1

A STUDY ON CUSTOMER LOYALTY TOWARDS LOGISTICS IN

SAFE EXPRESS PRIVATE LIMITED

by

M.S ARUN KUMAR

Register Number 0891003
of
SRI RAMAKRISHNA ENGINEERING COLLEGE, COIMBATORE 641022
(AUTONOMOUS INSTITUTION, AFFILIATED TO ANNA UNIVERSITY COIMBATORE)

A PROJECT REPORT

Submitted to the
DEPARTMENT OF MANAGEMENT STUDIES
in partial fulfillment of the requirements
for the award of the degree
of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY COIMBATORE 641 047

JUNE, 2010
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BONAFIDE CERTIFICATE

Certified that the a project report titled A STUDY ON CUSTOMER

LOYALTY TOWARDS LOGISTICS IN SAFE EXPRESS PVT LTD is the bonafide

work of Mr. M.S ARUN KUMAR who carried out the research under my supervision.

Certified further, that to the best of my knowledge the work reported herein does not

from part of any other project.

Faculty Guide DIRECTOR

(Department of Management Studies)

Viva Voce Examination Held On

Internal Examiner External Examiner

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DECLARATION

This is to certify that the project titled A STUDY ON CUSTOMER LOYALTY

TOWARDS LOGISTICS IN SAFE EXPRESS PVT LTDsubmitted to the

Department of Management Studies, Sri Ramakrishna Engineering College,

affiliated to Anna University; Coimbatore is an original record of project done by me,

under the supervision of Mrs. V.VANAJA, Assistant Professor, and Department

of Management Studies. Certified further, that to the best of my knowledge the

work reported herein does not from part of any other project.

M.S ARUN KUMAR

(0891003)

Place: Coimbatore

Date:
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ACKNOWLEDGEMENT

I would like to thank Management, Principal, and Director of Sri

Ramakrishna Engineering College for giving me the opportunity to

carry out my project work.

Also I wish to thank Dr.K.Chitra, Director, Department of

Management Studies, Sri Ramakrishna Engineering College for the

invaluable guidance throughout the project work.

I am also grateful to my guide faculty member, Prof.V.Vanaja,

Assistant Professor, Department of Management Studies for her

valuable suggestion and guidance leading to my successful completion

of this project.

I owe my bound less thanks to the project guide Mr.E.Karthik IT

Head, Safe Express Pvt Ltd., Coimbatore for his valuable

encouragement and proper timely advice.

Last but not least I extend my grateful thanks to all my faculty

members of Department of Management Studies and my beloved

parents.
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EXECUTIVE SUMMARY

In the current scenario logistics plays an important role in the

transfer of goods and services to the customers and logistics services

provide a variety of warehousing, transportation, and supply chain

management services. The services offer that customized product

solutions can perform custom, custom labeling, and packaging

operations.

Logistics forms the system that ensures the delivery of the

product in the entire supply pipeline. This includes transportation,

packaging, storage and handling methods, and information flow.

Safe Express was started in 1993. It started its business as a

door-to-door service in 1995 with 4 routes, 9 offices, 12 container

mounted vehicles and 20 employees. Safexpress Indias Leading

Logistics Company is renowned for its domain expertise and

experienced manpower in the LSCM sector

The study is conducted with the main objective of

understanding the demographic profile of the customers, service usage

behavior of the customers and level of customer loyalty towards

safexpress.
 7

The study is descriptive as the objectives and purpose is very

clear. A sample of 100 respondents is drawn from the population based

on convenience sampling method. The data is collected with the help

of Specially Designed Questionnaire. The tools used for analysis are

Percentage Analysis and mean score.

The limitations are , the study is limited to the survey is restricted

to the customers of Safe Express Pvt ltd and time limit restricts

detailed survey work for this particular topic of research and Some

customers have lack of time, so they may not communicate properly.

From the findings of the study Demographic profile of

respondents most of the respondents annual turnover is more than 25

Lakhs and followed by and in the service usage behavior and Majority

(66%) of the respondents identified the safe express through friends

And Relatives and (80 %) of the respondents are satisfied with the way

of handling goods and (85%) are satisfied in the 3PL.

From the Level of customer loyalty Majority of respondents is

very much satisfied in clearance department and Majority (70%) of the

respondents are excellent in risk coverage in safe express, Majority

(62%) of the respondents is very much satisfied in transit days and

Most (41%) of the respondents are very much satisfied in security

system and Most (33%) of the respondents values people relationship

ahead in short term goals.

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Also it reveals that the over all Satisfaction level of customers

will recommend to others and satisfied with the over all services

provided with the safexpress

TABLE OF CONTENTS

CHAPTE PAGE
R CONTENTS NO

1 INTRODUCTION
1.
1 Background 1
1.
2 Review of literature 4
1.3 Statement of the problem 8
1.4 Objectives of the study 8
1.5 Scope of the study 9
1.6 Methodology 9
1.7 Limitations 10
1.8 Chapter scheme 11
2 COMPANY PROFILE
2.1 History of the organization 12
2.2 Management 16
2.3 Organization structure 17
2.4 Product profile and market potential 18
2.5 Competitive strength of the company 20
2.6 Future plans 21
2.7 Description of various functional areas 22
3 MICRO - MACRO ECONOMIC ANALYSIS
3.1 Industry position in Global Scenario 23
3.2 Industry position in Indian Scenario 25
4 DATA ANALYSIS AND INTREPRETATION 28
5 53
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CONCLUSION

LIST OF TABLES
PAGE
TABLE NO. TITLE NO

1 Type of Organization 28
Type of Business 28
2
Annual Turnover 29
3
Association with Safe Express 29
4
Information Resources 30
5
6 Service Utilization 30
Type of Express service 31
7
Trustworthiness of goods handling 31
8
Reasons for dissatisfaction 31
9
Trustworthiness of Warehouse facility 32
10
Reasons for dis-satisfaction 32
11
12 Client Handling 33
Risk Coverage 34
13
Employee Efficiency 35
14
Online track information 36
15
Trustworthiness of Third-party Logistics 37
16
17 Reasons for dissatisfaction 37
Representative Ability 38
18
Responsiveness to Telephone / email 40
19
Handling & Packing 41
20
Clearance Department 42
21
Security System 43
22
23 Transit Days 44
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Shipment Delivery on Doorstep 45

24
Logistics services of other companies 46
25
Switch over to other Logistics Services 46
26
27 Switch over to other companies. 47
Safe express deserves loyalty 47
28
Increase in loyalty 49
29
Value people & Short term goals 50
30
Recommendation to others. 51
31
32 Rating the overall services 51
Mean score 52
33

LIST OF CHARTS
PAGE
CHART NO. TITLE NO
4.1 Client Handling 33
4.2 Risk Coverage 34
4.3 Employee Efficiency 35
4.4 Online Track Information 36
4.5 Representative Ability 39
4.6 Responsiveness to Telephone / email 40
4.7 Handling & Packing 41
4.8 Clearance Department 42
4.9 Security System 43
4.10 Transit Days 44
4.11 Shipment Delivery 45
4.12 Increase in Loyalty 49
4.13 Safe express Value people & Short term goals 50

CHAPTERS

Chapter 1: INTRODUCTION
1.1 Background
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1.2 Review of Literature

1.3 Statement of the Problem
1.4 Objectives pf the study
1.5 Scope of the study
1.6 Methodology
1.7 Limitations
1.8 Chapter scheme (report structure)

Chapter 2: ORGANIZATION PROFILE

2.1 History of the Organization
2.2 Management
2.3 Organization Structure
2.4 Products profile and market potential
2.5 Competitive strength of the company
2.6 Future plans
2.7 Description of various functional areas.

Chapter 3: MACRO MICRO ECONOMIC ANALYSIS

3.1 Industry position in global scenario
3.2 Industry position in Indian scenario
3.3 Competitors profile - a snapshot

Chapter 4: DATA ANLYSIS AND INTERPRETATION

Chapter 5: CONCLUSION
i) Results and Discussions
ii) Considered recommendations

INTRODUCTION

1.1. Background
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A multitude of companies today has already identified the need

to create a loyal customer base and acknowledges that maintaining

existing customers and extending business with them is significantly

less expensive than acquiring new customers. Empirical proof of the

proliferation of such customer loyalty efforts in the business world is

e.g. provided in the form of loyalty programs, which many companies

have installed during the past years by engaging in efforts aimed at

creating customer loyalty, which in turn fosters financial success in

monetary terms firms react to increasing competitive challenges.

Indian Supply Chain and Logistics Industry is more than USD 100
Billion in size and is the backbone of Indian Economy. In India the
industry is growing at a rate of 8-10% annually and has been a crucial
contributor in the growth and development of the Indian economy. In
the near future, Traditional Logistics services like Transportation and
Warehousing would continue to grow at a good rate.
In addition, we expect strong Foreign Direct Investment inflows
in the Indian markets, which would lead to increased market
opportunities for providers of Third-Party Logistics in India. Therefore,
India possesses substantial opportunities for growth in the Supply
Chain & Logistics industry in the coming years, notwithstanding the
temporary jolt due to the economic slowdown.

Currently the annual logistics cost of the world is about USD 3.5
trillion. For any country, the annual logistics cost varies between 9%
and 20% of the GDP, the figure for the US being about 9%. US-based
Armstrong & Associates, Inc. tracks the issues and trends in the world
logistics market and in the US logistics market, in particular, in their
 13

annual surveys of top 25 global LSP. According to the firm, the

global logistics market sizes in 1992, 1996 and 2000 were USD 10
billion, USD 25 billion and USD 56 billion, respectively. In 2003 and
2004, the corresponding figures were USD 70 billion and USD 333
billion, registering high growth rates. Though most of the large LSPs
are headquartered in Europe, the US logistics market is the largest in
the world capturing one-third of the world logistics market. In 2003, it
was about USD 80 billion.

In 2004, it grew to USD 89 billion, and in 2005, it registered an

impressive growth rate of 16% to cross the USD 100 billion mark for
the first time and reach USD 103.7 billion (Foster and Armstrong, 2004,
2005, 2006). However, considering the fact that the logistics market in
the US is about 10% of its annual logistics cost (Foster and Armstrong,
2006), there is still immense potential for growth of 3PL in the US in
particular, and in the world in general.

Since the beginning of the 1990s, customer loyalty has gained

importance both in relationship marketing research and in business. In

business, this can be attributed to changing market- and competition-

environments. Due to a shift from a sellers to a buyers market and

because of an increasing degree of globalization, most industries find

themselves confronted with new challenges.

A loyal customer base represents a barrier to entry, a basis for a

price premium, time to respond to competitor innovations, and a

bulwark against deleterious price competition. Loyalty is critical to

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brand volume, is highly correlated to market share, and can be used as

the basis of predicting future market share; consequently,

understanding loyalty appears critical to any meaningful analysis of

marketing strategy.

In the supplier-focused perspective, customer loyalty is seen as a

bundle of measures that aim at improving relationships with

customers. The supplier is in the center of attention and the customer

is only regarded as the factor at which success of customer loyalty

becomes manifest. Here it becomes clear that this approach contains a

conceptual deficit. It is the customer who eventually decides on

whether customer loyalty management is successful or not, because

all activities undertaken by a supplier can only be geared at influencing

customers to be loyal. A customer-focused perspective therefore has to

be added to evaluate the success of customer loyalty management.

Within the customer-focused perspective, customer loyalty is

conceptualized taking into account customers complex characteristics.

These can either be approached as customers directly observable

actions and/or take into account their attitudes and intentions. Since

customers actions are directly influenced by their attitudes and

intentions, it is obvious that these have to be scrutinized to understand

and manage loyalty.

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The relationship-focused perspective directly examines the

relationship between suppliers and customers. Accordingly, the

objectives of study in this perspective usually are buying behavior in

retail contexts and long-term relationships marked by frequent

interaction between suppliers and buyers in industrial contexts.

1.1 Review of literature

This section deals with the review of literature conducted in

regard to the study. Martin sa al. (1998)1 in their study evaluated the
qualitative and quantitative differences in logistics and courier. The
objective of the study was to identify the customer loyalty in courier &
logistics services in India. The data was collect from 170 customers in
two groups: those under the age of 20 and those 65 and over. The
important question is loyalty in services provided in logistics and
courier. The results indicated that most of the service provided by the
logistics company is satisfied by the customers. From the findings of
the study known that most of the customers are loyalty in logistics
services provided in the India.
Paul Joseph Raj. (2001)2 in their study evaluated the customer
satisfaction in logistics, provided by the various companies. The
objective of the study was to identify the customer satisfaction in

1
Martin sa al. (1998) A Study on Qualitative and quantitative analysis of
logistics services in India & loyalty towards in logistics.
2
Paul Joseph Raj,A Study on Customer Satisfaction in Logistics , provide by
the various companies in India.
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logistics services. The data was collected from 150 respondents, under
the age from 20 to above 65.From the findings of the study, most of
the customers are satisfied with the service provided in the logistics.
From the findings of the study, known that, few customers are neutral
in services providing quick in delivery.
William M. Weilbacher (2006)3 evaluates in her study comparison
of Indian Logistics & Foreign logistics Services. The objective of the is
to find out the level of usage in the logististics services in India as well
as in globally. The data is mostly collected as secondary data. The
scope of the study is broad in nature. From the findings of the study
most of the users are very much satisfied in logistics services provided
in all the aspects, the satisfaction level is very much satisfied in
logistics services in India, on concluding that, logistics are very much
useful in all the categories.
Rathore Singh (2006)4, in their study evaluated the impact of
logistics services in India, The main objective of the study is to identify
the problems in logistics services, and to know about the customers
loyalty in the logistics usage, the data is collected from 100
respondents under the age from 22 to above 60, From the findings of
the study, most of the respondents are satisfied with the
transportation, in transit, Insurance cover provided by the logistics
company. Few respondents dissatisfied with the warehouse and the
online tracking information. On concluding that the logistics services
are useful in all aspects.
Robertson. Eliza (2003)5, in their study on Customer preference
in the Courier and the logistics Services, The study used an
3
William M. Weilbacher, A study on Comparison of Indian Logistics and
Foreign Logistics.
4
Rathore Singh, A Study on Impact of Logistics Services in India with special
reference to the North India & South India.
5
Robertson .Eliza, Customer Preference in the logistics services,
International journal of Logistics, vol 25(1), pp.71-86.
 17

experimental design in which certain groups of participants were

exposed to a logistics to identified it well, The objective of the study is
to identify the customer preference in the logistics services. From the
findings of the study few customers are dissatisfied with damage of
goods when in transit , most of the customers are very much satisfied
in the logistics services provided. The result was that the respondents
are well aware in choosing the logistics company.
Prof.P.R.S.Sharma (2006)6, A Study on Current Scenario of
Logistics service Iin India, The objective of the study is , to know the
current scenario of the logistics services , and to identify well and
measured by using the quantitative and qualitative analysis. The
survey was collected mostly from the secondary data as well as
primary data; the data is collected from the 75 respondents. From the
findings of the study the Indian logistics is pretty good in nature and
respondents are well aware of the logistics service providers.
Paul E. Hendry et al. (2008)7, in their study under stand the
Brand Recall Gati Brand in Logistics and Cargo Needs, The main
objective if the study is to identify the brand strategy in Gati , in cargo
needs as well in logistics services. The data is collected from the 150
respondents from the Gati, most of the respondents in the age from 22
to above 65, from the findings of the study most of the respondents
are well aware and satisfied towards Gati cargo and logistics services.
Prof.Ajay Sharma (2006)8, evaluated in their research
investigated in supply chain management and competitive marketing
strategy of major courier and cargo services in India, The main
objective of the study is to identify the marketing strategy evaluated,
6
Prof.P.R.S.Sharma, A Study on Current Scenario of Indian logistics,
International journal of Logistics, vol 28(1), pp.61-86.
7
Paul E. Hendry et al , A Study on Brand recall of Gati Logistics and Cargo
services
8
Prof.Ajay Sharma , A Research in Supply chain Management and
Competitive Marketing Strategy of Major Courier and Cargo services in India.
 18

the data is mostly collected from the secondary data. From the
findings of the study most of the respondents are satisfied with the
marketing strategy by the cargo service provided, and few
respondents are in not agree with the marketing.
Peter R. Drake et al. (2004)9, in their study investigates the
impact of Logistics services in globally, the main objective of the study
is to identify the problems faced in the logistics services by the users,
the data is collected from the 100 respondents, from the findings of
the study most of the respondents are neutrally aware of the logistics
services provided in domestically, and most of the respondents are
very much satisfied in the logistics services provided globally.
Prof.Srikanth.Gupta (2008)10, in their study Customer perception
towards logistics services provided in India, The main objective of the
study is to identify the customer perception towards logistics services,
The data is collected from the 100 respondents, secondary data is
been collected mostly , from the findings of the study , some
respondents are not satisfied with the services provided and few are
neutrally satisfied in it. Concluding that the customers are well
satisfied in cargo services.

9
Peter R.Drake et al, The Study on Impact of logistics services in global
10
Prof.Srikanth Gupta, A Study on customer perception towards Logistics
services provided in India.
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1.3 STATEMENT OF THE PROBLEM

In the current scenario the competition is very high in the

logistics industry. The satisfaction of the customers is very
important to promote the products among the customers. The
customers are business organizations the factor leading to
customer loyalty is different from the factors that influence
individual customers .The company wants to take necessary steps
to increase sales. The clarity of information, advice provided to
customers by staff, the language used by the staff to communicate
it properly, are the main problems faced by the customers. The
analysis of customers perception will help the company to know the
satisfaction level of customers and customer loyalty towards the
organization and also help the company to improve the services.

1.4 OBJECTIVES OF THE STUDY

1. To know about the demographic profile of the customers.

2. To Study the service usage behavior of customers.

3. To study the customers opinion about the various services

provided by
Safe Express Ltd., and the customer loyalty.

4. To provide suggestions to safe express limited for further

improvement.
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1.5 SCOPE OF THE STUDY

The study is conducted at safe express pvt ltd. The

respondents are various business houses in Coimbatore making use of

logistics services provided by Safe Express Ltd.The present customers

alone are considered for conducting this study.

1.6 RESEARCH METHODOLOGY

Type of Study:

The study is a descriptive study because it enables the quick

assimilation of data.

Sampling Design and Sample Size

The Sampling method used in this study is convenience

sampling. The sample size is 100. The respondents are chosen on the
basis of accessibility to the researcher.

Data collection

Questionnaire method is used for data collection

Questionnaire consists of three parts they are

1. Customer Profile.
2. Service usage behavior.
3. Level of Customer Loyalty.
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Tools for Data Analysis:

Simple percentage method and Mean Score is performed

for the samples collected to estimate the overall customer satisfaction
level of customers.

1.7 LIMITATIONS OF THE STUDY

Time limit restricts detailed survey work for this

particular topic of research

The survey is restricted to the customers of Safe

Express Pvt ltd who belong to
Coimbatore region only.

Some customers did not have enough time, so they

were not able to communicate properly.
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1.8 CHAPTER SCHEME

Chapter 1:INTRODUCTION

This part deals with Background, Review of Literature,

Statement of a problem, Objective of the study, Scope of the study,
Research Methodology, Limitations, Chapter Scheme (Report
Structure)

Chapter 2:ORGANIZATION PROFILE

This part deals with History of the organization,

Management, Organization Structure, Products profile and Market
potential, Competitive strength of the company, Future plans,
Description of various functional areas

Chapter 3:MACRO-MICRO ECONOMIC ANALYSIS

The prevailing economic scenario with respect to the

industry
Selected for the study is briefly discussed in this chapter

Chapter 4:DATA ANALYSIS & INTERPRETATION

This part of the project deals with the analysis of data

using the
Statistical tools and interpretation of the results
Chapter 5:CONCLUSION

This part deals with the Results and Discussions,

Considered
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CHAPTER - 2

ORGANIZATIONAL PROFILE

Organizational Profile deals with the history of the organization, its

management, organizational structure, programme profile and market
potential, competitive strengths, future plans and the description of
various functional areas.

2.1 HISTORY OF THE ORGANISATION

Safe Express was started in 1993. Pawan Jain (Chairman and

Managing Director Safexpress), Anil Sayal (General Manager
Safexpress). Safexpress started its business as a door-to-door service
in 1995 with 4 routes, 9 offices, 12 container mounted vehicles and 20
employees.Safexpress' door-to-door services include niche products
like DoD and To-Payfreight. In 1996 Safexpress opens super hubs at
Delhi, Mumbai and Bangalore.Next year Safexpress launches
Integrated Logistics Services. Our first ILS client is NIIT; the first
international ILS account is signed with Hilti from Europe. Spurred on
by a surging domestic economy, Safexpress extends its fleet to 250
and number of stations to 290. Safexpress Private Limited emerges as
an independent entity

In1998 Safeair and Safebox are launched, setting a new standard

in value added cargo services.All hubs are connected through web-
 24

based software. In 1999 Having grown by over 300%in 4 years without

compromising quality, Safexpress is awarded the Golden Peacock
Award for quality and innovation in Logistics Management.In 2000 Pilot
run for GPS starts on 28 routes.

Safexpress reaches the 350-destinations mark and the fleet

crosses 1400. Again 2001 Safexpress upgrades and launches a whole
lot of features on www.safexpress.com including ePod, Virtual Cargo
and Privileged Member.In the year 2002,2003 Safexpress was declared
India's "Largest Logistics Service Provider" by Limca Book of Records.
In 2005 Safexpress bags the MICO:Power of We Award for excellent
service in logistics. In the same year Safexpress fleet crosses
3000 mark. Next year in 2006 Safexpress was awarded by ADC Krone
for providing best logistics services and in same year Safexpress bags
prestigious RAI's (Retailers Association of India) Award for Best
Logistics Service Provider.

Safexpress Indias Leading Logistics Company is renowned for

its domain expertise and experienced manpower in the LSCM sector.
Safexpress can best understand your Logistics and distribution
requirements and can offer the most suitable Logistics model and
solution to you. Safexpress has the largest network coverage across
India traversing over 3,50,000 km.

Every day covering over 550 locations through more than 750
routes operating 24 hours a day 365 days a year reaching these
locations through its fleet of 3000 vehicles operating on. All
Safexpress vehicles have all-weather proof containers for safe transit.
Safexpress also operates through Air to locations directly covered by
flights and to all other locations on a multi modal basis.
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Safexpress have a Integrated Logistics Management. It is our 3PL

Product that optimises your companys supply chain. First, we examine
the linkages between your suppliers, producers, buyers, intermediaries
and end users in order to identify time and cost inefficiencies. Next, we
deploy o ur uniquemix of local know-how, global practices and cutting-
edge technology to provide integrated supply chain solutions. These
range from specific services such as warehouse management,
statutory compliance and invoicing - to an entire gamut of third party
logistics services.

Mission:
To adopt and internalize a work culture which demonstrates a
"we can we will" attitude to reflect in our daily responsibilities so as to
far exceed our objectives, consistently striving towards market
dominance. It will create historical landmarks forming a strong edifice
for the future overcoming all obstacles pro-actively as our personal
responsibility and commitment to create delight for the customer with
impeccable personalized services.

Vision:
To be a conscious learning organization maintaining flexibility for
change so as to provide the most customized solutions. Striving
towards global market share whilst maintaining dominance in the
domestic market through good hr practice and excellent customer
service.

Quality:
A quality service relies upon constant customer interaction and
feedback. An immediate response to the changing environment with
pre-defined business processes managed effectively and efficiently
 26

lead to the highest output from the lowest input and this is the
strongest measure of quality.

The best certification of a quality organization is the

measurement of the scale of the smile on the customers face

HISTORY

1995 Safexpress launches as a door-to-door service with 4

routes, 9 offices, 12 container mounted vehicles and 20
employees.
Safexpress' door-to-door services include niche products
like DoD and To-Pay freight.

1996 Safexpress opens super hubs at Delhi, Mumbai and

Bangalore.

1997 Safexpress launches Integrated Logistics Services. Our

first ILS client is NIIT; the first international ILS account is
signed with Hilti from Europe.
Spurred on by a surging domestic economy, Safexpress
extends its fleet to 250 and number of stations to 290.
Safexpress Private Limited emerges as an independent
entity

1998 Safeair and Safebox are launched, setting a new standard

in value added cargo services.
All hubs are connected through web-based software.

1999 Having grown by over 300%in 4 years without

compromising quality, Safexpress is awarded the Golden
 27

Peacock Award for quality and innovation in Logistics

Management.

2000 Pilot run for GPS starts on 28 routes.

Safexpress reaches the 350-destinations mark and the
fleet crosses 1400.

2001 Safexpress upgrades and launches a whole lot of features

on www.safexpress.com including ePod, Virtual Cargo and
Privileged Member.

2002 Safexpress declared India's "Largest Logistics Service

Provider" by Limca Book of Records 2002

2003 Safexpress declared India's "Largest Logistics Service

Provider" by Limca Book of Records 2003
Mr.pawan Jain, CMD, Safexpress, becomes one of the
finalists in the prestigious EnY's Entrepreneur of the Year
Award.

2005 Safexpress inaugurated its 500th scheduled delivery

location
Safexpress bags the Franchise Awards04 for excellence in
Team Work.

2006 Safexpress bags the MICO:Power of We Award for

excellent service in logistics Safexpress fleet crosses 3000
mark.

2.2 MANAGEMENT
Mr.Pawan Jain
(Chairman and Managing Director Safexpress)
15 Years of experience in the industry

Mr.Anil Sayal
General Manager of Safexpress.

Mrs. Jain
Director HR & Admin.
 28

Mr.E Karthik
Head IT
Southern Region.

P.Suresh
Head Coimbatore Region

Mr.Uday Sharma
Director Marketing Head

R.K Jain
Director - Finance

Mr.N.D Kishore
Director Southern Region

Mr. P.S Nair

Director - Coimbatore Branch.
2.3 ORGANIZATIONAL STRUCTURE

REGIONAL OFFICER

AREA MANAGER

ASST. MANAGER

Logistics HR Marketing System Finance & Accounts

 29

Manager Manager Manager Manager Manager

Executives Executives Executives Executives Executives

R&D Administration
Manager Manager

Executives Executives

2.4 PRODUCT PROFILE AND MARKET POTENTIAL

SAFEXPRESS SERVICES

EXPRESS
Safexpress service is an express service which involves
movement of cargo in all weather proof sealed containers on feeder
and express routes. The service is time definite with a published transit
schedule covering more than 550 destinations nation wide and
provides the flexibility for surface, air and multi-modal connectivity
 30

with a wide reach associated with Indian airlines and air taxi operators
such as jet airways, Sahara etc.

DRAFT-ON-DELIVERY
Draft on delivery is an unparalleled value-added service wherein
the seller can dispatch goods through Safexpress to the buyer and be
assured that the delivery would take place only when the draft has
been collected.

In the Safexpress DOD system pre-alerts are sent to the

consignee to allow reasonable time for the draft to be made, thus
meeting the desired objective of express transit with the amount ready
for collection.
ALL RISK COVER
The management of Safexpress hereby undertakes and declares
that:
14 The company would redeem the value of the loss in the uneventful
case of any shortage or damage to the consignment whilst in the
custody of Safexpress, subject to the risk charge having been paid by
the sender or the recipient as per the company policy.

SAFEBOX
The safebox comes in two convenient sizes of 17 x 17 x 12
and 16 x 12 x 9 easily accomodating upto 20 & 10 kgs respectively
of your cargo.

The robust design is further reinforced with internal insulation for

safety of your cargo. So you save on packaging cost and for a nominal
 31

amount it is ready for delivery with an auto insurance upto rs. 5000
absolutely free of cost.

SAFEAIR
To ensure that time sensitive cargo reaches the destination
through a faster mode meeting all your requirements for the time
definite deliveries. Safeair connects your cargo through airlines, atos
and uses the services for morning and evening flights to provide a wide
variety of connectivety to suit different market cutoffs.
ILM
Safexpress works on the value chain concept using a framework
for examining linkages between suppliers, producers, buyers,
intermediaries & end users.Safexpress ensures the success of the
entire chain, marrying local knowhow with the best global practices,
technology & perspective
CONSULTING
Safexpress offers value added services beyond physical
operations in the form of logistics consultancy covering a wide
spectrum of the Indian economy.The company plays a pivotal role in
guiding diverse market segments on existing and recommended
logistics models with various simulation modules to map transactions
using historical data and providing befitting supply chain solutions.

2.5 COMPETITIVE STRENGTH OF THE COMPANY

Strength

Over 550 destinations spread across 28 states & 7 union

territories.
 32

Warehousing space exceeding 3 million square feet.

Over 3,000 all weather-proof ISO 9002 vehicles.
More than 1000 routes, linked through 41 super hubs & hubs.
Delivering more than 3 million packages a month.
Traversing more than 5, 00,000 kms a day.
Operating 24 hours a day, 365 days a year.

Weakness

Safe express is still lagging in ware house management to its

competitors.
Safe express was a late entrant to generic cargo business.

Opportunities

Automotive industry in India is growing at 18% per annum

creating a huge opportunity for Indian logistics companies like
Safe express.
Indian retail sector is growing 25% annually creating US$ 175-
200 billion by 2016.

Threats

Safe express business model was cloned by several retail courier

operators thus creating threat for Safe express business.
Safe express employees were recruited by its competitors with
high salary and other perk and allowances.

2.6 FUTURE PLANS

Logistics services provider Safexpress plans to invest Rs 800-

1,000 crore (Rs 8-10 billion) in five years to expand its operations
 33

on the back of the boom in manufacturing and retail activities in

the country.

As a result of the expansion, the company's turnover is likely to

touch Rs 1,000 crore (Rs 10 billion) by 2012.

The company is also establishing a 3 lakh sq ft logistics park near

Chennai at an investment of Rs 35 crore (Rs 350 million). It
already operates a 80,000 sq ft warehouse in Chennai.

The warehousing capacity of the company will grow to 10 million

sq ft in the next three years from the current 3 million sq ft.

The company was planning to strengthen its presence in the air

cargo segment by taking three Boeing-737 cargo aircraft on
lease.

Safexpress has also placed an order for 380 trucks to add to its
current fleet of 3,000 vehicles.

Safexpress intends to set up logistics parks comprising

warehouses, vendor management services, raw material
management and finished products storages at 32 locations
across the country.

2.7 DESCRIPTION OF VARIOUS FUNCTIONAL AREAS

Human resource department
 34

Marketing department
System & administration department
Finance & accounts department
Research and development department
Dispatch Department

Human Resource Department:

A human resource department plays a vital role in the
organization, to recruit the employees and train them to satisfying the
need of the customer, and motivate the employees in the organization
to achieve the goals.

Marketing Department:
It will try and maximize the level of sales by carrying out market
research and promoting the goods or service through a motivated
sales team.

Finance & Accounting Department:

Keep a record of all money coming in and going out of the
business. They have responsibility for securing finances for future
expansion and paying staff.

System & Administration Department:

Coordination of branch activities and provision of interaction
between branches and the main office, and maintain the documents
and invoice bills upto dates to be maintained to record it.

Research and Development Department:

Usually, the primary function of the R&D department is to
conduct researches for new services and develop new solutions.
 35

CHAPTER-3
MICRO-MACRO ECONOMIC ANALYSIS

3.1 GLOBAL SCENARIO:

Logistics is a quite an old concept, it has been becoming very

efficient only after the wave of 1990s globalization. With the advent of
intense competition coupled with globalization and liberalization forced
both public and private firms committing themselves to make available
to the customers, the right condition material, at the right place, at the
right time, at the very lowest cost-may be a product or a service.

The World Bank in a recent survey connecting to compete: Trade

logistics in global economy which conducts the LPI survey for every
two years. The LPI is a multidimensional assessment of logistics
performance, rated on a scale from one (worst) to five (best). The
index uses more than 5,000 individual country assessments made by
nearly 1,000 international freight forwarders to compare the trade
logistics profiles of 155 countries.

Based on a worldwide survey of freight forwarders and express

carriers, the Logistics Performance Index (LPI) is a benchmarking tool
developed by the World Bank that measures performance along the
logistics supply chain within a country. Allowing for comparisons across
155 countries, the index can helps in identify challenges and
opportunities and improve their logistics-performances.

Technological progress and worldwide trade and investment

liberalization are presenting new opportunities for countries to harness
global markets for growth and poverty reduction. But with the advent
 36

of global supply chains, a new premium is being placed on being able

to move goods rapidly, reliably, and cheaply.
The ability to connect to the worldwide logistics web depends on
a country'sinfrastructure, service markets, and trade processes.
The government and the private sectors in many developing countries
should improve these areas - or face the large and growing costs of
exclusion, said a World Bank report.

REVENUE DISTRIBUTION GLOBALLY:

Size of the global logistics industry:

Currently the annual logistics cost of the world is about USD 3.5
trillion. For any country, the annual logistics cost varies between 9%
and 20% of the GDP, the figure for the US being about 9%. US-based
Armstrong & Associates, Inc. tracks the issues and trends in the world
logistics market and in the US logistics market, in particular, in their
annual surveys of top 25 global LSPs.
 37

According to the firm, the global logistics market sizes in 1992,

1996 and 2000 were USD 10 billion, USD 25 billion and USD 56 billion,
respectively. In 2003 and 2004, the corresponding figures were
USD270 billion and USD 333 billion, registering high growth rates.
Though most of the large LSPs are headquartered in Europe, the US
logistics market is the largest in the world capturing one-third of the
world logistics market. In 2003, it was about USD 80 billion.

In 2004, it grew to USD 89 billion, and in 2005, it registered an

impressive growth rate of 16% to cross the USD 100 billion mark for
the first time and reach USD 103.7 billion (Foster and Armstrong, 2004,
2005, 2006). However, considering the fact that the logistics market in
the US is about 10% of its annual logistics cost (Foster and Armstrong,
2006), there is still immense potential for growth of 3PL in the US in
particular, and in the world in general.

3.2 INDIAN SCENARIO:

Indian Supply Chain and Logistics Industry is more than USD 100
Billion in size and is the backbone of Indian Economy. Our industry is
growing at a rate of 8-10% annually and has been a crucial contributor
in the growth and development of the Indian economy. In the near
future, Traditional Logistics services like Transportation and
Warehousing would continue to growth at a good rate. However, the
big ticket growth would come from the Value Added Logistics services
in the near future.

At present, Outsourced Logistics accounts for only one-third of

the total Logistics market in India, which is a significantly lower
proportion vis-a-vis the developed markets. Growth in this industry is
currently being driven in India by over USD 300 billion worth of
 38

infrastructure investments, the phased introduction of VAT, the

development of organized Retail and Agro-processing industries, along
with a strong manufacturing growth.

In addition, we expect strong Foreign Direct Investment inflows

in the Indian markets, which would lead to increased market
opportunities for providers of Third-Party Logistics in India. Therefore,
India possesses substantial opportunities for growth in the Supply
Chain & Logistics industry in the coming years, notwithstanding the
temporary jolt due to the economic slowdown.

The logistics and warehousing sector in India, till now, has been
highly fragmented and characterised by the presence of numerous
unorganised players. A large number of players have been providing
services in individual segments like transportation, warehousing,
packaging etc.

In 2007, organised players accounted for only 6 per cent of the

total US$ 100 billion Indian logistics industry However, changing
business dynamics and the entry of global third party logistics players
(3PL) has led to the remodelling of the logistics services in India. From
a mere combination of transportation and storage services, logistics is
fast emerging as a strategic function that involves end-to-end solutions
that improve efficiencies.

Indias logistics sector attracted investments worth Rs. 23,200

crore in first half of 2008, according to a study by AssochamTrade
logistics2008. The report said about 110 logistics parks spread over
approximately 3,500 acres at an estimated cost of $1 bn are expected
to be operational and an estimated 45 mn sq ft of warehousing space
 39

with an investment of $500 mn is expected to be developed by various

logistics companies by 2012.

Comparison of Indian logistics performance index with other

countries:

Country LPI Score

USA 3.85
UK 3.84
Singapore 4.19
India 3.07
China 3.64
Mexico 2.64

The Logistics Performance Index (LPI) indicators provide the in-

depth each country assessment of the logistics gap among countries.
As the above graph shows those LPI scores of different countries and
also the performance of developed countries comparing to the
developing nations. Singapore-1stUSA- 9th
China-30th India-39th.
 40

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

This Chapter 4 deals with the analysis and the interpretation of the
data collected through questionnaire and the data is presented under
suitable headings.

4.1 Respondents demographic profile.

This part deals of the study deals with the
demographic profile of the respondents like type of the
organization, type of the business, annual turnover and
association with safe express.

Table 4.1.1: Type of Organization

Nature of Organization No. of Percentage

Respondents
Sole Proprietorship 27 27
Partnership 24 24
Private Limited Company 23 23
Public Limited Company 21 21
Others 5 5.
Total 100 100

The above table reveals that most (27%) of the customers are Sole
proprietors followed by Partnership business (24%), Private limited
company(23%) and Public limited company (21%).
Table 4.1.2: Type of Business
Type of Business No. of Respondents Percentage
Manufacturing 36 36
Trading 47 47
Assembling 13 13
 41

Others 4 4
Total 100 100

The above table reveals that most (47%) of the customers are in
trading business followed by manufacturing business (36%) and
assembling business (13%).
Table 4.1.3: Annual Turnover

Annual Turnover No. of Respondents Percentage

Less than 25 Lakhs 56 56
26-50 Lakhs 20 20
51-100Lakhs 16 16
Above 101 Lakhs 8 8
Total 100 100

The above table reveals that majority (56%) of the customers have
an Annual turnover less than 25 Lakhs and most (20%) are in 26-50 Lakhs
category 16% are in 51-100 Lakhs category followed by 8% who are
above 101 Lakhs category.

Table 4.1.4: Association with Safe Express

Association with Safe Express No. of Respondents Percentage

Less than 3 Years 55 55
3 to 5 Years 22 22
5 to 7 Years 12 12
7 to 10 Years 5 5
More than 10 Years 6 6
Total 100 100

The above table reveals that majority (55%) respondents are

associated with Safe Express for less than 3 years followed by most of
the (22%) respondents are in 3-5 years category, 12% in 5-7 years
category, 6% in more than 10 years and 5% are in 7-10 years category.
 42

4.2 Information resources and service utilization.

This part deals of the study deals with the information
resources, service utilization, and type of express service.
Table 4.2.1: Information Resources

Information Resources No. of Respondents Percentage

Newspaper 11 11
Television 16 16
Friends & Relatives 66 66
Others 7 7
Total 100 100

The above table reveals that majority (66%) respondents came to

know about safe express through Friends & Relatives and (16%) from
Television and (11%) of the respondents from Newspaper.

Table 4.2.2: Service Utilization

Services Utilized No. of Percentage

Respondents
Express 56 56
Warehouse 17 17
3 P'L 11 11
Draft on Delivery (DOD) 14 14
Check on Delivery 2 2
Total 100 100

The above table reveals that majority (56%) respondents availed

Express Services, 17% are using Warehouse services, 14% are using Draft
on Delivery services, 11% are using Third Party Logistics and 2% are
using Check on Delivery services.
 43

Table 4.2.3: Type of Express service

Type of Express No. of Respondents Percentage
Service
Surface 43 43
Air 13 13
Total 100 100

The above table reveals that most (43%) of the respondents are
availing Surface services followed by 13% who are availing Air services.

4.3 Respondents opinion about Goods Handling

This part deals of the study deals with the
trustworthiness of goods handling, reasons for dissatisfaction,
trustworthiness of warehouse facility and reasons for dissatisfaction.

Table 4.3.1: Trustworthiness of goods handling

Respondents No. of Respondents Percentage

Opinion
Yes 80 80
No 20 20
Total 100 100

The above table reveals that majority (80%) of the respondents are
satisfied with the way of goods handled and feel it is trustworthy.

Table 4.3.2: Reasons for dissatisfaction

Reasons No. of Respondents Percentage

Transit Damages 8 40
Method Of Packing 5 25
Accidents 4 20
Others if any 3 15
 44

Total 20 100.0
Out of 20 respondents who feel that goods handling system is not
trustworthy, 40% of them expressed that it is due to transit damages
followed by 25 % of the respondents who felt that it is due to improper
packing.

4.4 Respondents opinion about warehouse facility

This part deals of the study deals with the
trustworthiness of warehouse facility and also the reasons for
dissatisfaction

Table 4.4.1: Trustworthiness of Warehouse facility

Respondents No. of Respondents Percentage

Opinion

Yes 81 81
No 19 19
Total 100 100

The above table shows that majority (81%) of the respondents

expressed that warehouse facility provided by Safe Express Ltd is
trustworthy.

Table 4.4.2: Reasons for dissatisfaction

Reasons for Dis-satisfaction No. of Respondents Percentage

Lack of Space 8 40
Security 5 25
Damages 4 20
Marking Problems 2 15
Total 19 100
 45

Out of 19 respondents who feel that warehouse facility is not

trustworthy, 40% expressed that lack of space is the main reason for the
dissatisfaction and 20% of them expressed that it is due to lack of
security.

4.5 Respondents opinion about other services

This part of the project deals with the respondents ratings

(Such as Excellent , Good , Fair and Poor) about other services like
Client Handling , Risk Coverage, Employee Efficiency and providing
online track information.

Table 4.5.1: Client Handling

Respondents Opinion No. of Respondents Percentage

Excellent 44 44
Good 26 26
Fair 21 21
Poor 9 9
Total 100 100

The above table reveals that most (44%) of the respondents expressed that
client handling is excellent and 26% of the respondents stated that client handling is good.

Chart 4.1: Client Handling

 46

Table 4.5.2: Risk Coverage

Respondents Opinion No. of Respondents Percentage

Excellent 70 70
Good 17 17
Fair 10 10
Poor 3 3
Total 100 100

The above table reveals that most (70%) of the respondents

expressed that Risk coverage is excellent and 17% of the respondents
stated that Risk Coverage is good.
Chart 4.2: Risk Coverage
 47

Table 4.5.3: Employee Efficiency

Respondents Opinion No. of Respondents Percentage

Excellent 28 28
Good 22 22
Fair 20 20
Poor 30 30
Total 100 100

The above table reveals that most (30%) of the respondents

expressed that Employee Efficiency is poor and 28% of the
respondents stated that Employee Efficiency is Excellent.
Chart 4.3: Employee Efficiency
 48

Table 4.5.4: Online track information

Respondents Opinion No. of Respondents Percentage

Excellent 30 30
Good 18 18
Fair 27 27
Poor 12 12
Very poor 13 13
Total 100 100

The above table reveals that most (30%) of the respondents

expressed that Online track information is excellent and 27% of the
respondents stated that Online track information is fair.
 49

Chart 4.4: Online Track Information

4.6 Respondents Opinion about Third-party Logistics

This part of the project deals with the respondents opinion about
the trustworthiness of the Third Party Logistics and reasons for
dissatisfaction.

Table 4.6.1: Trustworthiness of Third-party Logistics

Respondents No. of Respondents Percentage

Opinion
Yes 85 85
No 15 15
Total 100 100
 50

The above table shows that majority (85%) of the respondents

expressed that Third Party Logistics provided by Safe Express Ltd is
trustworthy.

Table 4.6.2: Reasons for dissatisfaction

Reasons No. of Percent

Respondents
Delay in Delivery 6 40
Delivery status updates 2 14
Frequent Inventory Damages & 4 26
Shrinkage
Just in time requirements 3 20
Total 15 100

Out of 15 respondents who feel that third-party logistics is not

trustworthy, 40 % of them expressed that the reason for dissatisfaction
and 26 % felt that it is due to frequent inventory damages & shrinkage.

4.7 Respondents Level of Satisfaction of Certain Facilities

This part of the project deals with the respondents ratings

(Very much Satisfied , Satisfied , Neutral, dissatisfied , Very much
Dissatisfied) about other services like Representative ability,
Responsiveness to telephone & email, Handling & packing, Clearance
Department , Security system, Transit days and Shipment delivery on
doorstep.

Table 4.7.1: Representative Ability

 51

Level of Satisfaction No. of Respondents Percentage

Very Much Satisfied 49 49

Satisfied 27 27
Neutral 24 24
Total 100 100

The above table reveals that most (49%) of the respondents are
very much satisfied with Representative Ability and 27% are Satisfied.

Chart 4.5: Representative Ability

Table 4.7.2: Responsiveness to Telephone / email

Level of Satisfaction No. of Respondents Percentage

Very Much Satisfied 26 26
Satisfied 13 13
Neutral 20 20
Dis-satisfied 41 41
Total 100 100
 52

The above table reveals that most (41%) of the respondents are
dissatisfied with responsiveness to telephone /emails and 26% are very
much satisfied with responsiveness to telephone /emails.

Chart 4.6: Responsiveness to Telephone / email

Table 4.7.3: Handling & Packing

Level of Satisfaction No. of Respondents Percentage

Very Much Satisfied 22 22
Satisfied 27 27
Neutral 34 34
Dis-satisfied 9 9
Highly Dis-satisfied 8 8
Total 100 100
 53

The above table reveals that most (34%) of the respondents are
neutral in their opinion about handling & packing and 27% are satisfied
with the handling & packing services.
Chart4.7: Handling & Packing

Table 4.7.4: Clearance Department

Level of Satisfaction No. of Respondents Percentage

Very Much Satisfied 68 68
Satisfied 21 21
Neutral 11 11
Total 100 100
 54

The above table reveals that majority (68%) of the respondents are
very much satisfied and 21% are satisfied with the services of clearance
department.

Chart4.8: Clearance Department

Table 4.7.5: Security System

Level of Satisfaction No. of Respondents Percentage

Very Much Satisfied 33 33
Satisfied 25 25
Neutral 26 26
Dis-satisfied 16 16
 55

Total 100 100

The above table reveals that most (33%) of the respondents are
very much satisfied and 25% are satisfied with the security system
followed in the company.

Chart 4.9: Security System

Table 4.7.6: Transit Days

Level of Satisfaction No. of Respondents Percentage

Very Much Satisfied 62 62
Satisfied 28 28
Neutral 10 10
Total 100 100
 56

The above table reveals that majority (62%) of the respondents are
very much satisfied and 28% are satisfied with the duration or time taken
for delivery.

Chart 4.10: Transit Days

Table 4.7.7: Shipment Delivery on Doorstep

Level of Satisfaction No. of Respondents Percentage

Very Much Satisfied 38 38
Satisfied 25 25
Neutral 26 26
 57

Dis-satisfied 11 11
Total 100 100

The above table reveals that most (38%) of the respondents are
very much satisfied and (26%) are neutral with regard to shipment
delivery on doorstep.

Chart 4.11: Shipment Delivery

4.8 Usage of Services of other logistics companies

This part of the project deals with the usage of logistics

services of other companies at present by respondents, switching back
to safe express in future and also switching over to other companies in
future.
 58

Table 4.8.1: Logistics services of other companies

Usage No. of Respondents Percentage

Yes 20 20
No 80 80
Total 100 100

The above table reveals that majority (80%) respondents are not
utilizing other logistics services and 20% are using other logistics
services.

Table 4.8.2: Switch over to other Logistics Services

Switch over to No. of Respondents Percentage

Safe Express
Yes 12 60
No 8 40
Total 20 100

The above table shows that out of 20 respondents who are using
logistics services of other companies, majority (60%) have an idea to
switch over to Safe Express Ltd in future.

Table 4.8.3: Switch over to other companies

Switch over in No. of Respondents Percentage

Future
 59

Yes 20 25
No 60 75
Total 80 100

It is inferred from the above table that out of 80 respondents who

are using only the services of safe express 25% have an idea to switch
over to other logistics companies in future and 75 % expressed their wish
to remain with Safe Express Ltd.

4.9 Respondents Opinion about their Loyalty

This part deals with customer loyalty, increase in loyalty over

the years and also respondents opinion about the companys value to
people and relationship ahead of short-term goals.

Table 4.9.1: Safe express deserves loyalty

Respondents Opinion No. of Respondents Percentage

Dis-agree 23 23
Neutral 21 21
Agree 32 32
Strongly Agree 24 24
Total 100 100

The above table shows that most (32%) of the respondents agree
that they are loyal towards safe express and 24% strongly agree that they
are loyal towards safe express.

Table 4.9.2: Increase in loyalty

Respondents Opinion No. of Respondents Percentage

Dis-agree 32 32
 60

Neutral 18 18
Agree 17 17
Strongly Agree 33 33
Total 100 100

The above table reveals most (33%) of the respondents strongly

agree and 32% disagree about increase in loyalty over the period.

Chart 12: Increase in Loyalty

Table 4.9.3: Value people & Short term goals

Respondents Opinion No. of Respondents Percentage

Dis-agree 10 10
 61

Neutral 18 18
Agree 31 31
Strongly Agree 41 41
Total 100 100

The above table reveals most (41%) of the respondents strongly

agree and 31% agree that safe express values people and relationship.

Chart 13: Safe express Value people & Short term goals

4.10 Recommendation to others.

This part deals with the Respondents recommendation of

safe express to others.
 62

Table 4.10.1: Recommendation to others.

Recommendatio No. of Respondents Percentage

n
Yes 75 75
No 25 25
Total 100 100

The above table reveals majority (75%) of the respondents will

recommend safe express to others 25% will not recommend to others.

4.11 Rating of Overall services

This part deals with the Rating of the customers about the
over all services provided by the company.

Table 4.11.1: Rating the overall services

Rate the overall services No. of Respondents Percentage

Very much Satisfied 26 26.0
Satisfied 41 41.0
Neutral 33 33.0
Total 100 100.0

The above table reveals most (41%) of the respondents are satisfied
(33%) are neutral and (26%) are very much satisfied with respect to the
overall services of the company.

4.12 Mean Score

 63

This part deals with the Ranking Level of customer loyalty, increase
in loyalty over the years and also respondents opinion about the
companies value to people and relationship ahead of short-term goals.

The above table shows the categorization of the Customer

Loyalty on the basis of the reasons trustworthiness of safe express.
The respondents believe that safe express company values people and
Reasons Mean Rank

Believe Company Safe 3.9232 2

express deserves my
loyalty

Loyalty towards Safe 3.4788 3

express has become
better

Safe express company 1.7692 1

values people and
relationship ahead in
short term goals
relationship ahead in short term goals following deserves the loyalty
and loyalty towards safe express is become better.

CHAPTER-5
CONCLUSION

Chapter 5 deals with the results of the analysis and the

interpretations and the discussions upon the same. It also deals with
the considered recommendations.

5.1 Results and Discussions

 64

The Major findings are summarized under various sections.

5.1.1. Demographic profile

Most (27%) of the respondents are sole proprietorship firms.

Most (47%) of the respondents are engaged in trading business.

Majority (56%) of the respondents Annual turnover is less than

25 Lakhs.

Majority (55%) of the respondents are associated with safe

express for less than 3 years.

5.1.2 Service usage behavior

Majority (66%) of the respondents said that they came to know

about the safe express through their friends and Relatives.

Majority 43 %of the respondents is availing surface services.

Majority of the respondents are satisfied with way of goods

handled in safe express (85%), warehouse facility (80%), Third-
party logistics services (85%).

5.1.3 Level of Customer Loyalty

Majority of the respondents expressed that the client handling is

either excellent (44%) or good (26%).

Majority of the respondents expressed that the Risk coverage is

either excellent (70%) or good (17%).
30% of the respondents expressed that Employee Efficiency is poor
whereas 28% stated that Employee Efficiency is Excellent.

The respondents expressed that online track information is

excellent (30%) and 27% stated that online track information is fair.

Majority of the respondents are either very much satisfied (49%) or

satisfied (27%) with Representative Ability.

41% of the respondents are dissatisfied with responsiveness to

telephone /emails while 26% are very much satisfied with
responsiveness to telephone /emails.
 65

34% of the respondents are neutral in their opinion about handling

& packing and 27% are satisfied with the handling & packing
services.

Majority of the respondents are either very much satisfied (68%) or

satisfied (21%) with the services of clearance department.

Majority of the respondents are either very much satisfied (33%) or

satisfied 25% with the security system followed in the company.

Majority of the respondents are either very much satisfied (62%) or

satisfied (28%) with the duration or time taken for delivery.

38% of the respondents expressed that they are very much

satisfied and 26% are neutral with regard to shipment delivery on
doorstep.

Majority (80%) of the respondents are using the logistics services of

Safe Express Ltd only.

Out of 20% of the respondents who are using logistics services of

other companies majority of them have an idea to switch back Safe
Express Ltd.

Most of the respondents expressed that safe express deserves

loyalty.

About 50% of the respondents strongly agree or agree that their

loyalty has increased over the period.

Most of the respondents expressed that company values people

relationship.

Majority (75%) of the respondents said that they will recommend

safe express to others.

Majority of the respondents are either very much satisfied or

satisfied in over all services provided by the safe express.

5.2 Suggestions

5.2.1 Most of the respondents are not satisfied with employee

efficiency, therefore, Safe express can initiate Human resource
 66

Department to enhance employee motivation and to develop

employee skills.

5.2.2 Most of the respondents are not satisfied with Online track
information system, therefore Online track information system
can implemented and updated effectively to improve client
services.

5.2.3 Most of the respondents are neutral in handling and packing

therefore, handling and packing system can be well improved.

5.2 Observatory based Recommendations.

Security system can be upgraded with latest technologies as it

will increase the loyalty.

Proper communication with the clients regarding over all services

to be updated frequently.

Clients meeting/grievances cell should be instituted in the

organization.

Appendix 1
 67

QUESTIONNAIRE

1) Name & Address of the organization:

2) Year of establishment:

3) Type of the organization:

a) Sole Proprietorship
b) Partnership
c) Private Limited Company
d) Public Limited Company
e) Others

4) Nature of the business: a) Manufacturing b) Trading

c) Assembling d) Others

5) Annual Turnover: a) Less than 25Lakhs b) 26 50 Lakhs

c) 51 100 Lakhs d d) Above 100 Lakhs

6) How long you are the customer/client of Safe Express Pvt Limited?

a) Less than 3 Years b) 3 to 5 Years

c) 5 to 7 Years d) 7 to 10 Years
e) More than 10 Years

7) How do you came to know about Safe Express Pvt Limited?

a) Newspapers b) Television
c) Friends & Relatives d) Others

8) Which of the following services offered by the Safe Express are availed by you at present?

a) Express b) Warehousing c) 3 PL
d) Draft on Delivery (D0D) e) Check on Delivery
 68

9) If express, which one of following services you are availing?

a) Surface b) Air

10) Is the way of goods handled by Safe Express Pvt Limited

trustworthy?

a) Yes b) No

11) If No, what are the reasons?

a) Transit damages b) Method of packing

c) Accidents d) Others if any

12. Is the warehouse facility provided by Safe Express Pvt Limited

trustworthy?

a) Yes b) No

13) If No, what are the reasons?

a) Lack of space b) Security

c) Damages d) Marking problem

14) Please rate the services offered by Safe Express Pvt Limited?

Services Excellent Good Fair Poor Very Poor

offered by the
Safe Express
1)Client handling

2) Risk Coverage

3)Employee
Efficiency
4)Online Track
Information

15) Is the Third-Party Logistics services provided by the Safe Express Pvt Limited trust
worthy?

a) Yes b) No
 69

16) If no, what are the reasons?

a) Delay in delivery b) Delivery status updates

c) Frequent Inventory Damages & Shrinkage d) just in time requirements

17) Please mention the level of satisfaction regarding the following services provided by the Safe
express Pvt Limited :

(VMS - Very much satisfied, S Satisfied, N- Neutral, DS- Dissatisfied, HDS Highly
Dissatisfied)

VMS S N DS HDS

1.Representative ability to
help you resolve your
issue/need

2. Responsiveness to
telephone calls & emails

4. Handling & packing

5. Clearance Department

6.Security system

7. Transit Days

8. Shipment Delivery at
your doorstep

18) Do you also make use of logistics services of any other company at present?

a) Yes b) No

19) If yes, will you switch 100% to Safe Express Pvt Limited in future?

a) Yes b) No
 70

20) If no, Do you have any idea of switching over to any other Logistics Services
Company?

a) Yes b) No

21 ) Please rate your level of agreement with the following statements (10-1 scale with 10
being completely agree, 5 being neutral, and 1 being completely disagree):

1 2 3 4a 5
(Strongl (Disagree) (Neutral) Agree (Strongly
y agree)
Disagree
I believe Company Safe
Express deserves my loyalty
Over the years, my loyalty to
towards Safe Express has
become better
Safe Express Company values
people and relationships ahead
of short-term goals

22) Do you recommend the Safe Express Pvt Limited to others?

a) Yes b) No

23) Rate the overall services provided by the Safe Express Pvt Limited?

a) Very much Satisfied b) Satisfied c) Neutral

d) Dissatisfied e) Very much Dissatisfied.

BIBLIOGRAPHY
 71

Book Reference:
Logistical Management Tata McGraw 2000 Edition. Written by
Donald. Bowersox, and David. Closs.
The Management of Business Logistics 7th Edition: Written by
Edward J. Bardi, C.John Langley, and John Joseph Coyle
Kothari C.R. Research Methodology New Age International
Publishers
Kotter Philip Marketing Management Prentice Hall Of India
Private Ltd

Websites:
i) www.safexpress.co.in
ii) www.safexpresspackers.com
iii) http://www.indexuae.com/Top/Business_and_Economy/Services/L
ogistics
iv) http://www.lintasfreight.com/
v) www.yahooanswers.com