STUDY ON SERVICE QUALITY ISSUES IN CONTEXT TO LOGISTICS SERVICE PROVIDERS IN INDIA

Abstract

Logistics Service Providers (LSPs) provides outsourcing of logistics operations by giving the benefits of reduced cost, timely delivery and increased efficiency of supply chain. In past studies, some of the authors worked on the service quality issues of logistics service providers but the studies on service quality models developed for measuring customer satisfaction from Indian logistics service providers perspectives are very limited. Therefore, three objectives of this research have been developed on the basis of research gaps identified from literature review. The first objective is to analyze the best practices followed and challenges for Indian logistics service providers. The second is to develop a framework for the selection of best LSP based on service quality. The third and final objective is to identify the service quality dimensions and development of service quality framework for Indian logistics service providers. To achieve the objectives of the study, literature has been reviewed in the areas such as: Logistics service providers: definitions, processes, best practices and challenges faced by them , service quality models: definitions, dimensions and measurement models,identification of constructs and items for the development of proposed framework for measuring logistics service quality. In this study, different methods have been used to meet the objectives of the research. To achieve objective 1, the best practices of logistics service providers are explored and analyzed by using case study method. Three Indian case companies have been considered to understand the best practices followed by LSPs. The challenges faced v by LSPs are retrieved from literature review and expert opinion and then analyzed by using TISM approach. For objective 2, a framework for the selection of best LSP is proposed and analyzed by using Multi-criteria decision-making tools. For achieving objective 3, a conceptual framework is proposed. The data is collected from the employees of various organizations who are dealing from logistics service providers. Responses are sought about their satisfaction from logistics services on Likert scale. The data is collected and then analyzed for testing hypothesis by using Structural Equation Modeling. The finding of case study method has provided various insights about the current assets, processes and best practices of Indian LSPs. The findings revealed that Indian LSPs are well equipped with resources but government attention and consideration as an industry is still missing. It has also been observed that the LSPs are now taking steps towards sustainability, environment and society. By using Fuzzy AHP, it has been observed that Competence (0.27), Communication (0.25), Commitment (0.20), Coordination & Collaboration (0.14) and Creativity & Customization (0.13) are major selection criteria for LSPs. It shows that customers give more importance to competence followed by communication and commitment while selecting their service provider. Fuzzy TOPSIS was used to find out the final rankings of best LSPs for the study.The results show that the PQR Ltd. is considered to be best LSP followed by XYZ Ltd., and ABC Ltd. Findings of proposed logistics service quality model by using Structural equation modelling revealed that constructs such as operational quality, resource quality, information quality, personnel contact quality, and customization and innovation quality greatly influences customer satisfaction. It was found that all the constructs vi were supported at the p<0.05 significance level. It was also found that the constructs operational quality, resource quality, information quality, personnel contact quality, and customization and innovation quality were not having a significant impact on customer loyalty. Results of hypotheses testing are also supporting the mediating effect of customer satisfaction. The significant contributions and research implications for both LSPs and customer organizations can be retrieved form the research work. LSPs can also understand their service quality evaluation parameters and can improve on lacking areas for more satisfaction of their customers. After understanding and adopting the LSQ model, the organizations can define their clear expectations to the LSPs. Recommendations along with limitations and future scope for study has been also made. The research work will help LSPs, customer organizations, academicians, and researchers by understanding, adopting and implementing the learning based on outcomes retrieved in the study.