Sept07), SERVQUAL as a keyword is appearing in 102
publications. Major published studies include Banking (Arasli, Katircioglu&Mehtap-Smadi
2005; Bexley 2005; Baumann et al. 2007; Aga &Safakli 2007), Education (Arambewela& Hall
2006), Health (Lam 1997; Kilbourne et al. 2004; Pakdil& Harwood 2005), Hotel (Antony,
&Ghosh
2004;
Juwaheer
2004),
Information
System
&
E-Commerce
(vanDyke,
Kappelman&Prybutok 1997; Cook 2000; Jiang, Klein & Carr 2002), Internal Marketing (Frost &
Kumar 2000, 2001; Straughan 2002), Public Services (Orwig, Pearson & Cochran 1997;
Donnelly &Shiu 1999; Wisniewski 2001; Brysland& Curry 2001), Retail (Finn &Lamb 1991;
Dabholkar, Thorpe, &Rentz 1996; Zhao, Changhong&Hui 2002) and Tourism & Hospitality
(Saleh& Ryan 1991; Kouthouris&Alexandris 2005; Home, Peter &Pikkemaat 2005),
Transportation (Crosby &LeMay 1998; Mehta &Durvasula 1998; Durvasula&Lysonski 1999).In
today's competitive environment, organizations must earn the customer's trust by consistently
meeting or exceeding expectations.
The disparity between expectation and perception is the
major determining factor in a customer's assessment of quality of service. Service quality and
customer service is very important. One of the most important customer service skills you can
develop is the ability to understand and effectively respond to the customer's needs and concerns.
For a long time, a sale has been perceived to be mostly about trying to convince the customer
that he needs the product. Excellent customer service starts by first taking the time to get to know
the customer, their situation, vision, frustrations, and goals.
15
2.2 Service attributes of freight forwarding companies

Numerous studies have explored customers perceptions of freight forwarding agencys service
attributes (e.g. reliability of sailing, availability of cargo space and on-time pickup, etc.) and their
influence on shipper selection in order to provide recommendations to management for
improving the service quality (Pearson 1980; Brooks 1983; Brooks 1984, 35-43; Brooks 1985,
145-155; Brooks 1990, 339-356; Collison 1984, 40-54; TengkuJamaluddin 1995). However, few
of these studies have specifically explored service attributes within the context of their influence
on partnering relationships.
Several previous studies in the logistics industry have discussed the selection of service attributes
from a shipper's perspective. Pearson (1980) examined container carrier performance and service
quality from a U.K. shipper viewpoint. He concluded that important service attributes were port
itinerary, sailing date, expected arrival date, transit time, port proximity, regularity, reliability,
and slot availability. Brooks investigated the determinants affecting shipper choice of a container
carrier with reference to exporters in Eastern Canada (Brooks 1983). She found that cost of
service was the most important selection criterion, followed by frequency of sailings, reputation,
transit time, and directness of sailings.
Collison assessed the liner companies on Central Alaskan service routes (Collison 1984, 40-54).
He discovered that the most important items for respondents were, in order of importance, the
extent to which your specific instructions are complied with, overall average time in transit,
schedule reliability, and ability to service outbound and inbound ports that meet the shipper's
requirement.
Suthiwartnarueput
explored
the
efficiency
of
the
shipping
industry
in
Thailand
(Suthiwartnarueput 1985). She showed that the most important service attribute was cost of
service, followed by punctuality, transit times, and frequency of sailings, directness of sailings,
and past loss and damage experience. More recently, Matear and Gray (1993) examined freight
transport services in the Irish Sea market. Among freight shippers, the most important items were
fast response to problems, on-time collection and delivery, value for price, and good
relationships with carriers. In contrast, for freight suppliers, the most important items were
punctuality of sea service, availability of freight space, high frequency of sea service, and fast
response to any problems. An extensive global survey published in 1995 revealed that shippers
16
considered overall cost and service reliability packages more important than freight rates, the
reliability of sailing schedules, port coverage, overland intermodal capability, and multi-trade
capability when selecting ocean carriers (Containerisation International, September 1995).
TengkuJamaluddin (1995) investigated liner shipping services with reference to Far East/Europe
trade. The five service factors to which shippers attached importance were freight rates, cargo
care and handling, knowledgeability, punctuality and transit time, and service frequency. In
contrast, the five service attributes to which carriers attached highest importance were
knowledgeability, freight rates, cargo care and handling, punctuality and transit time and service
frequency. Chiu (1996) found that service attributes of greatest importance to shippers were
prompt responses from a carrier to any problem, transit time reliability, documentation services,
notice of delay, and assistance of loss/damage claims from the carrier.
A study by Whyte (1992) examined the factors determining carrier selection and investigated the
importance of the different aspects of service provided by a road hauler. The buyers in the
sample rated the ability to provide a good service as the most important factor determining
hauler selection, followed by reputation for integrity, flexibility to customer future requirements,
and price. Gibson, Sink, and Mundy demonstrated a basic model of shipper strategies in the
transportation purchasing decision and the shipper-carrier relationship (Gibson, Sink, and Mundy
1993, 371-381). They indicated that key criteria for the selection of partner candidates were a
willingness to meet service expectation, an established track record of outstanding performance,
willingness to focus on continuous improvement, ability to handle special needs and
emergencies, and, finally, willingness to meet cost goals.
An important point documented in previous studies is that perceptional differences exist between
carriers and shippers concerning the importance of service attributes. Hopkins, Strasser,
Hopkins, and Foster (1993) examined service quality gaps in the transportation industry. An
analysis of respondents' attitudes toward seventeen of nineteen statements indicated that shippers'
expectations of service quality were higher than the perceived service they were getting from
carriers.
Jerman, Anderson, and Constantin (1989) also investigated differences between shippers' and
carriers' perceptions of carrier selection variables. Shippers' and carriers' ratings differed
17
significantly for twelve of twenty-six selection variables. The greatest differences were found
with regard to the following: regular calls by a carrier salesman, carrier reputation for quality
service, neatness of vehicle operators, courtesy of vehicle operators, knowledge of a shipper's
needs on the part of a carrier representative, and carrier reputation for dependability. Chiu
examined the differences between the importance carriers and shippers attached to service
attributes, and found that nine of the thirty-five service attributes differed significantly in
importance. These service attributes were notice of delay, assistance with loss/damage claims,
freight loss/damage experience, carrier's reputation, warehousing services, customs clearance
services, regular call by a salesman, long-term contract with carrier, and prepayment cash
discount.
18
CHAPTER 3. INDUSTRIAL PROFILE
19
3.1FREIGHT FORWARDING INDUSTRY

Freight Forwarding is a service used by companies that deal in Domestic, International and
Multinational import and export. This particular service ensures the client with the best possible
customer care for forwarding valuable goods from one destination to another. Freight forwarding
consists of responsibilities and liabilities towards the goods transfer with best prices, transit time,
acknowledgement and alerts to either ends. A freight-forwarder by nature is a true logistics
partner who is able to piece together all elements of a project.
Inco terms
Maintained by the International Chamber of Commerce (ICC), this codification of terms is used
in foreign trade contracts to define which parties incur the costs and at what specific point the
costs are incurred .Inco terms rules are standard trade definitions most commonly used in
international sales contracts .Devised and published by the International Chamber of Commerce,
they are at the key of world trade. Among the best known Inco terms rules are
EXW (Ex works)

FOB (Free on Board)
CIF (Cost insurance and Freight)
CFR (Cost and freight)
DDU (delivered Duty Unpaid) and
DDP (Delivered duty paid)
To understand the trade lane business in terms of freight forwarding, understanding towards
these Inco terms is very essential.
Business Drive
FreeHand Business: It is a business generated at the origin country-sales. Hence it is also

called as non-nominated business.
Nominated Business: It is a business generated at the other end (other country / sales
lead), especially imports to India is termed as nominated business.
Exports are given top priority in India, as India needs foreign exchange due to adverse balance of
trade. In fact, practice of giving encouragement to exports is followed by almost all nations.
Government gives encouragement to export through various schemes. Exports are mainly
supported and supervised by Commerce Ministry of Government of India. Broadly, the export
incentives for manufacturers are
No excise charged on final product
Imports without payment of customs duty
20
No export duty on export of final product
Exemption from Income tax
Exemption from sales tax on final product
3.1.1 SEA FREIGHT FORWARDING

Here the service provided by a forwarder towards exports and imports of goods through sea
transport. Sea freight forwarding consists of three job profile in terms of freight
A legal document between the shipper of a particular good and the carrier detailing the type,
quantity and destination of the good being carried. The bill of lading also serves as a receipt of
shipment when the good is delivered to the predetermined destination. This document must
accompany the shipped goods, no matter the form of transportation, and must be signed by an
authorized representative from the carrier, shipper and receiver.
House Bill of Lading:
Provide evidence contract of carriage. Receipt for goods delivered to carrier. Documents of title
enabling the goods to be transferred to shipper from consignee. It is a negotiable document
Sea Way Bill:
A non-negotiable document and a replacement of B/L. Cargo can be claimed by consignee
presenting the way bill upon production of proper identification.
Master Bill of Lading
It is issued by Liner to FF as an acknowledgement for the consignment to be shipped on from
POL POD.
Express Bill is also a non-negotiable document which is also a replacement of the traditional
ocean B/L.
MTD
Multimodal Transport Document: The FIATA multimodal B/L is commonly used by shipping
lines and multimodal transport providers where the voyage involves more than one mode of
transport. With MTO the freight forwarder promises to either carry the cargo, or get the cargo
carried as principal .It is issued by the DG shipping line where the insurance is covered under TT
club (India).
21
Export General Manifest:

All the shipping lines/agents need to furnish the Export General Manifests, Shipping Bill wise, to
the Customs electronically within 7 days from the date of sailing of the vessel.
Bonded Warehouse
The Customs Service authorizes bonded warehouses for storage or manufacture of goods on
which payment of duties is deferred until the goods enter the customs.
Shipping Bill:
It gives the details such as: Quantity and value of the goods and of the export order, The name of
the vessel carrying the goods. The FOB price of the goods, total number of packages, etc. This is
an important document required by Customs for permitting shipment.
Endorsement on B/L:
The B/L is a transferable document as per custom and practice. It is very important and useful
and the utility lies in the ability to transfer the title to the goods from the Exporter to any party or
to the importer by means of an endorsement on the B/L.
Liabilities Hbl&Mbl
Freight forwarder accepts and assumes the liabilities for consignment given to them in terms of
responsibility/Custodian of Cargo.
The terms of ownership transfer is also liable where the transaction are indirectly incurred with
respective banks
Cargo classifications.
1. FCL Full Container Load
These type of cargo are used by Shipper demand for allotting the whole load (20ft,40ft,45ft)
2. LCL Less than Container Load
This type of cargo is also used on Shippers demand which is a small package and need to be sent
in consol.
Types of Cargo
1. Standard (20ft-40ft)
2. High Cube (40ft)
22
3. Open Top (20ft-40ft)

4. Flat rack collapsible(20ft-40ft)
5. Flat rack(20ft-40ft)
6. Reefer (20ft-40ft)
7. Reefer high cube(40 ft)
8. Platform (20ft-40ft)
3.1.2 AIR FREIGHT FORWARDING
Airfreight transportation is becoming more economical with exporters for small volume
goods that makes use of consolidates airfreight.
However, air cargo is still very expensive for shipping goods that have a high weight or
cubic dimension to value.
Freight charges are based on weight or measurement whichever is the higher. The
contract between the airline and the exporter is called an airway bill.
The advantages of using air transportation are:
Speed of delivery (e.g. fish or perishable goods)
Permits lower inventories at branch warehouse, etc.
Reduces working capital tied up in "goods in transit" and reduces packaging costs.
Avoids conditions of extreme heat, dampness which are often found in ocean-going
vessels.
Both scheduled and non-scheduled air carriers offer a great variety of air cargo flights.
Reduces pilferage and damage to goods being shipped compared with other methods.
Reduces insurance costs because of less theft, damage, etc.
Air freight-Terminologies
Air way Bill: The Airway bill is a document of contract for carriage of goods between the
shipper and the airline.
23
House Airway bill: Issued by Freight Forwarder: It is issued by the house of a consolidator for
individual components of goods covered under airline Airway bill.
Master Airway Bill: Issued by Airline: it is printed with issuing carriers identification.
IATA-International Air Transport association: it is a regulatory body for the transshipment of air
cargos from one origin to another. It issues license for those agencies who perform their
approved standard of performance and are called as cargo agents. A joint air cargo industry
programme involving all stakeholders of the supply chain including Customs and Government
Agencies
Codes: IATA has divided the world map into three zones .1.america 2.africa and Europe 3.asia
and Australia. Major countries are coded with two letter codes and city as three letter codes.
Weighing the cargo: Freight charges are calculated on the actual weight or the volumetric
weight, whichever is higher.
Currency: Imports from any country will be booked in the local currency only. If the country
currency value is found week then USD will be considered. Rounding of weight will always be
to the next nearest value.
Customs Clearance
A document given by customs to a shipper to show that customs duty has been paid and the
goods can be shipped.
Customs Duty: A tax, duty or tariff levied at the time of import upon goods entering a country.
Usually based on the value of the goods on the physical nature of the goods such as quantity or
weight, or on a combination of the value and other factors.
Inland Container Depot: ICD essentially function like a dry port. ICD functions as common user
facility offering all services for customs clearance like any other port. It has facilities for
handling and temporary storage of imported / export goods and empty containers.
Container Freight Station: ICD is normally located outside port towns, whereas no site
restrictions apply to CFS. The CFS is treated as extension of a port / ICD / air cargo complex. An
ICD may have CFS attached to it.
3.1.3 Customer Clearance Procedures
Checking the Shipping Documents
Physical Examination of the export cargo
Loading of the goods
24
Post Loading Certification
Export C/C Procedure
Invoice, packing list from the shipper
Shipping bill has to be filled at customs through ICE gate.
HAWB is prepared in the Airway office (WR India).
Getting the pricing from shipping line/airline office.
Book the cargo in shipping line or airline
Goods or cargo from the shipper office to the airport( pick up)
Custom Clearance
Permission to be obtained from the port/airline to take the cargo inside port/airport.
Permission obtained to be shown to the officer of port/airport authority
Register the shipping bill
Assessment of the cargo at custom clearance
Examination of the cargo at custom clearance
LEO taken from the appraiser
Allowed for shipment to be taken from preventive officer
Cargo to be scanned
Documents to be handed over to the airline
After the clearance procedure pallet the cargo
Cargo to be on loaded and ready for export from the country.

Import Procedure
o Information from overseas office/importer
o Get the documents from importer [ invoice, packing list, AWB, supporting docs]
25
o Check cargo status from airline

o Bill of Entry to be filed at customs
o Assessment is done
o Delivery order to be taken from the agent
o Duty calculations for the import cargo
o Cargo to be examined
o Examination report and out of Charge to be taken from Examination appraiser
o Approach Airport Authority for Warehouse &demurrage charges
o After payment of all duties and charges Gate pass will be obtained by AA
o Cargo checked at Airport by AA and hence allowed to release from Airport
o Cargo will be delivered to the concerned party
Customs Clearance Scheme
ICC Indian Chamber of Commerce is a statuary body which is keen in developing the economy
of country by focusing on exports from India with minimal imports. Wherein the reason behind
is
our
Indian
Economy
grows
with
exports
with
foreign
currencies.
The government of India has set in certain rules and regulation adhering which an exporter or
importer gets benefited by availing certain schemes offered by government and are subjected to
pay
duties
and
taxes
on
prescribed
format
of
differing
commodities.
DEPB Duty Entitlement Pass Book Scheme (DEPB Scheme) - The scheme is easy to
administer and more transparent.. The exporter gets credit when he exports the goods. The credit
is on basis of rates prescribed. This credit can be utilized for payment of customs duty on
imported goods.
26
3.2 DHL GLOBAL FORWARDING PROFILE
DHL is a global logistics company. DHL satisfies the increasingly sophisticated needs of
international trade through a worldwide network of responsive, highly-trained professionals and
integrated information systems. Services include, air and ocean freight forwarding, customs
brokerage, distribution and value-added services.The DHL bundles all the logistics expertise and
transport modes required by variety of customers. What sets DHL apart from the rest is its
peerless expertise in managing integrated transport services.DHL is a logistics partner big
enough to deliver freight of any kind, to any place via air, ocean, road or rail, but capable of
giving its customers the personal attention they need. DHL helps customers constantly improve
their transportation networks and gain a competitive advantage, by giving them the means to get
products to market faster and more efficiently.
DHL works with more companies, in more countries, than any other logistics specialist. DHLs
long-established capability in large markets such as Europe, the US and China is matched by a
long term commitment to every territory in which DHL operate. So, wherever customers goods
need to be, one can be sure DHL already have the expertise and capability in place. Whatever be
the product, DHL takes total responsibility for making sure freight arrives on time and in perfect
condition.DHL can handle from microchips to oil rigs. Whether customer are a first time shipper,
or need a complex shipment of large goods moved to different locations, DHL have the specialist
resources to manage.
DHL have the expertise in handling the following special freight type
Ambient and temperature-controlled (dry, liquid, powdered and semi-manufactured)

Pharmaceutical products
Bulk products, including petrochemicals
Chemicals
Dangerous goods
Electronic components
Forest products
Metals
Engineering sub-assemblies
27
High value goods.
DHL are the first letters of the last names of the three company founders, Adrian Dalsey, Larry
Hillblom and Robert Lynn.In 1969, just months after the world had marveled at Neil
Armstrong's first steps on the moon, the three partners took another small step that would have a
profound impact on the way the world does business. The founders began to personally ship
papers by airplane from San Francisco to Honolulu, beginning customs clearance of the ship's
cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbor.
Customers stood to save a fortune. With this concept, a new industry was born: international air
express, the rapid delivery of documents and shipments by airplane. The DHL Network
continued to grow at an incredible pace. The company expanded westward from Hawaii into the
Far East and Pacific Rim, then the Middle East, Africa and Europe. By 1988, DHL was already
present in 170 countries and had 16,000 employees.
At the beginning of 2002, Deutsche Post World Net became the major shareholder in DHL. By
the end of 2002, DHL was 100% owned by Deutsche Post World Net. In 2003, Deutsche Post
World Net consolidated all of its express and logistics activities into one single brand
DHL is the global market leader in international express, overland transport and air freight. It is
also the world's number 1 in ocean freight and contract logistics. DHL offers a full range of
customized solutions - from express document shipping to supply chain management. The reason
for the success of DHL is due to its very effective and efficient way of carrying out the process
of project management. The basic steps in it are as follows.
INTEGRATED LOGISTICS
Logistics is viewed as the competency that links an enterprise with its customers and suppliers.
Information from and about customers flows through the enterprise in the form of sales activity,
forecasts and orders. As products and materials are procured, a value added inventory flow is
initiated that ultimately results in ownership transfer of finished products to customers. Thus the
process is viewed in terms of two inter-related efforts, inventory flow and information flow.
The management of logistics is concerned with the movement and storage of materials and
finished products. From the initial purchase of a material or component, the logistical process
adds value. By moving inventory when and where needed. Thus the material gains value at each
step.
For a large manufacturer, logistical operations may consist of thousands of movements, which
ultimately culminate in the delivery of the product to an industrial user, wholesaler, dealer or
customer.
DHL is completely service oriented therefore it does not have its own material movement but
that of the customers the sender, the receiver and also the intermediaries. That means it only
28
involves physical distribution and procurement. Procurement also includes the material needed
for packaging such as paper, moulded trays and boxes, wooden crates, standard containers
wraps, plastic inlays etc. The materials or the goods collected from the senders (including
papers, documents, physical goods like clothing, household good, chemicals, exotic animals etc)
are weighed, checked for condition, and depending upon its various characteristics it is packed.
The goods are then dispatched to their destinations. There is no value addition to the material
itself but it is done to the service which is provided
Information flow identifies specific locations within a logistical system that have requirements.
Information also integrates the three operating areas. The primary objective of developing and
specifying requirements is to plan and execute integrated logistical operations.
DHLs whole business is dependent on the vital point of timely delivery. Based on the distance
to the final receiver, the accessibility, the documentations and procedures that need to be handled
etc they have fine tuned the process of delivery. They can accurately gauge how much time it
will take for the goods to reach its end destination.
DHL owns its success for the efficiency with which the operations are carried out. Here not only
the company but the sender and sometimes the receiver can track the goods through their
information center. They are given a certain password which they can use to trace via online or
their customer service helpline.
DHL WEB SHIPPING is the on-line express shipping tool that helps customers prepare
documents, book pick-ups, store contact details and track their deliveries. Ideal for busy office
managers, business travelers or receptionists, DHL WEB SHIPPING needs no special software
or training. DHL WEB SHIPPING's new, simplified navigation guides customers, quickly and
easily, through the entire process. So they can respond to any shipping request within minutes
Good design is at the heart of an effective supply chain solution. DHL has developed a
reputation for consistently developing innovative solutions that streamline operations and
improve control. Their in-house teams have contributed to the solutions design of some of the
world's leading brands and enabled to win key contacts. DHL solutions design team offers a
wide portfolio of expertise and services, from logistics network strategy, transport design,
warehouse design and simulation, through to operational improvement and inventory analysis.
DHL helps customers:
Give visibility of the upstream supply chain, and enable earlier decision making
Create a more agile supply chain, better able to respond to changes in consumer demand
Reduce lead times, inventories, and associated storage costs
Customer-focused solutions are built up from the following core services:
29
Origin management, including: vendor management; supplier collections; customs

brokerage; consolidation services and value-added services
Global forwarding, including: air/ocean/road/rail freight forwarding and management;
European managed transport
Destination management, including: port and demurrage management; customs
brokerage; de-consolidation and pre-retail services; port to distribution centre
transportation; direct store delivery (US only)
Supply chain visibility and management, including: purchase order management; RFID
product tracking; exception management; planning and forecasting; inventory
management.
Global forwarding services are provided across all major routes.
Logistical services that are offered are Reverse Logistics, Service Logistics, Inbound to
Manufacturing, Medical Device Distribution, Distribution to Stores Management, Engineering
Response
DHLs reverse logistics solutions help customers plan, implement and control flow of materials
and manage related information, back up the supply chain to recapture values and ensure the safe
disposal of goods. Items include the recovery of obsolete or non-operational white goods such as
refrigerators, plus the removal of old furniture on delivery of new or replacement products.
DHLs service and replacement parts service involves the management of manufacturers'
replacement parts delivered to and from customers according to pre-defined service levels or
warranty agreements on a one-, two-, four- or eight-hour and next-day basis, 24 hours a day,
seven days a week.
DHL works closely with customers to overcome common issues such as:
Poor parts availability

High inventory investment
Long lead times, accentuated by global sourcing
High levels of customer returns
Poor visibility, reporting and control
Cost control of the demand chain
Key services include:
International freight forwarding

Domestic and regional inbound deliveries
Inventory planning, forecasting, procurement and analysis
Distribution centre operations
30
Outbound delivery
Inbound to manufacturing is the complete end-to-end logistics management of inventories,

facilities and labor associated with the inbound flow of materials from vendors and supplier
origins to consumption points in manufacturers production lines.
The service encompasses:
Network, transportation and facility design

Inventory optimization
Supplier management
Transportation management
In-plant services
Key to the service is integrating manufacturers' forecasting, order management and supply chain
execution processes with their component suppliers. DHL implements warehouse management
and supply chain event management systems to manage just-in-time deliveries and allow supply
chain participants to exchange forecast requirements in real time.
Value is created for manufacturers and component suppliers throughout the world by:
o enabling a robust and cost-effective supply chain
o Providing the necessary visibility so that the location of all components within the
supply chain is known to all supply chain participants
o Reduce inventory and investment costs
o Improve delivery times
o Co-ordinate multiple components more efficiently
DHL country-based warehouses for a number of manufacturers to service a local customer base.
This includes the receipt of product from local or global manufacturing sites and downstream
distribution to hospitals.
DHL distribution to store services are focused on helping retailers create efficient and flexible
supply chains to deliver product to retail outlets at high levels of service.
These solutions are built from several core services: reverse logistics collections; sortation;
processing; repair/refurbishment; value recovery; disposal and compliance.
Through our Engineering Response services, we manage the materials supply chain from works
planning and inbound goods through to on-site works, delivering stock out to engineers, builders
and construction workers in the field.DHL not only provides physical ogistics services but also
manages other enhanced supply chain services, improving efficiencies and reducing costs.
Receipt, management, execution, sequencing and dispatch of orders in a timely manner. A Call
Centre manages orders, monitors sales activities, provides customer services and functions as a
31
Help-desk. DHL gives the customer a global view of inventory, thus enabling informed decisions
regarding the disposition of stock. The creation of a consolidated and categorized invoice, based
on all services performed in a specific time-period by more than one service provider, made
available in an agreed format. DHL's many years of experience with international trade
requirements and formalities, combined with the European Competence Centre and country
expertise, gives customers the leading edge in service, quality and management in cross border
transactions.
Total Quality Management is a management strategy that integrates quality orientation into the
whole structure and workflow of a company by using methods and techniques of quality
management
Corporate Policy for Quality, Environment, Health and Safety (QEHS) is based on five corporate
values:
Customer satisfaction: Providing our customers and their customers with excellent, high
value logistics solutions
Employee motivation: Building on the know-how and stimulation of individual potential
in multi-cultural teams
Operational excellence: Continuous improvement of processes and services to fulfil or
exceed expectations
Corporate citizenship: Acting as a responsible corporate citizen in all countries
Shareholder reward: Developing a sustainable business to provide increasing shareholder
value
DHLConsolidation is the practice of combining diverse cargoes into single shipments, to achieve
substantial savings on freight costs. In road freight, this is known as groupage.
Unlike many of DHLs competitors DHL own overland road network, ensuring coherent
procedures at all times
DHLs global scale allows us to provide cost-effective consolidation and groupage
services for customers worldwide
With an unrivalled timetable of international departures, plus door-to-door tariffs and
tracking capabilities, DHLs consolidation service is ideal for palletized and loose loaded
shipments
DHL can support customers with customs brokerage and customs declarations, cargo
inspection, quality control and sorting
DHLs standardized security procedures ensure customers freight receives the highest
level of protection.
32
The advantage in both intermodal and multimodal transport is that they use the most efficient
combination of transport modes, keeping your freight costs down. Both services are more
environmentally sustainable than some single mode transport methods.DHL is flexible partner
for overland freight transport. DHL ensure reliable and efficient international transportation for
customers of all sizes, all supported by their customs expertise. When the customer need a
quicker mode of transport than pure ocean freight, but need a more economical alternative to air
freight then DHLs multimodal solution, DHL SEAIR is the answer. DHL SEAIR offers
customers real-time visibility at every step of the transport process. DHLs aim is to be the
logistics partner of choice to the oil and gas, mining, power generation and construction
industries. Its expertise in cargo scheduling and materials management means we can offer
tailored solutions for unique outsize cargoes and heavy lifts. DHLs specialties cover such areas
as feasibility studies and risk management, packaging design, document process management, to
the safe transportation of heavy lifts and out-of-gauge cargo. For more than 45 years, DHL has
specialized in transport for trade fairs and events. DHLs expert, multi-lingual staff has delivered
exhibits, stands and promotional materials all over the world. DHLs complete portfolio of
flexible exhibition services ensures a perfect show. One can choose preferred mode of transport
to and from the trade fair site. We can also offer you a complete range of document handling and
customs clearance services, to help smooth the import/export process. We live in an increasingly
global economy where products are sourced from low cost production locations to meet
consumers demands at prices they can afford. From fashion to consumer electronics, auto parts
to FMCG, supply chains are lengthening, yet consumers are becoming ever more demanding,
Changes in world economics mean that sourcing decisions are continually changing, which
places additional stresses on the supply chain. As a global leader in freight forwarding and
contract logistics DHL has the experience, capabilities and reach to help change buying terms
with your suppliers, improve control of inbound supply chain, and reduce product costs, logistics
costs and inventories.
3.2.1 DHL AIR FREIGHT SERVICES

DHL global leader in air freight, carrying 12% of the total worldwide market, more than twice as
much as the second biggest organization. DHLs operations are managed from over 150
countries, providing a personalized service to and from all key markets.DHL can organize
scheduled flights and chartered planes from a wide range of major carriers, as well as
competitive services on its own carrier, making it flexible enough to help everyone from firsttime shippers to regular importers and exporters of freight.DHL is the market leader in shipping
perishable products from Latin America to the rest of the world. DHL use specialist tracking
technology to help ensure that time-critical items, such as flowers and fruits, are delivered
quickly to their destinations, wherever they may be. Combining the very best of DHLs
33
competencies in its international freight forwarding and domestic distribution network, DHL
eliminates the need for costly warehousing. This straightforward door-to-door service picks up
your goods, transfers them to an export facility, and transports them via air before distributing
them to multiple end-users at destination. Its unique features can help you effectively streamline
your operations which all translate into large cost savings depending on your activity profile.
When customers freight requirements dont allow for consolidation, because of the goods size
or volume, then chartering may be the best option. Procuring global air freight capacity on
dedicated aircraft is ideal when product launch coincides with seasonal peaks in air freight.
Every day, DHL charters at least one plane somewhere in the world, for oversized cargo and
items for new product launches.
3.2.2 DHL OCEAN FREIGHT SERVICES

As one of the largest Ocean Freight service providers for Full Container Load (FCL) and Lessthan-Container Load (LCL) shipments, DHL currently handle in excess of 2.7 million TEUs and
more than 2 million cubic meters of LCL freight annually, across all continents. Naturally, our
expertise also includes focused and professional handling of all conventional cargo
transportation. DHL actively manage Ocean Freight services through long-standing carrier
partnerships, which allow offering faster, more cost-efficient and reliable services to enhance
competitiveness. Through Non Vessel Operating Common Carrier (NVOCC), Danmar Lines,
DHL can offer a variety of sailing frequencies and transit times on any given route
DHL dedicates substantial resources to developing and maintaining a highly effective
consolidation system for the LCL market. We provide both traditional LCL services and multivendor buyers consolidations for shipments sourced from single and multiple countries. DHL
carry over 97% of all LCL freight in-house with direct consolidations through extensive National
Gateway network. DHL back this up with our Multi National Gateway network by running inhouse feeder services in support of Gateways.Web-enabled IT solutions enhance LCL services
with features such as track-and-trace and order monitoring to provide you with event data and
transparency
Through DHLs first-class carrier partnerships it ensures shipments are handled with the highest
quality, premium space allotment and optimum pricing. Wherever possible, communication of
shipment information, such us shipping instructions to the carrier, is conducted via EDI in
paperless form. Through DHLs centralized purchasing management, it negotiates total volumes
with first-class carriers to give you the highest quality, space allotment and optimum pricing for
your FCL freight.
34
Carrier supported EDI messaging enables DHL to streamline the process with a paperless
environment to provide booking and shipping instructions to the shipping lines. This simplifies
the documentation process and ensures the highest degree of data accuracy and efficiency. All of
DHLs services are enhanced by a range of web-enabled IT solutions, providing complete
visibility of freight in transit, updating your in-house IT systems and, where required, notifying
custom authorities and contractors of your shipment details.
DHLs conventional cargo services are ideal for the transport of oversized freight and Roll-on
Roll-off (RoRo) cargo.DHLs conventional load services are ideal for the transportation of
oversized goods too large to fit into containers. Cargo such as vehicles, pipeline sections and
turbines often require special vessels and loading equipment. DHLs specialized teams will
ensure cargo is in safe and secure hands by providing tailor-made solutions. All these services
are supported by risk management and sophisticated IT solutions, to ensure reliable performance
and cost optimization. Regardless of the logistical complexity, transportation requirements, DHL
will exceed demands with all its expert resources at your disposal, all the way through to
delivery.
3.2.3 DHL CUSTOMS BROKERAGE

DHL is one of the world's largest customs brokers, filing several million entries every year, from
a complete menu of brokerage services. DHL negotiate complex international shipping
regulations on your behalf at offices located at every major global port, airport and border
crossing point. DHL also works closely with the worlds regulatory authorities, such as the WCO
(World Customs Organization) and the European Commission.
DHLs long-standing relationships with customs authorities mean they can provide a best in
class service for our customers. And with customs getting more complex these days, even freelycirculating goods have to be reported to the appropriate authorities. Thats why their customs
experts see to it that your goods get to their final, intra-community and international destination
with minimum complication and maximum efficiency.
35
CHAPTER 4. RESEARCH DESIGN &

METHODOLOGY
36
4.1 RESEARCH METHODOLOGY

The system of collecting data for research projects is known as research methodology. The
data may be collected for either theoretical or practical research for example management
research may be strategically conceptualized along with operational planning methods and
change management. Some important factors in research methodology include validity of
research data, Ethics and the reliability of measures most of your work is finished by the
time you finish the analysis of your data. Formulating of research questions along with
sampling weather probable or non probable is followed by measurement that includes
surveys and scaling. This is followed by research design, which may be either
experimental or quasi-experimental. The last two stages are data analysis and finally
writing the research paper, which is organized carefully into graphs and tables so that only
important relevant data is shown.
4.2. Objectives of the study

To evaluate the service dependability and accuracy of DHL performance.
To determine whether DHL employees are willing to help customers and provide
prompt services
To study whether the employees of DHL have the ability to inspire trust and
confidence.
To study
whether
DHL
provide good equipment ,
right personnel and
communication materials
To measure whether DHL provides individual attention to its customers
4.3. Hypothesis of the study

1. Reliability
Null Hypothesis (H0): There is no significance difference in the opinion among the
37
respondents of different designation groups with regards to reliability.

Alternate Hypothesis (H1): There is significance difference in the opinion among the
2. Tangibility
respondents of different designation groups with regards to tangibility.
3. Responsiveness
respondents of different designation groups with regards to responsiveness.
4. Empathy
respondents of different designation groups with regards to empathy.
38
5. Assurance
respondents of different designation groups with regards to assurance.
respondents of different designation groups with regards to assurance.
4.4 RESEARCH DESIGN

The research design used for this study is descriptive type. It includes surveys and a fact finding
enquires of different training programs. The study is that of a quantitative analysis where the data
collected and studies is supported with the help of quantitative analysis.
4.4.1 Data Collection

1. Primary Data
It includes the collection of primary data from the customer or clients though distribution of
questionnaire. The data is collected by conducting interviews with mangers, directors and
executives of various customers or clients of DHL.
2. Secondary Data
The secondary data was collected from internet, journals, and by conducting interview with the
customer service department of DHL. The company also provided some materials regarding
various services provided by DHL. These information help in framing the Questionnaire
4.4.2 Sample Size

The sample size set by the company was 50 customers and data was collected from these 50
clients or customers. Convenience sampling method was used for selecting the respondents.
39
4.4.3 Tools of analysis

The tool used for analysis of the data is SPSS (Statistical Package for Social Sciences) which
helps in proper analysis and also help in determining the results. The test used for analysis is
Reliability test
Frequency analysis or percentage analysis
One way AVOVA test analysis: In statistics, one-way analysis of variance (abbreviated
one-way ANOVA) is a technique used to compare means of two or more samples (using
the F distribution). This technique can be used only for numerical data. The ANOVA
tests the null hypothesis that samples in two or more groups are drawn from the same
population. To do this, two estimates are made of the population variance. These
estimates rely on various assumptions. The ANOVA produces an F statistic, the ratio of
the variance calculated among the means to the variance within the samples. If the group
means are drawn from the same population, the variance between the group means should
be lower than the variance of the samples, following central limit theorem. A higher ratio
therefore implies that the samples were drawn from different populations.
4.4.4 Limitation of the study

Time period for the project was not sufficient for conducting a marketing project.
4.4.5 Period of Study

The time period was three months i.e. December 15th 2010 to February15th 2011.
40
CHAPTER 5. ANALYSIS &

INTERPRETATIONS
41
5.1 RELIABILITY ANALYSIS
Reliability is one of the most important characteristics of good psychological measures.

This is used compute the standard measures of internal consistency, coefficient alpha.
Reliability analysis is mainly done to check the reliability of the data collected. For the data
to be reliable the alpha value should be greater than .6
The procedure for doing this is click analyze > scale > reliability analysis. Then variables
that make up the scale to be analyzed should be transferred to the dialog box and click ok fo
the output.
Reliability Test forThe Data Of Employees
Reliability Analysis Scale (Alpha)
Table 5.1
Alpha Value
No of cases
.8527
50
No of items
15
Inference reliability Test

Reliability test is used to test the goodness of the data. Alpha is a reliability co-efficient that
indicates how well the items in a set are positively correlated to one another. The alpha
value (>0.6) indicates that the internal consistency reliability used in the study is very
good. So the data is reliable as the alpha value is 0.8527.
5.2 FREQUENCY ANALYSIS

42
Q.1
Table 5.2
DHL maintains schedule and transit integrity
Valid
disagree
Frequency
1
Percent
2.0
Valid Percent
2.0
Cumulative
Percent
2.0
neutral
8.0
8.0
agree
34
68.0
68.0
78.0
strongly agree
11
22.0
22.0
100.0
Total
50
100.0
100.0
10.0
Chart 5.1
DHL maintains schedule and transit integrity
Interpretation
From the above table and chart, 68% agree that DHL maintains schedule and transit integrity and
22% strongly agree that DHL maintains and schedule and transit integrity and only 8% as a
neutral opinion to the same. As the mean is above 2.5 i.e. 4.1, the analysis is accepted.
43
Q.2
Table 5.3
DHL maintains good pick up and delivery
Chart 5.2
DHL maintains good pickup and delivery
Interpretation
To the statement asked whether DHL generally maintains good pickup and delivery, around 66%
agree that DHL maintains good equipment supply and as the mean is above 2.5 i.e. 3.9, the
analysis is accepted.
44
Q.3
Table 5.4
Chart 5.3
DHL sales staffs have good product knowledge
Interpretation
From the above table and chart, 54% agree that DHL sales staffs have good product knowledge
and 22% each are of the opinion strongly agree and neutral. As the mean is above 2.5 i.e. 3.9, the
45
Q.4
Table 5.5
Customer service is easily accessible
Valid
strongly disagree
disagree
neutral
agree
strongly agree
Total
Frequency
1
4
12
20
13
50
Percent
2.0
8.0
24.0
40.0
26.0
100.0
Valid Percent
2.0
8.0
24.0
40.0
26.0
100.0
Cumulative
Percent
2.0
10.0
34.0
74.0
100.0
Chart 5.4
Customer service is easily acessible
Interpretation
To the statement asked whether customer service is easily accessible, 40% agree that customer
service is easily accessible and only 26% strongly agree to the same.As the mean is above 2.5 i.e.
3.8, the analysis is accepted.
46
Q.5
Table 5.6
Sales and customer service staff are friendly
Valid
strongly disagree
neutral
agree
strongly agree
Total
Frequency
1
10
28
11
50
Percent
2.0
20.0
56.0
22.0
100.0
Valid Percent
2.0
20.0
56.0
22.0
100.0
Cumulative
Percent
2.0
22.0
78.0
100.0
Chart 5.5
30
20
Frequency
10
Std. Dev = .78

Mean = 4.0
N = 50.00
0
1.0
2.0
3.0
4.0
5.0
Interpretation
From the above table and chart 56% agree that DHL sales and customer service staff are friendly
and only 22% strongly agree and 20% as a neutral opinion. As the mean is above 2.5 i.e. 4.0, the
47
Q.6
Table 5.7
Customer service is proactive and prompt
Valid
strongly disagree
disagree
neutral
agree
strongly agree
Total
Frequency
3
3
15
22
7
50
Percent
6.0
6.0
30.0
44.0
14.0
100.0
Valid Percent
6.0
6.0
30.0
44.0
14.0
100.0
Cumulative
Percent
6.0
12.0
42.0
86.0
100.0
Chart 5.6

30
20
Frequency
10
Std. Dev = 1.01

Mean = 3.5
N = 50.00
0
1.0
2.0
3.0
4.0
5.0
Interpretation
To the statement asked whether customer service is proactive and prompt, 44% agree that DHL
customer service is proactive and prompt and 30% as a neutral opinion.As the mean is above 2.5
i.e. 3.5, the analysis is accepted.
48
Q.7
Table 5.8
Chart 5.7
Interpretation:
From the above table and chart, 50% agree that DHL is competitively priced on rate offers and
32% as a neutral opinion to the same. As the mean is above 2.5 i.e. 3.5, the analysis is accepted.
49
Q.8
Table 5.9
DHL service is value for money
Chart 5.8
DHL service is value for money
Interpretation
To the statement asked whether DHL service is value for money, 64% agree that DHL service is
value for money. As the mean is above 2.5 i.e. 3.7, the analysis is accepted.
50
Q.9
Table 5.10
DHL website is user friendly
Chart 5.9
DHL website is user friendly
Interpretation
To the statement asked whether DHL website is user friendly, 64% agree that DHL website is
user friendly and only 22% strongly agree to the same. As the mean is above 2.5 i.e. 4.0, the
51
Q.10
Table 5.11
DHL senior management is accessible
Chart 5.10
DHL senior management is accessible
Interpretation
To the statement asked whether DHL senior management is accessible, 52% agree that DHL
senior management is accessible and 30% as a neutral opinion to the same. As the mean is above
2.5 i.e. 3.6, the analysis is accepted.
52
Q.11
Table 5.12
DHL claim settlement is good
Chart 5.11
DHL claim settlement is good
Interpretation
When asked do the claim settlement of DHL is good, 62% as a neutral opinion that DHL claim
settlement is good and only 30% agree that DHL claim settlement is good. As the mean is above
2.5 i.e. 3.2, the analysis is accepted.
53
Q.12
Table 5.13
DHL operations support at terminals is good
Chart 5.12
DHL operations support at terminals is good
Interpretation
From the above table and chart, 44% agree that DHL operations support at terminals is good and
40% as a neutral opinion and 14% strongly agree to the same. As the mean is above 2.5 i.e. 3.7,
the analysis is accepted.
54
Q.13
Table 5.14
DHL DO release is easy and prompt
Chart 5.13
DHL DO release is easy and prompt
Interpretation
When asked whether DHL BL/DO release is easy and prompt, 54% agree that BL/DO is easy
and prompt and 20% are of neutral opinion and only 16% strongly agree to the same. As the
mean is above 2.5 i.e. 3.7, the analysis is accepted.
55
Q.14
Table 5.15
DHL invoicing is accurate and user- friendly
Chart 5.14
DHL invoicing is accurate and user- friendly
Interpretation
To the statement asked whether DHL invoicing is accurate and user- friendly, 62% agree
invoicing is accurate and user- friendly. As the mean is above 2.5 i.e. 3.8, the analysis is
accepted.
56
Q.15
Table 5.16
DHL is truly your forwarder of choice
Chart 5.15
Interpretation
From the above table and chart, 58% agree that DHL is their true forwarder of choice. As the
57
ANALYSIS OF HYPOTHESIS ONE WAY ANOVA TEST

Dimension 1: Reliability
Null Hypothesis (H0): There is no significance difference in the opinion among the respondents
of different designation groups with regards to reliability.
Descriptives
RELABLTY
N
director
executive
manager
Total
11
9
30
50
Mean Std. Deviation Std. Error

4.0606
.59289
.17876
3.7407
.43390
.14463
3.8000
.45148
.08243
3.8467
.48660
.06882
95% Confidence Interval for

Mean
Lower Bound Upper Bound Minimum Maximum
3.6623
4.4589
3.00
5.00
3.4072
4.0743
3.00
4.33
3.6314
3.9686
3.00
4.67
3.7084
3.9850
3.00
5.00
ANOVA
RELABLTY
Between Groups
Within Groups
Total
Sum of
Squares
.670
10.932
11.602
df
2
47
49
Mean Square
.335
.233
F
1.440
Sig.
.247
Interpretation
Since the significant value is more than 0.05, so we accept the null hypothesis which states
thatthere is no significance difference in the opinion among the respondents of different
designation groups with regards to reliability.
58
Dimension 2: Tangibility
of different designation groups with regards to tangibility.
Descriptives
TANGIBIL
N
director
executive
manager
Total
11
9
30
50
Mean
Std. Deviation Std. Error
3.8788
.77850
.23473
4.0741
.22222
.07407
3.9667
.51305
.09367
3.9667
.53980
.07634

Mean
3.3558
4.4018
3.00
5.00
3.9033
4.2449
3.67
4.33
3.7751
4.1582
3.00
5.00
3.8133
4.1201
3.00
5.00
ANOVA
TANGIBIL
Between Groups
Within Groups
Total
Sum of
Squares
.189
14.089
14.278
df
2
47
49
Mean Square
.094
.300
F
.315
Sig.
.731
Interpretation
designation groups with regards to tangibility
59
Dimension 3: Responsiveness
of different designation groups with regards to responsiveness.
Descriptives
RESPONS
N
director
executive
manager
Total
11
9
30
50
Mean
3.6364
.84924
.25606
3.7037
.45474
.15158
3.6889
.69994
.12779
3.6800
.68664
.09711

Mean
3.0658
4.2069
2.33
5.00
3.3542
4.0532
2.67
4.00
3.4275
3.9502
2.33
5.00
3.4849
3.8751
2.33
5.00
ANOVA
RESPONS
Between Groups
Within Groups
Total
Sum of
Squares
.028
23.074
23.102
df
2
47
49
Mean Square
.014
.491
F
.029
Sig.
.972
Interpretation
designation groups with regards to responsiveness.
60
Dimension 4: Empathy
of different designation groups with regards to empathy.
Descriptives
EMPATHY
N
director
executive
manager
Total
11
9
30
50
Mean
3.6970
.75210
.22677
3.9630
.45474
.15158
3.7667
.54068
.09871
3.7867
.57444
.08124

Mean
3.1917
4.2022
2.33
5.00
3.6134
4.3125
3.33
4.67
3.5648
3.9686
2.33
4.67
3.6234
3.9499
2.33
5.00
ANOVA
EMPATHY
Between Groups
Within Groups
Total
Sum of
Squares
.380
15.789
16.169
df
2
47
49
Mean Square
.190
.336
F
.566
Sig.
.572
Interpretation
designation groups with regards to empathy.
61
Dimension 5: Assurance
of different designation groups with regards to assurance.
respondents of different designation groups with regards to assurance
Descriptives
ASSURANC
N
director
executive
manager
Total
11
9
30
50
Mean
3.5152
.58431
.17618
3.4815
.24216
.08072
3.5667
.50401
.09202
3.5400
.48041
.06794

Mean
3.1226
3.9077
2.67
4.67
3.2953
3.6676
3.33
4.00
3.3785
3.7549
2.00
4.33
3.4035
3.6765
2.00
4.67
ANOVA
ASSURANC
Between Groups
Within Groups
Total
Sum of
Squares
.059
11.250
11.309
df
2
47
49
Mean Square
.029
.239
F
.123
Sig.
.884
Interpretation
designation groups with regards to assurance.
62
CHAPTER 6 FINDINGS, SUGGESTION

AND CONCLUSION
63
6.1 FINDINGS
1. From the above table 5.2 and chart 5.1, 68% agree that DHL maintains schedule and transit
integrity and only 22% strongly agree that DHL maintains and schedule and transit integrity and
only 8% as a neutral opinion to the same. As the mean is above 2.5 i.e. 4.1, the analysis is
accepted. From this we can come to a conclusion that the company is able to satisfy their
customers by maintaining their schedule and transit integrity.
2. To the statement asked whether DHL generally maintains good equipment supply, around
66% agree that DHL maintains good equipment supply and as the mean is above 2.5 i.e. 3.9, the
analysis is accepted. From this we can come to a conclusion that DHL is able to maintain the
equipment supply and the company is able to meet the customer or clients equipment
requirements at right time.
3. From the above table3 and chart3, 54% agree that DHL sales staffs have good product
knowledge and 22% each are of the opinion strongly agree and neutral. As the mean is above 2.5
i.e. 3.9, the analysis is accepted. So majority of respondents agree that sales staffs have very
good product knowledge and have the ability to clear the doubts and requirements of the
customers or clients of DHL.
4. To the statement asked whether customer service of DHL is easily accessible, 40% agree that
customer service is easily accessible and only 26% strongly agree to the same.As the mean is
above 2.5 i.e. 3.8, the analysis is accepted. So when it comes to the accessibility of customer
service of DHL, majority of the respondents agree and strongly agree i.e. 40% and 26% to the
statement whether customer service is easily accessible.
5. From the above table 5.6 and chart 5.5, 56% agree that DHL sales and customer service staff
are friendly and only 22% strongly agree and 20% as a neutral opinion. As the mean is above 2.5
i.e. 4.0, the analysis is accepted. So when it comes to relationship maintenance and friendly
behavior DHL sales and customer service are able to deal with the customers or clients in a
friendly manner which is a motivation for the clients to do business with DHL.
6. To the statement asked whether customer service is proactive and prompt, only 44% agree that
DHL customer service is proactive and prompt and 30% as a neutral opinion.As the mean is
above 2.5 i.e. 3.5, the analysis is accepted. According to the respondents opinion the customer
64
service of DHL can be little more proactive and prompt in order to provide good and better
services towards the customers or clients.
7. From the above table 5.8 and chart 5.7, 50% agree that DHL is competitively priced on rate
offers and 32% as a neutral opinion to the same. As the mean is above 2.5 i.e. 3.5, the analysis is
accepted. So regarding the rates, majority of the respondents agree and have a neutral opinion,
but still they are of the opinion that DHL should come out with competitive rates which motivate
the customers to do business with DHL.
8. To the statement asked whether DHL service is value for money, 64% agree that DHL service
is value for money. As the mean is above 2.5 i.e. 3.7, the analysis is accepted. So majority of the
respondents are of the opinion that DHL service is value for money
9. To the statement asked whether DHL website is user friendly, 64% agree that DHL website is
user friendly and only 22% strongly agree to the same. As the mean is above 2.5 i.e. 4.0, the
analysis is accepted. From this we can conclude that the website of DHL is user- Friendly and
the customers are able to get all necessary information in DHL website.
10. To the statement asked whether DHL senior management is accessible, 52% agree that DHL
senior management is accessible and 30% as a neutral opinion to the same. As the mean is above
2.5 i.e. 3.6, the analysis is accepted. From this we can come to conclusion that the senior
management is accessible, but still accessibility to the senior management can be improved for a
better understanding and solving the problems of the customers or clients.
11. When asked do the claim settlement of DHL is good, 62% as a neutral opinion that DHL
claim settlement is good and only 30% agree that DHL claim settlement is good. As the mean is
above 2.5 i.e. 3.2, the analysis is accepted. The majority respondents agree that DHL claim
settlement is good.
12. From the above table 5.13 and chart 5.12, 44% agree that DHL operations support at
terminals is good and 40% as a neutral opinion and 14% strongly agree to the same. As the mean
is above 2.5 i.e. 3.7, the analysis is accepted. From this we can come to conclusion that DHL
support at terminals is good, but still can improve the support at terminals.
65
13. When asked whether DHL DO release is easy and prompt, 54% agree that BL/DO is easy
and prompt and 20% are of neutral opinion and only 16% strongly agree to the same. As the
14. To the statement asked whether DHL invoicing is accurate and user- friendly, 62% agree
invoicing is accurate and user- friendly. As the mean is above 2.5 i.e. 3.8, the analysis is
accepted.
15. From the above table 5.16 and chart 5.15, 58% agree that DHL is there true forwarder of
choice. As the mean is above 2.5 i.e. 3.94, the analysis is accepted.
66
6.2 SUGGESTIONS
Service quality is something which is very important when it comes to freight forwarding
industry. The analysis or the study proves that the services provided by DHL are satisfactory to
their customers or clients. But there are certain areas of concern which can be improved by DHL
1. There should be little more improvement in DO release because the time taken for releasing
the DO is high. So DHL has to make sure that DO is released on time which can be motivation
for the clients to do more business with DHL.
2. DHL customer service and sales staffs should not delay in giving the right information for the
customer enquires i.e. there should be no delay in reply to the customers mail or providing
information at right time. A delay in reply to customer enquiry can result in customer shifting
towards the competitors.
3. When comes to DHL rate offers, the company has to come out with competitive rates.
4. Some customers were criticizing that DHL showing clear discrimination between big
customers and small customers.
5. Dispute management has good room for improvement
6. Billing system needs to be improved further.
7. Customers have serious complaints about DSR updating. This needs to be addressed
67
6.3 CONCLUSION
In today's competitive environment, organizations must earn the customer's trust by consistently
meeting or exceeding expectations. The disparity between expectation and perception is the
major determining factor in a customer's assessment of quality of service. Service quality and
customer service is very important. The study in overall reveals that the customers are satisfied
with the services provided by DHL. It shows the service quality measurement dimensions i.e.
reliability, tangibility, responsiveness; empathy and assurance are found satisfactory and was
proved by using one way ANOVA test. Even the percentage analysis or frequency analysis
shows the item wise analysis which shows that the majority of the respondents are of the opinion
agree and strongly agree which again proves that the customers are satisfied with overall services
provided by DHL Global Forwarding. So in overall we can conclude that DHL services are
satisfactory to the customers.
68
Bibliography
Books and Authors
1.Zeithaml, V.A., Bitner, and M.J. (2003) Service Marketing: Integrating Customer Focus across
the firm, 3rd Edition, New York: McGraw-Hill.
2. Levis, B. (1995) Customer care in services, in Davies,B., Baron,S., Gear,T., and Read,M.
(1999). Measuring and managing service quality, Marketing intelligence & Planning, Vol 17,
No.1 Pp.33-40.
3. Stock, J.R. and Douglas, L.M. (2001) Strategic Logistics Management, 4th Edition, New
York, NY, McGraw-Hill.
4. Parasuraman, Zeithaml, V.A., and Berry,L.L. (1990) Delivering Quality Service in Balancing
Customer Perception and Expectation.
5. Metha, S.C., and Durvasula, S. (1998).Relationships between SERVQUAL dimensions and

organizational performance in the case of a business-to-business service, Journal of Business &
Industrial Marketing, Vol. 13 No.1, pp.40-53.
6. Banomyong, R,.Ritthironk, N., Varadejsatitwong, P. and Supatn, N. (2005). Selecting

Logistics Providers in Thailand: ShippersPerspective, Proceeding of the 10th International
Symposium on Logistics, 3-5 July 2005, (pp.568-573) Lisbon.
7.Fitzsimmons, J.A., Fitzsimmons, M.J. (2004). Service Management: operations, strategy and
information technology, New York, NY: McGraw-Hill.
8. Teas, R.K. (1993). Expectation, Performance evaluation, and consumers perception of

quality, Journal of Marketing, Vol 57 No.5, pp.18-34.
69
Websites
www.aviofreight.com
www.joc.com (journal of commerce)

www.sci.com (Shipping Corporation of India)
www.dhl.com
70
APPENDIX
Questionnaire
A Study on Service Quality of DHL Global Forwardings service in Chennai
Name of the Company:
Name of the Person:
Designation:
No:
Statements
1.
DHL maintains schedule and transit integrity.
2.
DHL generally maintains good pickup & delivery.
3.
DHL sales staffs have good product knowledge.
4.
Customer service is easily accessible.
5.
Sales and customer service staff are friendly.
6.
Customer service is proactive and prompt.
7.
DHL is competitively priced on rate offers.
8.
DHL service is value for money.
9.
DHL website is user friendly.
10.
DHL senior management is accessible.
11.
DHL claim settlement is good.
12.
DHL operations support at terminals is good.
13.
DHL DO release is easy and prompt.
14.
DHL invoicing is accurate and user-friendly.
15.
Your overall comments on DHL Services
Your suggestions for improvement
Strongly
Disagree
Disagree
Neutral
Agree
Strongly
Agree
71

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BENCHMARKING THE SERVICE QUALITY OF DHL GLOBAL

Under the guidance of

Prof. Dr. Antony Gregory

Master of Business Administration (FT)

SCHOOL OF MANAGEMENT STUDIES

4.2. Objectives of the study ............................................................................................................... 37

Table showing the Alpha value (Reliability test)

Table showing whether DHL maintains schedule and transit

Table showing whether DHL have good pickup and delivery

Table showing DHL sales staff have product knowledge

Table showing whether DHL customer service is accessible

Table showing whether DHL sales are friendly

Table showing whether DHL service is proactive and prompt

Table showing whether DHL is competitively priced

Table showing DHL service is value for money

Table showing whether DHL website is user friendly

Table showing DHL senior management is accessible

Table showing whether DHL claim settlement is good

Table showing operations at terminals is good

Table showing DO release is prompt

Table showing whether DHL invoicing is accurate and prompt

Table showing DHL service is the forwarder of choice

Graph showing whether DHL maintains schedule and transit

Graph showing whether DHL have good pickup and delivery

Graph showing DHL sales staff have product knowledge

Graph showing whether DHL customer service is accessible

Graph showing whether DHL sales are friendly

Graph showing whether DHL service is proactive and prompt

Graph showing whether DHL is competitively priced

Graph showing DHL service is value for money

Graph showing whether DHL website is user friendly

Graph showing DHL senior management is accessible

Graph showing whether DHL claim settlement is good

Graph operations at terminals is good

Graph showing DO release is prompt

Graph showing whether DHL invoicing is accurate and prompt

Table showing DHL service is the forwarder of choice

Amal Roy George

Amal Roy George

1.1 THEORETICAL BACKGROUND

1.2 PROBLEM STATEMENT

1.3 NEED OF THE STUDY

CHAPTER 2. REVIEW OF LITERATURE

2.1. Service Quality Measurement: Theoretical Foundation

Tangibles: appearance of physical facilities, equipment, personnel and communication materials.

The disparity between expectation and perception is the

2.2 Service attributes of freight forwarding companies

CHAPTER 3. INDUSTRIAL PROFILE

3.1FREIGHT FORWARDING INDUSTRY

EXW (Ex works)

FreeHand Business: It is a business generated at the origin country-sales. Hence it is also

No excise charged on final product

Imports without payment of customs duty

No export duty on export of final product

Exemption from Income tax

Exemption from sales tax on final product

3.1.1 SEA FREIGHT FORWARDING

Export General Manifest:

3. Open Top (20ft-40ft)

3.1.2 AIR FREIGHT FORWARDING

The advantages of using air transportation are:

Speed of delivery (e.g. fish or perishable goods)

Permits lower inventories at branch warehouse, etc.

Reduces insurance costs because of less theft, damage, etc.