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Truck Turnaround Efficiency

In
Customer Base of Freight Links International (Pte)
Ltd

Research Project

By

R S Tissera

BSCUGCMGT1315-155
BSc in Business Management (Special) Degree

An Independent Research Report submitted in partial fulfillment of the requirements for the
degree of

BSc in Business Management (Special) Degree

National School of Business Management


Declaration

I declare the all materials included in this report is the end result of my own work and that due
acknowledgement have been given in the bibliography and references to ALL sources be they
printed, electronic or personal.

Signed:-.. Date:-.

R. S. Tissera

Certification

This is to certify that the research report presented by R. S. Tissera on Truck Turnaround
Efficiency in Customer Base of Freight Links International (Pte) Ltd can be accepted in partial
fulfillment of the requirements of the Bachelor of Science in Business Management (Special)
Degree.

Signed:-.. Date:-.

Research Supervisor

Mr. I G Perera

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Abstract

The purpose of this research is to study & find out the most critical areas and reasons directly
affect to the Truck Turnaround Efficiency in Customer Base of Freight Links International
(Pte) Ltd. At present the company experience a delay in customer locations and this has created
a problem in overall transportation such as unnecessary Truck Turnaround delays, high
detention charges and reduces the overall performance of company logistics system. Presently
this has led to a difficulty or a problem in efficient distribution on the transport network of the
company.

This is a world class Sri Lankan company, committed to provide personalized and innovative
logistics management services to suit the requirements of any client wishing to move cargo,
whether it be by ocean air or land, to and from any part of the globe.

From its small beginnings in 1992, the company has today grown in staff strength and in
technology to become one of Sri Lankas leading logistics providers and is fast becoming a
strong regional force too.

These research findings will help to create effective solutions to prevent the drawbacks of
present Truck Turnaround. Efficiency. The solution will create effective plan and enhance the
transportation efficiency in Freight Links International (Pte) Ltd.

. The main objectives of this research are stated below.

To identify the factors that affect the high truck turnaround efficiency in customer base
of Freight Links International (Pte) Ltd
To Study the effectiveness in logistics and transportation systems in Freight Links
International (Pte) Ltd.
To identify the effective points that enable customer satisfaction, service level and the
reputation of the company.
To recognize the present status of logistic management in Freight Links International
while identifying the problematic areas and suggestions for improvements.

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The methodology used for this research is scientific approach. Thus a sample was selected
upon deductive reasoning method based on the theory of Efficiency in logistics planning,
customer service demand, degree of follow up in logistic operation, forecasting accuracy,
rules and regulations in customer premises, road traffic congestion in logistic operation that
will ultimately leads to efficiency in truck turnaround in Freight Links International (Pte)
Ltd.

Pre-prepared questions were given to person involved in this transportation operation that
were selected by random sampling. Also interviews were conducted using top managerial
officers and highly experienced workers within the organization. To identify the other facts
that effects for truck turnaround efficiency. Some interviews were conducted with several
Freight Links International customers top managerial officers and operational level
employees.
In accordance with the research findings the majority of employees were dissatisfied with
the present planning system, service demand identification system which effect the current
system badly. Another point that propped up with the research findings were the follow-up
sessions that were conducted by the supervisors. Customer service identification system,
forecasting accuracy level between the supervisors plans and the actual situation of
logistics operation were found less according to the conducted research. Other points that
were revealed were road traffic congestion, and controls of the customer premises which
were negatively affected to truck turn around efficiency. For these problems
recommendations were pointed out in different stages to avoid the present delays that
affected the truck turned around efficiency in Freight Links International.

This research finding and recommendations will give FLI such an insight to the decision
makers to develop policies, make prompt decision making, while the operations of logistics
management; thus its ultimate outcome will give a novel idea to the logistics managers to
find out the weaknesses in logistics decision making, the level of effectiveness of their
decisions and lead them for best decision makers in logistics.

These novel changers will benefit the organization to interact with satisfied customers and
lead to its utmost popularity within the logistics industry.

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Acknowledgement

First and foremost, I am deeply grateful to my dissertation supervisor Mr. I G Perera, for his
greatest guidance, patience and support given to me throughout the research. Without the
support and the valuable guidance provided by him, this research would not have been a
success.

Further, I owe many thanks to Mr. Mahesh Jayasuriya Haulage Manager of Freight Links
International (Pte) Ltd. His immense support and the guidance provided to me throughout the
study helped me to complete this study successfully. In addition my special thanks go to
managers and operational staff of the Freight Links International for providing me continuous
support.

My greatest appreciation should be given to all the respondents of the Freight Links
International for sacrificing their valuable time to fill in the questionnaire. With their responses
I could prolong with my study successfully. My thanks also go to all other staff members who
rendered their help during the period of my research work.

Finally, I am most grateful to my parents, my sister, my friends and all the beloved ones who
were with me throughout the research study and providing a helping hand to make this research
a success.

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Contents

List of Tables and Figures ..................................VII


1. Introduction ................................................................................................................. 1
1.1 Freight Links International (Pte) Ltd ................................................................... 1
1.2 Products & procedures ......................................................................................... 1
1.3 Haulage division of Freight Links International (Pte) Ltd ................................... 2
1.4 Problem Statement ............................................................................................... 3
1.5 Research Questions .............................................................................................. 3
1.6 Research Objectives ............................................................................................. 3
1.7 Significance of the Study and Scope of the Research .......................................... 4
1.8 Limitations of the research ................................................................................... 4
2 Literature Review ........................................................................................................ 5
3 Methodology.............................................................................................................. 18
3.1 Conceptual framework ....................................................................................... 18
3.2 Hypothesis .......................................................................................................... 19
3.3 Population & Sampling ...................................................................................... 20
3.4 Data collection.................................................................................................... 20
4 Analysis ..................................................................................................................... 22
4.1 Introduction ........................................................................................................ 22
4.2 Respondent profile ............................................................................................. 22
4.3 Descriptive Statistics .......................................................................................... 23
4.3.1 Data Analysis of Logistics Planning ................................................................ 24
4.3.2 Data Analysis of Customer service demand..................................................... 26
4.3.3 Data Analysis of Degree of follow up in logistic operation ............................. 28
4.3.4 Data Analysis of Forecasting accuracy ............................................................ 30
4.3.5 Data Analysis of Road Traffic Congestion ...32
4.3.6 Data Analysis of rules and regulations in customer premises ..33
4.3.7 Data Analysis of Truck Turnaround Efficiency....34
4.3.8 Regression Analysis.......37
4.4 Hypothesis Testing ............................................................................................. 41

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5 Conclusion and Recommendations....43
5.1 Key Findings of the Study .................................................................................... 43
5.2 Recommendations .....45

References..46

Appendices ........................................................................................................................ 48

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List of Tables and Figures
Figure 1:- Factors that contribute to truck turnaround time 8
Figure 2:- Road Traffic Congestion Bottleneck. 15
Figure 3:- The relationship between dependent variables and independent
variables. 18
Figure 4:- Employees Experience 23
Figure 5:- Organization Logistics Planning 24
Figure 6:- Driving To a Fixed Company Schedule 25
Figure 7:- Planning Logistic Operation 25
Figure 8:- Customer service demand 26
Figure 9:- Informing the Customers Requirements 27
Figure 10:- Follow up in logistic operation 28
Figure 11:- Conducting Follow-up Sessions 29
Figure 12:- Forecasting accuracy 30
Figure 13:- Gathering Information about the Logistic Operation 31
Figure 14:- Road Traffic Congestion 32
Figure 15:- Rules and regulations in customer premises 33
Figure 16:- Truck Turnaround Efficiency 34
Figure 17:- Truck Turnaround Efficiency in Customer Wise 35
Figure 18:- Equipment used for loading/unloading purposes 40
Figure 19:- Systems involved in GRN process 41
Figure 20:- Logistics Planning Vs Truck Turnaround Efficiency 42
Figure 21:- Customer Service Demand vs Truck Turnaround Efficiency 42
Figure 22:- Follow up in Logistic Operation Vs Truck Turnaround Efficiency 43
Figure 23:- Forecasting Accuracy Vs Truck Turnaround Efficiency 44
Figure 24:- Road Traffic Congestion Vs Truck Turnaround Efficiency 44
Figure 25:- Rules and regulations Vs Truck Turnaround Efficiency 45

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Table 1:- Employees Experience 22
Table 2:- Descriptive Statistics 27
Table 3:- Organization Logistics Planning 28
Table 4:- Driving To a Fixed Company Schedule 28
Table 5:- Planning Logistic Operation 29
Table 6:- Customer service demand 30
Table 7:- Informing the Customers Requirements 31
Table 8:- Follow up in logistic operation 32
Table 9:- Conducting Follow-up Sessions 33
Table 10:- Forecasting Accuracy 34
Table 11:- Gathering Information about the Logistic Operation 35
Table 12:- Road Traffic Congestion 36
Table 13:- Rules and regulations in customer premises 37
Table 14:- Truck Turnaround Efficiency 38
Table 15:- Equipment used for loading/unloading purposes 39
Table 16:- Systems involved in GRN process 40
Table 17:- Correlation & Regression Analysis 41
Table 18:- Hypothesis Testing 46

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1. Introduction

1.1 Freight Links International (Pte) Ltd

Freight Links International (Pte) Ltd is a world class Sri Lankan company, committed to
provide personalized and innovative logistics management services to suit the requirements of
any client wishing to move cargo, whether it be by ocean air or land, to and from any part of
the globe.

From its small beginnings in 1992, the company has today grown in staff strength and in
technology to become one of Sri Lankas leading logistics providers and is fast becoming a
strong regional force too.

Mission: Provide unmatched value through personalized, professional and innovative logistics
management services

Vision: Be the leading logistics service provider in South Asia with a global presence. Provide
our employees outstanding opportunities for career development ensuring the welfare of every
individual.

1.2 Products & procedures

Freight Links has the unique honor of being the first Sri Lankan Freight Forwarding Company
to be certified for compliance with ISO standards.

With a well justified reputation for chartering new courses and inventing exclusive solutions,
it has many other firsts to credit, including the unique multi modal transport operation evolved
to reach the countries.

Whether it is carriage of goods over land, ocean or air, our dedicated team of experienced
professionals would identify and design logistics solutions to meet the exact needs of any
customer, and ensure safe delivery of cargo from the point of origin to the destination.

We proudly announce that we have highest number of transport assets in Freight Industry.
More than 137 transport assets. Freight Links is named as the largest fleet own by any SCM
provider.

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To do so, efficiently and cost effectively, we have geared ourselves with the latest ICT
facilities.

The Head office is located in the heart of Colombo, Sri Lankas Capital city, and it is
strategically placed with offices in the Free Trade Zones and at the Bandaranaike International
Airport. It also has the largest inland haulage fleet available to a logistics provider in Sri Lanka.

It has eight branch offices in India in addition to offices in Dubai, Male, St. Petersburg and
Moscow which makes a force to be reckoned with throughout the region.

Freight Links has the backing of a world leader in Logistics Insurance, who has recognized it
for its efficient track record over the years.

1.3 Haulage division of Freight Links International (Pte) Ltd

Moving on to the companys domestic transportation division it consist with new innovative
transportation assets and well skilled employees. Company proudly announces that they have
highest number of transport assets in Freight Industry. Currently more than 137 transport assets
are available. Freight Links is named as the largest fleet own by any SCM provider. The
Haulage division of Freight Links International is divided in to two main parts. They are

1. Retailer transport distribution


2. Wholesaler transport distribution

Retailer transport distribution handles the retail distribution. If customer has a requirement to
deliver his products to his retailers which are situated all-round the county and that requirement
can be fulfilled by retailer transport distribution department. Some of the customers who use
this services are Maliban Biscuit Mfg. Ltd, Akzo Nobel and Fonterra Brands Lanka.

Wholesaler transport distribution handles bulk distribution transportation. This division caters
to customers who need to deliver their products to wholesaler or distributer locations. The
customers who use this services are PE Plus and Lion brewery.

The number of employees work in this department are more than 200 in number. This
department was controlled by a separate haulage manager under him two assistant haulage
managers work. These two assistant haulage managers control the above mention two
distributions. Under these two assistant haulage managers there are five transport operational
executives. Under them all the drivers, cleaners and maintaining staff is assigned. This is how
the haulage division hierarchy takes place.
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1.4 Problem Statement

Freight Links International (Pte) Ltd provides a service for logistics and transportation in wide
range of companies in the island. The key customers are MAS holdings, PE Plus, Maliban
Biscuit Mfg. Ltd, Akzo Nobel, Vogue tex and Lion brewery. At present the company
experience a delay in customer locations and this has created a problem in overall transportation
such as unnecessary delays, high detention charges and reduces the overall performance of
company logistics system. Presently this has led to a difficulty or a problem in efficient
distribution on the transport network of the company.

When the company fulfills a customers logistics requirement, our haulage yard assigns a
vehicle to attend the need. And this allocated lorry takes high turnaround time on this
transportation. Hence it will mainly affect the availability of the vehicles to fulfill the
requirement of other customers. As the customer is central to the entire existence of the
company this kind of lapses will badly effect the customer satisfaction, service level and
reputation of the company.

1.5 Research Questions

o What is the present situation of truck turnaround efficiency in Freight Links customers?
o What are the main factors affecting to the increasing tendency of truck turnaround
efficiency in Customer Base of Freight Links International (Pte) Ltd?
o What are the problems that encount to logistics management systems at present?
o What are the areas that need improvements to ensure efficiency in logistic management
system?
1.6 Research Objectives

Through this research it is expected to evaluate and analyze the efficiency of logistic and
transportation management system in Freight Links International with following Objectives.

To identify the factors that affect the high truck turnaround efficiency in customer base
of Freight Links International (Pte) Ltd
To Study the effectiveness in logistics and transportation systems in Freight Links
International (Pte) Ltd.
To identify the effective points that enable customer satisfaction, service level and the
reputation of the company.

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To recognize the present status of logistic management in Freight Links International
while identifying the problematic areas and suggestions for improvements.
1.7 Significance of the Study and Scope of the Research

This study creates a perspective to see the problem of truck turnover time in Freight
links international and help the company to overcome the present issues of logistics operations.
The significant of the study will have a major impact on long term growth of the organization
and effect of Return on Investment (ROI).

This research finding will give FLI such an insight to the decision makers to develop
policies, make prompt decision making, while the operations of logistics management; thus its
ultimate outcome will give a novel idea to the logistics managers to find out the weaknesses in
logistics decision making, the level of effectiveness of their decisions and lead them for best
decision makers in logistics.

These novel changers will benefit the organization to interact with satisfied customers
and lead to its utmost popularity within the logistics industry.

1.8 Limitations of the research

Fright Links International (Pte) Ltd is one of the major companies in Fright Links
Logistics Group. Therefore there are some restrictions in gathering data relate to its
management. Data collection has been done through questionnaires, direct interviews and
discussions and other operational reports. While conducting the data collection of this research
pre-prepared questions were given to persons involved in this transportation operation such as
drivers. These operational people have less education knowledge and sometimes the answers
that was produced by them were vague and unclear. There was less literature on areas of truck
turnaround time in logistics. Further management has been restricted to disclose most
confidential data in relevance of critical areas which is supposed to this field of study.

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2. Literature Review

Transportation & Logistics

Transportation moves people and goods from one place to another using a variety of vehicles
across different infrastructure systems. It is pivotal to the successful operation of any supply
chain because it carries the goods literally, as they move along the chain.

While the transportation problem is often posed in terms of congestion, that delays but one
cost of a system that has many costs and even more benefits. Further, by changing accessibility,
transportation gives shape to the development of land.

Logistics is defined as the part of the supply chain process that plans, implements, and controls
the efficient, effective flow and storage of goods, services, and related information from the
point of origin to the point of consumption in order to meet consumers requirements(Souza
2007).

Efficient delivery of transportation & logistics services is the ability to move goods
expeditiously, reliably and at low cost. A competitive and efficient logistics sector is vital for
all economies and is an imperative component of trade. In the logistics industry, time is money.
The costs of delays are high and ultimately passed on to the consumers.

Truck Turnaround Time

Truck turnaround time is defined as how long it takes a truck from time it arrives at the port
terminal to the time truck exits the port terminal (Lubulwa, 2011). Thats how its defined in
the international trade.

In the normal business this is calculated by measuring the average time elapsed between a
trucks arrival at your facility and its departure. This is an indicator of the efficiency of your
lot and dock door space, receiving processes, and shipping processes. This also directly affects
freight carrier profits on your business (Ravichandran, 2009).

In Ports And Maritime Administration Regulation 2012 REG 32 in New South Wales legally
defined truck turnaround time as which the truck servicing for which a booking is made must
be performed by a stevedore, including provision specifying the events that are to constitute
the start and end of truck servicing for the purposes of the truck turnaround time.

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Port Botany Landside Improvement Strategy (PBLIS) explains with Example how Truck
turnaround time leads for penalty and penalty exceptions.

A truck carrier has a single booking for a 5:00pm time slot with Stevedore A. The truck
arrives on time and the Truck Turnaround Time (TTT) is 60 minutes (i.e. 10 minutes over the
allowable TTT). For subsequent trips, the truck carrier may now be eligible for an extended
arrival time of 10 minutes. The same truck carrier has another booking at that same terminal
for 9:00pm time slot on the same day with the same truck. As the truck was delayed by the
stevedore at 5:00pm timeslot by 10 minutes, the truck is now able to arrive up to 10.10pm for
the 9.00pm time slot without penalty (i.e. up to 10 minutes after the allowable arrival time).

Ravichandran stated that the turnaround time includes the time from the arrival, loading
of material, inspecting a truck, and completion of commercial formalities. It is an important
indicator of the particular facility operations efficiency. There are three activities which can
impact the truck turnaround time. These activities include the gate-in process, loading
/unloading process and gate-out process. (Ravichandran, 2009)

So the truck turnaround time include average time it takes for a truck to enter the gate, get
served, and exit the gate, minus the actual processing time at the gate. (Steenken, Vo, &
Stahlbock, 2005)

This truck turnaround time can be viewed as a combination of,

1. Waiting time or queue time:

The time between a trucks arrival at the terminal or a facility till it completes the
entry procedure at the pedestal and receives a ticket for its transaction is defined as its
wait time (or queue time) (Lam, Park, & Pruitt, 2007)

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2. Flow time:

According to Lam, Flow time is the time taken for a truck inside the terminal or a
facility to complete the loading/unloading process. (Lam, Park, & Pruitt, 2007)

The truck turnaround time can be calculate based on the following formula:

Truck Turnaround Time = Waiting time/ + Flow time


Queue time

Truck turnaround time is a key indicator of the port/facility throughput (Yoon, 2007).
Therefore it is necessary to increase the effectiveness and the efficiency of the truck handling
process inside the premises to reduce the truck turnaround time. But so far only several
researches have done on this area and most of them have taken the truck turnaround time as a
small part of their research paper rather than doing an in-depth analysis. Lam is the only
researcher where an in-depth analysis of truck turnaround time been identified. The objective
of the research was to monitor truck waiting time and flow time in the Los Angelese/Long
Beach Port. Lubulwa and Yoon, have already identified the importance of the truck turnaround
time in order to increase the landside efficiency.

Also Yoon, identified truck turnaround time as a key indicator of the port/facility throughput
(Yoon, 2007). Even though these studies have identified the importance of the truck turnaround
time as an important factor for the landside efficiency, there were no detail of monitoring or
else an analysis for the truck turnaround time.

Other Related Literature

In 2011 September University of Pretoria conduct a research in Optimization of


Truckload Utilization. This addresses some factors that affect truck turnaround time. According
to this research, it noted that truck turnaround times can be a possible cause of insufficient
truckload utilization. The reasons for high truck turnaround times are very broad, especially in

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problems where man, machine and money have to be balanced. A Pie-chart is used to illustrate
the factors contributing to truck turnaround.

Figure 1:- Factors that contribute to truck turnaround time

According to the figure Load Service refers to whether the truck is delivering a full truckload
or less-than-truckload. The bigger the load that the truck is delivering obviously adds to the
turnaround time, but mostly it is more cost efficient to have a full-truckload.

The facility layout can add or subtract a substantial amount of time, when looking at space
availability for trucks with trailers to move in or to be loaded or unloaded. Even the entrance
to the facility can impact truck turnaround time.

Management has the biggest impact on truck turnaround time. Currently there is no pro-active
plan set in place for the workers to follow when such a message is received to start planning
the load. So when the truck arrives, only then is planning is done by the workers.

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The equipment (referring to forklifts), training and number of workers go hand in hand. For
every forklift there has to be a trained operator to operate the forklift. Logically when increasing
the forklifts and workers may reduce the truck turnaround time but this may involve hiring and
training new workers and even if there are forklifts and workers availability, space
requirements and surface quality may not always allow the addition.

Digital geographic research corporation was submit E article related to truck turnaround time
in October 2010 and following are the important finding of it.

When trucks idle outside and inside marine terminals, its at tremendous cost. Goods worth
tens of millions languish on the piers, and profits leak from truck drivers and motor carriers,
terminal operators and ports. Neighboring communities suffer air quality and health problems.
Whats at the root of such costly delays: raw infrastructure or operational capacity limits, poor
management decisions, or broader policies such as fees, Is the appointment system effective?
Long truck turn times have numerous causes: some related to physical capacity (land,
equipment), some operational (poor information flows and unpredictable demand for service).
Some delays are due to political conflicts, or unintended consequences of policies.

Container Terminal Theories, Practices, Problems forum in LinkedIn Corporation Gerald


Gividen submit an article related to truck turnaround time. Following are the important arise
of it.

One of the biggest problems you may find is that truckers come with incomplete or inaccurate
information. When this happens they may be on your terminal for an extended time waiting for
someone off the terminal to get them the information they need. You are not responsible for
this problem, but the terminal is commonly blamed.

Another problem is that the transportation public unaware of what is expected or how things
work. Truck lines, brokers, Freight Forwarders and shippers need to provide written procedures
and training to their drivers so they would know how to make things work.

Next problem arise inside the terminal. For example, the truck may be coming for equipment
that is not available when the driver shows up. A reefer may not be ready because the pre-trip
or precool has not been completed. Import may not been delivered by ship or other truck before

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the driver arrives. Often this cannot be seen during the booking because of the timing of the
activities.

This literature argues that times when drivers and/or truck lines told their customers that facility
had slow turn times when they were delayed for their own commercial or personal reasons.
Excessive handling/re-handling can result in bad turn times if staffing or equipment or volume
is not in balance with the number of moves required. Appointments with specific needs listed
helps anticipate some of this. To address this issue Preventive/scheduled maintenance can be
helpful. But there will always have some potential for a delay. Another point is that supervisors
may tell the drivers about the good need to be carried urgently and as a result the driver will
reach even before the ship has discharged the import.

Demurrage & Detention

Demurrage: In container haulage, customers are given a set period in their contract to tip
(unload) their container delivery. Acceptable times for tipping are usually between 3 and 4
hours; time spent on site after that is considered demurrage. Haulers will usually charge an
hourly rate for each hour after the allowed time.

Demurrage charge = Net demurrage time x Net demurrage rate

Detention: the charge the Merchant pays for detaining Carriers equipment outside the port,
terminal or depot, beyond the free time. In container haulage operation this is the most
applicable charge.

Detention charge = Net detention time x Net detention rate

Free time: the period of time offered by the Carrier to the Merchant free of charge, covering
both demurrage period and detention period, beyond which additional charges, but not limited
to demurrage and detention charges, will be due to the Carrier.

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Logistics Planning

Logistics Planning is the process of assigning individual tasks to resources at a certain point in
time. Originally, planning was a manual task, performed by a human planner. Over the last
decades information systems have increasingly taken over this role in industries such as road-
logistics; in practice however the human planner has still a considerable role. In order to make
the transition from planning input to planning output, a planning system manual or
computerized must employ the proper objectives to derive to an optimal planning. (Krauth &
Moonen, 2005)

The plan indicates the optimal mixed pickup and delivery schedules for vehicles within the
considered planning time horizon as well as the optimal quantities and type of loads picked up
and delivered on these routes. (Donald . Bowersox, 2002)

Thus transportation plans made for the commodities are accompanied by vehicle schedules that
designate the type, number, route and mobilization timing of selected vehicles.

Logistics plan involves a planning time horizon consisting of a given number of time periods
because it deals with time variant demand and supply. During a given planning horizon, the
model assumes that demand is known for the initial period of the current planning time horizon
and future demand is forecasted for some commodities.

At the beginning of any planning time horizon, give a snapshot of current and future
requirement and vehicle availability, the plan generates multi period vehicle routes, schedules
along with their commodity load unload assignments.

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Customer Service Demand

Demand forecasting is a crucial activity in logistics management, it has attracted less attention
in history. During the last decade there has been a shift of focus from supply management
towards demand Management in logistics and practice. In logistics this has led to a greater
focus on effectiveness (Mentzer, Min, & Bobbitt 2004). In the supply chain this increased
awareness of customer needs means that the starting point is the customer, as opposed to
starting at the supplier and working forward (Heikkil 2002) E.g:- going from push to pull.

Companies are continuously increasing their awareness of the importance of satisfying


customer needs (Hoover 2001) and that there is an ongoing power shift forward in the supply
chain (Dubelaar, Chow, & Larson 2001). From the pragmatic point of view, the trend towards
increased demand orientation is clear.

Customer service demand can be define as a customers truck requirements or other


requirements to fulfil daily logistics needs. Most logistics network design models assume
exogenous customer demand that is independent of the service time or level. The Customer
service demand management process is concerned with balancing the customers requirements
with the capabilities of the supply chain. (Donald . Bowersox, 2002)

Degree of follow up in logistic operation

Follow up can be defended as a monitoring a job, enquiry, and operation, to get feedback on
the schedule, requirements, effectiveness, or other such factors. Following up is a part of
following through. Transport follow-up is an effective tool. A For example, following up on
your transport by managing delivery precision and consolidating your freight can make your
transport more effective.

With the involvement of IT transport follow-up is easy. A transportation management system


(TMS) is a subset of supply chain management concerning transportation operations and part
of an enterprise resource planning system. TMS will allow following any physical or
administrative operation regarding transportation Traceability of transport event by event.

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The Logistics function in humanitarian organizations is made up of people, processes and
systems working together to support efficient and effective delivery of services. Follow-up are
normally put in place to monitor weaknesses, poor designs in projects and improper
implementation of programs. Based on continuous follow-ups, these weaknesses or shortfalls
against targets or objectives set can be corrected or revised in order to continually improve
performance, thus reducing the risk of exposure and strengthening the response to needs.

Forecasting Accuracy

In the modern supply chain, forecasting is necessary for companies that manufacture items for
inventory and that are not made to order. Accommodating customer requirements in most
supply chain arrangements requires a forecast to drive the process. The forecast identities
requirements for which the supply chain must schedule inventory and operational resources.
Forecasting techniques are used to predict, in the face of uncertainty, what the demands on the
system will be in the future so that appropriate designs and operating plans can be devised.
Transportation forecasting is the process of estimating the number of vehicles or people that
will use a specific transportation facility in the future. For instance, a forecast may estimate the
number of vehicles on a planned road in order to meet the customer requirements. (Garrison &
Marble, 2000)

This activity is carried on in conjunction with the firms logistics operation staff and is used to
obtain a better idea of the logistic needs of the next planning period. These needs include both
delivery to customers and receipt of raw materials or components for assembly. This is
important intelligence for others in the firm who are planning and scheduling production.

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Road Traffic Congestion

Mobility has been increasing significantly in the last few decades and will continue to increase
(Janssen, Okker & Schuur, 2006). On road stretches which have insufficient capacity, traffic
becomes congested. Traffic congestion has a negative impact on the economy and on the
quality of peoples lives. Road users experience delay and stress, and environmental pollution
increases. As traffic flow increases and density approaches its critical value, traffic flow is said
to be unstable.

Traffic congestion is a condition on road networks that occurs as use increases, and is
characterized by slower speeds, longer trip times, and increased vehicular queueing.

Traffic congestion can be described at a macroscopic level by three main variables; volume,
density and mean speed. These variables can be defined as follows (Hoogendoorn, 2007)

The volume of traffic (traffic volume) is the number of vehicles passing a cross-section of a
road in a unit of time.

The density of a traffic flow is the number of vehicles present on a unit of road length at a given
moment. Just like the volume the density can refer to a total road, a roadway, or a lane.

The mean speed is the arithmetic mean of the speeds of the vehicles passing a point on a
roadway. The mean speed can be measured at a point (cross section) or at a given moment. The
space-mean speed is the arithmetic mean of the speeds of the vehicles on a road section at a
given moment.

Congested traffic flow is characterized by a situation in which road users cannot drive at their
desired speed because they are constrained by the presence of other road users. In contrast, a
free flow situation occurs when road users do not influence each others behavior.

Smooth traffic flow can suddenly change due to, for instance, a decelerating or slow moving
vehicle or a partial blocking of the road. This sudden change generates discontinuities in the
traffic stream in the form of kinematic shock waves. A shock wave is a rapid change in the
traffic conditions (flow and density) that propagates in time and space (Van Driel, 2007;
Hoogendoorn, 2007). The shock wave is characterized by the sudden change in the individual
vehicle speeds downstream of the disturbance.

14
Shockwaves can be classified in various ways. For instance, they can be classified according
to the direction in which they propagate. A backward moving shockwave propagates upstream
of the disturbance while a forward moving shockwave propagates in the same direction as the
traffic. Shockwaves can also be differentiated with regard to the result of their propagation.
As a result of a forming shock wave the congested section increases (e.g. vehicles joining the
queue) and as a result of a recovery shock wave the congested section decreases; e.g. vehicles
leaving the queue (May, 1990).

Assume, for instance, a reduction of capacity on a section of a motorway (that is to say, a


bottleneck where the road section changes e.g. from three to two lanes). If the flow approaching
the bottleneck (A) is larger than the capacity of the bottleneck (B), a queue will start growing
(backward forming shockwave). As soon as A becomes smaller than B the queue will start to
dissipate (forward recovery shockwave). See also Figure 1. In a bottleneck there is also a frontal
stationary shockwave located in the place where demand is larger than capacity.

Figure 2:- Road Traffic Congestion Bottleneck.

As the traffic flow becomes congested, there are some particular conditions that can be
distinguished when vehicles approach, enter, and leave the jam. When approaching a jam,
drivers have to decelerate in order to adapt to the speed of the queue.

How to measure road traffic congestion

There are several ways of measuring congestion and each of them involves the use of different
parameters such as volume, density, occupancy, queue length, travel time, delay, speed, volume
to capacity ratio (V/C) and level of service (LOS). Nevertheless, there is still ongoing research
into what a good measure for congestion is for instance (Jun & Lim, 2008).

15
Rules and Regulations in customer premises & Government imposed

Every organization has rules and regulations in order to maintain disciple within the
organization. As a 3rd party logistics service provider company has to obey to these rules.
Following are the examples for rules and regulations

Eg: - After conducting the inbound logistics activities that empty lorry cant send empty. Need
to plan a finished good load and need to fulfil out bound logistics activities also.

Government and other organizations restrictions imposed on logistics services providers can
adversely affect the price, reliability and quality of these services, and are considered
restrictions to trade. It is the time as much as the cost of complying with all the rules and
regulations. The importance of this area has long been recognized, but recently has attracted
significant attention from academics, governments, international organizations and private
logistics firms. (Hollweg, 2009)

Although restrictions to trade can arise from many sources, for example poor quality of
infrastructure can act to slow the transport of goods on government-imposed restrictions
through regulation of entry and operations of the logistics sector. And the same hand it can
arise from the customer end to maintain their KPIs, environmental requirements and other
requirements.

Government-imposed regulations can be discriminatory or non-discriminatory against Foreign


Service suppliers. Discriminatory regulations apply only to foreign suppliers and treat Foreign
Service suppliers less favorably than domestic service suppliers. Non-discriminatory
regulations are regulatory processes that apply to both domestic and foreign providers, but can
still restrict activity. Restrictions that limit the hours of operations in road transport in major
cities are non-discriminatory. In Sri Lankan haulage contexts also non-discriminatory
regulations were applicable. Any haulage operator cant access in to main city limits in rush
ours that means 6.00am to 8.00pm.

16
Regulatory restrictions can act to reduce competition in logistics services and reduce market
efficiency. Sometimes, though, government-imposed regulations that limit competition are in
place to deal with market failures or to help meet a particular social objective.

Some customers have requirements to maintain their carbon footprint to keep their environment
protection certificates. This pressure consistently come to their logistics service providers. To
fulfil the customer requirements logistics service provider need to optimize transportation and
try to reduce the carbon footprint of the operation.

17
3. Methodology
The methodology used for this research is scientific approach. Thus a sample is selected upon
deductive reasoning method based on the theory of Efficiency in logistics planning, customer
service demand, degree of follow up in logistic operation, forecasting accuracy, Rules and
regulations in customer premises, road traffic congestion in logistic operation that will
ultimately leads to efficiency in truck turnaround in Freight Links International (Pte) Ltd.

3.1 Conceptual Framework

Model given below shows the relationship between the dependent variables and independent
variables that are involved in the research problem.

Independent variables

Logistics Planning
Customer service demand Dependent variable
Degree of follow up in
Truck Turnaround
logistic operation
Forecasting accuracy Efficiency
Road traffic congestion
Rules and regulations in
customer premises

Figure 3:- The relationship between dependent variables and independent variables.

Independent variables

Logistics Planning: - This means how the organization supervisors planning the day to day
logistics operation. This include assign trucks to jobs increase the transport assets utilization
and fleet management.

Customer service demand: - Simply it can be define as a customers truck requirements to


fulfil his daily logistics needs. In another words number of trucks demanded by a customers.

Degree of follow up in logistic operation: - This means after assign a truck to particular job
how the officers do the reviews and follow-up sections to achieve a smooth logistics operation.
Simply it means number of times officer call to the driver and ask for his status and instruct
him to perform the job better.

18
Forecasting accuracy: - Simply it can be define as a correctly predicting of future events in
logistics operation. This include trucks run completion date, future occurring activities and
forecasting.

Eg:- Before assigning a lorry to job, transport supervisor predict this lorry will finished assign
job and come in the particular future date. So he assign another job to the same truck after it is
arrived. Transport supervisor only thinks the operation will happen this way but there can be
variance in actual results.

Road traffic congestion: - Traffic congestion is a condition on road networks that occurs as
use increases, and is characterized by slower speeds, longer trip times, and increased vehicular
queueing. So this will affects the customers on time deliveries and services reliability in
logistics operation.

Rules and regulations in customer premises: - Every organization has rules and regulations
in order to maintain disciple within the organization. As a 3rd party logistics service Provider
Company has to obey to these rules. Following are the examples for rules and regulations

Eg: - After conducting the inbound logistics activities that empty lorry cant send empty. Need
to plan a finished good load and need to fulfil out bound logistics activities also.

3.2 Hypothesis
Once the important variables and the relationship among them are being identified, we can
develop the hypothesis with the purpose of testing the relationship between identified variables.

When researcher identified the dependent variable and independent variables and the
relationship between both of them, researcher can develop the hypothesis and testing them for
the purpose of testing the relationship between the dependent and independent variables. There
are six hypothesis the researcher has been developed.

H1:-Better logistics planning will lead to increase the truck turnaround efficiency.
H2:- Correct understanding of the customer service demand will lead to higher truck
turnaround efficiency in customer bases.

19
H3:- Higher degree of follow up in logistic operation will lead to increase truck
turnaround efficiency in logistics operation.
H4:- Higher the forecasting accuracy lead to the truck turnaround efficiency.
H5:- High road traffic congestion will lead to lower the truck turnaround efficiency in
logistics operation
H6:- Higher controls in customer premises will lead to increase the truck turnaround
efficiency in customer bases

3.3 Population & Sampling

3.3.1 Population

A research population is also known as a well-defined collection of individuals or objects


known to have similar characteristics. All individuals or objects within a certain population
usually have a common, binding characteristic or trait.

As per the research of Truck Turnaround Efficiency in Customer Base of Freight Links
International (Pte) Ltd, the population can be considered the Haulage division of Freight Links
International (Pte) Ltd.

4.1.2 Sampling

The study will consider the sample as 30 drivers and operational staff of Haulage division of
Freight Links International (Pte) Ltd. Use Simple random Sampling method is selected by the
researcher in order to collect data.

5.2 Data collection

In order to carry out the primary data collection process, a subset of the population is chosen.

Primary data collection methods


Questionnaires Pre-prepared questions are given to person involved in this
transportation operation that are selected by random sampling. Three types
of questions were given in the questionnaire with 20 questions. They were
open ended questions, closed ended questions and multiple choice questions.
Thirty questionnaires were given to drivers and operational staff to collect
data for the research.

20
Interviews These were conducted using top managerial officers and highly
experienced workers with in the organization. To identify the other facts that
effects for truck turn around efficiency. I conducted some interviews with
several Freight Links International customers top managerial officers and
operational level employees.
Secondary data collection methods
Company website
Books
Articles
Previous research regarding the topic

21
4. Data Analysis and Presentation
4.1 Introduction
This chapter consists of the analyzed data in a meaningful and structured way of tables and
graphical methods. These data were analyzed by using Excel sheet with the several statistical
methods. Also this chapter enables to answer the research objectives and testing the developed
hypothesis through detailed analysis of information collected through questionnaire and
literature review.
The questionnaire was distributed among of 40 drivers and operational staff of Freight Links
International (Pte) Ltd. It was randomly selected for the survey from company employees.
Questionnaire was given to employees and they responded to it on the same day. But due to
the less knowledge sometimes the answers that was produced by them were vague and unclear.
So 10 questionnaire were rejected from it. A total of 40 responses were received yielding 75%
responding rate. With the received yield fulfilled the required sample for this research.

4.2 Respondent profile


A total of 30 responses for questionnaire of 30 all were drivers and operational staff of Freight
Links International (Pte) Ltd. Summary of the experience of employees are shown below.

Experience Frequency Percentage


1 3 years 12 40%
3 5 years 6 20%
5 8 years 7 23%
More than 8 years 5 17%
Total 30 100%
Table 1:- Employees Experience

22
Experience

12

7
6
5

1 - 3 years 3 - 5 years 5 - 8 years More than 8 years

Figure 4:- Employees Experience


The bar chart and table above state the experience of the employees that had gathered the
information for this research. By looking at the experience of the employees around 40% have 1 3
years experience at Freight Links International (Pte) Ltd. 5-8 years experience employees are secondly
highest percentage of 23%. Then around 20% of the employees have 3-5 years experience at Freight
Links International (Pte) Ltd. Finally 17% the employees have more than 8 years working
experience.
4.3 Descriptive Statistics
Truck Follow up
Turnaround Logistics Service Forecasting in logistic Road traffic Rules and
Efficiency Planning demand accuracy operation congestion regulations
Mean 2.07 2.67 2.77 2.83 3 2 2
Standard
Error 0.185282222 0.250669601 0.247671 0.262977353 0.27263437 0.19817172 3.1328604
Median 2 2 3 3 2 2 2
Mode 2 2 2 2 2 2 2
Standard
Deviation 1.014832527 1.372973951 1.356551 1.440386283 1.49327997 1.085431214 17.159383
Sample
Variance 1.029885057 1.8850575 1.84023 2.074712644 2.22988506 1.17816092 1.1091954
Kurtosis 1.328495126 -1.11427084 -1.14564 -1.2504135 -1.1969771 0.251380981 0.6310658
Skewness 1.131809346 0.482180237 0.277316 0.311825511 0.48573033 0.860301323 0.9733978
Range 4 4 4 4 4 4 4
Minimum 1 1 1 1 1 1 1
Maximum 5 5 5 5 5 5 5
Sum 62 80 83 85 80 65 65
Count 30 30 30 30 30 30 30
Table 2:- Descriptive Statistics

23
4.3.1 Data Analysis of Logistics Planning

Logistics Planning Frequency Percentage %


Highly satisfied 4 13
Satisfied 6 20
Moderately satisfied 2 7
Dissatisfied 12 40
Highly dissatisfied 6 20
Total 30 100
Table 3:- Organization Logistics Planning

Logistics Planning

20% 13% Highly satisfied


Satisfied
20% Moderately satisfied
Dissatisfied
7%
40% Highly dissatisfied

Figure 5:- Organization Logistics Planning


The pie chart and table above states the employees view of organization logistics planning.
Majority of the employees were dissatisfied with the current logistic planning system as a
percentage it was 40%. Respondents who belong to highly dissatisfied category were 6 in
number, and as a percentage it is 20%. Out of 30 respondents, 6 were in the satisfied category
as a percentage it was 20%. Further 7% responded were moderately satisfied and 13% of
respondents were highly satisfied. The respondents were 2 and 4 respectively.

Driving To a Fixed Company Schedule

Response Frequency Percentage


Yes 6 20%
No 24 80%
Table 4:- Driving To a Fixed Company Schedule

24
Driving to a Fixed Company Schedule

20%

Yes
No

80%

Figure 6:- Driving To a Fixed Company Schedule


Out of 30 respondents, 24 were not driving to the fixed company driving schedule that indicates
company logistics planning level is in lower level as a percentage it was 80%. But 6 respondent
stated that they were driving to a fix driving schedule and the percentage was 20%.

Planning Logistic Operation

Response Frequency Percentage


With your customer demand 6 20%
By analyzing previous data 4 13%
According to current requirements 20 67%
Table 5:- Planning Logistic Operation

Planning Logistic Operation


25

20

15

10

0
With your customer By analyzing previous According to current
demand data requirements

Figure 7:- Planning Logistic Operation

25
According to the respondents comments most of the time the supervisors were planning day to
day logistics work by considering current customer requirement. As a percentage it was 67%.
Out of 30 respondents, 6 responded that work was planned by the supervisor according to the
customer demand. Four respondents stated that supervisors use previous data to the logistic
planning which was 13% according to the survey.

4.3.2 Data Analysis of Customer service demand

Frequency Percentage %
Customer Service demand
Highly satisfied 4 13
Satisfied 6 20
Moderately satisfied 5 17
Dissatisfied 9 30
Highly dissatisfied 6 20
Total 30 100
Table 6:- Customer service demand

Customer Service Demand

20% 13% Highly satisfied


Satisfied
20% Moderately satisfied
Dissatisfied
30%
17% Highly dissatisfied

Figure 8:- Customer service demand

The pie chart and table above show the identification of customer service demand in logistics
operation in Freight Links International (Pte). Majority of the respondents were dissatisfied
with current customer service demand identification system. As percentage it was 30%. Out of 30
respondents, 5 responded as moderately satisfied with the customers services demand. As a
percentage it was 17%. Six respondents are highly dissatisfied and it was 20% according to
the pie chart. 13% of the respondents were highly satisfied and 20 % of the respondents were
satisfied with the Customer service demand of logistics operation.

26
Informing the Customers Trucks Requirements

Response Frequency Percentage


Two weeks before 1 3
One week ahead 3 10
Five days before 5 17
Three days before 6 20
At the last moment. 15 50
Total 30 100
Table 7:- Informing the Customers Requirements

Informing the Customer's Trucks


Requirements

3%
10%
Two weeks before
One week ahead
17%
50% Five days before
Three days before
20% At the last moment.

Figure 9:- Informing the Customers Requirements


According to the pie chart majority of the Freight Links International informs their requirements
at the last moment to drivers. As percentage it is 50%. Second highest scorer 20% was informed the
requirements 3 days before. Out of 30 respondents, 5 responded to inform the driving schedule
requirement five days before. 10% of the respondents and 3 % of the respondents mentioned
informing their requirements one week ahead and two week before respectively.

27
4.3.3 Data Analysis of Degree of follow up in logistic operation

Follow up in logistic
operation Frequency Percentage %
Always 6 20
Often 3 10
Sometimes 4 13
Rarely 9 30
Never 8 27
Total 30 100
Table 8:- Follow up in logistic operation

Follow up in logistic operation

20% Always
27%
Often
10% Sometimes
Rarely
13%
30% Never

Figure 10:- Follow up in logistic operation

The pie chart and table above state the degree of follow up in logistic operation. The majority
of the respondent mentioned their supervisors rarely conduct follow ups. As a percentage it
was 30%. Second large value is 27% which came under supervisors are never conducting
follow ups in operations. Out of 30 respondents, 6 mentioned their supervisors always conduct
follow ups. 10% and 13% of the respondents mentioned that follow up in logistic operation
were respectively sometimes and rarely.

28
Satisfaction of Conducting Follow-up Sessions

Response Frequency Percentage


Yes 12 40
No 18 60
Total 30 100
Table 9:- Conducting Follow-up Sessions

Satisfaction of Conducting Follow-up


Sessions
20
18
16
14
12
10
8
6
4
2
0
Yes No

Figure 11:- Conducting Follow-up Sessions

The majority of the respondent said that they were not happy with the number of follow ups
conducted by supervisors. The number of respondents were 18 in number and 60% in
percentage. Out of 30 respondents, 12 said that they were happy with the current follow ups
conducted by supervisors. As a percentage it was 40%.

29
4.3.4 Data Analysis of Forecasting accuracy

Forecasting accuracy Frequency Percentage %


Always 6 20
Often 4 13
Sometimes 5 17
Rarely 9 30
Never 6 20
Total 30 100
Table 10:- Forecasting accuracy

Forecasting Accuracy

20% 20% Always


Often
Sometimes
13%
Rarely
30%
17% Never

Figure 12:- Forecasting accuracy

The pie chart and table above show whether there was a similarity between the supervisors plan
and the actual situation of logistics operation. 30% of the respondents stated it was rarely
matched with the actual situations. It was the majority. Same weight was given for always and
never in response. It was 20%. Out of 30 respondents, 4 responded to often as a percentage it
was 13%. 17% percent of the respondent said that sometimes they will find a similarity between
the supervisors plan and the actual situation.

30
Gathering Information about the Logistic Operation
Response Frequency Percentage
Yes 11 37
No 19 63
Total 30 100
Table 11:- Gathering Information about the Logistic Operation

Gathering Information About


the Logistic Operation

37%
Yes
No
63%

Figure 13:- Gathering Information about the Logistic Operation

To conduct a correct forecast gathering information is essential. Majority of the respondents


stated their supervisors and officers didnt ask them about logistic operation in order to do the
forecasting. As a percentage it was 63%. Out of 30 respondents, 19 stated their supervisors had
gathered information from them about logistic operation.

31
4.3.5 Data Analysis of Road Traffic Congestion

Road traffic congestion Frequency Percentage %


Always 9 30
Often 12 40
Sometimes 5 17
Rarely 3 10
Never 1 3
Total 30 100
Table 12:- Road Traffic Congestion

Road Traffic Congestion

3%
10% Always
30%
Often
17%
Sometimes
Rarely
Never
40%

Figure 14:- Road Traffic Congestion

The pie chart and table above states how frequently they face road traffic congestion. Majority
of the respondents said they oftenly face the traffic congestion. As a percentage it was 40%.
Second large value was 30% which said that the respondent always face the traffic. Out of 30
respondents, 5 responded that they sometimes face to the Traffic Congestion. 10% of the
respondents and 3 % of the respondents mentioned that they were rarely and never face road
traffic congestion while doing the logistics operation.

32
4.3.6 Data Analysis of rules and regulations in customer premises

Rules and regulations Frequency Percentage %


Highly effected 8 27
Effected 14 47
Averagely effected 4 13
Slightly effected 3 10
Not effected at all 1 3
Total 30 100
Table 13:- Rules and regulations in customer premises

Rules and Regulations

3%
10% Highly effected
27%
Effected
13%
Averagely effected
Slightly effected
Not effected at all
47%

Figure 15:- Rules and regulations in customer premises

The pie chart and table above state how rules and regulations in customer premises effect truck
turnaround efficiency. Majority of the respondents said that rules and regulations in customer
premises had effected as to percentage it was 47%. Second highest value is 27% and it is said
that it will be highly effected. 13% of the respondents said that rules and regulations averagely
effected to truck turnaround efficiency. Out of 30 respondents, 3 were responded to slightly
effect and as a percentage it was 10%. 3% of respondents said rules and regulations did not
effect at all to company truck turnaround efficiency.

33
4.3.7 Data Analysis of Truck Turnaround Efficiency

Truck Turnaround Efficiency Frequency Percentage %


Highly Efficient 1 3
Efficient 2 7
Moderately Efficient 4 13
Inefficient 14 47
Highly inefficient 9 30
Total 30 100
Table 14:- Truck Turnaround Efficiency

Truck Turnaround Efficiency

3%

7% Highly Efficient
30% 13% Efficient
Moderately Efficient
Inefficient
Highly inefficient
47%

Figure 16:- Truck Turnaround Efficiency

The pie chart and table above show truck turnaround efficiency in customer base of Freight
Links International (Pte) Ltd. According to the pie chart majority of the respondents said that
current truck around was inefficient. As a percentage it was 47%. The second highest value
was 30% of the respondents said its highly inefficient. 13% of the respondent said current
truck turnaround is moderately efficient. Out of 30 respondents, 2 respondents said that truck
turnaround time was highly efficient. According to their views.

34
Truck Turnaround Efficiency in Customer Wise

Truck Turnaround Efficiency in Customer Wise


5
5
4
4
3
DAYS

3
2
2
1
1
0
MAS holdings PE Plus Maliban Akzo Nobel Vogue tex Lion brewery
Biscuit
CUSTOMERS

Figure 17:- Truck Turnaround Efficiency in Customer Wise

According to the bar chart illustrations Freight Links International truck turnaround efficiency
is high in customer wise. According to the respondents comments the highest truck turnaround
efficiency was recorded by the Akzo Nobel. Second highest was recorded by Vogue Tex. Thirdly and
fourthly PE plus and Lion brewery recorded respectively. The most inefficient truck turnaround is
recorded by MAS holdings.

4.3.8 Other important arias of the study

Equipment used for loading/unloading purposes

Response Frequency Percentage %


No equipment are used, do the loading/unloading
manually 15 50
Fork lifts 7 23
Pallet jack/ Pallet truck 8 27
Conveyor belts 0 0
Cranes 0 0
Total 30 100
Table 15:- Equipment used for loading/unloading purposes

35
Equipment used for
loading/unloading purposes
No equipment are used, do
the loading/unloading
manually
Fork lifts
0%
27%
Pallet jack/ Pallet truck
50%

Conveyor belts
23%

Figure 18:- Equipment used for loading/unloading purposes

The pie chart and table above show the equipment used for loading/unloading purposes in
customer base of Freight Links International (Pte) Ltd. According to the pie chart majority of
the respondents said that No equipment are used, do the loading/unloading manually as a
percentage it was 50%. The second highest value was 27% of the respondents said Pallet jack/
Pallet truck are used for loading and unloading. 23% of the respondent said customers are using
fork lift are using operation. None of the respondent said customers used conveyor belts in
loading/unloading purposes.

Systems involved in GRN process

Response Frequency Percentage %


RFID 0 0
Barcodes 8 27
SAP 7 23
Manually documentation 15 50
Total 30 100
Table 16:- Systems involved in GRN process

36
Systems involved in GRN process

0%
27% RFID
Barcodes
50%
SAP
Manually documentation
23%

Figure 19:- Systems involved in GRN process

The pie chart and table above show systems involved in GRN process in customer base of
Freight Links International (Pte) Ltd. According to the pie chart majority of the respondents
said that customers are using manually documentation for GRN process. The second highest
value was 27% using barcodes for GRN. 23% of the respondents are said customers used SAP
based GRN processes. None of the respondent said customers used RFID for GRN process in
customer base of Freight Links International (Pte) Ltd.

4.3.9 Regression Analysis

Customer Follow up
Logistics Service Forecasting in logistic Road traffic Rules and
Planning demand Accuracy operation congestion Regulations
Correlation 0.85794098 0.863318143 0.857104726 0.881387801 -0.79304468 -0.785064246
Simple 0.73606272 0.745318216 0.734628512 0.774116348 0.628919861 0.61632587
regression
Table 17:- Correlation & Regression Analysis

37
Logistics Planning VS Truck Turnaround
Efficiency
6

5
LOGISTICS PLANNING

y = 0.6341x + 0.3756
4
R = 0.7361

0
0 1 2 3 4 5 6
TRUCK TURNAROUND EFFICIENCY

Figure 20:- Logistics Planning Vs Truck Turnaround Efficiency


According to the scatter diagram there is strong positive relationship between logistics planning
vs truck turnaround efficiency. Correlation of these two variables are 0.85794098 and simple
regression is 0.7361.

Customer Service Demand VS Truck


Turnaround Efficiency
6
CUSTOMER SERVICE DEMAND

5
y = 0.6458x + 0.2798
4 R = 0.7453

0
0 1 2 3 4 5 6
TRUCK TURNAROUND EFFICIENCY

Figure 21:- Customer Service Demand vs Truck Turnaround Efficiency


According to the scatter diagram there is strong positive relationship between customer service
demand vs truck turnaround efficiency. Correlation of these two variables are 0.863318143 and
simple regression is 0.7453.

38
Follow up in logistic operation VS Truck
Turnaround Efficiency
6
FOLLOW UP IN LOGISTIC OPERATION

4 y = 0.5979x + 0.4722
R = 0.7741
3

0
0 1 2 3 4 5 6
TRUCK TURNAROUND EFFICIENCY

Figure 22:- Follow up in Logistic Operation Vs Truck Turnaround Efficiency

According to the scatter diagram there is strong positive relationship between customer service
demand vs truck turnaround efficiency. Correlation of these two variables are 0.774116348 and
simple regression is 0.7741.

Forecasting Accuracy VS Truck Turnaround


Efficiency
6

5
FORECASTING ACCURACY

y = 0.6039x + 0.3557
4 R = 0.7346

0
0 1 2 3 4 5 6
TRUCK TURNAROUND EFFICIENCY

Figure 23:- Forecasting Accuracy Vs Truck Turnaround Efficiency

According to the scatter diagram there is strong positive relationship between forecasting
accuracy vs truck turnaround efficiency. Correlation of these two variables are 0.857104726 and
simple regression is 0.7346.

39
Road Traffic Congestion VS Truck
Turnaround Efficiency
6

5
ROAD TRAFFIC CONGESTION

y = -0.7415x + 3.6732
2
R = 0.6289

0
0 1 2 3 4 5 6
-1
TRUCK TURNAROUND EFFICIENCY

Figure 24:- Road Traffic Congestion Vs Truck Turnaround Efficiency


According to the scatter diagram there is strong negative relationship between road traffic
congestion vs truck turnaround efficiency. Correlation of these two variables are -0.79304468
and simple regression is 0.6289.

Rules and Regulations VS Truck Turnaround


Efficiency
6

5
RULES AND REGULATIONS

0 y = -0.7565x + 3.7057
0 1 2 3 R
4 = 0.6163 5 6
-1
TRUCK TURNAROUND EFFICIENCY

Figure 25:- Rules and regulations Vs Truck Turnaround Efficiency

According to the scatter diagram there is strong negative relationship between rules and
regulations in customer premises vs truck turnaround efficiency. Correlation of these two
variables are -0.688488656 and simple regression is 0.474016629.

40
4.4 Hypothesis Testing

Customer Follow up in Road Truck


Logistics Service Forecasting logistic traffic Rules and Turnaround
Planning demand Accuracy operation congestion Regulations Efficiency
Logistics
1
Planning
Customer
Service 0.9750783 1
demand
Forecasting 0.9648228 0.98532736 1
Accuracy
Follow up
in logistic 0.9530729 0.94758885 0.96725082 1
operation
Road traffic -0.840703 -0.8625905 -0.863848 -0.85806971 1
congestion
Rules and -0.818751 -0.8407308 -0.8448364 -0.84049149 0.97029038 1
Regulations
Truck
Turnaround 0.857941 0.86331814 0.85710473 0.879838819 -0.7930447 -0.7850643 1
Efficiency
Table 18:- Hypothesis Testing

To test the hypothesis pearson correlation technique is used.

The first hypothesis was

H1:- Better logistics planning will lead to increase the truck turnaround efficiency

According to the table the two correlation value of the truck turnaround efficiency and logistics
planning has shown there is a positive relationship between these two variables. The correlation
is 0.857. It says logistics planning positively impact to truck turnaround efficiency. So
hypothesis has to be accepted.

The second hypothesis was

H2:- Correct understanding of the customer service demand will lead to higher truck
turnaround efficiency in customer bases.

According to the table the two correlation value of the truck turnaround efficiency and customer
service demand has shown there is a positive relationship between these two variables. The
correlation is 0.863. It says correct customer service demand positively impact to truck
turnaround efficiency. So hypothesis has to be accepted.

41
The third hypothesis was

H3:- Higher degree of follow up in logistic operation will lead to increase truck turnaround
efficiency in logistics operation.

According to the table the two correlation value of the truck turnaround efficiency and degree
of follow up in logistic operation has shown there is a positive relationship between these two
variables. The correlation is 0.880. It says degree of follow up in logistic operation positively
impact to truck turnaround efficiency. So hypothesis has to be accepted.

The forth hypothesis was

H4:- Higher the forecasting accuracy lead to the truck turnaround efficiency.

According to the table the two correlation value of the truck turnaround efficiency and
forecasting accuracy in logistic operation has shown there is a positive relationship between
these two variables. The correlation is 0.857. It says forecasting accuracy in logistic operation
positively impact to truck turnaround efficiency. So hypothesis has to be accepted.

The fifth hypothesis was

H5:- High road traffic congestion will lead to lower the truck turnaround efficiency in
logistics operation

According to the table the two correlation value of the truck turnaround efficiency and road
traffic congestion in logistic operation has shown there is a negative relationship between these
two variables. The correlation is -0.793. It says road traffic congestion negatively impact to
truck turnaround efficiency. So hypothesis has to be accepted.

The sixth hypothesis was

H6:- Higher controls in customer premises will lead to increase the truck turnaround
efficiency in customer bases

According to the table the two correlation value of the truck turnaround efficiency and controls
or the rules and regulations in logistic operation has shown there is a negative relationship
between these two variables. The correlation is -0.785. It says controls of the customer premises
negatively impact to truck turnaround efficiency. So hypothesis has to be rejected.

42
5. Conclusion and Recommendations

Main purpose of this research paper is related to the land side efficiency of in customer base of
Freight Links International (Pte) Ltd which measures the time taken for a truck to enter in to
the customer location, process loading/unloading and then leave the premises. Through this
research truck turnaround time is viewed as a combination of waiting time, flow time and exit
time. Based on the gathered data using questionnaires relevant calculations are made to find
out the truck turnaround efficiency at customer base of Freight Links International (Pte) Ltd.
Based on the calculations, detailed analyses were carried out to find out the root cause for truck
turnaround efficiency. Each variable (Logistics Planning, Customer service demand, Degree
of follow up in logistic operation, Forecasting accuracy, Road traffic congestion, Rules and
regulations in customer premises) was analysed separately to find out which variable is the
most influenced to truck turnaround time.

5.1 Key Findings of the Study

Follow up in logistic operation has bigger impact on truck turnaround efficiency than
other variables.
There is a positive relationship with Logistics planning and truck turnaround efficiency.
Majority of the employees are dissatisfied with the current logistic planning system
within the organization. And also employees were not driving to the fixed company
driving schedule that indicates company logistics planning level is in lower position.
According to the respondents comments most of the time the supervisors were planning
day to day logistics work by considering current customer requirement. They are not
using forecasting methods by analyzing previous data.
Customer service demand is positively impact to truck turnaround efficiency.
Majority of the respondents were dissatisfied with current customer service demand
identification system. According to the collected data respondents mentioned they will
informed the customers truck requirements at the last moment. This meant that current
system has not identified the customers services demand or the truck requirements
correctly.
Follow up in logistic operation has a positive impact to truck turnaround efficiency.

43
The majority of the respondent mentioned their supervisors rarely conduct follow ups.
They were unhappy with the number of follow ups conducted by supervisors. This
revealed follow ups done by the logistics officers were not sufficient.
There is a positive relationship with Forecasting accuracy in logistic operation
positively impact to truck turnaround efficiency.
Forecasting accuracy meant that there is a similarity between the supervisors plan and
the actual situation of logistics operation. The most of respondents stated it was rarely
matched with the actual situations in operations. The evidence show that there is less
accuracy in company forecasting system.
Road traffic congestion show a negative impact to truck turnaround efficiency. And
majority of the respondent have said they oftenly face the traffic congestions in the
logistics operation. This factor has negative impact to truck turnaround efficiency.

Controls of the customer premises has a negative impact to truck turnaround efficiency.
Majority of the respondents said that rules and regulations in customer premises had
effected the company truck turnaround efficiency.

The current truck turnaround time in an organization is averagely more than 3 days in
customer premises. MAS holdings has the highest truck turnaround time recorded
customer according to statistics. Most efficient truck turnaround time is recorded by
Akzo Nobel. The time could be reduced if there is a properly planned process flow.

Most of the customer of the Freight Links International uses labour for
loading/unloading purposes within the organizations. And few customers used Fork
lifts and Pallet jack/ Pallet truck loading/unloading systems. This too will affect the
efficiency levels of truck turnaround time.

When considering the systems involvement in GRN process in customer base of


Freight Links International. Majority of customers use manual documentation for GRN.
But few customers has used Barcodes and SAP based systems for GRN. This conclude
technology involvement is less used GRN process.

44
5.2 Recommendations

Implementing ERP system for logistics operation or logistic planning software to


Haulage division of Freight Links International.
Implement GPR tracking system for all vehicles and monitor the truck turnaround
efficiency.
Implementing new forecasting tools to forecast service demand generate form the
customer base.
Introduces a follow up mechanism for supervising staff of haulage division.
Identify the alternative routes to visit customer locations and advise logistics
operational staff about this.
Discussed with customers and try to reduced rules and regulations which badly effect
truck turnaround efficiency.
Review the companies Demurrage & Detention rates and try to reduce the turnaround
efficiency financial impact.
Discuss with customers and implement a KPI driven logistics operation.

45
References

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47
Appendices
m%Yakdj,sh
01 Tn fuu iud.f fldmuK ld,hl isg fiajh lrhso@

a. wjqreoq 1-3
b. wjqreoq 3-5
c. wjqreoq 5-8
d. wjqreoq 8 g je

02 Tn Odjkh lrkafka iud.f ia:sr Odjk ld, igyklgo@


T ke;

03 .uka jdrhla imQK lsrSug idudkH jYfhka Tn fldmuK ld,hla .; lrhso@


^nvq megu i|yd .; jk ld,ho we;=MZj&

04 tosfkod Odjk ldhhkaysoS Tn iud.f Odjk ld, ie,iq yd .kakd ;SrK


inkaOfhka Tn i;=gq jkafkao@
a. b;d ;Dma;su;a
b. ;Dma;su;a
c. idudkH jYfhka ;Dma;su;a
d. wi;+gQhlhs
e. b;d wi;+gQhlhs

05 wdh;kh i|yd .uka jdr ixOdkh lsrSfoS ie,iq lsrSu flfia isoq lrhso@

a. ,efnk b,a,qf ;Sj%;djh u;


b. miq.sh o;a; u;
c. ld,Sk wjYH;dj u;

06 Tn iud.u u.ska Tng kshus; .uka jdrh ms,sUoj Tn oekqj;a lsrsu islrkafka
fldmuK ld,hlg fmro@

a. i;s 02 lg fmr
b. i;s 01 lg fmr
c. osk 05 lg fmr
d. osk 03 lg fmr
e. wjidk fudfydf;a

07 Tnf.a jev mrSCIljreka .Kqfokqlrejkaf.a fiajd wjYH;d yd ie,iq ms<sn|j


ie,ls,su;a fjka .uka jdr ixOdkh lsrsu ms,snoj Tnf.a woyi olajkak
f. b;d ;Dma;su;a
g. ;Dma;su;a
h. idudkH jYfhka ;Dma;su;a
i. wi;+gQhlhs
j. b;d wi;+gQhlhs

08 Tng ,nd oqka Odjk ld, igyk yd i;H jYfhka .uk ksu lsrSug .; jk ld,h
w;r fjkila

a. ksrka;rfhka
b. idudkH jYfhka
c. iuyr fgl
d. l,d;=rlska
e. lsisfia;au ke; isoq f
48
nvq m%jdyk ldhdj,sfhaoS Tnf.a jev mrSCIljreka miq mr isoq lrhso@

a. ksrka;rfhka
b. idudkH jYfhka
c. iuyr fgl
d. l,d;=rlska
e. lsisfia;au ke;

10 Tnf.a .uka jdrh ;=, jev mrSCIljreka miq mr isoq lsrSu .ek Tn iEySulg m;a
jkafkao@

T ke;
11 jdyk Odjk jdrhloS my; ldrKhka i|yd Tn l=uk ld, m%udKhla jeh lrhso@

a. fl .ekSu i|yd meh ^ksod .ekSug .; lrk ld,h w;yer&


b. jdykh mrSlaId lsrSu i|yd meh
c. nvq megu$nvq nEu i|yd meh
d. fmdfrd;a;=j isug .; jk ld,h meh
e. Odjkfha fhfok ld,h meh
f. ksod .ekSu i|yd meh

12 Odjk jdrhloS ld,h jeh jk m%udKh .ek fuhg fmr Tnf.a jev mrSCIljreka
Tnf.ka f;dr;=re ,nd f.k ;sfo@

T ke;

13 Odjk jdrhloS ud. ;onoh fjkqfjka ld,h fjka lsrSug isoq fo@

a. ksrka;rfhka
b. idudkH jYfhka
c. iuyr fgl
d. l,d;=rlska
e. lsisfia;Au ke;

14 .ukdka;h i|yd <d ug Tng ,nd oqka f,djg jvd wvq ld,hlska Tn .ukdka;h
lrd hEug W;aidy orkafkao@

T ke;
ms<s;=r T k fya;= olajkak

15 my; oelafjk .Kqfokqlrejkaf.a wdh;khg nvq f;d. nd kej; meKSug .; jk


ld,h i|yka lrkak

a. MAS Holdings
b. PE Plus
c. Maliban Biscuit Mfg. Ltd.
d. Akzo Nobel
e. Vogue Tex
f. Lion Brewery

49
Tn lsish ksYa; .ukdka;hlg f.dia nvq megfoS fyda nEfoS hlsis mudjla isoq jkafka
my; i|yka l=uk fya;= fya;= fldgf.ko@

.Kqfokq wdh;kh jid ;su ksid nvq megu$nEug wjYH hka;% fkdue;s ksid
fjk;a jdykhl nvq megu$nEu nvq megug$nEug ksh; ld,hla fjka lr
isoq jk ksid fkd;su
nvq f;d. ^ks NdKav& iQodk fjk;a
ke;s ksid
fjk;a k fya;= olajkak

17 NdKav megu yd nEu flfia isoq lrhso@
a. ksia Y%uh u.ska
b. f*dala ,s*a u.ska
c. me, cela $ g%la u.ska
d. lkafh fn,a u.ska
e. fodUlr u.ska

18 NdKav Ndr .ekSf ldhdj,sfha Nd;hg .efkk l%ufo olajkak


a. RFID
b. Nd flda
c. SAP
d. f,aLk wdY%fhka
e. fjk;a l%u u.ska

19 .Kqfokqlrejkaf.a wdh;k ;=,oS Tn iska ms<smeosh hq;= kS;s yd rS;s ksidfjka f,drs
wdmiQ meuskfs us ld,hg n,meula isoqfjso?
a. b;d ;on,j n,mdhs
b. n,mdhs
c. idudkH jYfhka n,mdhs
d. wju jYfhka n,mdhs
e. lsisfia;a n, fkdmdhs
20. Tn wdh;kfha f,drs kej; meuskSfus ldhu;djh ms,sToj Tnf.a u;h olajkak
a. b;d ldhuhs
b. ldhuhs
c. idudkHhs
d. wldhuhss
e. b;d wldhuhss

50

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