Sasa Final Paper GGG

ST.
MARY’S UNIVERSITY
FACULTY OF BUSINESS
DEPARTMENT OF MARKETING MANAGEMENT
AN ASSESMENT OF LOGISTICS CUSTOMER SERVICE IN THE CASE

OF
REPI SOAP AND DETERGENT FACTORY
BY
SARON DEREJE
JUNE2023
ADDIS ABABA, ETHIOPIA
AN ASSESMENT OF LOGISTICS CUSTOMER SERVICE IN THE CASE OF
A SENIOR ESSAY SUBMITTED TO THE DEPARTMENTOFMARKETING

MANAGEMENT
BUSINESS FACULTY
ST.MARY’S UNIVERSITY COLLEGE
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

DEGREE OF BACHELOR OF ARTS IN MARKETING
MANAGEMENT
BY
SARON DEREJE
ADVISOR: TIGIST MEKONNEN
JUNE 2023
ADDIS ABABA, ETHIOPIA
ii
ST. MARY’S UNIVERSITY
AN ASSESMENT OF LOGISTICS CUSTOMER SERVICE IN THE CASE
OF
BY
SARON DEREJE
FACULITY OF BUSINESS
DEPARTEMENT OF MARKETING MNAGEMENT
APPROVED BY COMMITTEE OF EXAMINERS
________________________ _________________
Department Head Signature
________________________ ___________________
Advisor Signature
________________________ ____________________
Internal Examiner Signature
________________________ _____________________
External Examiner Signature
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DECLARATION
I, SARON DEREJE, assert that this study entitled “An Assessment of Logistics Customer
Service In The Case of Repi Soap and Detergent Factory” is my own original work that has not
been presented for Undergraduate study in any other University and that all sources of materials
used for the study have been duly acknowledged.
Name of Advisee___________________________________
Date_______________________
Sig_________________________________
Approval
This is to approve that student, Saron Dereje, has completed writing Undergraduate study
entitled “An Assessment of Logistics Customer Service In The Case of Repi Soap and Detergent
Factory” with my advice and follow up. I also approve that her work is appropriate enough to be
submitted as a partial fulfillment of the requirements for the Degree of Bachelor of Arts in
Marketing Management offered by the University.
Name of Advisor__________________________
Date______________________________
Sig__________________________
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ACKNOWLEDGEMENT
I would like to express my deepest gratitude to my advisor TIGIST MEKONNEN for her
invaluable guidance patience and support in preparing the paper. My special thanks go to
MR.ABU for his invaluable assistance and guidance during the process. My great thanks and
special gratitude is also addressed to all employees and customers who participated in the study.
Without their kind cooperation, this paper would not have been complete and became a reality.
Last but not least, my indebted gratitude expressed to all of my families for their encouragement
in completing this paper, especially my mom and my sister, TSEHAY EMISSA and
YORDANOS DEREJE.
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Table of Contents
DECLARATION.............................................................................................................................................iv
ACKNOWLEDGEMENT..................................................................................................................................v
LIST OF TABLES..........................................................................................................................................viii
LIST OF FIGURES..........................................................................................................................................ix
LIST OF ABBREVIATIONS..............................................................................................................................x
CHAPTER 1...................................................................................................................................................1
INTRODUCTION...........................................................................................................................................1
1.1 Background of the Study..............................................................................................................1
1.2 Statement of the Problem.................................................................................................................3
1.3. Basic Research Questions.................................................................................................................4
1.4. Objectives of the Study.....................................................................................................................4
1.4.1. General Objective......................................................................................................................4
1.4.2. Specific Objectives.....................................................................................................................4
1.5. Significance of the Study...................................................................................................................5
1.6. Delimitation of the study..................................................................................................................5
1.7. Research Design Methodology.........................................................................................................5
1.7.1. Research Design.........................................................................................................................5
1.7.2. Population and Sampling...........................................................................................................6
1.8. Types of Data....................................................................................................................................6
1.8.1. Method of Data Collection.........................................................................................................7
1.8.2. Method of Data Analysis............................................................................................................7
1.9. Organization of the Study.................................................................................................................7
CHAPTER 2...................................................................................................................................................8
REVIEW OF RELATED LITERATURE...............................................................................................................8
2.1 Conceptual Framework......................................................................................................................8
2.1.1 Overview of Logistics..................................................................................................................8
2.2. Customer Expectations and Impacting Factors...............................................................................11
2.2.1 Customer Satisfaction and Impacting Factors...........................................................................12
2.3. Importance of Logistic Customer Service........................................................................................13
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2.3.1. Service Effects on Sales............................................................................................................14
2.3.2. Service Effects on Customer Retention....................................................................................15
2.3.3. Sales-Service Relationship.......................................................................................................15
2.3.4. Sales-Service Relationship Model............................................................................................16
CHAPTER THREE........................................................................................................................................18
3. RESEARCH METHODOLOGY...................................................................................................................18
3.1. Introduction....................................................................................................................................18
3.2. Characteristics of Study Population................................................................................................18
3.3. Analysis of Findings.........................................................................................................................20
3.3.1. Effectiveness of Order Processing............................................................................................20
3.3.2. Effectiveness of Warehousing..................................................................................................22
3.3.3. Results of Customer Perception...............................................................................................24
3.3.4. Interview Results.....................................................................................................................27
3.3.5. Analysis of data gathered through an Interview......................................................................28
3.3.6. Challenges faced by the logistics department.........................................................................31
CHAPTER FOUR..........................................................................................................................................31
4. SUMMARY, CONCLUSION AND RECOMMENDTION...............................................................................31
4.1. Introduction...............................................................................................................................32
4.2. Conclusion......................................................................................................................................32
4.3. Recommendation......................................................................................................................32
REFERENCES..............................................................................................................................................33
APPENDIX..................................................................................................................................................36
APPENDIX A: Questionnaire...................................................................................................................36
APPENDIX B: INTERVIEW.......................................................................................................................40
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LIST OF ABBREVIATIONS
PLC: - Private Limited Company
PO: - Purchase Order
B2B:- Business to Business
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CHAPTER 1
1. INTRODUCTION
This chapter presents the background of the study, the company, statement of the problem that
necessitates this research question, significance of the study, limitation of the study, limitation of
the study finally a short introduction to the methodology used in later study
1.1 Background of the Study

Logistics customer service is a part of a firm’s overall customer service offering, customer
service elements that are specific to logistics operations including fulfillment, speed, quality, and
cost. The term fulfillment process has been described as the entire process of filling the
customer’s order. The process includes the receipt of the order, managing the payment, picking
and packing the goods, shipping the package, delivering the package, providing customer service
for the end-user, and handling the possible return of the goods.
The term customer service needs clear explanation in order to relate with logistics. For example,
manufacturers’ first concern always is with how efficiently the cargo reaches its destination
without any delay or any sort of complication. This is important because of the reputation of the
company, which solely depends on customer perception. Businesses flourish based on the
manufacturer’s capability of meeting these customer expectations. One approach to maintaining
good logistical support and cutting costs is to concentrate on communication solutions such as
tracking shipment, status update, and accommodating last minute change request. With the
advancement of technology, many services are available to the customer by limiting confusion,
ambiguity, and inefficiency. As a result, these services such as shipment tracking helps not only
pushes away unnecessary expenses out of the manufacturer’s existing operational exercises, but
also increase the overall customer experience and helps improve financial aspects.
Logistics has developed to become more and more directed towards customer service issues.
Previously logistics was defined as a function for minimizing total logistics costs or for
maximizing profits, while achieving desired levels of service performance. Nowadays logistics is
rather defined as maximizing internal and external flexibility aiming at, for instance,
customization. This implies that logistics has become focused on meeting customers’ service
requirements and is considered as a key source to company’s competitive advantage.
Successful logistics organizations understand their customers’ needs and expectations and are
able to provide them with the products and logistics services for which they ask. Furthermore,
suppliers need to focus on the service aspect of their product-service mix, as the service
component, if not up to an acceptable standard, represents the highest risk for losing customers
Grönroos (2000). Being able to provide customers with the logistics services they ask for has
implications on the suppliers’ organization. Stank et al. (1998) suggest that companies which
recognize logistics services as a significant element in the buying process, often respond to the
requirements by developing effectiveness in their basic operational capabilities. If the customers’
requirements differ, it should be possible for suppliers to customize their services to the different
sets of requirements. On the other hand, if different customers view logistics services similarly,
suppliers should strive towards creating logistics services that are identical to these in order to
gain economies of scale. Mentzer et al. (2001) It is important to be aware of customer logistics
service requirements, in order to avoid underestimating or overestimating the value expectations
of the customer.
Repi Soap & Detergent PLC formerly known as REPI Soap factory was established 1974 by the
name Bianil Ethiopia Share Company by foreign investors of Swiss & Greek origin aiming to
produce and distributed powdered detergent to East Africa market which was dominantly by
Unilever brand OMO. Less than a year after its formation, it was owned by the Ethiopian
government & was managed under the direct supervision of the National Chemical Corporation
and was re-established as a public enterprise in 1992 by the council of Ministers and was
recapitalized by Birr 1,525,000.00.
At that time, the company main vision was to compete against local & imported powder
detergent through its famous brand “ROL” , due to the machinery age and technological issues
there was an issue of wastage which nearly bankrupted the company but thanks to a
pioneering idea of creating detergent bar (cake) in 1979, Repi gave birth to a new line of
product and a new brand “Ajax”. Again in 1994 production of a liquid detergent was introduced
under the brand name ‘LARGO”
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This research looks to review and examine REPI Soap factory current Logistics customer
service.
1.2 Statement of the Problem

Currently, Changes are taking place in the market of Ethiopia so it is necessary to take a different
look at the customer service process, which is still not being given adequate attention in
economic entities. In addition, service is too often confused with servility, believing that serving
someone is beneath dignity. “Good quality service cannot be seen as a program that comes and
goes (...) but as an integral part of everyday business life. It is also worth noting that the level of
customer satisfaction is influenced by many factors ranging from price, products quality, and
ending with the level of service. What speaks for recognition of customer service as a feature of
the market is the fact that on a growing number of markets we are observing the fall of the magic
of brands and a growing trend to purchase the un-branded products, whilst the technological
differences between the products have been greatly reversed, making it increasingly difficult to
maintain a competitive advantage through a product as such (Christopher 1998, p. 41).
The Repi Soap and Detergent Factory are facing several problems that are hindering its growth
and profitability. These problems include the high cost of raw materials, lack of access to
finance, lack of skilled labor, low production capacity, and intense competition in the market.
Additionally, the factory is facing challenges with regards to its marketing and distribution
strategies, which have led to low brand recognition and limited market share. As a result, the
factory is struggling to meet the growing demand for its products and is at risk of losing its
market position to competitors. The main problem statement for Repi Soap and Detergent
Factory is how to overcome these challenges and improve its operations to increase profitability
and market share.
The problem in logistics customer service in the case of Repi Soap and Detergent Factory is the
lack of efficient and timely delivery of products to customers. The company is facing challenges
in managing its supply chain and ensuring that products are delivered to customers on time. This
is leading to customer dissatisfaction and loss of sales, which is affecting the overall profitability
of the company. Additionally, there are issues with the accuracy of orders and the
communication between the company and its customers, which further adds to the logistics
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customer service problem. The company needs to address these issues to improve its logistics
customer service and maintain customer loyalty
1.3. Basic Research Questions

From the above research problems, the research questions are drawn for assessment:
1. What is the logistics customer service practice in Repi soap and detergent factory?
2. What are the major factors that influence logistics customer service of Repi soap and
detergent factory?
3. What is the company doing to facilitate the logistics customer service practice?
4. What is the logistics customer service strategies used by Repi soap and detergent factory?
1.4. Objectives of the Study

1.4.1. General Objective
The main objective of this study is to assess logistics customer service in the case of Repi soap
and detergent factory.
1.4.2. Specific Objectives

The Specific objective was:
 To assess the current logistics customer service practices in Repi soap and detergent
factory and its effectiveness,
 To examine the effect of logistics customer service on customer satisfaction
 To identify the major challenges that Repi soap and detergent factory is facing in
implementing effective logistics customer service.
 To recommend the best approach in applying effective logistics customer service.
1.5. Significance of the Study

The significance of the study can be seen from different perspectives. The first benefit of this
study is to improve Repi soap and detergent factory productivity and to earn desirable profit and
to get competitive advantage.
The second purpose of this study is achievement of academically purpose as research guideline.
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Third as I am a beginner in conducting research it gives me opportunity to practice and
implement those lessons on research that I am learning in theory.
1.6. Delimitation of the study

Geographical boundaries: The customer service logistics of Repi Soap and Detergent Factory is
limited to the geographical boundaries of the areas where their products are distributed.
Service offerings: The logistics customer service provided by Repi Soap and Detergent Factory
is restricted to the delivery of their products to their customers and managing their inventory
levels.
Customer base: The logistics customer service provided by Repi Soap and Detergent Factory is
focused on their B2B customers, which include wholesalers, retailers, and distributors.
Timeframe: The logistics customer service provided by Repi Soap and Detergent Factory is
limited to the timeframe of their business operations, which typically runs from Monday to
Friday and during business hours.
Communication channels: The logistics customer service provided by Repi Soap and Detergent
Factory is restricted to the communication channels
1.7. Research Design Methodology

It includes research design, population & sampling, type of data, method of data collection and
data analysis.
1.7.1. Research Design

The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data.
Descriptive research aims to systematically describe the situation or phenomenon. It can answer
what, where, when and how questions, but not why questions. Hence, based on the objective of
the study, the research design this study used is a descriptive research design.
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Descriptive research: is used for the development of database for any science. It used when the
characteristics of population are either unknown or partially known. It is a theory-based design
method which is created by gathering, analyzing and presenting collected data.
1.7.2. Population and Sampling

Population is an aggregate or totality of all the objects, subjects or members that conform to a set
of specifications. The target populations of the study are Repi soap and detergent customers. To
quantify the impact of the independent variables on the dependent variable in Repi soap and
detergent, an appropriate population should be determined. Accordingly, the researcher has
identified that the total population size of the research is the number of customers of the
Company. The overall number of customers of the Company is around 9000. But since studying
the total population size of customers of the Company is not manageable, it is necessary first to
deduce the number of the target population.
Sampling
A sampleis a group of people, objects, or items that are taken from a larger population for
measurement. The sample should be representative of the population to ensure that we can
generalize the findings from the research sample to the population as a whole.
Based on the recommendation given by Malhotra (2007) and a total number of 200 respondents
is taken as reliable sample size.
1.8. Types of Data

Primary data: Primary data is the kind of data that is collected directly from the data source
without going through any existing sources. Primary data sources include; Surveys, observations,
questionnaires and interviews
The student researcher has collected primary data from questionnaires and interviews.
Secondary data: Secondary data refers to data that is collected by someone other than the
primary user. The student researcher has collected primary data from websites and journals.
And from theses mixes of sources the types of data that was used are as follows;
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 Qualitative data: can be observed and recorded. This data type is non-numerical in
nature. Especially useful in situations when historical data is not available. It closely
associated with words, sounds, feelings, emotions, colors, and other elements that are
non-quantified.
 Quantitative data: are expressed with numerical figures. They are used when a
researcher is trying to quantify a problem, or address the "what" or "how many" aspects
of a research question. It is data that can either be counted or compared on a numeric
scale.
1.8.1. Method of Data Collection

The study used both questionnaire and interview to collect the required data.
1.8.2. Method of Data Analysis

The study employed both qualitative and quantitative data analysis methods. The
quantitative analysis of the study employed descriptive analysis. The descriptive analysis
employed percentages, and frequency counts using tally marks. As data obtained from
interview are expected to be qualitative in nature; the analysis is done by identifying
categories of the core issues from the data that relate the study objectives.
1.9. Organization of the Study

This study is consisted of four parts, which include the following: the first part deals with
background of the study, statement of the problem, research questions, and objective of the
study, significance of the study and scope of the study. In the second chapter literature review on
the topic which includes different perspective of different authors and various theoretical
concepts that are related with logistic information flow. The third chapter discussed the analysis
and presentation part of the research. Finally, the fourth chapter covered the summary,
conclusion and recommendation of the research.
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CHAPTER 2
REVIEW OF RELATED LITERATURE

2.1 Theoretical review
2.1.1 Overview of Logistics
Council of Logistics management CSCMP,( 2018) defined that logistics is part of the supply
chain process that plans, implements and controls the flow and storage of goods, services and
related information between the point of origin and the point of consumption in order to meet
customers’ requirements. Mangan, (2008), states Logistics as service in the right place, at the
right cost, at the right quality. Also Lowe, (2002) defines logistics as: Total concept covering the
planning and organizing of the supply and movement of materials/goods, from original source
through stages of production, assembly, packing, storage, handling and distribution to final
consumer. Distribution is but one element of whole logistics concept and transport a single
element only of physical distribution. Logistics was initially a military activity concerned with
getting soldiers and arms to the battle front in time for fight, but it is seen as an integral part of
the modern production process. The term, logistics, was initially developed in the context of
military activities in the late 18th and early 19th Before the 1950s, logistics was under the
dormant condition. Production was the main part of the managers concerned and industry
logistics was once regarded as „necessary evil‟ in this period. From the 1970s ahead, more and
more applications and researches of logistics appeared. Due to the petroleum price rise in 1973,
the effects of logistics activities on enterprises grew Santosh and Shirisha, (2014). Centuries and
it launched from the military logistics of World War II. And now, a number of researches were
taken and made logistics applications from military activities 8 to business activities. The further
tendency of logistics on the early 21st century is logistics alliance. Logistics becomes more
important and complex today it is because of new requirements of the service-oriented economy,
disparate business functions, and the impact of various contemporary IT. Best logistics practices
can come through integration of those logistics activities in the firms and create interaction
within the organization and can avoid setting up conflicting goals between departments Rui
Mansidão and Coelho, (2014).
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2.1.2. Overview of Customer Service
It is estimated that it costs five to ten times as much to gain a new customer as it does to keep a
current customer. Every business must remember each and every customer is an asset and it
takes effort to ensure quality in customer service. One of the main objectives of a customer
service function is to provide and maintain customer satisfaction.
Developing a reputation of excellent customer service requires a commitment to service

throughout the organization that is consistent over time. Satisfied customers may not remain
satisfied forever. Employees can provide the fresh perspective and creativity they gain from
interacting with customers every day. They see – and can pass on – ways to accomplish tasks
better, faster, cheaper, and easier because they are so closely involved in the daily process of
delighting customers. (Cook, 2002)
In simple terms, customer service means figuring out what each customer needs then keeping
your customer happy. It is not enough to simply expect because they buy your product they are
loyal or satisfied. Customer service can be as simple as answering questions and providing
information. It can be as complex as tracking customer habits and anticipating needs. (Zeithaml,
Parasaraman& Berry, 1990)
Customer service (also known as Client Service) is the provision of service to customers before,
during, and after a purchase. According to Wikipedia (2007), “Customer service is a series of
activities designed to enhance the level of customer satisfaction – that is, the feeling a product or
service has met the customer expectation.” Its importance varies by product, industry, and
customer. As an example, an expert customer might require less pre-purchase service (i.e.,
advice) than a novice. In many cases, customer service is more important if the purchase relates
to a “service” as opposed to a “product". Customer service may be provided by a person (e.g.,
sales and service representative), or by automated means called self-service. Examples of self-
service are Internet sites. Customer service is normally an integral part of a company’s customer
value proposition. The quality and level of customer service has decreased in recent years. This
can be attributed to a lack of support or understanding at the executive and middle management
levels of a corporation. (Wikipedia, 2007)
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Customer service has strategic importance (Dean&Terziovski, 2000) and requires companies to
continually enhance customer experience and satisfaction, to deliver quality in a competitive
marketplace (Schneider & Bowen, 1999). Customer service refers to the processes and actions
making it easier for customers to do business with a company (Kotler, 2000).
Some authors view customer service as all activities which bind a corporation and its customers
together to further a sales relationship. Other authors view customer service as a package of
measurable activities which provide utility to customers or 8 optimum levels of service. (Disend,
1991) According to Dr. Leonard Berry (1999) of Texas A & M University, customers evaluate
service based on five factors:
• Reliability - The ability to provide what was promised dependably and accurately.
• Assurance - The knowledge and courtesy you show to customers and your ability to convey
trust, competence, and confidence.
• Tangibles - The physical facilities, equipment, and your appearance.
• Empathy - The degree of caring and individual attention you show customers.
• Responsiveness - The willingness to help customers promptly. (Zeithaml, Parasaraman& Berry,

1990, p. 15)
2.1.3. Overview of Logistic Customer Service

The availability of information due to the technological evolution intervened also on the area of
Logistics. While it led to a highly competitive environment, where product average life cycles
shortened, this however also translates to higher and more accurate information on inventory and
demand (Patterson, Grimm, & Corsi, 2003). This acquires more relevance when it is observed
that as well as having a role in Customer Service, Logistics also participate in customer
satisfaction. Indeed, the availability of an item and its delivery fully relies on its management
(Mentzer, Flint, & Kent, 1999). If customer service quality is measured on the difference
between the final subjective quality perception and the original expectations, Logistics should be
measured based on similar principles. Indeed, when logistics are simply seen from a Supply
Chain or inventory perspective, the pure achievement of one specific standard or goal can lead to
Customer dissatisfaction (MeidutėKavaliauskienė et al., 2014; Heskett, 1971). A 1998 study
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identified that when logistics processes are applied with the purpose of customer satisfaction,
they can influence positively a firm’s performance. This depends on the ability to respect
Customer Service’s attributes (Tracey, 1998). A lot of logistics elements can contribute to the
perceived customer service level of a customer. As seen, logistics policies and customer service,
tightly connected between each other, acquire a dynamic and essential role, which shows the
need of a deeper understanding of the impact that logistics services have on the overall
satisfaction in an online context and, more indirectly, of the importance of logistics on customer
retention.
2.2. Customer Expectations and Impacting Factors

Customer Expectations influences Customer Satisfaction and retention, as the confirmation of
the original expectations has been identified as the most influential factor of satisfaction (Y. Y.
Chen, Huang, Hsu, Tseng, & Lee, 2010).
In the past, expectations were viewed by consumer satisfaction literature as a form of customer
prediction over the purchase experience, while service quality literature tended to see them as
desires or wishes of customers towards a future transaction (B. R. Lewis & Mitchell, 1990).
Based on a 1991 study, a key driver of customer expectations was the price (for a higher price
paid, a better service was expected). The research indicated that firms’ customer satisfaction
could be achieved by just delivering the basics. However, there was already the perception that
companies could surprise customers by providing a higher service (Parasuraman, Berry, &
Zeithaml, 1991). A research in 1994 observed that the increase in the capability of the inventory
management and efficiency may have had an impact in the customers’ expectations (La Londe&
Masters, 1994). Some studies analyzed the impact of age over Customer Expectations. Before
the wave of technological innovations, it was observed that older customers had a higher
perception of courtesy, security and understanding the customers (Webster, 1989). The spread of
new technologies and the new concepts of Customer Delight and Customer Advocacy may lead
to believe that younger people may have higher expectations compared to older generations.
Newer generations would be indeed more exposed to the possibility of ordering everything
online, conveniently, and potentially return it. Indeed, it has been observed in a 2016 research
that the probability of purchasing online decreases with age for Generation X. For Generation Y
this tendency is opposite, with an increase of online shopping with an increase of the age,
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probably due to the fact that younger members of generation Y are still unable to spend a
significant amount of money online, while older members of Generation X would be more
traditional.
2.2.1Customer Satisfaction and Impacting Factors

Customer Satisfaction is an essential concept in Customer Service. It was defined as “a
customer’s overall evaluation of the performance of an offering to date” and it may be affected
by situational and reaction triggers (Gustafsson, Johnson, &Roos, 2005). Satisfaction is not
necessarily the opposite of dissatisfaction, as the fulfillment of a basic expectation does not
necessarily result in satisfaction (Berman, 2005). A customer-oriented culture and partnership
with customers and suppliers is essential to achieve customer satisfaction, as well as high level of
employee satisfaction (Feciková, 2004). A research published in 2000 suggested that there is no
direct impact of Customer Satisfaction on the company profit, however, it has been recognized
by several other studies that the satisfaction has an impact through its outcomes: reduction of
complaints and increase of the retention. Furthermore, Customer Satisfaction affects customer
spending (Bernhardt, Donthu, & Kennett, 2000; Fornell, 1992; Mithas, Krishnan, & Fornell,
2005; Mittal & Kamakura, 2001; Urban, 2004; Fornell, Rust, &Dekimpe, 2010). The behavioral
outcomes of a high customer satisfaction are particularly represented by the loyalty and by the
protection of the customer base from the effort of the competitors. This brings to a lower price of
customer acquisition and an increase of the firm’s reputation (Anderson, Fornell, & Lehmann,
1994; Oliver et al., 1997). Therefore, customer satisfaction is protective and defensive and it
leads less customers to search for alternatives (S. C. Chen, 2012; Kim & Ko, 2012). A 2016
research indicates that customers generally expect online service to have a high standard,
wherever they are located and whichever medium they are using (Bilgihan et al, 2016). This may
be also due to the fact that, thanks to the internet, communication, products and services can be
tailored to the customer. This may have on its own raised the bar on customer expectations (Rust
et al., 2000; Hogan, Lemon, &Rust., 2002). To reach a higher loyalty, several firms started to
invest in the concept of Customer Delight, by raising the bar on the quality of the services given
and providing a memorable experience (S. C. Chen, 2012; Mittal & Kamakura, 2001; Oliver et
al., 1997). By providing a surprising service, delight can provide a much higher customer
retention rate compared to a high satisfaction level. Berman,(2005). Customer delight is based on
the fact that satisfaction level may have an emotional foundation (Oliver et al., 1997). Delight
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experiences can lead to “memories” of the experience itself and therefore raise the customer
expectations. Customers would then attempt to repeat the experience or feel that this experience
was unique and can’t be repeated (Rust & Oliver, 2000). However, if a firm constantly attempts
to delight its customers, they already have the expectation to be delighted in their experience.
The companies need therefore to live up to this expectation to avoid disappointing the customers
and affecting the overall satisfaction (McQuitty, Finn, & Wiley, 2000). The wide – and growing
– amount of available information empowers customers by allowing them to search, select and
purchase the items they are looking for (Constantinides, 2008; Lissitsa& Kol, 2016; Urban,
2005). Already in 2006, it was observed that the amount of information has reached such a
spread that it may even lead to an overload and to the confusion of customers (Lawer & Knox,
2006). To reduce this risk as well as the confusion and supporting customer’s decisions, some
firms moved towards the concept of Customer Advocacy. This is a further step forward in
providing a higher customer service level. Companies started to provide complete and unbiased
information to customers, providing advice on what product would suit their needs best, even if
the best solution may come from a competitor. The purpose is to reach a long term loyalty
(Constantinides, 2008; Lawer & Knox, 2006; Urban, 2005). However, a study observed that it is
the reduction of customer’s efforts, rather than the delight, to produce loyalty (Dixon, Freeman,
& Toman, 2010). Understanding what areas are the most important to customers, specifically the
most influential factors when purchasing from their preferred retailers, could support a tailored
focus of firms. This may help increasing the efficacy of the efforts towards customer satisfaction.
The response time also plays a significant role in Customer Satisfaction. A fast response
increases the customer’s evaluation of the service (Smith, Bolton, & Wagner, 1999). More
technologically savvy customers are less tolerant to delays in customer service e-mail responses,
compared to those who are less technologically educated. They are also more likely to share their
bad experiences on internet platforms. The delay in the online response can lead to anger and
frustration and, consequently, to a lower customer satisfaction (Mattila, Hanks, Andreau, & Kim,
2013; Mattila & Mount, 2003).
2.3. Importance of Logistic Customer Service

Customer service is extremely important in the logistics world because of the highly
synchronized and detailed planning and execution that is required when operating on a global
scale. Multiple factors are critical in delivering high levels of customer service and they include
13
high rates of order fulfillment, speed and frequency of delivery, inventory visibility, on-time
delivery, condition of product on delivery, and accurate documentation on PO’s and bill of
ladings. It is a multi-faceted concept of gaining and maintaining differentiation in the market-
place. The customer service must meet the needs of different customers. 'Perfect order' should
form the basis for measuring service performance and to develop new service standards.
Logistics management plays a vital role in enhancing the customer lifetime value by increasing
customer satisfaction and enhanced customer retention. In any business, especially in the
transportation business, good customer service is a top priority. This is because customer
satisfaction helps the business survive and grow simultaneously. In any sort of logistics
operation, providing good customer service for example, monitoring shipments periodically from
the warehouse until destination and notifying customers if their orders are facing delay for any
circumstances will elevate customer satisfaction. Monitoring deliveries at every point and
communicating with respective personnel in need and sending notifications to the customer to
brief them regarding the issue and arranging adjustments increases the customer’s loyalty and
thus sets the business in a unique position compared to other competitors in the market.
2.3.1. Service Effects on Sales

Poor customer service will drive customers away from the brand. Customers usually shares with
others regarding product quality. If the product is good and they are satisfied by the customer
care service, they recommend the brand to others but if they feel unsatisfied due to low quality or
poor service, they tend to alert others, which negatively affects the reputation of the company or
brand. A negative reputation could be very hard to erase and tends to degrade the share value of
the company. The relationship between customer service and sales is symbiotic. After having a
positive experience with a business, most of the customers are actually willing to refer that
company to another person. A positive experience in customer service not only helps retain
customers, but also helps with the acquisition of new customers. Retained and loyal customers
can help increase incremental growth of a business. When comparing, retaining customers costs
4 to 10 times less than the cost of acquiring new customers.
It is obvious that low-quality customer service has tremendous side effects in any sort of
business. Additionally, a business could lose the loyalty of the valued customers and there are
risks of losing the best employees because whenever companies have a customer service
14
problem. The best employees are obliged to fill up the slack for other employees, so they search
for better opportunities for their talents. An industry survey revealed many penalties of bad
customer service and their significance on businesses. For instance, reduction of the business
volume contributed to almost one-third of the entire customer service related failures. Other
penalties include called in manager/salesman, cut-off of all purchases with suppliers, significant
number of items discontinued, deny of purchasing new items and refusal to invest in promotion.
So how can businesses go about fixing bad customer service experiences? It is very critical that
business identify the root causes of bad customer service and address them before it is too late.
Before doing anything, business need to be more informed about the situation and underlying
causes. They can connect with the employees and customers involved to identify the problems.
Once root causes are identified, business need to focus on addressing them applying various
methods including training employees, reviewing business practices and strategic partnership,
involving high level leadership, fixing the system, and compensating customer losses. In short,
there are several ways to fix a bad customer service situation but arguably the best way is to
prevent them from happening altogether. Make sure the businesses have the right customer
support infrastructure and consistently improve their customer experiences.
2.3.2. Service Effects on Customer Retention

To look at the importance of customer service is through the costs associated with customer
retention. Logistics customer service plays a critical role in maintaining customer patronage and
must be carefully set and consistently provided if customers are to remain loyal to their supplier.
On the average it is approximately six times more expensive to develop a new customer than it is
to keep a current customer. Thus, from a financial point of view, resources invested in customer
service activities provide a substantially higher return than resources invested in promotion and
other customer development activities.
2.3.3. Sales-Service Relationship

It is not always clear how important logistics customer service is until we understand how
logistics decision making would be enhanced if we knew more precisely how sales change with
changes in logistics customer service levels. Business sales are related to customer experience
and customer satisfaction. The exact relationship between sales and customer service varies by
industry and specific business. Generally, when customer service is poor, sales decline. As
15
services increase above the level offered by the competition, sales gain can be expected as
superior customer service increases the retention of existing customers and attract new
customers. When a firm’s customer service level reaches this threshold (level offered by the
competition), further service improvement relative to competition can show good sales
stimulation. It is possible that service improvements can be carried too far, resulting in no
substantial increase of sales.
Efficiency in customer service can result from the combined impact of improving the elements of
customer service, which has a quantitative effect on sales for a company. This is referred to as
the sales-service relationship. There are several theories that conclude that if price and quality
are equal a company must offer customer service to approximately the same degree as their
competitors in order to maintain competitive advantage in a given market. The service level
offering that is offered by the competition in a market is considered the threshold service level.
This threshold service level assumes that a company cannot sustain themselves in any market it
they do not offer a base level of customer service greater than or equal to their competitors. Once
a company has reached the threshold service level, any improvements above the threshold are
expected to stimulate sales. These sales can come from new and unexplored markets or
customers converted from other companies.
2.3.4. Sales-Service Relationship Model

This section discusses various models that formulate the theoretical relationship between
sales/revenues and services. Usually, better service generates more sales. In some cases, sales–
service relationship for a given product may deviate from the theoretical relationship. Following
methods for modeling the actual relationship could be used in those specific cases.
2.3.4.1. Two-Point Method

The two-point method involves establishing two points on the diminishing return portion of the
sales-service relationship through straight lines. The method is based on the notion that multiple
data points to accurately define the sales–service curve would be expensive or unrealistic to
obtain, and if data were available, it is not usually possible to describe the relationship with a
great deal of accuracy. First, set logistics customer service at a high level for a particular product
and observing the sales that can be achieved. Then the level is reduced to a low level and sales
are again noted. These limitations suggest that a careful selection of the situation to which it is to
16
be applied must be made if reasonable results are to be obtained. Fig.1.1 shows how the two-
point method is used to correlate sales-service relations by establishing two points and the area
covered based on the relationship of product sales and logistic customer service offered.
17
CHAPTER THREE
3. RESEARCH METHODOLOGY
3.1. Introduction
The main objective of the study is to assess the logistics customer service of repi soap and
detergent factory. There were 40 questionnaires distributed to purposely selected customers 38
questionnaires were returned which indicate the overall response rate of 95%.
3.2. Characteristics of Study Population

A characteristic of the respondents was based on gender, level of education, and length of time as
a customer of the company. The study requested respondents to indicate their gender and found
that majority of the respondent 63.6% were females; whereas 36.4% of the respondents were
males.
From the finding shown in table 3.1 36.8% of the respondents indicated their education level as
eight grade complete, whereas 21.1% of the respondents indicate their level of education as
completed 12th grade, 28.9% of the respondents indicate their education level as diploma while
the remaining 13.2% indicated their educational level as degree/above. This is an indication that
most of the respondents participated in this study were 8th grade complete.
The study requested respondents to indicate the length of time as a customer of the company.
From the findings, 26.3% of the respondents indicated that they have been using the company’s
product for a period less than six month period, while 31.6% of the respondent indicated that
they have been using the company’s product for a period of six months to one year. The highest
share of respondents 42.1% indicated that they have been using the company’s products for a
period of one to two years. Table 3.1 shows the characteristics of study participants.
18
Table 3.1: Characteristics of respondents
Characteristics Category Frequency Percentage
Females 20 63.6
Gender Males 18 36.4
Total 38 100
8th grade 8 21.1
12th grade 14 36.8
Education level Diploma 11 28.9
Degree and 5 13.2

above
Total 38 100
Less than 6 10 26.3

months
Level of time as a customer
6months up to 1 12 31.6
year
1-2 years 16 42.1
Total 38 100
Source: primary data(2023)
19
3.3. Analysis of Findings
3.3.1. Effectiveness of Order Processing
Effectiveness of order Frequency count(n=38) percentage
No. Processing agree disagree neutral agree disagree neutral
1. The factory has standard 5 33 _ 13.2 86.8 _

ordering procedure
Source: primary data (2023)
86.6% of the respondents disagree on the factory having standard ordering procedure while
13.2% of respondent have agreed. This suggests that a majority of the respondents (86.6%) do
not believe that the factory has a standard ordering procedure in place, while a small minority
(13.2%) believes that such a procedure exists. This could indicate a lack of clarity or consistency
in how orders are processed at the factory, which may in turn lead to inefficiencies or errors in
the production process. It may be worth investigating further to determine if this perception is
accurate and, if so, how it can be addressed to improve operations.
No. Effectiveness of order Agree Disagree Neutral Agree Disagree Neutral
Processing
2. The factory has good 31 7 --- 81.6 18.4 __

customer feedback
reception
81.6% of respondents agree that the factory has good customer feedback reception while 18.4%
of respondents didn’t agree. This information suggests that the factory is generally perceived
positively when it comes to its handling of customer feedback, although there is still a significant
minority who may be dissatisfied. Without additional context or information, it is difficult to
20
know what specific aspects of the factory's feedback reception are being evaluated or what
factors may be contributing to the differing perceptions of respondents.
No. Effectiveness of order Agree Disagre Neutral Agree Disagree Neutral

e
Processing
3. The factory always 34 4 _ 89.5 10.5 _

delivers the right product
we ordered
89% of respondents agree that the company always deliver the right product we ordered while
10.5% of respondents didn’t agree Based on the given data, it can be concluded that the majority
of the respondents, which is 89%, agree that the company always delivers the right product that
they ordered. This indicates that the company has a high level of accuracy and efficiency in
fulfilling customer orders. However, it is also worth noting that 10.5% of the respondents did not
agree, which means there is still room for improvement. The company should investigate the
reasons why some customers did not receive the correct product and take necessary measures to
address the issue. Overall, the company has a relatively good reputation in terms of delivering
the right products to customers.
Effectiveness of order Agree Disagre Neutral Agree Disagree Neutral

e
No. Processing
4. The factory addresses 19 19 _ 50 50 _

complaints without
delays
50% of the respondents have agreed that their complaints were addressed without delays and
50% of the respondents disagree that their complaints were addressed without delays. This result
suggests that there is a significant split in how respondents perceive the timeliness of their
21
complaint resolution. It is important to investigate further to understand why half of the
respondents feel that their complaints were not addressed in a timely manner and what steps can
be taken to improve the process. Additional data such as specific examples of complaints and
their resolution times may also provide insight into areas for improvement.
No. Effectiveness of order Agree Disagre Neutral Agree Disagree Neutral

e
Processing
5. The factory has order 11 27 _ 28.9 71.1 _

tracking mechanism
71.1% of the respondents disagree on the factory having order tracking mechanisms while 28.9
of respondents have agreed .This statement indicates that a majority of respondents, 71.1%, do
not believe that the factory has an order tracking mechanism in place. On the other hand, 28.9%
of respondents have indicated that they believe the factory does have an order tracking
mechanism.
3.3.2. Effectiveness of Warehousing
No Effectiveness of Frequency count(n=38) percentage

. warehousing
agree disagree neutral agree disagree neutral

deliver products in
the right quantity
89.5 % of respondents agree that the factory always deliver the right product in the right quantity
and 10.5% of respondents didn’t agree. The majority of respondents (89.5%) agreed that the
factory consistently delivers the correct product in the correct quantity. However, a small
minority (10%) did not agree, indicating that there may be some issues with product quality or
22
quantity control at the factory. It may be worth investigating the reasons for this dissatisfaction
and taking corrective action to improve the factory's performance.
Effectiveness of agree disagree neutral agree disagree neutral

warehousing
No.

deliver products in
the proper packaging
65.7% of respondents agree that the factory always deliver products in proper packaging and
34.3% of respondents didn’t agree. This statement suggests that the majority of respondents,
65.7%, believe that the factory consistently delivers products in appropriate packaging. On the
other hand, 34.3% of respondents did not agree with this statement, indicating that they may
have experienced issues with the packaging of products from the factory. Overall, this
information provides insight into how customers perceive the quality of the factory's packaging
and highlights.
Effectiveness of agree disagree neutral agree disagree Neutral

warehousing
No.
3. The factory always 38 _ _ 100 _ _

deliver products to
the right place
100% of respondents agree that the factory always deliver products to the right place. It indicates
that the factory has a high level of accuracy in delivering products to their intended destination.
This could be an indication of efficient logistics and quality control processes, which can result
in higher customer satisfaction and repeat business.
23
3.3.3. Results of Customer Perception
No. Customer perceptions Frequency count(n=38) Percentage
agree disagree neutral agree disagree Neutral
1. The responsiveness of Repi 18 20 _ 47.4 52.6 _

soap and detergent
factory’s customer service
team is satisfactory
52.6% of respondents disagree on the responsiveness of the factory’s customer service team is
satisfactory and 47.4% of the respondents agreed. Based on the given data, it can be concluded
that there is a disagreement among the respondents regarding the responsiveness of the factory's
customer service team. More than half (52.6%) of the respondents do not think that the customer
service team is satisfactory in terms of responsiveness. On the other hand, 47.4% of the
respondents agree that the customer service team is responsive. This indicates that there might be
some issues with the responsiveness of the customer service team that need to be addressed. The
factory management should take steps to improve the responsiveness of the customer service
team to meet the expectations of the majority of the respondents.
agree disagree neutral agre disagree Neutral

e
No. Customer perceptions
2. Repi soap and detergent 19 19 _ 50 50 _

factory provides accurate
and timely information
regarding order status and
delivery
24
50% of respondents agree on the factory provides accurate and timely information regarding
order status and delivery while 50% of respondents didn’t agree. The data suggests that there is a
split opinion among the respondents regarding the accuracy and timeliness of information
provided by the factory regarding order status and delivery. Half of the respondents agree that
the factory provides accurate and timely information, while the other half does not agree.
No. Customer perceptions agree disagree neutral agre disagree Neutral

e
3. The staff at Repi soap and 25 13 _ 65.7 34.3 _

detergent factory are
knowledgeable about their
products and services
65% of respondents agree that the staffs are knowledgeable about their products and services
while 34.3% of respondents didn’t agree. The statement suggests that a majority of the
respondents (65%) believe that the staffs of the company in question are knowledgeable about
their products and services. However, a significant minority (34.3%) did not agree with this
statement. This result could reflect positively or negatively on the company, depending on how it
is interpreted. On the one hand, 65% agreement suggests that the majority of customers have a
positive impression of the company's staff and their expertise. This could be seen as a sign of a
well-trained and knowledgeable team, which could engender trust and confidence in the
company's products and services.
On the other hand, the fact that 34.3% of respondents did not agree with the statement could
indicate that there are gaps in the company's staff training or communication that need to be
addressed. This could be a cause for concern, as it suggests that a significant minority of
customers may not be fully satisfied with the service they are receiving.
No. Customer perceptions agree disagree neutral agree disagree Neutral
25
4. The delivery personnel of 20 18 _ 52.6 47.4 _
Repi and detergent factory
are punctual and
professional
52.6% of respondents agree that the delivery personnel of the factory are punctual while
professional and 47.4% of respondents didn’t agree. This statement suggests that the majority of
respondents (52.6%) have a positive perception of the delivery personnel of the factory,
specifically regarding their punctuality and professionalism. However, almost half of the
respondents (47.4%) did not agree with this statement, indicating that there may be room for
improvement in the delivery personnel's performance according to some customers. It is
important for the factory to take these responses into consideration and potentially make changes
to improve the delivery experience for all customers.
agree disagree neutral agree disagree Neutral
No. Customer perceptions
5. The packaging and 22 16 _ 57.9 42.1 _

handling of products by
Repi soap and detergent
factory meet your
expectations
57.9% of respondents agree on the packaging and handling of products by the factory meet their
expectation while 42.1% of respondents didn’t agree. The data suggests that slightly more than
half of the respondents are satisfied with the packaging and handling of products by the factory,
while the remaining respondents are not satisfied. This could indicate that there may be room for
improvement in the packaging and handling processes of the factory to meet the expectations of
26
all respondents. Further analysis could be conducted to identify specific areas of improvement
and gather more insights from the respondents who were not satisfied.
3.3.4. Interview Results

To include the related issues that could not be captured by the questionnaire, interview with the
department of logistics customer service of the factory. The interview results are summarized
below.
Distribution of the products uses the following channels:
Direct sales to retailers: Repi soap and detergent factory sell its products directly to retailers such
as supermarkets, department stores, minimarkets this allows to reach a wide range of its
customers.
Distributors ; the distributors are who buy the products in bulk and they sell them to retailers this
is the cost effective way to reach a wider market without having to invest in additional sales and
marketing resources.
3.3.5. Analysis of data gathered through an Interview

1. What are the current trends in logistics customer service practices?
 Repi soap and detergent factory taking a more proactive approach to customer service by
providing regular updates on shipment status and addressing potential issues before they
become
 Customers expect to be able to contact logistics companies through multiple channels,
including phone, email, chat, and social media
 Our factory is increasingly focusing on providing personalized customer service by
tailoring their services to the specific needs of our customers
2. What strategies do you use to improve customer satisfaction?
 Listen to customer feedback and act on it

 Provide excellent customer service
 Personalize the customer experience
 Offer incentives and loyalty programs
27
 Have a user-friendly website and mobile app
 Ensure product quality and availability
 Respond promptly to customer inquiries and complaints
 Train employees to be knowledgeable and empathetic
 Offer flexible payment and delivery options
 Continuously improve processes and products based on customer feedback
3. What are the challenges faced by your department in providing excellent customer
satisfaction?
 Maintaining product quality: our factory needs to ensure that our products are of
consistent quality any variation in quality can lead to dissatisfied customers.
 Meeting customer demands: Meeting the diverse and evolving needs of customers
can be challenging. Our factory needs to stay up-to-date with changing customer
preferences and provide products that meet those needs.
 Competition: The soap and detergent industry is highly competitive. Our factory
needs to maintain a competitive edge by providing better products and services
compared to our competitors.
 Supply chain management: our factory needs to ensure the timely delivery of
products to customers. Any delay in delivery can lead to dissatisfaction among
customers.
 Customer complaints management: our factory needs to have a robust system in
place to address customer complaints and feedback. We need to ensure that all
complaints are resolved satisfactorily and in a timely
4. How you ensure transparency and communication with customer throughout the delivery
process?
 Send regular updates: Keep customers informed about the progress of their delivery by
sending regular updates via email or text message.
 Be responsive to inquiries: Make sure to respond promptly to any inquiries or concerns
customers may have about their delivery.
28
 Provide clear delivery estimates: Give customers a clear estimate of when they can
expect their delivery. If there are any delays, let them know as soon as possible.
 Offer multiple communication channels: Provide customers with multiple ways to get in
touch, such as email, phone, or live chat. This will make it easier for them to
communicate with you if they have any questions or concerns
5. How do you train your customer service representatives to handle customer inquiries?
 Teach them how to actively listen to customers and understand their needs.
 Train them on the company's products and services so that they can provide
accurate information to customers.
 Teach them how to communicate clearly and effectively, both verbally and in
writing.
 Provide them with scripts and templates for common inquiries and complaints,
but also encourage them to personalize their responses.
 Train them on how to handle difficult or angry customers with empathy and
patience.
 Provide ongoing training and support to help them stay up-to-date on company
policies and procedures, as well as industry trends and best practices.
 Encourage them to seek feedback from customers and use it to improve their
performance
6. What role does technology plays in improving logistics customer service?
 Real-time tracking and visibility: Technology can help track shipments and provide
real-time visibility to customers, which can help them plan their operations and
reduce the risk of delays or missed deliveries.
 Automated order processing: Technology can automate order processing, reducing
the chances of errors and enabling faster processing times.
 Improved communication: Technology can facilitate communication between the
company and customers, enabling quick and accurate responses to inquiries,
complaints, and other customer issues.
 Efficient inventory management: Technology can help manage inventory levels,
reducing the risk of stock outs and improving delivery times.
29
 Data analytics: Technology can help companies collect and analyze data on customer
behavior, preferences
7. What are the future prospects for the logistics customer service and how can you prepare?
Repi Soap and Detergent Factory can invest in technology and automation to streamline our
logistics operations, improve efficiency and reduce costs. We can also provide training to our
customer service representatives to equip them with the necessary skills and knowledge to
handle customer queries and complaints effectively.
Repi Soap and Detergent Factory can adopt a customer-centric approach by focusing on
improving the overall customer experience
3.3.6. Challenges faced by the logistics department

Respondents indicated that several problems contributed to the ineffectiveness of forward
logistics in the factory. As per the outcome of the interview the problems are summarized and
presented here under:
 Poor communication refers to a situation where the exchange of information, ideas, or

thoughts between two or more individuals or groups is ineffective, unclear, or
incomplete. It can occur due to various factors such as language barriers, lack of clarity,
misinterpretation, distractions, or insufficient listening skills. Poor communication can
lead to misunderstandings, conflicts, inefficiency, and hinder the achievement of goals or
objectives
 Delayed or late deliveries refer to situations where goods, packages, or shipments are not
delivered within the expected or agreed-upon timeframe. This can occur in various
contexts, such as in logistics, e-commerce, or supply chain management. Delayed
deliveries can be caused by factors like transportation issues, weather conditions,
logistical errors, customs delays, or unforeseen circumstances. Late deliveries can result
in customer dissatisfaction, financial losses, disruptions in operations, or missed
deadlines.
 Inaccurate tracking information refers to a situation where the provided or displayed
tracking details for a shipment or package do not accurately reflect its actual status or
location. This can occur when the tracking system fails to update in real-time, when
30
incorrect information is entered into the system, or when there are errors in scanning or
recording the package during its journey. Inaccurate tracking information can lead to
confusion, delays in resolving issues, and difficulties in monitoring the progress of a
delivery.
 Order errors refer to mistakes or inaccuracies that occur during the process of placing,
processing, or fulfilling an order. These errors can include incorrect item quantities or
sizes, wrong product selections, billing or shipping address mistakes, pricing
discrepancies, or any other discrepancies that deviate from the customer's intended order.
Order errors can be caused by human error, system glitches, miscommunication, or other
factors and can result in delays, customer dissatisfaction, and the need for additional
customer service or corrective actions to resolve the issue.
 Returns and refunds are processes that occur after a customer has received their order and
wishes to either return the item(s) or receive a refund for their purchase.
31
CHAPTER FOUR
4. SUMMARY, CONCLUSION AND RECOMMENDTION

4.1 summary of the findings
The paper aimed to assess the logistics customer service on repi soap and detergent factory.
Hence summary of the study results presented as follows:
 The system of the factory is found ineffective because respondents have shown that there
order processing practice and order tracking mechanisms are poor which is both
inconvenient for the factory and its customers. The poor practice of order receiving might
even be the reason why the factory couldn’t provide the right products ordered every time
because order processing involves checking orders from forms filled out by customer.
But when we come to the customer service side of order processing there is good practice
but has room for improvement.
 There are complaints about late deliveries most of the time it is because of
1. production delays with the production process such as machinery breakdowns or
shortage of raw materials
2. transportation issues such as traffic congestion customs issues or vehicle breakdowns
3. weather condition if there are extreme weather condition such as heavy rain
 Besides these the respondents agree on the deliveries being to the right places.
4.2. Conclusion
This paper lies in assessing logistics customer service of soap and detergent factory. The data is
gathered from customers and employees. More comments and views included by conducting
interview. According the main points are summarized below.
There are situations where the logistics customer service of the factory is found ineffective.
There are gaps starting from order processing throughout transportation. These collectively lead
to ineffectiveness of the factory in its logistics customer service. So in general, the factory faces
many challenges in its logistics customer service which requires improvement.
32
4.3. Recommendation
Based on the study the followings are recommendations:
 Timely and accurate communication: the logistics team at repi soap and detergent factory
should ensure that they communicate with their customers in a timely and accurate
manner. This will help to build trust and confidence among customers, and also ensure
that they are aware of any delays or issues that may arise
 Responsive customer service: the logistics team should be available to answer customer
inquiries and provide support as needed. This can include things like responding to phone
calls and email promptly, providing tracking information, and addressing any concerns or
problems customers may have
 Flexibility: the logistics team should be flexible and willing to adapt to changing
customers need and requirements. This can include things like adjusting delivery
schedules, accommodating special requests.
 Proactive problem solving: the logistics team should be proactive in identifying potential
issues and take steps to resolve them before they became major problems. This can
include things like tracking shipments providing regular updates and working with
customers to find solutions to any issues that arrive.
 The factory should work to improve the flow of information from customers and since
the major customers of the company are located around it doesn’t have much changes at
reaching the right place and might make the transportation problem seen minor but
expanding to further locations might be challenging if the company doesn’t invest on
proper transportation and warehousing option near the new markets.
 The factory should invest on modern and effective order processing system because it is
directly related to customer service.
 The factory should setup a compliant receiving desk in its own department for a better
customer feedback reception and service.
33
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APPENDIX
APPENDIX A: Questionnaire
St. Mary’s university
Faculty of business
Department of marketing management
Questionnaire to be filled by business customers (supermarkets, minimarkets, and individuals),

who are affected by the logistics customer service
Dear respondents,
The purpose of this study is to assess the logistics customer service in repi soap and detergent
factory delivery of its products to customers. To this end, the study intends to gather data from
selected customers. The participation is fully voluntary and response will be confidential.
I would appreciate your favorable consideration in completing the questionnaire and assisting me
in the research endeavor.
Thank you in advance!
No need to write your name
Part one; - demography
Please put (√) mark if your response in the space provided
1. Age
18-25 26-35 36-45 above 45
2. Sex
Male Female
37
3. Level of education
8th grade complete 12th grade complete diploma degree and above
Other please specify;- ________________________________________
4. Have you heard of Repi soap and detergent factory before?
Yes No
5. For how long you were the user of Repi soap and detergent products?
A. less than 6 month
B. 6 month up to 1 year
C. 1-2 years
D. Above 2 years
Part two;-please indicate your degree of agreement or disagreement for each of the following
statements about the effectiveness of forward logistics system of Repi soap and detergent
products by putting a tick (√) mark on your choice.
No Description Stron Agree Neutra Disagree Strongl

. gly l y
agree disagree
1. Effectiveness of order
processing
The factory has standard

ordering procedure
The factory has good

customer feedback
reception
The factory always

delivers the right product
we ordered
The factory addresses

complaints without delays
38
The factory has order
tracking mechanism
2. Effectiveness of
warehousing
The factory always deliver

products in the right
quantity

products in the proper
packaging

products to the right place
The responsiveness of
factory’s customer service
team is satisfactory

factory provides accurate
and timely information
regarding order status and
delivery
The staff at Repi soap and

detergent factory are
knowledgeable about their
products and services
The delivery personnel of

Repi and detergent factory
are punctual and
professional
The packaging and

handling of products by
factory meet your
expectations
39
How strongly do you
agree that the social media
easy to navigate and use?
1. Please specify the challenges you faces on the transportation and delivery products in
Repi soap and detergent factory
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________
2. Your further comments and recommendations in improving the transportation and

delivery of Repi soap and detergent factory
______________________________________________________________________________
______________________________________________________________________________
____________________________________________________________
40
APPENDIX B: INTERVIEW
St. Mary’s University
Department of Marketing Management
Interview Guide
I want to thank you for taking time to meet with me today. My name is Saron Dereje and I
would like to talk to you about your views ad experiences on the logistics customer service in
Repi soap and detergent factory. The interview will take few minutes. I will be taking notes
because I don’t want to miss any of your comments. I will ensure that ant information I included
in the report does not identify you as the respondent.
Are there any questions about what I have just explained?
Are you willing to participate in this interview?
Thank you!!!!
Interview questions to General Manager, sales representatives, and other employees
1. Respondent profile
A. Level of education___________________________________________
B. Experience in Repi soap and detergent factory _________________________________
2. What are the current trends in logistics customer service practices?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
3. What strategies do you use to improve customer satisfaction?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
41
4. What are the challenges faced by your department in providing excellent customer
satisfaction?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
5. How you ensure transparency and communication with customers throughout the
delivery process?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
6. How do you train you customer service representatives to handle customer enquiries?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
7. What role does technology plays in improving logistics customer service?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
8. How do you ensure timely and accurate delivery of goods to customers?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
42
9. What are the future prospects for logistics customer service and how can you prepare?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Thank you for giving your time!
43

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ST.

DEPARTMENT OF MARKETING MANAGEMENT

AN ASSESMENT OF LOGISTICS CUSTOMER SERVICE IN THE CASE

REPI SOAP AND DETERGENT FACTORY

REPI SOAP AND DETERGENT FACTORY

A SENIOR ESSAY SUBMITTED TO THE DEPARTMENTOFMARKETING

ST.MARY’S UNIVERSITY COLLEGE

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

ADVISOR: TIGIST MEKONNEN

ADDIS ABABA, ETHIOPIA

REPI SOAP AND DETERGENT FACTORY

DEPARTEMENT OF MARKETING MNAGEMENT

APPROVED BY COMMITTEE OF EXAMINERS

Department Head Signature

Internal Examiner Signature

External Examiner Signature

PLC: - Private Limited Company

PO: - Purchase Order

B2B:- Business to Business

1.1 Background of the Study

1.2 Statement of the Problem

1.3. Basic Research Questions

1.4. Objectives of the Study

1.4.2. Specific Objectives

1.5. Significance of the Study

1.6. Delimitation of the study

1.7. Research Design Methodology

1.7.1. Research Design

1.7.2. Population and Sampling

1.8. Types of Data

1.8.1. Method of Data Collection

1.8.2. Method of Data Analysis

1.9. Organization of the Study

REVIEW OF RELATED LITERATURE

Developing a reputation of excellent customer service requires a commitment to service

• Tangibles - The physical facilities, equipment, and your appearance.

• Responsiveness - The willingness to help customers promptly. (Zeithaml, Parasaraman& Berry,

2.1.3. Overview of Logistic Customer Service

2.2. Customer Expectations and Impacting Factors

2.2.1Customer Satisfaction and Impacting Factors

2.3. Importance of Logistic Customer Service

2.3.1. Service Effects on Sales

2.3.2. Service Effects on Customer Retention

2.3.3. Sales-Service Relationship

2.3.4. Sales-Service Relationship Model

2.3.4.1. Two-Point Method

3.2. Characteristics of Study Population

Characteristics Category Frequency Percentage

Gender Males 18 36.4

8th grade 8 21.1

12th grade 14 36.8

Education level Diploma 11 28.9

Degree and 5 13.2

Less than 6 10 26.3

1-2 years 16 42.1

Source: primary data(2023)

Effectiveness of order Frequency count(n=38) percentage