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Tiêu đề Solutions to improve the quality of logistics services at OOCL Logistics (Vietnam) Company Limited
Tác giả Le Thi Hang, Pham Thi Thanh, Nguyen Thi Van
Người hướng dẫn MSc. Tran Hai Viet
Trường học Vietnam Maritime University
Chuyên ngành Logistics Management
Thể loại Thesis
Định dạng
Số trang 86
Dung lượng 5,31 MB

Cấu trúc

  • CHAPTER 1. LITERATURE REVIEW (14)
    • 1.1 Overview of previous research (14)
      • 1.1.1 Previous research on logistics services (14)
      • 1.1.2 Previous research on solutions to improve the quality of logistics services (17)
    • 1.2 Logistics and Logistics Service (19)
      • 1.2.1 Defining Logistics in previous research (19)
      • 1.2.2 Definition of Logistics Service (22)
    • 1.3 The quality of logistics services (23)
      • 1.3.1 Definition of service quality in logistics (23)
      • 1.3.2 The importance of Logistics service quality (24)
    • 1.4 Evaluating the quality of logistics services (26)
      • 1.4.1 Satisfaction of customers (26)
      • 1.4.2 The relationship between customer satisfaction and service quality (27)
    • 1.5 Research model (29)
      • 1.5.1 SERVQUAL model (29)
      • 1.5.2 SERVPERF model (31)
      • 1.5.3 Proposed Model (34)
  • CHAPTER 2. ANALYSIS AND EVALUATIONS OF LOGISTICS SERVICE (35)
    • 2.1 Introduction to OOCL Vietnam Company (35)
      • 2.1.1 Orient Overseas Container Line (OOCL) Group (35)
      • 2.1.2 OOCL Logistics Company Limited (Vietnam) (36)
      • 2.1.3 Organizational structure (37)
      • 2.1.4 The company's business performance results from 2018 to 2023 (38)
      • 2.1.5 Evaluating the advantages and challenges of the company (39)
    • 2.2 The current status of logistics service operations at OOCL Logistics Vietnam Company (41)
      • 2.2.1 Market Overview (41)
      • 2.2.2 Overview of research (43)
    • 2.3 Criteria for assessment based on customer perspectives (44)
      • 2.3.1 The reliability in service provision (44)
      • 2.3.2 Assurance indicators (45)
      • 2.3.3 Feedback on Tangibles (47)
      • 2.3.4 Responsiveness capabilities (48)
    • 2.4 Analyzing the selection of quality criteria for improving the logistics service of (49)
      • 2.4.1 Reliability testing using Cronbach’s Alpha scale (49)
      • 2.4.2 Exploratory Factor Analysis (EFA) (56)
      • 2.4.3 Correlation analysis (59)
      • 2.4.4 Regression analysis (61)
    • 2.5 Factors influencing business (63)
      • 2.5.1 The logistics and transportation business environment (63)
      • 2.5.2 State market liberalization policies (64)
      • 2.5.3 The ever-changing political landscape of the world (65)
      • 2.5.5 Price fluctuations (66)
    • 2.6 Internal factors of the enterprise (67)
      • 2.6.1 Strength (67)
      • 2.6.2 Weakness (68)
  • CHAPTER 3. PROPOSED SOLUTIONS FOR ENHANCING LOGISTICS (71)
    • 3.1.1. Development trends of the Company's logistics services (71)
    • 3.1.2. Development goals of OOCL Logistics Company (72)
    • 3.2. Some solutions to improve the quality of logistics services of OOCL Logistics company (73)
      • 3.2.1. Solutions to improve procedural quality (73)
      • 3.2.2. Solutions to improve communication quality (74)
      • 3.2.3. Solutions to improve timeliness and troubleshooting (77)
      • 3.2.4. Solutions to improve technology quality (79)

Nội dung

Luận văn tốt nghiệp ngành Logistics, đánh giá chất lượng dịch vụ tại công ty OOCL Logistics, sử dụng mô hình servperf, phần mềm SPSS để phân tích dữ liệu, luận văn viết hoàn toàn bằng tiếng anh

LITERATURE REVIEW

Overview of previous research

1.1.1 Previous research on logistics services

Previous research endeavors have extensively explored the realm of logistics services, shedding light on strategies and interventions aimed at optimizing various facets of this crucial industry Within this domain, a notable focus has been placed on solutions geared towards enhancing service quality, reflecting the ongoing quest for excellence in logistics operations.

The research article "An integration of SERVQUAL dimensions and logistics service quality indicators" (Esmaeili & kahnali, 2015) stands as a case study in the realm of logistics services The aim of this study is to address a gap in existing research by specifically focusing on logistics service quality While previous studies have touched upon this topic, they have not delved into it extensively The study aims to amalgamate the five generic dimensions of SERVQUAL with the emerging dimensions of service quality in the logistics industry, thereby expanding the evaluation framework By utilizing a real case study, the objective is to apply gap analysis within two branches of a customs warehousing company The data collected from this analysis were subjected to statistical analysis using SPSS 19, and the results of the Wilcoxon and Mann Whitney U tests indicate a discrepancy between customer expectations and perceptions across all dimensions.

In another study, "Measuring Logistics Service Quality Using the SERVQUALModel" (Jusufbašić & Stević, 2023) This research discusses the importance of quality in the market as a critical determinant of success for companies It highlights the significance of maintaining high-quality standards and continuously striving for improvement and development The study utilizes the SERVQUAL model to measure the quality of logistics services within the TC company, a widely recognized model in the field of quality assessment.

The research involves gathering information from transport service users, who provide data on their expectations and perceptions of service quality across five dimensions: reliability, assurance, empathy, tangibles, and responsiveness The SERVQUAL model is employed to derive the final assessment of service quality. Additionally, the FUCOM method is utilized to determine the weights of each dimension.

The primary objective of the study is to evaluate the quality of transport services within the TC company to provide insights into its current state This assessment aims to guide the company in taking necessary steps to enhance its service quality. Improved service quality is expected to lead to higher levels of customer satisfaction, which in turn fosters greater customer loyalty, ultimately contributing to the company's positive performance and sustained market presence.

The findings reveal that the TC company has received negative final values across all five dimensions, indicating dissatisfaction among users with the services provided Among these dimensions, the greatest dissatisfaction is observed in the realm of tangibles.

In the article “Identification of sectoral logistics service quality gaps by applying servqual method” by (Meidutė-Kavaliauskienė, Vasilienė-Vasiliauskienė, & Vasiliauskas, 2020), it was demonstrated that the logistics industry has undergone significant changes in recent years, driven by the evolving customer expectations.

No longer content with the mere delivery of goods on time and to the correct location, customers now demand a holistic suite of logistics services This transformation underscores a fundamental challenge: the escalating dissatisfaction among customers with the quality of existing services.

Traditionally, the provision of quality service was considered a cornerstone of competitive advantage in the logistics sector However, the excerpt suggests that this paradigm is no longer tenable Instead, businesses must adapt to the changing landscape by offering diversified services, spanning various sectors of the economy and catering to diverse product categories Despite this diversity, the overarching objective remains consistent to achieve maximum customer satisfaction.

In light of these developments, scholarly attention has increasingly turned towards examining the intricate relationship between logistics service quality and customer satisfaction The research aims to unravel the nuanced preferences and requirements of customers across different sectors, shedding light on the variegated nature of their expectations.

Central to this inquiry is the utilization of the SERVQUAL method, a widely acknowledged framework for assessing service quality across various industries By leveraging this methodological approach, scholars seek to pinpoint sector-specific gaps in service delivery, thereby facilitating the formulation of targeted strategies to enhance competitiveness.

Overall, the literature underscores the imperative for logistics companies to adapt to the evolving demands of their clientele By embracing a multifaceted approach to service provision and leveraging robust methodologies such as SERVQUAL, businesses can position themselves for sustained success in an increasingly competitive marketplace.

The study “Analysis of Logistics Services Quality Using SERVQUAL Method in Surabaya City : Literature Review and Research Suggestion” by (Novitasari & Andini Anastasia, 2020) addresses the impact of the Covid-19 pandemic on various sectors, notably highlighting its effects on logistics services, particularly in the realm of freight forwarding, where trends show an increase

Primarily, the study aims to delve into the dimensions of service quality and analyze the disparity between customer perceptions and expectations of logistics services using the SERVQUAL method Additionally, it seeks to ascertain the relationship between service quality, customer satisfaction, and customer loyalty within the logistics sector This qualitative research is structured upon theoretical reviews and bolstered by prior research findings The fundamental concepts underpinning this theoretical framework encompass the SERVQUAL method, customer satisfaction, and customer loyalty.

Through critical evaluation and classification of previous research outcomes, several propositions emerge: Firstly, the five dimensions of SERVQUAL contribute significantly to shaping the quality of services within the logistics domain. Secondly, the quality of logistics services, as delineated by the SERVQUAL dimensions, exhibits a noteworthy correlation with customer satisfaction Lastly, customer satisfaction is significantly linked to customer loyalty.

Logistics and Logistics Service

1.2.1 Defining Logistics in previous research

Alongside the development of production capabilities and the significant support from the scientific and technological revolution worldwide, the volume of goods and tangible products being produced is increasing rapidly As the traditional competitive factors such as product quality or pricing become increasingly narrow,manufacturers have shifted their focus to compete in inventory management,delivery speed, streamlining the flow of raw materials and finished goods, etc.,within the enterprise's material distribution management system Throughout this process, logistics has had the opportunity to develop even more robustly in the business sector.

Initially, logistics was simply seen as a new business method, providing high efficiency for enterprises With its evolution, logistics has become specialized and developed into a crucial service sector in international trade However, what is quite interesting is that logistics was not initially invented and applied in commercial activities but rather in the military sector.

Logistics was widely applied by nations during the two World Wars to move military forces along with heavy weaponry and ensure logistical support for combat troops The term was first used in the military and meant "rear services" or

After the end of World War II, military logistics experts applied their logistics skills to post-war economic reconstruction efforts Logistics operations in commerce were first applied and implemented after the end of World War II Through the course of historical development, logistics has been researched and applied to the business sector From a business perspective, the term "logistics" is often understood as the management of supply chain or the physical distribution system of the enterprise. There are various concepts of logistics worldwide, built on different industries and research purposes about logistics services However, we can understand it based on some main concepts as follows:

In the military domain, logistics is defined as the science of planning and carrying out the movement and maintenance of forces, aspects in military campaigns related to the design and development, procurement, storage, movement, distribution, consolidation, arrangement, and transportation of materiel, equipment.

In 1991, The Council of Logistics Management, a trade organization based in the United States, defined logistics as: 'the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.'" (Sofroniou, 2015)

According to Professor Martin Christopher, as cited in "Logistics: FundamentalIssues" by Doan Thi Hong Van (2010, p 31), "logistics is the strategic management process of sourcing, moving, and storing raw materials, finished goods, products (and corresponding information flows) within a company and through the company's distribution channels to maximize current and future profits by completing orders at the lowest cost."

According to the "5 rights" perspective by Douglas M Lambert and colleagues (1998) as cited in "Logistics: Fundamental Issues" by Doan Thi Hong Van (2010, p. 31), logistics is defined as "the process of delivering the right product to the right place, at the right time, under the right conditions, and at the appropriate cost for consumer consumption."

As cited from David Simchi-Levi in "Logistics: Fundamental Issues" by Doan Thi Hong Van (2010, p 31), "logistics systems are a set of approaches used to effectively link suppliers, manufacturers, warehouses, stores, to ensure that goods are produced and distributed in the right quantity, at the right location, and at the right time, with the aim of minimizing costs across the entire system while meeting service level requirements."

According to Doan Thi Hong Van in "Logistics: Fundamental Issues" (2010, pp. 31-32), "logistics is the optimization process of location and timing, transportation, and resource storage from the first point in the supply chain through production, distribution to the end consumer, through a series of economic activities."

With the current development of the logistics industry, it is certain that newer concepts will emerge In this article, the author employs the concept that "logistics is the optimization process of location and timing, transportation, and resource storage from the first point in the supply chain through production, distribution to the end consumer, through a series of economic activities." Thus, the essence of logistics lies in optimization and efficiency Alongside optimizing location or position, there is also optimization of time, as in the knowledge economy, being "on time" and "at the right time" holds significant importance (excerpted from

"Logistics: Fundamental Issues" by Doan Thi Hong Van, 2010).

The purpose of logistics is to minimize costs incurred or to be incurred in the shortest possible time during the movement of raw materials for production as well as the timely distribution of goods.

Some other concepts about logistics:

- From a production perspective: Logistics is a chain of activities aimed at ensuring that materials, machinery, equipment, and services for organizational operations are carried out continuously, smoothly, and efficiently.

- From a supply chain perspective: Logistics is the optimization process of location, storage, and movement of resources or inputs from the first point of origin, such as suppliers, through manufacturers, wholesalers, retailers, to the end consumer through a series of economic activities.

- Logistics is a system of efficiently planned activities aimed at managing materials, services, information, and capital flows,

In Vietnam, the concept of logistics is still somewhat vague and inconsistent Most specialists agree that using the term rear services to explain logistics still does not fully convey the modern meaning of the term, so the solution is to keep the term

"logistics" in the Vietnamese language, as well as terms like marketing, container, etc.

According to Professor Martin Christopher, "logistics is the process of strategically managing procurement, transportation, and storage of raw materials, finished goods, products within a company and through the company's distribution channels to maximize current and future profits through completing orders at the lowest cost." (Christopher, 2011)

The quality of logistics services

1.3.1 Definition of service quality in logistics

Lewis and Booms (1983) argue that service quality is a measure of the extent to which a service matches customer expectations Creating high-quality service means consistently meeting customer expectations According to Parasurman, Zeithaml, and Berry (1985, 1988), service quality is seen as the gap between service expectations and customer perceptions when using that service.

According to Davis in "The Role of Logistics Service Quality in Creating Customer Loyalty" (2006), customer service consists of two aspects The first aspect is operational customer service, related to order cycle, timely delivery, and inventory availability, while the second aspect is responsiveness, representing the ability to adapt to market-oriented changes Customer service includes two different factors: an internal factor or the operational efficiency factor of service quality and an external factor or marketing orientation factor Therefore, service quality encompasses two crucial aspects: the efficiency of operational factors and the effectiveness of relationship factors Successful enterprises excel in both aspects,understanding customer needs and expectations and being able to provide quality service to meet them effectively (according to "The Service-Driven ServiceCompany" by Schlesinger, L.A., Heskett, J.L., 1991).

Logistics service quality operational activities refer to the perception of logistics activities carried out by service providers, contributing to enhancing appropriate quality, productivity, and efficiency This factor includes the physical characteristics of the service Logistics service quality operational activities also encompass reliability, which is the ability to deliver services promised reliably and accurately The relational logistics service quality is the perception of logistics activities bringing customers closer to the company, to better understand customer needs and expectations and have the ability to provide quality services to meet them effectively This aspect includes assurance and care factors (According to Davis in

"The Role of Logistics Service Quality in Creating Customer Loyalty", 2006).

According to TCVN ISO 9000:2000, service quality is the level of a set of inherent characteristics of a service that satisfies the needs and expectations of customers and other stakeholders In summary, service quality is about service providers meeting the level of demand and expectation of their customers Therefore, service quality is primarily defined by customers, and the higher the level of customer satisfaction, the better the service quality

Thus, in this study, "Logistics service quality is a process aimed at increasing understanding of how customers form perceptions of logistics services and their satisfaction with those logistics services." (Mentzer, et al., 2001)

1.3.2 The importance of Logistics service quality

- Logistics service quality enhances customer satisfaction

According to Mentzer et al (2001), logistics service quality is a component of marketing that contributes to customer satisfaction Similarly, Saura et al (2008) suggest that for manufacturing companies, logistics service quality, concerning aspects like timeliness, personnel, information quality, and order accuracy, significantly influences customer satisfaction and loyalty exhibited by partner companies and customers.

- Logistics service quality fosters customer loyalty

Logistics not only enhances operational efficiency for businesses but also increases customer loyalty Logistics services positively impact customer purchasing decisions, as they contribute to a company's sustainable competitive advantage by serving customers effectively Bowersox et al (1995) suggest that an effective tool for strengthening customer relationships related to logistics capabilities is to exploit these capabilities to achieve and maintain customer loyalty.

- Logistics service quality enhances competitive advantage

Customer service quality is one of the best ways to retain existing customers and attract new ones, enabling businesses to compete successfully in today's markets. Logistics plays a crucial role in creating a competitive edge for companies in the market Daugherty, Stank, and Ellinger (1998), cited in Davis (2006), note that in an increasingly homogeneous product environment where buyers can choose similar products from multiple suppliers, sellers can differentiate themselves through customer service quality and associated service processes Thus, logistics capabilities can improve customer service quality, and in recent years, companies have increasingly focused on logistics services to enhance their competitive position.

- Logistics service quality increases market share and business efficiency

Logistics also affects market share through customer satisfaction and loyalty.Daugherty et al (1998) link better distribution services to increased customer satisfaction, suggesting that increased customer satisfaction leads to greater customer loyalty and expanded market share for the company Today's businesses are increasingly aware of the importance of logistics services for their own success.Evidence from large companies such as Walmart, Dell, and Amazon demonstrates the significant impact of excellent logistics operations on company revenue and profitability.

Evaluating the quality of logistics services

The quality of service is defined by the disparity between customer expectations and the delivery service provided by suppliers, along with the benefits it offers to them Therefore, in evaluating service quality, researching customer satisfaction is crucial.

According to Philip Kotler, customer satisfaction is the degree of emotional feeling derived from comparing the outcomes of consuming a product/service with one's own expectations Satisfaction hinges on the variance between the received outcomes and the expectations: if the actual outcomes fall short of expectations, customers are dissatisfied; if they meet expectations, customers are satisfied; and if they surpass expectations, customers are highly satisfied Customer expectations are shaped by shopping experiences, word-of-mouth, peer influence, and information from sellers and competitors To enhance customer satisfaction, enterprises need to invest additional resources, including marketing programs.

Kotler (2000) defines satisfaction as "a person's feelings of pleasure or disappointment resulting from comparing a product's (or service's) actual performance in relation to his or her expectations." Thus, for delivery services, customer satisfaction is when customers rely on their own knowledge of the service (transportation services, customs clearance, document processing, etc.) to form subjective evaluations or judgments It is a psychological state following the fulfillment of customer needs, accumulated through experiences, particularly when utilizing delivery services.

After purchasing and using a product, customers engage in a comparison between reality and expectations, thereby evaluating their satisfaction.

The rationale for assessing customer satisfaction lies in the competitive landscape,where businesses strive to exceed customer satisfaction compared to their competitors This ensures a harmonious balance between customer benefits and business profitability Customer satisfaction directly influences brand loyalty.

However, satisfaction is neither enduring nor easily quantifiable True loyalty, which determines customer allegiance, is the value provided to the customer.

Customer value generates satisfaction the degree of customer contentment. Businesses need to gauge their level of customer satisfaction, including that of their direct competitors' customers, through surveys or simulated shopping experiences. Information indicating a decline in customer satisfaction compared to competitors is a warning sign of potential customer loss and future market share decline. Establishing channels for customer feedback or complaints is essential However, complaint volume alone cannot be used as a measure of customer satisfaction since most dissatisfied customers do not complain.

1.4.2 The relationship between customer satisfaction and service quality

Typically, service business owners often perceive service quality as the level of customer satisfaction However, Zeithaml and Bitner (2000) contend that service quality and customer satisfaction are distinct and well-defined concepts Customer satisfaction is a broad concept that reflects their contentment when consuming a service In contrast, service quality focuses solely on specific components of the service

According to (Oliver, 1993),the difference between service quality and customer satisfaction manifests in the following aspects:

- Measurement criteria for service quality are specific, whereas customer satisfaction is related to various factors beyond service quality, such as pricing, customer relationships, and usage time.

- Assessments of service quality depend on how services are executed, while customer satisfaction entails a comparison between received values and expected values.

- Perception of service quality is less dependent on experience with the service provider and business environment, whereas customer satisfaction relies heavily on these factors Therefore, to enhance customer satisfaction, service providers must improve service quality In other words, to enhance customer satisfaction in using logistics services, it is necessary to improve the quality of logistics service development in express delivery companies.

Parasuraman et al (1993) argue that between service quality and customer satisfaction, there exists a causality issue Zeithaml and Bitner suggest that customer satisfaction is influenced by multiple factors such as the product, service quality, pricing, situational factors, and individual factors Service quality and customer satisfaction are distinct but closely related concepts in service research Previous studies have shown that service quality is a precursor to satisfaction (Cronin & Taylor, 1992; Spreng & Taylor, 1996).

The reason is that service quality relates to the delivery of services, while satisfaction is assessed after using the service Customer satisfaction is seen as a result, while service quality is considered a cause Satisfaction involves predictive and expectational aspects, while service quality is an ideal standard Customer satisfaction is a general concept that reflects their contentment when using a service, whereas service quality focuses on specific service components (Zeithaml & Bitner, 2000) While there is a relationship between service quality and customer satisfaction, few studies have focused on determining the extent to which individual components of service quality explain satisfaction, especially in specific service industries (Lassar et al., 2000) Cronin & Taylor have examined this relationship and concluded that perceived service quality leads to customer satisfaction Studies have concluded that service quality is a major determinant of satisfaction (Cronin & Taylor, 1992) and the primary factor influencing satisfaction (Ruyter & Bloemer, 1997).

In summation, service quality emerges as the primary determinant of customer satisfaction A provider's ability to furnish products that meet or exceed customer expectations initiates the satisfaction process Hence, to heighten customer satisfaction, service providers must prioritize the enhancement of service quality.This symbiotic association between service quality and customer satisfaction underscores that the former precedes and significantly influences the latter The elucidation of this causal relationship remains a focal point in the majority of investigations into customer satisfaction Should enhancements in quality lack alignment with customer needs, achieving customer satisfaction would remain elusive Therefore, when engaging with a service, the perception of high-quality service engenders satisfaction among customers, whereas low-quality service triggers dissatisfaction."

Research model

Today, the widely used model for evaluating service quality is Parasuraman's 1985 model Service quality is assessed based on various dimensions However, the Parasuraman model is more popular due to its specificity, detail, and evaluation tools Meanwhile, the gap model is a more general theoretical model of service quality Although this model covers most aspects of services, it is quite complex to evaluate and analyze In 1988, Parasuraman adjusted and developed a new model called SERVQUAL, consisting of 5 dimensions.

Table 1.1 Five dimensions of SERVQUAL

1 Reliability Ability to perform the promised service dependably and accurately

2 Assurance Knowledge and courtesy of employees and their ability to convey trust and confidence

3 Tangibles Appearance of physical facilities, equipment, personnel, and communication materials

4 Empathy Caring, individualized attention the firm provides its customers

Willingness to help customers and provide prompt service

Many researchers have applied the 5-component model of service quality across various service sectors in different markets Inspection results have revealed that service quality varies across different service industries Another issue of concern is the significance of each component of service quality in customer satisfaction In the field of logistics services, several researchers have also utilized the SERVQUAL model developed by Parasuraman et al (1988) to measure service quality, such as Mentzer, Gomes, and Krapfel (1989), and Bienstock et al (1997).

SERVQUAL is a quality management model developed by Zeithaml, Parasuraman, and Berry in the mid-1980s to assess quality in the service sector The SERVQUAL scale is derived from the combination of the terms "SERVICE" and "QUALITY."

The original proponents initially devised a model comprising 10 service quality variables However, as time progressed, the factors were streamlined to encompass

5 variables: reliability, assurance, tangibles, empathy, and responsiveness, commonly abbreviated as RATER.

Typically, the dependent factor revolves around customer satisfaction in service evaluation models The independent variables consist of the aforementioned five elements: reliability, assurance, tangibles, empathy, and responsiveness Depending on the specific service quality being assessed, there may be adjustments in the questionnaire or the additional/subtracted of factors For instance, the evaluation of service quality in banking operations differs from that in supermarket services. Hence, the qualitative research phase is crucial for determining the model.

Strengths: The measurement scale is readily available, and adjustments to the questionnaire can be made through qualitative research for survey implementation. Additionally, due to its generalizability, this model can be applied to various service types.

Weaknesses: However, it is worth noting that this model is overly common.

Consequently, when topics related to satisfaction or contentment are discussed nowadays, there may be reduced interest This implies that researchers may need to explore additional models for their specific applications.

Research Model Based on the SERVPERF Model by Cronin and Taylor (1992). According to this model, there are five factors impacting customer satisfaction with service quality: tangibility, responsiveness, assurance, empathy, and reliability. These five factors were validated by Parasuraman and colleagues in the gap model (1985) and the SERVQUAL model (1988) Later, Cronin & Taylor (1992) used these factors to design the SERVPERF model These authors argue that the five aforementioned factors positively influence customer satisfaction with service quality Although SERVPERF was developed based on the SERVQUAL model, retaining the observed variables and influencing factors, it measures service quality satisfaction based solely on actual customer experience, rather than the discrepancy between expectations and actual experience as in the original model.

Tangibility represents the physical facilities, equipment, and appearance of personnel at a business, encompassing their adequacy and modernity It also pertains to the appearance of employees, including attractiveness, neat uniforms, and prompt service (Parasuraman, 1988) Tangibility is understood as the factors that customers can visually observe When deciding whether to use the service again, some consumers consider potential risks because the service is intangible and they cannot know what the company will deliver until they experience it firsthand. Therefore, tangibility is a crucial factor that customers care about to feel reassured and worry-free when using the service.

Hypothesis H1: There is a positive impact of tangibility on customer satisfaction with service quality.

According to Parasuraman, this factor provides an objective assessment of a business's willingness to assist service users, handle complaints promptly and effectively It can be understood as the company's way of responding to various customer needs Another aspect of responsiveness is the ability to provide services according to the specific demands of individual or group customers, while also considering the time required to address arising requests Not only should businesses respond to customer demands quickly, but also offer additional services, after-sales services, and enhanced support to improve responsiveness This leads to customer satisfaction, fostering customer loyalty.

Hypothesis H2: There is a positive impact of responsiveness on customer satisfaction with service quality.

According to Parasuraman, this component measures the ability to instill customer trust and confidence through the service manner of the company's employees. Improving service quality involves motivating employees since they are the "face" of the business and directly interact with customers This is a key factor determining whether customers will continue to use the business's services For businesses, when their employees combine good service conduct with high professional knowledge, it creates customer trust and satisfaction, leading to customer loyalty.

Hypothesis H3: There is a positive impact of assurance on customer satisfaction with service quality.

This measures the degree of care and individualized attention the company provides to customers during their service experience, making them feel welcomed(Parasuraman, 1988) Each customer has different needs, service expectations,attitudes, and levels of satisfaction, and everyone wants to be treated as a special individual, receiving dedicated and thorough service When a service provider puts itself in the customer's shoes, it gains a better perspective on the customer's viewpoint Customers will give positive feedback if they perceive that the service provider is genuinely trying to understand their needs.

Hypothesis H4: There is a positive impact of empathy on customer satisfaction with service quality.

According to Parasuraman (1988), reliability assesses the ability to deliver the promised service dependably and accurately from the first time Promises are often made through marketing methods, contracts, company communications, service policies, and insurance packages Typically, customers prefer to do business with companies that keep their promises, especially those related to service outcomes or core service attributes When a company effectively fulfills its promises, it fosters customer trust, thereby enhancing and improving the consumer's experience during service usage, leading to satisfaction.

Hypothesis H5: There is a positive impact of reliability on customer satisfaction with service quality.

The research model proposed by our team is illustrated below:

Figure 1.1 Proposed model of factors affecting customer satisfaction with service quality

The SERVQUAL model is a widely used tool in marketing research and is very useful in generalizing criteria for measuring service quality However, it has several drawbacks (Babakus & Boller, 1992; Brown et al., 1993; Buttle, 1996; Genestre & Herbig, 1996; Gilmore & Carson, 1992; Robinson, 1999; Hemmasi et al., 1994). Rigidly applying SERVQUAL to measure the quality of cable television services would be inappropriate Parasuraman and colleagues (1988) themselves acknowledged that one of SERVQUAL's shortcomings is its attempt to represent all types of service quality, leading the researchers to retain only components common and applicable to all types of services Consequently, some factors essential and appropriate for certain types of services were excluded because they did not fit the majority.

This study uses the SERVPERF model for the following reasons:

- Customer Expectations: In the SERVQUAL model, customer expectations do not add any additional information beyond what is captured by customer perceptions (Babakus & Boller, 1992).

- Empirical Evidence: Cronin and Taylor's experimental evidence from their comparative studies in four sectors (banking, pest control, dry cleaning, and fast food), as well as studies by Parasuraman, demonstrate that SERVPERF outperforms SERVQUAL.

- Efficiency and Practicality: Using the SERVPERF model yields better results than SERVQUAL The SERVPERF questionnaire is also half as long as the SERVQUAL questionnaire, reducing respondent fatigue and saving time. Additionally, the concept of expectations can be quite vague for respondents (Phong & Thuy, 2007).

- Difficulty in Measuring Expectations: Measuring customer expectations is very challenging.

ANALYSIS AND EVALUATIONS OF LOGISTICS SERVICE

Introduction to OOCL Vietnam Company

2.1.1 Orient Overseas Container Line (OOCL) Group

“Orient Overseas Container Line” and “OOCL” are trade names for transportation provided separately by: Orient Overseas Container Line Limited (“OOCLL”) and OOCL (Europe) Limited respectively and both are wholly-owned subsidiaries of Orient Overseas (International) Limited, a public company (0316) listed on the Hong Kong Stock Exchange OOCL is one of the world's largest integrated international container transportation and logistics companies, with about 130 offices in more than 100 major cities As one of Hong Kong's most recognized global brands, OOCL provides customers with fully-integrated logistics and containerized transportation services, with a network that encompasses Asia, Europe, the Americas, Africa and Australasia.

OOCL is well respected in the industry with a reputation for providing customer- focused solutions, quality services and continual innovation It is also an industry leader in the use of the latest technologies to enhance global supply chains OOCL's modern fleet today includes some of the youngest, largest, fuel efficient, and environmentally friendly vessels carrying cargo on hundreds of trade routes around the world, providing a vital link in Global Trade.

With a comprehensive network of more than 140 offices in over 50 countries/regions, OOCL Logistics services extend from basic freight consolidation to a full spectrum of advanced supply chain operations and management programs, providing sophisticated transportation, warehousing and distribution services to support professional and efficient 3PL, 4PL, and Omni-Channel distribution solutions.

OOCL Logistics offers professional expertise to customers in managing and optimizing their global supply chains, ranging from strategic sourcing in Asia to distribution in world-wide markets, with end-to-end visibility supported by our sophisticated

One-stop solutions to meet import, export and freight forwarding needs including Full Container Load (FCL), Less than Container Load (LCL) freight transportation, airfreight forwarding, depot, customs clearance, security filing, bonded logistics, multi-modal services and storage.

Customized logistics services for best-in-class warehousing, multi-modal transportation, Full-than-Truck-Load (FTL), Less-than-Truck-Load (LTL) transportation, cold chain logistics, inland transportation and reverse logistics in various regional areas.

Our multimodal services leverage a combination of mixed transportation modes such as airfreight, trucks, feeders, deep sea vessels and rails to provide the most comprehensive and cost effective transportation solution that meet our customers’ needs.

2.1.2 OOCL Logistics Company Limited (Vietnam)

In Vietnam, OOCL provides container shipping and logistics services in Vietnam, offers a broad variety of transportation, depot, warehouse and IT applications for end-to-end supply chain management, with service coverage to and from North America, Europe, Australia & New Zealand, Intra-Asia, the Middle East and the India Subcontinent.

- Company name: OOCL LOGISTICS (VIETNAM) COMPANY LIMITED

- Address: The Saigon Trade Center building, located at 37 Ton Duc Thang Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam.

Figure 2.1 Logo of OOCL Company 2.1.3 Organizational structure

The organizational structure of OOCL Vietnam includes the following departments:

Director: Responsible for strategic development planning and directly overseeing company-related issues The Director is accountable to the Board of Directors and the law for all company activities, responsible for business operations, and implementing development strategies.

ISCMS Department: Acts as the representative for overseas customers in Vietnam, handling cargo reception, inspection, and export procedures for customers.

Finance and Accounting Department: Provides financial advice and proposes financial plans and costs It is responsible for short-term and long-term capital sources for each project, expense payments, and prepares financial reports weekly, monthly, quarterly, or annually.

Human Resources Department: Handles recruitment, salary calculation, insurance, and benefits Additionally, the HR department develops group activity plans and organizes discussions and seminars to enhance cooperation among departments.

Business Development Department: One of the most critical departments responsible for customer acquisition and care.

2.1.4 The company's business performance results from 2018 to 2023

During the period from 2019 to 2023, the company achieved significant milestones thanks to the concerted efforts of all employees along with the insightful leadership of the management team The business performance results of the company are presented in the table below, including information on Total Revenue, Total Expenses, Profit Before Tax, and Profit After Tax:

Table 2.1 The business performance results of OOCL Vietnam Company from

0 Corporate Incomes Tax 20,224.40 25,054.00 41,131.00 45,038.80 20,721.00 Net profit after tax 80,897.60 100,216.00 164,524.00 180,155.20 82,884.00

During the period from 2019 to 2023, OOCL Vietnam Company embarked on a journey filled with fluctuations and challenges, yet equally marked by successes and advancements.

In 2019, with a total revenue reaching 501,651 USD, the company laid the groundwork for further development The 16% growth in 2020, elevating revenue to582,631 USD, stood as a clear testament to the company's concerted efforts and effective business strategies Despite the adversities posed by the COVID-19 pandemic, the company managed to achieve positive growth, contributing to the stability and progress of the enterprise.

In 2021, with a remarkable 20% growth compared to the previous year, the company continued to assert its position in the industry and enhance its competitive edge The determination and adaptability of the company facilitated overcoming challenges and creating new opportunities in a challenging period.

However, in 2022, despite the economic recovery beginning to take shape, the company only recorded a modest 3% growth, indicating a delayed recovery process and some challenges faced by the company Nonetheless, the company's post-tax profits reached a peak this year, demonstrating the company's patience and effective financial management.

By 2023, the company encountered a significant decline in revenue, plummeting from 720,965 USD to 527,790 USD The volatility in the maritime transport industry profoundly impacted the company's business performance Although post- tax profits also decreased compared to the previous year, they still maintained a relatively high level compared to the industry and general benchmarks, reflecting the company's strength and stability.

The current status of logistics service operations at OOCL Logistics Vietnam Company

In a dynamic and fiercely competitive business environment like today, meeting customer expectations goes beyond simply providing quality products and services; it also requires a focus on effective customer service and delivery management processes In the context of the growing logistics industry, the quality of logistics services has become a decisive factor in the economy, especially in developing economies like Vietnam.

It is this awareness that has led to the establishment of OOCL Logistics Vietnam.

As a young enterprise in its developmental stage, OOCL Logistics Vietnam faces numerous challenges and issues that need to be addressed One of the biggest challenges the company faces is improving service quality to meet customer expectations.

The clear reflection of customer dissatisfaction is evident through the complaints the company has recorded over the years Below is a summary of this situation over the years:

In a dynamic and fiercely competitive business environment like today, meeting customer expectations goes beyond simply providing quality products and services; it also requires a focus on effective customer service and delivery management processes In the context of the growing logistics industry, the quality of logistics services has become a decisive factor in the economy, especially in developing economies like Vietnam.

It is this awareness that has led to the establishment of OOCL Logistics Vietnam.

As a young enterprise in its developmental stage, OOCL Logistics Vietnam faces numerous challenges and issues that need to be addressed One of the biggest challenges the company faces is improving service quality to meet customer expectations.

The clear reflection of customer dissatisfaction is evident through the complaints the company has recorded over the years Below is a summary of this situation over the years:

Table 2.2 Customer complaint situation over the years from 2019 to 2023

Maintaining a customer complaint rate of 5-6% is no small feat in the service industry, especially in the logistics sector where accuracy and professionalism are crucial factors However, the sharp decrease in the complaint rate to only 1% in

2020 is a clear indication of the company's emphasis and efforts in improving service quality and enhancing customer relationships.

The foundation for this success can be linked to the company's customer management strategy, which reflects the motto of "treating customer issues as our own" This is not just a slogan but a work philosophy deeply integrated into the organizational culture By placing customers at the center of every decision and business activity, the company has demonstrated flexibility and dedication in addressing and resolving customer queries and complaints.

This flexibility not only translates into providing customized solutions and swift responses to each specific situation but also entails building a flexible work environment and a team of professionally trained employees with a high sense of responsibility.

Moreover, customer management goes beyond simply resolving complaints; it also involves building strong team relationships with customers by providing information, support, and innovative business solutions This helps foster trust and loyalty from customers, contributing to brand building and expanding business opportunities in the future.

To gain an overview of the business situation and evaluate the current state of marketing activities of OOCL Logistics Vietnam, we need to analyze data from secondary sources First, we will conduct descriptive statistics of primary data to better understand the business indicators as well as the company's marketing activities Subsequently, we can utilize SPSS software to process the data and perform detailed statistical analyses.

During the data analysis process, we will refer to the SPSS usage guidelines by Hoang Trong and Chu Nguyen Mong Ngoc (2008) to understand the software's functionalities Additionally, we will explore the 7P factors in the Logistics service quality model by Bienstock and colleagues (2008) and how these factors influence the company's logistics activities.

Based on the results of data analysis, we can propose suggestions and solutions to enhance the company's logistics operations These solutions may include improving product and service quality, adjusting pricing strategies, optimizing geographical locations and distribution channels, enhancing advertising and marketing strategies, investing in employee training and workflow optimization, as well as improving infrastructure and physical evidence.

- Available Data (secondary): This data includes documents and figures collected from internal sources of OOCL Logistics Vietnam as well as external sources such as the Internet, books, and magazines This dataset has been previously gathered and readily accessible, which helps reduce time and costs for information collection However, this information source has low update frequency due to its pre-collected nature.

- Unavailable Data (primary): In this case, it refers to data not available in the market and collected through interviews and surveys For this study, we conducted a survey to gather feedback from customers using the company's logistics products and services in the Northern market of Vietnam The total survey questionnaires were 150, and after collection, we received 145 valid responses, achieving a response rate of 97%.

- Utilizing primary data can be complex and more time-consuming and costly compared to secondary data However, the reliability of this data is controlled,and it provides specific and detailed information about customer opinions and the market, thereby increasing the accuracy and applicability of the research.

Criteria for assessment based on customer perspectives

2.3.1 The reliability in service provision

Reliability is the ability to perform tasks and duties accurately, on time, as promised, and without errors In the event of any issues or complaints, they must be resolved promptly and satisfactorily Below is a customer evaluation of reliability in the delivery service at the company.

Very Bad Bad Normal Good Very Good

(Source: Analysis results from survey data)

In today's competitive business environment, the reliability of a company can be the key to attracting and retaining customers For over 40% of customers, a high- quality, experienced, and competent staff is the most valuable asset that a company can possess The combination of extensive knowledge and practical experience enables them to adapt quickly to any situation and solve complex problems accurately and efficiently.

Experienced employees have often encountered various situations in their work, allowing them to accumulate a set of skills and strategies for solving diverse problems This ability not only helps them perform tasks quickly but also ensures that all tasks are carried out with the highest level of accuracy.

A team of competent and experienced employees is also crucial in handling customer complaints Their professionalism and profound understanding of the product/service enable them to quickly understand and respond to customer requests and complaints, thereby creating a positive service experience and enhancing customer trust.

Very Bad Bad Normal Good Very Good

Figure 2.3 Customer feedback on assurance of OOCL Logistics Vietnam

(Source: Analysis results from survey data)

The company's employee standards are highly regarded due to strong investment in recruitment and personnel development Most employees are carefully selected, possess high professional qualifications, and have significant experience in their respective fields The combination of extensive expertise and practical experience enables them to feel confident and flexible in dealing with any work situation.

Continuous training and development also play a crucial role in enhancing the capabilities and work efficiency of the employee team The company not only provides opportunities for employees to continue learning and developing personal skills but also promotes innovation and creativity in daily work.

With a high sense of responsibility and teamwork spirit, employees can quickly and accurately fulfill customer requirements They are not only experts in their fields but also have the ability to negotiate, communicate, and solve problems effectively, thereby creating satisfaction and trust from customers.

Handling orders quickly and with few errors is one of the strengths of the employee team Their meticulousness and attention to detail ensure that all orders are processed on time and with the best quality, thereby creating a smooth shopping experience for customers.

On the other hand, good service attitude is also an important factor in building good relationships with customers Warmth, politeness, and attentiveness help create a comfortable and friendly atmosphere, thereby affirming the company's position as a reliable and friendly partner in the hearts of customers.

Very Bad Bad Normal Good Very Good

(Source: Analysis results from survey data)

The company's tangibles standards are also an important part of building and maintaining an efficient and convenient working environment Investing in tangibles not only helps the company operate more effectively but also provides favorable conditions for employees to develop and work in a positive environment.

The company values its tangibles because of its prudent investments and strategies in upgrading and maintaining equipment, machinery, and workspace With modern and advanced equipment, the company can ensure that all tasks are carried out efficiently and with high quality.

Not only in terms of equipment, but workspace is also emphasized to create a comfortable and creative working environment Open, flexible workspaces equipped with necessary amenities facilitate communication and teamwork, thereby promoting creativity and innovation in work.

Furthermore, the company also focuses on maintaining and preserving infrastructure to ensure the continuity and stability of production and services.

Proper maintenance and adherence to technical plans help prevent unexpected incidents and minimize downtime in business operations.

The ability to adapt to changing circumstances and respond to customer needs is crucial in the logistics delivery process Below is a customer evaluation of the flexibility criterion in the quality of delivery services at OOCL Logistics Vietnam.

Very Bad Bad Normal Good Very Good

(Source: Analysis results from survey data)

Responsiveness is a crucial criterion highly rated from good to excellent within the company, primarily due to the experienced and resourceful staff Their responsiveness allows them to quickly and adaptably handle requests and challenges arising in the course of work The staff not only have the ability to efficiently handle arising tasks but also excel in meeting additional customer needs. This responsiveness helps create a robust and reliable work environment, thereby enhancing customer satisfaction.

Good service attitude also plays a significant role in achieving this criterion.Employees not only resolve customer issues promptly but also do so with politeness and warmth Professionalism and dedication in service delivery help create a positive experience for customers and foster long-term relationships between the company and its customers.

Analyzing the selection of quality criteria for improving the logistics service of

2.4.1 Reliability testing using Cronbach’s Alpha scale a Analysis of reliability using Cronbach’s Alpha coefficient

(Source: Quantitative research analysis data using SPSS)

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

(Source: Quantitative research analysis data using SPSS)

The results from the analysis using Cronbach’s Alpha indicate that the scale under study demonstrates a relatively high level of reliability, as evidenced by an Alpha value of 0.904 This suggests that the observed variables in this scale are highly consistent with each other, meaning they measure the same aspect or dimension of a concept reliably.

The significance of testing Cronbach's Alpha is to ensure that the scale measures reliably The higher the Alpha value, the higher the reliability of the scale In this case, with a value of 0.904, the scale can be considered to have very high reliability.

Moreover, the fact that all the total inter-item correlations of the observed variables in the scale are greater than 0.4 is also a positive sign This indicates that the observed variables not only have high internal consistency but also have fairly strong correlations with each other.

Furthermore, the absence of any removed observed variable potentially increasing the value of Cronbach's Alpha further reinforces the selection of these observed variables for the scale This means that every observed variable contributes significantly to the consistency of the scale, and removing any variable would not improve the scale's reliability.

Therefore, based on the results from the Cronbach's Alpha analysis, it can be concluded that all observed variables in the scale are acceptable and will be used in subsequent factor analysis reliably This provides a reliable basis for conducting research and analyzing the relationships between variables in the scale. b) Analysis of Cronbach's Alpha for the variable "assurance"

(Source: Quantitative research analysis data using SPSS)

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

(Source: Quantitative research analysis data using SPSS)

Based on the results from the Cronbach's Alpha analysis, it is evident that the scale utilized in the study achieves a significant level of reliability, as determined by a Cronbach's Alpha value of no less than 0.889 This renders the observed variables in the scale quite dependable and reliable for use in analysis and research.

Another strength lies in the fact that all the total inter-item correlation coefficients of the observed variables in the scale surpass the threshold of 0.4 This indicates that the variables not only exhibit high internal consistency but also possess correlations strong enough to support the scale's validity.

Furthermore, the absence of any instances where removing one or more observed variables could improve the value of Cronbach's Alpha above 0.889 also affirms the scale's homogeneity and reliability This implies that each variable contributes significantly to the scale's homogeneity, and individual removals would not impact the overall reliability.

Therefore, based on the provided evidence, it can be concluded that all the observed variables in the scale are reliable and suitable for continued use in research This provides a solid foundation for further analysis and research into the relationships between variables in the scale, accurately and reliably c) Analysis of Cronbach's Alpha for the variable "tangibles"

(Source: Quantitative research analysis data using SPSS)

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

(Source: Quantitative research analysis data using SPSS)

From the results table, we observe that the variable tangibles exhibit a high level of reliability, measured by Cronbach's Alpha at 0.889 All observed variables in this scale demonstrate consistent relationships with each other, as evidenced by total inter-item correlation coefficients greater than 0.4.

No variable could be removed to enhance the scale's reliability above 0.889. Therefore, all observed variables are deemed acceptable and will be utilized for subsequent analysis without concerns regarding reliability. d) Analysis of Cronbach's Alpha for the variable "responsiveness"

(Source: Quantitative research analysis data using SPSS)

Scale Mean if Item Delet ed

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

(Source: Quantitative research analysis data using SPSS)

Based on the results table, the variable RESPONSIVENESS demonstrates high reliability with a Cronbach's Alpha of 0.889 All observed variables in this scale exhibit strong relationships with each other, as evidenced by total inter-item correlation coefficients greater than 0.4.

No variable could be removed to enhance the scale's reliability above 0.889. Therefore, all observed variables are accepted and will be used for subsequent analysis without concerns regarding reliability.

Following the Cronbach's Alpha testing process, we have identified a set of variables, including RELIAB1 to RELIAB5, ASSURANCE1 to ASSURANCE2, TANGIBLES1 to TANGIBLES3, and RESPONSIVENESS1 to RESPONSIVENESS3, as variables meeting the criteria for conducting the next steps of Exploratory Factor Analysis (EFA).

These variables have been verified for reliability and have sufficient relationships with each other to be used in exploring the data structure through EFA Utilizing

EFA helps us gain a better understanding of the relationships between variables and how they can be grouped into factors based on the collected data sample.

Table 2.11 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Bartlett's Test of Sphericity Approx Chi-Square 1587.03

(Source: Quantitative research analysis data using SPSS)

The research data has been evaluated using two main indices: the Kaiser-Meyer- Olkin (KMO) measure and Bartlett’s test of sphericity The KMO measure assesses the sampling adequacy for factor analysis When the KMO value is greater than 0.5, it is typically considered acceptable, indicating that the data provide enough information for factor analysis.

Bartlett’s test of sphericity is a statistical test used to examine the hypothesis of the non-existence of correlations among the variables, meaning that the variables are not correlated with each other When the result of this test is statistically significant (Sig < 0.05), we have enough evidence to reject the hypothesis of no correlation and accept that there is a significant correlation among the variables.

Factors influencing business

2.5.1 The logistics and transportation business environment

The deepening and broadening economic integration, coupled with significant economic growth, have created a landscape where Vietnam's import-export turnover continues to soar This has led to an immense demand for transportation and logistics services It's no surprise that this industry has become one of the fastest- growing sectors in Vietnam.

However, in this dynamic business environment, companies face numerous challenges Among these challenges are risks related to safety and insurance, legal issues and transportation regulations, as well as fierce competition from industry peers.

One of the most critical issues that transportation and logistics companies must address is operational efficiency With a steadily increasing flow of goods, efficient management and operations become paramount to ensure the flexibility and availability of services.

Furthermore, in today's fiercely competitive market, building reliable and collaborative partnerships is key to success Companies need to continuously innovate and improve to meet the ever-growing demands of customers and partners.

Vietnam's accession to the WTO and participation in international economic agreements have opened up significant opportunities for logistics companies in Vietnam, including OOCL Logistics Vietnam, to expand their market and capitalize on new opportunities However, along with these opportunities come considerable challenges, particularly the increasingly fierce competition from both domestic and international rivals.

First and foremost, the logistics market in Vietnam is undergoing robust development, with significant growth in the demand for freight transportation and delivery services Economic integration, coupled with stable economic growth, has driven Vietnam's import-export turnover sharply upward, creating a large demand for logistics services In this context, logistics companies are seizing the opportunity to expand their operations and enhance market share.

However, the logistics market is also facing significant challenges Particularly,with the accession to international economic organizations such as the WTO,logistics companies must confront competition from international competitors with strong resources and experience This poses significant pressure on domestic enterprises, forcing them to improve service quality and competitiveness to survive and thrive.

In today's market, although there are thousands of logistics companies operating, the majority are small-scale and lack professionalism in business operations These companies often focus on a small part of the supply chain and have little capability to handle the entire process of goods delivery from the seller's warehouse to the recipient's warehouse.

In this context, to survive and thrive in a competitive environment, domestic logistics companies need to focus particularly on the quality of their services. Service quality has become a decisive factor in attracting and retaining customers, not just price OOCL Logistics Vietnam, as a representative example, continuously improves its service quality to meet the increasingly high demands of the market and compete effectively with domestic and international competitors.

2.5.3 The ever-changing political landscape of the world

The fluctuations in the global situation are significantly impacting the business operations of logistics companies, and OOCL Logistics Vietnam is no exception A prime example is the ongoing dissolution of the European Union (EU), which directly affects the economy in general and export turnover in particular This decrease leads to a reduction in the supply of goods in this region, negatively affecting the revenue of customers in the industry.

Furthermore, former President Donald Trump's decision to withdraw from the Trans-Pacific Partnership (TPP) also has significant repercussions This action means that businesses in the TPP region no longer enjoy as many tax incentives as before, resulting in constraints on import-export activities This implies that logistics companies must face many new challenges, especially in optimizing costs and enhancing operational efficiency.

In the face of such global turmoil, OOCL Logistics Vietnam will also have to confront significant challenges To overcome these difficulties, being flexible and innovative in business strategies, while focusing on improving service quality and optimizing operational processes, will be crucial factors for maintaining and growing in an increasingly competitive market.

2.5.4 The economic fluctuations directly impacting the demand for logistics services

The economic growth rate of a country not only affects the rate of increase in the demand for logistics services but also directly impacts the business activities of logistics companies, especially in the context of the Covid-19 pandemic and global economic fluctuations.

In recent years, the Covid-19 pandemic has created unprecedented disruptions to both domestic and global economies These disruptions have posed significant challenges for small and medium-sized enterprises in maintaining and developing their business operations In this context, changes in the volume of goods import- export are particularly crucial as they directly affect the business activities of logistics companies, including OOCL Logistics.

If the volume of goods import-export, such as machinery, equipment, iron and steel, raw materials for processing, experiences fluctuations, it will directly impact the revenue of logistics companies These types of goods are often the main sources of cargo for the services provided by OOCL Therefore, any fluctuations in the volume of these goods will put pressure on the company to reduce revenue and adjust its business strategy.

Internal factors of the enterprise

● Energetic and enthusiastic young staff

OOCL Logistics Vietnam currently boasts a young, highly educated, and energetic workforce This can bring many benefits to the company, including creativity, dynamism, and the ability to adapt quickly to changes in the industry

Having an experienced leadership team is also a significant strength The combination of youth and experience can create a motivating work environment and improve work efficiency.

Training programs and team activities are also crucial for creating a cohesive and energetic employee community These activities not only help employees develop knowledge and skills but also foster a positive work environment and a united team with a common goal.

With such an important factor, OOCL Logistics Vietnam can continue to invest in human resource development and create opportunities for employees to maximize their potential, while maintaining and enhancing connectivity within the organization This will increase competitiveness and lead to success for the company in the future.

Expanding cooperation across various fields and developing services with countries both within and outside the region is an important strategy to capitalize on opportunities from market integration and international integration, especially after our country joined the WTO This helps OOCL Logistics Vietnam access new markets, expand its customer network, and enhance competitiveness.

Signing cooperation agreements with freight forwarding agents is an effective means to establish a network of agents and enhance the ability to meet customer requirements Collaborating with freight forwarding agents worldwide, especially in the Asian region, helps the company expand its operational scope and provide diversified, flexible, and quality transportation services to customers.

Creating a widespread network of agents and distributing them in regions around the world not only helps OOCL Logistics Vietnam proactively engage in transportation activities but also strengthens its ability to seek and serve foreign customers This also creates opportunities for the company to continue expanding and developing in the future.

● Still focusing on traditional logistics activities

At present, in the logistics industry in Vietnam, many companies have not yet achieved the desired level of sophistication and only carry out some basic stages of the process A typical example is OOCL Logistics Vietnam, which, although provides some key logistics services such as multimodal freight transportation and basic freight forwarding services like customs clearance and cargo brokerage, still has many limitations.

Specifically, the company also provides warehouse services, but it does not invest sufficiently in its development The lack of support from Warehouse Management

System (WMS) software leads to ineffective warehouse management, while cargo handling is still done manually Moreover, the equipment and machinery at the company's warehouse are outdated and cannot meet the job requirements, resulting in low labor productivity.

Therefore, improving logistics operations and enhancing service quality of the company need to focus on investing in modern technology and infrastructure, as well as strengthening training and development of employees to enhance management and operational capabilities This will help OOCL Logistics Vietnam improve competitiveness and better meet customer needs.

● The limited implementation of information technology

The application of information technology is a crucial factor in improving labor efficiency, reducing time, and costs in logistics operations However, currently, the company has not fully implemented information technology in its freight forwarding activities.

One of the main reasons is capital investment To implement an effective information technology system, the company needs to invest a large amount of money as well as build a competent team to deploy and manage this system This is not an easy task for any company.

However, integrating information technology into the company's operations is an urgent requirement, and for success, a long-term plan is essential The company may consider phased investment plans, focusing on the most important applications to improve efficiency and streamline workflows This will help the company enhance competitiveness and better meet customer needs.

● The vehicle fleet has not fully met customer demands

To address the current challenges, the company needs to devise a comprehensive and sustainable strategy to improve its transportation and logistics operations.

While outsourcing transportation services from other businesses may serve as a temporary solution, it also entails risks and limitations Losing control over pricing and service quality is one of the main concerns The company may end up paying additional profits to the external service providers and face the risk of loss or damage to goods due to inadequate service This could result in a loss of trust from customers and a decline in confidence in the company.

● In terms of procedural quality

In today's context, establishing and maintaining online order intake channels is a crucial part of every company's business strategy However, looking at the current situation of the company, there seem to be significant challenges related to managing and developing these channels.

Firstly, the lack of an online order intake channel can result in substantial losses for the business With many customers increasingly preferring online ordering for its convenience and flexibility, not having a reliable infrastructure to handle online orders can lead to missed business opportunities and loss of trust from customers.

PROPOSED SOLUTIONS FOR ENHANCING LOGISTICS

Development trends of the Company's logistics services

The number of Vietnamese logistics companies is currently growing at breakneck speed Despite the development in quantity, the scale of these companies is mostly small, with little capital, outdated equipment and human resources of only about 10 people/company These companies mainly do the following operations: selling ocean freight, aviation freight, customs declaration, truck and container truck services There are very few companies capable of meeting and taking on the entire logistics supply chain from warehousing, transportation, freight, packaging, etc. Meanwhile, the logistics industry is characterized by a closed process from suppliers to consumers Therefore, logistics activities can take place in many countries around the world, so large companies must carefully check the capacity of companies providing logistics services for them through widespread networks. Meanwhile, most Vietnamese logistics companies do not have a foreign agent system or link with foreign logistics companies, so they will encounter difficulties when customers need to provide cross-border logistics services.

Therefore, OOCL Logistics Company has recognized and anticipated the development trend of the logistics industry towards 3PL and has achieved quite a lot of success OOCL Logistics Company understands each legal provision, each road and has had many successes The company applies modernization of technologies in the field of logistics such as WMS system, GPS system widely applied in the system along with simplifying customs procedures and customs clearance through the declaration system Electronics has contributed to opening a bright picture forVietnam's logistics industry.

Development goals of OOCL Logistics Company

The general goal of current logistics services is to develop rapidly to dominate the market, while improving and strengthening the competitiveness of logistics services Some specific goals of OOCL Logistics Vietnam company are as follows:

- The first goal to be achieved is to exploit all company resources in the most effective way in all storage, delivery, transportation, as well as other activities. Upgrade and develop OOCL Logistics Vietnam's services from current individual services into complete door-to-door services, gradually building the image of OOCL Logistics Vietnam into a leading logistics service provider international level.

- Maximize exploitation and purchase more equipment and facilities systems of OOCL Logistics Vietnam, diversify business activities, take full advantage of the worldwide Logistics network, along with strong relationships corporate relations.

- Promote the exploitation of logistics services in Ho Chi Minh City and Hai Phong city areas.

- Infrastructure: build, renovate, and upgrade the infrastructure system for logistics services of the entire company.

- Logistics services: increasing warehouse area to better store and preserve goods, ensuring stored goods meet high standards Build a fleet of transportation vehicles for the company to fully meet customer needs and reduce the cost of the company's logistics services.

- Diversify the company's logistics services and gradually aim to provide a complete logistics chain.

- Continuously control and improve service quality in all areas of the company,focusing on solving remaining shortcomings.

Some solutions to improve the quality of logistics services of OOCL Logistics company

After identifying the components of logistics service quality that affect customer satisfaction and analyzing the status of each element of logistics service quality such as the advantages, disadvantages and Limited existence at OOCL Logistics.

We have come up with a few solutions corresponding to these factors to improve the quality of the company's logistics services and increase customer satisfaction. The solutions closely follow the company's current situation with five groups of factors surveyed: procedural quality, communication quality, timeliness and troubleshooting, and technology.

3.2.1 Solutions to improve procedural quality

Through the process of analyzing the current situation in chapter 2 along with the advantages and disadvantages drawn We can easily see that customers rate the quality of OOCL Logistics Company's procedures quite well However, the company's online order receiving channel does not yet exist, and the order receiving channel via email has not been completed In addition to ordering by phone, when customers call or text the company office, there is still no employee responsible for receiving, synthesizing orders, and transferring them to other departments We would like to propose some of the following solutions:

Build and perfect the ordering process via email, phone, and website.

OOCL Logistics Company currently does not have staff to receive orders when customers call the company's office Customers only place orders with sales staff. This makes customers who contact the Company feel uncomfortable and evaluate the Company as unprofessional Therefore, the Company should recruit and train more staff to take orders by phone, who will be equipped with a direct network connection to the company's data system to perform their work.

The company currently does not have an online ordering method via the website,but this is a potential communication channel and is highly emphasized by competitors Therefore, the company needs to focus on building its own online ordering website to improve competitiveness and bring more satisfaction to customers.

In addition, the company should improve the ordering methods via email by regularly checking emails so as not to miss customer requests and responding to customer emails quickly to handle the problem, helping the Company find potential new customers, thereby increasing revenue and increasing competitiveness compared to competitors in the same industry In addition, the Company needs to establish a price list of logistics services for old and new customers that is updated from time to time to help customers easily contact and make reasonable choices for using the service

Create a unified data entry software for ordering methods via phone, email and website to easily record, track and forward orders through relevant departments, in addition the software also has the function Update the status of orders being recorded and processed to quickly and directly respond to customers.

Appoint staff responsible for synthesizing all customer orders to receive, check, confirm and track the status of each specific order Each salesperson has many different customers and jobs, so if the order receiving job is not specialized, it will directly affect the company's business operations Therefore, the company should set up staff to receive orders and synthesize orders then pass them on to other departments.

3.2.2 Solutions to improve communication quality

Through the above analysis, we see that in terms of information quality, the company has built a team of long-term staff, so it always serves customers diligently and is always ready to provide full information to customers However, besides that the company still has some shortcomings: there is still no department responsible for monitoring the order processing process to provide information to customers The connection between employees in the company is still limited, so we offer the following solutions:

● Improve information sharing and communication systems between the company and customers.

Currently the company is using a system to share information for customers with the company's system, so for customers to get the information they need is very complicated and cumbersome because they need to go through many steps to get the information, they need to get necessary information Therefore, the company should separate the information customers need into a separate section so they can easily access and update information in the system This increases the quality of information provided between the two parties, reduces unnecessary time and costs, as well as reduces errors that arise and can be quickly detected and corrected when errors occur.

● Improve the quality of contact staff

Besides, human resources are one of the important factors that determine business results and the success or failure of every strategy In which, sales staff are the ones who guide, provide product information, take care of customers, build relationships with customers, and are also a component to create service quality This result depends a lot on the recruitment process, training, professional qualifications as well as the working attitude of the employees, the creativity and dynamism of the employees, and the working environment.

In the business activities of service enterprises, the human factor is the bridge that connects products to consumers In addition, it also represents the face of the Company, who provides information about products and care services, builds close relationships with customers, and also shows the culture of the business through employee behavior Therefore, this factor is key so businesses need to have policies on training, recruitment, encouragement and good remuneration to build a team of employees capable of conveying information and creating good service quality for customers Through chapter 2, we can easily see that the Company's employees have a team of sales staff with many years of experience, so their knowledge of products and services and knowledge in the industry is very strong Employees who have built long-term cooperative relationships with customers should clearly know their needs and desires, so they can well solve customer problems that arise. However, OOCL Log Company also encountered several problems such as a lack of sales staff, employees who were not strictly managed in terms of work processes, leading to many difficulties in developing and expanding the market difficult, the company has not organized training courses on necessary skills for sales staff in their sales, as well as plans to periodically survey customers to measure their satisfaction and listen to feedback from customers Employees of partner companies providing services to OOCL Logistics have not been properly trained, so they have behaviors that affect the company's image in the eyes of customers We would like to propose some of the following solutions:

OOCL log needs to recruit and build a professional sales team Currently, there is a shortage of sales staff Therefore, the Company needs to recruit more employees to reduce pressure on the sales department or on collaborators To do this, the Company needs to develop clear and appropriate criteria for the sales field Sales staff, in addition to characteristics such as enthusiasm, organization, ambition, persuasion ability, language ability , need to have additional characteristics such as patience, little job change, have a technical mind, good appearance and the ability to maintain high psychological balance.

The company needs to hold monthly meetings instead of quarterly as currently for the sales team to share experiences as well as difficulties being encountered together to find solutions to solve problems In addition, make plans and propose support programs if necessary to promote product sales in the next month At the same time, in addition to professional training, the Company also needs to organize additional classes to improve the ability to behave and communicate with customers Propagate so that all employees understand the role of customers,develop human resources that not only understand professional expertise but also improve soft skills when communicating, meeting, and maintaining relationships with customers Along with that, we will build situational exercises to train the employee's reaction ability, increase the number of training hours, and at the end of the training program, we will organize employee evaluation and rating.

OOCL Logistics can apply solutions to create a stable working environment for employees and provide an environment focused on the long term For example, companies can provide employees with skills and career development programs that help employees improve their productivity and are valuable to them both now and in the future Or the company can communicate effectively with employees to help them understand their contributions to business results, instilling confidence in the organization's future with leaders and managers effectively, along with empowering employees by inviting their opinions and implementing their suggestions. Department manager communication also plays an important role Discussions during performance reviews will help employees understand how they need to contribute now and in the future In short, OOCL Logistics needs to set priorities based on values that employees recognize will go a long way in helping employees understand the great significance of proactively taking control of their career development path, thereby improving the assessment of job stability.

3.2.3 Solutions to improve timeliness and troubleshooting

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