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A STUDY ON FACTORS THAT INFLUENCE
SELECTION OFA LOGISTICS SERVICE
PROVIDER
Conducted For
Worldnet Logistics L.L.C
Dubai
Summer Project Report
Submitted In Partial Fulfilment of the Requirements
FOR THE MASTERS DEGREE IN BUSINESS ADMINISTRATION OF
MANIPAL INSTITUTE OF MANAGEMENT
By
Muhammad Haris NP
Reg. No. 091202020
Under the guidance of
Dr.A.J. Joshua
Year 2010

Manipal Institute of Management
Manipal University
MANIPAL - 576104
DECLARATION
I hereby declare that the summer project entitled “A STUDY ON FACTORS THAT
INFLUENCE SELECTION OF A LOGISTICS SERVICE PROVIDER”, carried out at
Worldnet Logistics L.LC has been submitted during the year 2010 - 2011 under the valuable
guidance and supervision of Dr.A.J. Joshua, Selection Grade Lecturer, Manipal Institute of
Management (MIM), Manipal, in partial fulfillment of the requirements of the Masters of
Business Administration (MBA), Manipal University.
Further I extend my declaration that this report is my original work and has previously not
formed the basis for the award of any degree or diploma.

Place: Dubai,UAE Muhammad Haris NP
Date: 27 – June - 2010
ACKNOWLEDGEMENT
It gives me immense pleasure to acknowledge and thank all those who have given consistent
guidance, advice and encouragement in my endeavour. I would also like to thank all those
persons who have spent their valuable time to contribute the required information to me and gave
me support while preparing this report.
I gratefully acknowledge my sincere gratitude to Dr.A.J.Joshua for his kind guidance and
helpful suggestions in every stage of the preparation of this report.

I owe my sincere thanks to Mr. V.P. Haris,Business Manager, Worldnet Logistics (L.L.C) for
providing me an opportunity to undertake my project work in their esteemed organization and to
obtain valuable insights about the working of the firm.
I am greatly indebted to Mr.FinojKathandy, Operations Supervisor and Muhammad
Shafeek,Operations Supervisor,Worldnet LogisticsL.L.C, for their kind guidance and helpful
suggestions.
I also thank other staff members of Worldnet Logistics L.L.C, Dubai for all the support extended
by them.
TABLE OF CONTENTS
EXECUTIVE SUMMARY.................................................................................................................................. 7
LIST OF CHARTS............................................................................................................................................. 9
LIST OF TABLES............................................................................................................................................ 10

ABBREVIATIONS.......................................................................................................................................... 12
CHAPTER 1. INTRODUCTION..................................................................................................................... 1
CHAPTER 2. RESEARCH DESIGN ................................................................................................................ 6
2.1 TITLE OF THE STUDY:..................................................................................................................... 7
2.2 BACKGROUND OF THE STUDY....................................................................................................... 7
2.3 RESEARCH OBJECTIVE ................................................................................................................... 7
2.4 SCOPE OF THE PROJECT ................................................................................................................ 7
2.5 HOW THE FACTORS WHERE IDENTIFIED?..................................................................................... 8
2.6 PARAMETERS OF INTEREST........................................................................................................... 8
2.7 SOURCES OF DATA........................................................................................................................ 8
2.8 SAMPLING DESIGN........................................................................................................................ 8
2.9 COLLECTION OF DATA................................................................................................................. 10
2.10 SIGNIFICANCE OF THE PROJECT.................................................................................................. 10
2.11 LIMITATIONS ............................................................................................................................... 10
CHAPTER 3. INDUSTRY – THIRD PARTY LOGISTICS ................................................................................. 11
3.1 OVERVIEW................................................................................................................................... 12
3.2 HISTORY OF THIRD PARTY LOGISTICS ......................................................................................... 12
3.3 PROCESS...................................................................................................................................... 13
CHAPTER 4. COMPANY PROFILE ............................................................................................................. 15
4.1 VISION ......................................................................................................................................... 16
4.2 MISSION ...................................................................................................................................... 16
4.3 LEADERSHIP................................................................................................................................. 16

4.4 SERVICES OFFERED...................................................................................................................... 17
CHAPTER 5. DATA ANALYSIS ................................................................................................................... 24
5.1 LIST OF CHARTS........................................................................................................................... 24
5.2 LIST OF TABLES............................................................................................................................ 42
CHAPTER 6. RESEARCH FINDINGS........................................................................................................... 53
CHAPTER 7. RECOMMENDATIONS.......................................................................................................... 57
CHAPTER 8. CONCLUSION....................................................................................................................... 60
APPENDIX...................................................................................................................................................... 1
ANNEXURE 1: BIBLIOGRAPHY ................................................................................................................... 2
ANNEXURE 2: QUESTIONNAIRE ................................................................................................................ 3

EXECUTIVE SUMMARY
Worldnet Logistics L.L.C is a third party logistics company. Third party logistics is the outsourcing of
all or a part of company’s logistics operations to a specialized company. A 3PL company is a
provider of multiple logistics services for customers operating in various industries locally as
well as globally (e.g. aerospace, automotive, chemicals, consumer products, electronics,
industrial manufacturing, and retail). Sending products from one international destination to another
can involve a multitude of carriers, requirements and legalities. Worldnet Logistics L.L.C is a small scale
third party logistics company with 8 employees. There are around 200 companies in the market which has
the potential to grab the customer segment of Worldnet Logistics L.L.C. The scope of the project is
limited to interviewing the customers of the three service providers (Worldnet Logistics L.L.C, Freight
House L.L.C and Swift Freight international L.L.C.).The objective of the project is to identify the
important factors companies consider and how important is each factor for choosing a service provider for
freight forwarding.It also finds out whether the customers are happy with its existing service provider and
how easy it is for companies to change their service provider. A quantitative research is used to meet the
objectives of the project. 10 factors were identified which influence the selection of a service provider by
interviewing customers and industry experts. A structured questionnaire was administered to a sample
size of 129 companies which was made based on the identified factors.The scale used is Likert and
Anova, Chi-square tests are used for the testing of hypothesis. In the study, Type of universe under
consideration is finite population which consists of all the companies who wants freight forwarding

service and depends upon the three companies Worldnet Logistics L.L.C, Freight House L.L.C and Swift
Freight International L.L.C. The Sampling Method is Stratified random sampling is made use for the
study. The Target Population is Companies who uses freight forwarding services of Worldnet Logistics
L.L.C, Freight House L.L.C and Swift Freight International L.L.C. Worlnet Logistics L.L.C has close to
100 clients, Freight House L.L.C has close to 1000 clients and Swift Freight International L.LC has close
to 2000 clients and the population size is 3100.
From the study, it is found that Quality, On time delivery and Employee Behaviour are the most
important factors whereas credit policy, cost of the service and additional services are the least important
factors. It is also found that companies can change their service provider very easily and in general
customers are not happy with the service they are getting from their existing service provider. In order to
more grab more customers and retain the existing customers, Worldnet Logistics L.L.C should improve
the quality of the services they are providing. It should also provide trainings to its employees on soft
skills and how to interact with the customers. Worldnet Logistics should also create a customer retention
program and a customer service department.Worldnet should try to provide multiple services as majority
of the companies require more than one service. In the budget minimum money should be allocated for
Transportation as only 4.67 % need only transportation services.Separate department should be created
for international services as half of the companies either export or import goods out of Dubai.

LIST OF CHARTS
Chart 5.1.1: Services Availed by different companies................................................................................ 25
Chart 5.1.2: Area of operations of different companies.............................................................................. 26
Chart 5.1.3 : Satisfaction with the existing service provider ...................................................................... 27
Chart 5.1.4: Easiness to change the current service provider ..................................................................... 30
Chart 5.1.5: Ratings to on time delivery..................................................................................................... 31

Chart 5.1.6: Ratings to credit policy of the service provider ...................................................................... 32
Chart 5.1.7: Ratings to customized service provided.................................................................................. 33
Chart 5.1.8: Rating given to Quality of the service..................................................................................... 34
Chart 5.1.9: Rating given to cost of service................................................................................................ 35
Chart 5.1.10: Rating given to existence of defined process in the service provider ................................... 36
Chart 5.1.11: Rating given to the employee behaviour............................................................................... 37
Chart 5.1.12: Rating given to the round the clock service.......................................................................... 38
Chart 5.1.13: Rating given to additional services provided........................................................................ 39
Chart 5.1.14: Rating given to domain consultation by the service provider............................................... 41
LIST OF TABLES

Table 5.2.1: Statistical data of different factors.......................................................................................... 42
Table 5.2.2: Importance given to different factors...................................................................................... 45
Table 5.2.3: Importance given to factors based on the services the company avail.................................. 48
Table 5.2.4: Importance given for each factor amongst the companies based on the service they avail . 50
Table 5.2.5: Association of area of operation and the service provider..................................................... 50
Table 5.2.6: Association of services availed and the service provider selection........................................ 51

ABBREVIATIONS
Abbreviation Expansion
L.L.C Limited Liability Company
3PL Third Party Logistics
ISO International Standard Organization
UAE United Arab Emirates
GCC Gulf country council
FOB Freight on Board
AWB Airway Bill Number

1
CHAPTER 1. INTRODUCTION

2
The council of Logistics Management defines logistics as the process of planning, implementing
and controlling the efficient, effective flow and storage of goods, services, and related
information from point of origin to point of consumption for the purpose of conforming to
customer requirements. Third party logistics is the outsourcing of all or a part of company’s
logistics operations to a specialized company. A 3PL company is a provider of multiple logistics
services for customers operating in various industries locally as well as globally (e.g. aerospace,
automotive, chemicals, consumer products, electronics, industrial manufacturing, and retail).
Moreover, it is a company that usually offers “one-stop shopping” for logistics services with
capabilities to integrate these services in contrast to companies that specialize in a specific area
of services (motor carriers, ocean carriers, public warehouses, forwarders etc.)
Third party logistics companies emerged in Dubai in the 1990s and have been providing valuable
service for companies willing to outsource logistics. Since then the industry has been growing
substantially both in terms of revenues and number of players. Nowadays 3PL market has a
considerable share in total transportation costs and the services provided by 3 PLs continue to
consume a significant portion of overall logistics and supply chain budgets. However, the
industry is not enjoying adequate profits and margins are small. 3PL companies have difficulties
differentiating among each other and have difficulties demonstrating value proposition to
potential customers.

3
This study identifies different factors which companies consider while choosing a service
provider and the average importance given to each factor by companies. This information will
help Worldnet to focus on improving the factors of high importance to companies. As of now
there is no sustainable competitive advantage for Worldnet. Worldnet can formulate a strategy
based on this study to create a sustainable competitive advantage.
The study was done amongst customers of three companies with a sample size of 129. The
different factors were identified by referring to the literature relating to logistics, by interviewing
the employees of Worldnet and by talking to experts in the industry.
The different factors are
1. On time delivery
It measures whether the company is able to deliver the freight on or before promised delivery
date.
2. Credit period
Companies do not pay freight forwarder up front the cost. The payment is done on producing the
invoice. After invoice is given usually there will be minimum 15 days to pay the money either by
cash or cheque. Sometimes freight forwarder accepts post dated cheque as well. This factors
measure the credit period given after the invoice is given.
3. A customized service from a company
Some companies require additional reports for the work they are giving to its freight forwarders.
This factor measures what the average rating is given by companies for a customized service.
4. Quality of service

4
As per ISO 9000 quality can be defined as “Degree to which a set of inherent characteristics
fulfills requirements.”
5. Economic service
It measures the average rating given by companies to the cost they are ready to pay to avail the
service. i.e It measures whether the companies are price sensitive and to what extent.
6. Well defined process
Some freight forwarder will have a defined process for tracking the job requests, place an order
etc. Some companies give importance to knowing the current status of the job.
7. Employee behaviour
It measures how important is employee behaviour of the freight forwarder to the companies.
8. 24/7 availability
It measures whether companies prefer a service which is available round the clock.
9. Additional services like loading and unloading facilities
3PL logistics duty is limited to picking up the goods or shipment and ships it to the destination.
In most of the cases the company or customer should arrange a person for loading or unloading.
But some 3PL companies provide this facility to its customers without any extra cost. This factor
will measure how important is this factor for companies while choosing a service provider.
10. Domain consultation.
Most of the companies need logistics service to run their business. But most of them are unaware
of the document clearance procedure of customs. They need consultation on this. This factor

5
measures whether companies prefer a service provider who provides expert domain consultation
or not.

6
CHAPTER 2. RESEARCH DESIGN

7
2.1 TITLE OF THE STUDY:
A study on factors that influence selection of a logistics service provider
2.2 BACKGROUND OF THE STUDY
Worldnet Logistics L.L.C has not yet done any research to identify the different factors and its
priority given by companies for selecting a service provider for their freight forwarding. This
study will help Worldnet Logistics to concentrate on top priority factors and grab more
customers.
2.3 RESEARCH OBJECTIVE
1. To find out whether the clients are happy with the existing service provider.
2. To find out various factors that influence companies in choosing their service provider
for their freight forwarding.
3. To make a comparative analysis between the extent of influence of various factors.
2.4 SCOPE OF THE PROJECT

8
The scope of the project is restricted to study on different factors which clients of three
companies consider while choosing a service provider.
2.5 HOW THE FACTORS WHERE IDENTIFIED?
The different factors were identified by referring to the literature relating to logistics, by
interviewing the employees of Worldnet and by talking to experts in the industry.
2.6 PARAMETERS OF INTEREST
The average importance (rating) given by companies for each factor while selecting a service
provider for freight forwarding.
2.7 SOURCES OF DATA
Primary data- Would be collected by direct interviewing company representatives using a
structured questionnaire.
Secondary data: This source of data would be used for some historic data to analyse and
prepare the questionnaire. The secondary data used is obtained from discussion with the
employees and using internet.
2.8 SAMPLING DESIGN

9
Type of universe: The type of universe under consideration is finite population which
consists of all the companies who wants freight forwarding service and depends upon the three
companies Worldnet Logistics L.L.C, Freight House L.L.C and Swift Freight International
L.L.C.
Sampling Method:Stratified random sampling is made use for the study.
Target Population: Companies who uses freight forwarding services of Worldnet Logistics
L.L.C, Freight House L.L.C and Swift Freight International L.L.C. Worlnet Logistics L.L.C has
close to 100 clients, Freight House L.L.C has close to 1000 clients and Swift Freight
International L.LC has close to 2000 clients. So the total population under consideration is 3100.
Target Sample Size:
n = Z2
σ2
N/[ (N-1)e2
+Z2
σ2
]
Where,
N = number of companies who provides business to Worldnet Logistics L.L.C and its two other
competitors. = 3100
Standard deviation σ = Range of population/6 = [5-1]/6=0.67
Error, e = 0.113
Confidence level z ( 0.95) = 1.96
12945.129
)67.096.1113.0)13100((
)310067.96.1(
222
22
n
Customers of the companies where selected on a proportionate basis.

10
2.9 COLLECTION OF DATA
Predesigned Questionnaire will be used to collect the information from customer. The survey
will be done through phone or in person. Most of the respondents will be contacted over phone.
2.10 SIGNIFICANCE OF THE PROJECT
The project will help Worldnet Logistics L.L.C to concentrate on where the company needs
improvement. The study will also help in decision making of future expansion plans.
2.11 LIMITATIONS
The study is limited to the customers of three companies namely Worldnet Logistics
L.L.C, Freight House L.L.C and Swift Freight international L.L.C.
Time taken to the survey is very high as the customers are too busy to answer the survey.

11
CHAPTER 3. INDUSTRY–THIRD PARTY LOGISTICS

12
3.1 OVERVIEW
Third party logistics companies emerged in Dubai in the 1990s and have been providing valuable
service for companies willing to outsource logistics. Since then the industry has been growing
substantially both in terms of revenues and number of players. Nowadays 3PL market has a
considerable share in total transportation costs and the services provided by 3 PLs continue to
consume a significant portion of overall logistics and supply chain budgets. However, the
industry is not enjoying adequate profits and margins are small. 3PL companies have difficulties
differentiating among each other and have difficulties demonstrating value proposition to
potential customers.
The council of Logistics Management defines logistics as the process of planning, implementing
and controlling the efficient, effective flow and storage of goods, services, and related
information from point of origin to point of consumption for the purpose of conforming to
customer requirements. Third party logistics is the outsourcing of all or a part of company’s
logistics operations to a specialized company. A 3PL company is a provider of multiple logistics
services for customers operating in various industries locally as well as globally (e.g. aerospace,
automotive, chemicals, consumer products, electronics, industrial manufacturing, and retail).
Moreover, it is a company that usually offers “one-stop shopping” for logistics services with
capabilities to integrate these services in contrast to companies that specialize in a specific area
of services (motor carriers, ocean carriers, public warehouses, forwarders etc.)
3.2 HISTORY OF THIRD PARTY LOGISTICS

13
The main driver of the birth and further development of third party logistics can be contributed
to the deregulation of the transportation industry during the 1990s. Prior to deregulation the
transportation sector was heavily regulated by government agencies, and these regulations
covered practically every phase of a carrier’s business. It included regulation of rates, service
offering, equipment, mergers, and acquisitions. The difficulty in obtaining authority to operate
and the restrictions ensured lower levels of competition. Due to high competition, industry
fragmentation, over-capacity, the growth of internet, and advances in information technology
solutions, trucking and other freight companies broadened their service offering from
conventional transportation services to material handling, inventory control, order fulfilment, and
other value-added services. Many traditional trucking companies started integrating
warehousing, logistics, and less-than-truckload (LTL) services into their suite of services,
remarking themselves into third party logistics firms. In addition, warehousing firms started
broadening their service offerings by developing them internally and/or through alliances,
mergers, and acquisitions and positioning themselves also as integrated logistics service
providers. Other roots include freight forwarders, customhouse brokers, and transportation
brokers.
3.3 PROCESS

14

15
CHAPTER 4. COMPANY PROFILE

16
Worldnet Logistics L.L.C, based in Dubai, United Arab Emirates, has been providing logistics
solution since 2006. The company has made a remarkable presence in the industry in Document
clearance and GCC transportation (land). Over the years the company has acquired wide range of
clients, to a name few, Cater Pillar UAE, GEA, Logwin and most of them corporate clients. We
provide a wide range of services which include clearance, delivery and installation using special
equipments.
Today the company’s presence is both GCC and international markets. The client base of the
company is increasing at an enormous speed.
4.1 VISION
To become one of the best logistics firms in the U.A.E. by providing the most reliable service
and by introducing innovative solutions merging expertise, resource and technology.
4.2 MISSION
To work between clients, authorities and agencies making all aspects of freight handling smooth
and safe, in keeping with all regulations, and thus building a customer base slowly and steadily.
4.3 LEADERSHIP
Worldnet Logistics was founded in 2006 by Mr. Haris V.P., a shipping & logistics professional
with a verifiable, wide range of experience in the industry in Dubai since 1982. After his rather
long and educating stints with the Department of Ports and Customs, Dubai for fourteen years
and later with global leaders such as STI Middle East and Hanjin Int’l Shipping Co. in freight
forwarding companies in Dubai, he established Worldnet. Leveraging on his thorough
knowledge of all aspects of Shipping, International Freight Forwarding and Logistics for more
thana quarter of a century, the company set out to provide strategic solutions for the clients.
Under his dedicated leadership, the Worldnet team has ever since been operating with a
remarkable understanding of the client needs, industry regulations and all technical and human
aspects of freight forwarding and logistics.

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4.4 SERVICES OFFERED
Worldnet offers different services which are listed below.
Customs clearance/Customs broking
Customs clearance is a profession that involves the 'clearing' of goods through customs barriers
for importers and exporters (usually businesses). This involves the preparation of documents
and/or electronic submissions, the calculation (and usually the payment) on behalf of the client
of taxes, duties and excises, and facilitating communication between the importer/exporter and
governmental authorities. A customs clearing agent may need to advise an importer regarding
country of origin marking requirements or the precise paperwork requirements for a clothing
shipment subject to quota/visa requirements. Knowing the requirements of each type of import
can avoid costly delays or seizure of the merchandise. Many customs brokers specialize in
certain types of transactions, such as wearing apparel, perishables, or clearing the crew and
manifest of large cargo vessels. Customs brokers can be located at inland "ports" to clear
merchandise sent "in bond" but most are located at major airports and harbors with international
traffic. Customs brokers normally arrange the transhipment or local delivery of cleared
merchandise through relationships with trucking companies and others. Customs brokers must
pass an examination and background check to become licensed. Customs brokers are not
government employees and should not be confused with Customs agents, although in some
countries the term customs agent may mean customs broker.
Custom brokers may be employed by or affiliated with freight forwarders, but may be
independent businesses or may be employed by shipping lines, importers, exporters, trade
authorities and customs brokerage firms.
The customs clearance done by the company includes the following:

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The customs clearance services for various import and export consignments include the
following:
Guidance and consultancy on pre and post shipment services
Liasoning and follow up with various GovtOrganisations
Documentation procedures i.e. preparation and handling of documents
All post shipment formalities and endorsements
Drawback/DEPB and several other export benefits
Bill Clearance
This is a part of the customs clearance and is the process of clearing the customs bill. Bill
clearance includes entering the complete details about the shipment, payment of the customs
duties and port charges. This is usually done through internet but in case if the website is not
available, it can be done manually.
Road transportation (GCC)
Worldnet LogisticsL.L.C assists in making informed choices about the most appropriate mode of
transport for your shipment. Worldnet has formed strong alliances with a number of international
road freight operators, each with strengths in particular geographical areas, and together it offers
its customers a comprehensive flexible and competitive range of services. Also we are
specialized for customers a comprehensive flexible and competitive range of services. Worldnet
is specialized for trucking in all G.C.C countries (Kuwait, Qatar, Saudi Arabia, Oman and
Bahrain)
Air freight – Import and Export

19
Worldnet provides the following services in Air freight.
Consolidation Cargo Handling
Import and Export Custom Clearance
Transportation / Trucking
Door to door Service
Packing and Moving
Warehousing
Sea freight – Import and Export
Worldnet provides the following services in Sea freight
Import and Export FCL Container Handling
Import and Export LCL Cargo Handling
Consolidation Container Handling
Import and Export Custom Clearance
Terminal Service
Transportation / Trucking
Door to door Service
Packing - General and Hazardous Cargo
Transportation and Distribution
Marine Insurance

20
Personal Effect Shipping and Household Removal
Warehousing
Cross stuffing
Cross stuffing means moving goods from a small or medium size container to a large container
or vice versa for shipping out of Dubai. This happens in the case of transits.
Transshipment
Transfer of a shipment from one carrier, or more commonly, from one vessel to another where as
in transit. Transshipments are usually made (1) where there is no direct air, land, or sea link
between the consignor’s and consignee’s countries, (2) where the intended port of entry is
blocked, or (3) to hide the identity of the port or country of origin. Because transshipment
exposes the shipment to a higher probability of damage or loss, some purchase orders or letters
of credit specifically prohibit it. Such type of declaration is processed upon arrival of goods in
the country’s port of entry and intended to be transited in cases of ship-shore-ship or air to air.
The declaration shall only be processed by registering such goods due to their transiting to a final
destination without transiting the territories of the country or leaving the customs zone.
Transit
Such a type of declaration is processed for goods being imported from outside the country for the
benefit of an importer from outside the country as well addressed in his name or the name of a
licensed carrier agent by a competent authority on behalf of the importer. The goods shall only
be registered, since it is transiting the territories of the country to the final destination. A deposit
amount equivalent to the total value of goods shall be collected to ensure exit of goods outside

21
the country within 30 days from the date of the transactional processing. Worldnet does the
document clearance for transit.
Free zone documentation
Free zones are part of the country’s territories but considered to be outside the customs territory
and subject to customs control other than normal customs procedures. This is applicable to Jebel
Ali Free Zone, Airport Free Zone, DUCAMZ and unfenced Free Zones including TECOM.
Import into Free Zone:
Free zone licensee are allowed to import goods or equipments into the free zone from a foreign
country without payment of customs duties. Such goods may be stored for an unlimited period of
time depending upon the type of goods and the validity of the Free Zone License.
Import from Free Zone into UAE/GCC:
This type of bills is processed for allowing Free Zone Licensee to sell their commodities to the
Local Companies in UAE or in GCC Countries opeartiong under valide Commercial/Industrial
Licenses from the concerned regulatory authorities with UAE or in GCC. Based on submission
of following documents received from the Free Zone Companies to Customs by the local or
GCC Importer or their appointed Clearing Agents, FZ Transit Out(Ex-FZ Import Bill) shall be
issued upon payment of applicable Customs Duty as per the customs tariff & the processing
charge of AED 60. Free Zone Licensee has to deliver the goods only upon receiving the copies
of the Ex-FZ Import Bill from the importer.
Import for Re-Export from Free Zone (FZ TRANSIT OUT)

22
This type of bills is processed for allowing Free Zone Licensees to sell their commodities to the
Local Companies in UAE operating under valid Commercial Licenses from the concerned
regulatory authorities with UAE on Import for Re-Export basis. This facility will grant the UAE
Importer a grace period to export the goods purchased from the Free Zone Licensees within 180
days from the bill date. A Customs Deposit equivalent to the duty tariff of the invoice value is
collected from the UAE Registered Company against these transactions. Refund the deposit fully
or partially if the proof of export is submitted within the time frame allocated for this type of
bills.
EX-FZ Export Bill (FZ TRANSIT OUT)
This type of bill allows the FZ Licensee to export goods out of GCC by sea, land and air. The
processing charge for this type of bill is normally AED 50 being the registration charge plus
AED 10 being the Knowledge Dirham Fee provided the cargo is being exported other than from
Dubai Airport. The registration charge for processing an EX-FZ Export Bill for the cargo
dispatching through Dubai Airport will be only AED 20.
Free Zone Temporary Admission
This type of Customs bills are prepared in the event facilitating the entry of goods through
customs zones into the country on temporary basis for the purposes of exhibition or repairs and
maintenance of equipment and machineries. A deposit equivalent to customs tariff on total value
of goods shall be collected against such type of transactions.
Free Zone Internal Transfer
This type of Customs bills prepares in the event of sale of goods internally by a free zone
licensee to another free zone licensee having same type of activity upon approval and consent of
the seller and buyer.

23
Export of Goods from local market through Free Zone (FZ TRANSIT IN)
This type of facility shall allow a Free Zone Licensee to buy goods from UAE Local Market for
Export Purposes. In order to validate the entry of goods into the Free Zone, the local exporter
have to file a local export declaration and subsequently, the Free Zone License have to file a Free
Zone Bills of Entry(FZ Transit Bill)
Vehicle Clearance
The cars which get exported to Dubai need customs clearance. Worldnet Logistics L.L.C is a
pioneer in getting the vehicle clearance from the customs.

24
CHAPTER 5. DATAANALYSIS
5.1 LIST OF CHARTS
5.1.1 Services availedby different companies
Services availed
Frequency Percent Valid Percent
Cumulative
Percent
Valid Document
Clearance
27 20.9 20.9 20.9

25
Transportation 6 4.7 4.7 25.6
Air-Freight
Clearance
22 17.1 17.1 42.6
Sea-Freight
Clearance
22 17.1 17.1 59.7
More than one
service
52 40.3 40.3 100.0
Total 129 100.0 100.0
Services Availed
40.31
17.05
17.05
4.65
20.93
More than one servic
Sea-Freight Clearanc
Air-Freight Clearanc
Transportation
Document Clearance
Chart5.1.1: Services Availed by different companies
Inference:40.31 % of companies avail more than one service. The transportation service availed by
companies are very less compared to other services.

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5.1.2 Area of operations of different companies
Area of operations
Cumulative
Percent
Valid Domestic 29 1 22.5 22.5 22.5
Internation
al
65 50.4 50.4 72.9
GCC 35 27.1 27.1 100.0
Total 129 100.0 100.0
Area of operations
27.13
50.39
22.48
GCC
International
Domestic
Chart 5.1.2: Area of operations of different companies
Inference: 50.39 % of the companies operate in international market. i.e they either import or export
goods out of Dubai.

27
5.1.3 Are the companies satisfied with their service provider? Is there any
significant difference amongst the companies?
Satisfied with the current Provider
Cumulative
Percent
Valid Yes 63 48.8 48.8 48.8
No 66 51.2 51.2 100.0
Total 129 100.0 100.0
Chart 5.1.3 : Satisfaction with the existing service provider
Descriptives
N Mean Std. Deviation Std. Error
Worldnet Logistics L.L.C 4 1.50 .577 .289
Yes
No
Satisfied with the current Provider
Pies showcounts
Worldnet Logistics L.L.C
50.00%50.00%
Freight House L.L.C
28.57%
71.43%
Swift International L.L.C
59.04%
40.96%

28
Freight House L.L.C 42 1.71 .457 .071
Swift International L.L.C 83 1.41 .495 .054
Total 129 1.51 .502 .044
Hypothesis:
Null Hypothesis H0 = There is no significant difference between the satisfaction level of the three
companies.
H1 = There is significant difference between the satisfaction level of the three companies.
ANOVA
Sum of
Squares df Mean Square F Sig.
Between Groups 2.589 2 1.294 5.502 .005
Within Groups 29.644 126 .235
Total 32.233 128

29
Freight Forwarder
Sw ift InternationalFreight House L.L.CWorldnet Logistics L
1.8
1.7
1.6
1.5
1.4
1.3
Inference:71.43 % customers of Freight House LLC are not satisfied where as only 40.96% of the Swift
International LLC customers are not satisfied. 50 % of the Worldnet Logistics LLC customers are not
satisfied with the service they are getting. Since the level of significance is less than .05, we reject the null
hypothesis. So the proposed hypothesis which states that there is a significant difference between the
satisfaction levels of the three companies is supported.
5.1.4 Is it easy for companies to change their service provider?
Easy to change the current Provider
Cumulative
Percent
Valid Yes 103 79.8 79.8 79.8
No 26 20.2 20.2 100.0
Total 129 100.0 100.0

30
Easy to change the current Provider
20.2%
79.8%
No
Yes
Chart 5.1.4: Easiness to change the current service provider
Inference: A huge 79.8 % of companies can change their service provider easily.
5.1.5 Ratings given to on time delivery
On time delivery
Frequency Percent
Valid Disagree 6 4.7
Indifferent 10 7.8
Agree 56 43.4
Strongly
Agree
57 44.2
Total 129 100.0

31
On time delivery
44.2%
43.4%
7.8%
4.7%
Strongly Agree
Agree
Indifferent
Disagree
Chart 5.1.5: Ratings to on time delivery
Inference: On time delivery is very important for 44.2 % of the companies. More than 80 % of the
companies feel that on time delivery is a very important factor in taking decisions.
5.1.6 Ratings given to credit policy of the service provider
Credit Policy
Frequency Percent
Valid Strongly
Disagree
20 15.5
Disagree 30 23.3
Indifferent 34 26.4
Agree 30 23.3
Strongly
Agree
15 11.6
Total 129 100.0

32
Credit Policy
11.6%
23.3%
26.4%
23.3%
15.5%
Strongly Agree
Agree
Indifferent
Disagree
Strongly Disagree
Chart 5.1.6: Ratings to credit policy of the service provider
Inference: The credit period provided by the service provider is immaterial to the companies while they
look to take a decision on the service provider. The majority of the companies are indifferent towards the
credit policy of the service provider.
5.1.7 Ratings given to customized service
Customized Service
Frequency Percent
Valid Strongly
Disagree
7 5.4
Disagree 16 12.4
Indifferent 69 53.5
Agree 19 14.7
Strongly Agree 14 10.9
Total 125 96.9

33
Missing System 4 3.1
Total 129 100.0
Customized Service
3.1%
10.9%
14.7%
53.5%
12.4%
5.4%
Missing
Strongly Agree
Agree
Indifferent
Disagree
Strongly Disagree
Chart 5.1.7: Ratings to customized service provided
Inference: More than 50 % of the companies are indifferent towards customized service provided by the
service providers.
5.1.8 Ratings given to Quality of the service
Quality
Frequency Percent
Valid Strongly
Disagree
4 3.1
Disagree 2 1.6

34
Indifferent 6 4.7
Agree 55 42.6
Strongly
Agree
62 48.1
Total 129 100.0
Quality
48.1%
42.6%
4.7%
1.6%
3.1%
Strongly Agree
Agree
Indifferent
Disagree
Strongly Disagree
Chart 5.1.8: Rating given to Quality of the service
Inference: More than 90 % of the companies agree that quality of the service is very important while
choosing a service provider.
5.1.9 Rating given to cost of service the companies should pay
Cost of Service
Frequency Percent
Valid Strongly
Disagree
35 27.1

35
Disagree 33 25.6
Indifferent 36 27.9
Agree 21 16.3
Strongly
Agree
4 3.1
Total 129 100.0
Cost of Service
3.1%
16.3%
27.9%
25.6%
27.1%
Strongly Agree
Agree
Indifferent
Disagree
Strongly Disagree
Chart 5.1.9: Rating given to cost of service
Inference: More than 75 % of the companies are either indifferent or disagree that the cost of the service
plays an important role in choosing the service provider.
5.1.10 Rating given to defined processes in the service provider
Defined Process
Frequency Percent
Valid Strongly 2 1.6

36
Disagree
Disagree 24 18.6
Indifferent 32 24.8
Agree 36 27.9
Strongly
Agree
35 27.1
Total 129 100.0
Defined Process
27.1%
27.9%
24.8%
18.6%
1.6%
Strongly Agree
Agree
Indifferent
Disagree
Strongly Disagree
Chart 5.1.10: Rating given to existence of defined process in the service provider
Inference: 55 % of the companies either agree or strongly agree that they like to choose a service
provider who has a well defined process for handling the service requests by their clients.
5.1.11 Ratings given to the employee behaviour of the service providers
Employee Behaviour

37
Frequency Percent
Valid Strongly
Disagree
4 3.1
Disagree 4 3.1
Indifferent 24 18.6
Agree 61 47.3
Strongly
Agree
36 27.9
Total 129 100.0
Employee Behaviour
27.9%
47.3%
18.6%
3.1%
3.1%Strongly Agree
Agree
Indifferent
Disagree
Strongly Disagree
Chart 5.1.11: Rating given to the employee behaviour
Inference: Employee behaviour of the service provider is a very important factor for deciding
the service provider. 75.2% of the companies are in favour of this factor.

38
5.1.12 Round the clock service availability
24/7 Availability
Frequency Percent
Valid Strongly
Disagree
9 7.0
Disagree 41 31.8
Indifferent 40 31.0
Agree 29 22.5
Strongly
Agree
10 7.8
Total 129 100.0
24/7 Availability
7.8%
22.5%
31.0%
31.8%
7.0%
Strongly Agree
Agree
Indifferent
Disagree
Strongly Disagree
Chart 5.1.12: Rating given to the round the clock service
Inference: 31.8 % disagree and 31 % are indifferent whether the service is available 24/7.

39
5.1.13 Additional services offered by service provider to its clients
Additional services
Frequency Percent
Valid Strongly
Disagree
20 15.5
Disagree 47 36.4
Indifferent 38 29.5
Agree 16 12.4
Strongly
Agree
8 6.2
Total 129 100.0
Additional services
6.2%
12.4%
29.5% 36.4%
15.5%
Strongly Agree
Agree
Indifferent Disagree
Strongly Disagree
Chart 5.1.13: Rating given to additional services provided

40
Inference: Additional services provided by the company do not matter for most of the companies in
choosing their service provider.
5.1.14 Domain consultation to the clients
Domain Consultation
Frequency Percent
Valid Strongly
Disagree
4 3.1
Disagree 24 18.6
Indifferent 32 24.8
Agree 36 27.9
Strongly
Agree
33 25.6
Total 129 100.0

41
Domain Consultation
25.6%
27.9%
24.8%
18.6%
3.1%
Strongly Agree
Agree
Indifferent
Disagree
Strongly Disagree
Chart 5.1.14: Rating given to domain consultation by the service provider
Inference: Domain consultation provided by the companies does not contribute much in choosing a
service provider.

42
5.2 LIST OF TABLES
5.2.1 Different factors and their ratings given by companies
Descriptive Statistics
N Range Mean Std. Deviation
On time delivery 129 3 4.27 .798
Credit Policy 129 4 2.92 1.248
Customized Service 125 4 3.14 .970
Quality 129 4 4.31 .882
Cost of Service 129 4 2.43 1.144
Defined Process 129 4 3.60 1.121
Employee Behaviour 129 4 3.94 .933
24/7 Availability 129 4 2.92 1.065
Additional services 129 4 2.57 1.088
Domain Consultation 129 4 3.54 1.152
Valid N (listwise) 125
Table 5.2.1: Statistical data of different factors
Inference:The highest average mean rating (4.31) is given to the quality of the service. The lowest rating
is given to cost of the service (2.43). The standard deviation is lowest for on time delivery (mean rating =
4.27) and lower for quality. i.e. companies invariably believe that quality and on time delivery are the
most important factors in choosing a service provider. All the factors except on time delivery has a range
4. The credit policy of the service provider has a very low rating when it comes to choosing a service
provider.Based on the ratings given, ranking of each factor while choosing a service provider for logistics
is given below.
1. Quality
2. On time delivery

43
3. Employee Behaviour
4. Defined process
5. Domain Consultation
6. Customized service
7. 24/7 Availability
8. Credit Policy
9. Additional Services
10. Cost of service
5.2.2 How important is each factor for the customers of different companies
when they look for a service?
Assumption: If the average rating is 4 or more, the factor is considered to be important.
One-Sample Statistics
Freight Forwarder N Mean Std. Deviation
Std. Error
Mean
Worldnet Logistics L.L.C Credit Policy 4 2.50 1.291 .645
On time delivery 4 4.75 .500 .250
Quality 4 4.75 .500 .250
Cost of Service 4 2.50 1.291 .645
Defined Process 4 2.25 .500 .250
Customized Service 4 4.00 .816 .408
Additional services 4 4.00 1.155 .577
Domain Consultation 4 3.75 1.258 .629
24/7 Availability 4 3.00 1.826 .913
Employee Behaviour 4 4.00 1.414 .707
Freight House L.L.C Credit Policy 39 3.13 1.174 .188
Quality 39 4.46 .555 .089
Cost of Service 39 2.31 1.104 .177
Defined Process 39 3.90 1.046 .168
Additional services 39 2.41 .818 .131
24/7 Availability 39 2.95 1.123 .180

44
Employee Behaviour 39 4.13 .656 .105
Swift International L.L.C Credit Policy 82 2.89 1.296 .143
Quality 82 4.18 1.008 .111
Cost of Service 82 2.45 1.188 .131
Customized Service 82 3.18 1.056 .117
24/7 Availability 82 2.90 1.038 .115
One-Sample Test
Freight Forwarder
Test Value = 4
t Df Sig. (2-tailed)
Mean
Difference
Worldnet Logistics L.L.C Credit Policy -2.324 3 .103 -1.50
On time delivery 3.000 3 .058 .75
Quality 3.000 3 .058 .75
Cost of Service -2.324 3 .103 -1.50
Defined Process -7.000 3 .006 -1.75
Customized Service .000 3 1.000 .00
Additional services .000 3 1.000 .00
Domain Consultation -.397 3 .718 -.25
24/7 Availability -1.095 3 .353 -1.00
Employee Behaviour .000 3 1.000 .00
Freight House L.L.C Credit Policy -4.638 38 .000 -.87
Quality 5.196 38 .000 .46
Cost of Service -9.574 38 .000 -1.69
Defined Process -.612 38 .544 -.10
Customized Service -9.073 38 .000 -1.05
Additional services -12.135 38 .000 -1.59
Domain Consultation -2.573 38 .014 -.46
24/7 Availability -5.848 38 .000 -1.05

45
Employee Behaviour 1.220 38 .230 .13
Swift International L.L.C Credit Policy -7.755 81 .000 -1.11
Quality 1.644 81 .104 .18
Cost of Service -11.806 81 .000 -1.55
Defined Process -3.853 81 .000 -.49
Customized Service -7.009 81 .000 -.82
24/7 Availability -9.578 81 .000 -1.10
Employee Behaviour -1.386 81 .170 -.16
Table 5.2.2: Importance given to different factors
Inference:
For Worldnet Logistics L.L.C customers: Quality and on time delivery are the most important factors.
The next important factors are customized service, additional services and employee behaviour. Domain
consultation, 24/7 availability, credit policy and cost of service are also important. Having a defined to
process to serve the customers is not important.
For Freight House L.L.C customers: Quality is the most important factor. On time delivery is the second
important factor. Employee behaviour and having a defined process to serve the customers are also
important. All the other factors are not important.
For Swift International L.L.C customers: On time delivery is the most important factor. The second
important factor is quality. Employee behaviour is also an important factor. All other factors are not
important.
Overall, quality of service and on time delivery are the most important factors for all the customers while
looking for a service.
5.2.3 How important is each factor for the customers based on different
services they avail?
Assumption: If the average rating is 4 or more, the factor is considered to be important.

46
Services availed N Mean Std. Deviation
Std. Error
Mean
Document Clearance Credit Policy 23 3.65 .487 .102
Quality 23 4.65 .487 .102
Cost of Service 23 1.96 .878 .183
Additional services 23 2.61 .891 .186
Domain Consultation 23 3.43 .992 .207
24/7 Availability 23 3.22 1.347 .281
Transportation Credit Policy 6 2.33 1.033 .422
Quality 6 4.33 .516 .211
Cost of Service 6 3.33 .516 .211
Defined Process 6 3.00 .894 .365
24/7 Availability 6 3.33 1.366 .558
Air-Freight Clearance Credit Policy 22 2.55 1.371 .292
Quality 22 4.55 .510 .109
Cost of Service 22 2.36 1.177 .251
24/7 Availability 22 2.64 1.177 .251
Sea-Freight Clearance Credit Policy 22 3.55 1.371 .292
Quality 22 4.41 .666 .142
Cost of Service 22 2.14 1.082 .231

47
24/7 Availability 22 3.18 .958 .204
More than one service Credit Policy 52 2.63 1.221 .169
Quality 52 3.96 1.137 .158
Cost of Service 52 2.63 1.253 .174
24/7 Availability 52 2.75 .883 .122
Services availed
Test Value = 4
t Df Sig. (2-tailed)
Mean
Difference
Document Clearance Credit Policy -3.425 22 .002 -.35
Quality 6.423 22 .000 .65
Cost of Service -11.163 22 .000 -2.04
24/7 Availability -2.787 22 .011 -.78
Transportation Credit Policy -3.953 5 .011 -1.67
On time delivery .000 5 1.000 .00
Quality 1.581 5 .175 .33
Cost of Service -3.162 5 .025 -.67
Defined Process -2.739 5 .041 -1.00
Customized Service 1.581 5 .175 .33
Additional services -.791 5 .465 -.33
Domain Consultation -.598 5 .576 -.33
24/7 Availability -1.195 5 .286 -.67
Employee Behaviour .000 5 1.000 .00
Air-Freight Clearance Credit Policy -4.977 21 .000 -1.45

48
Quality 5.020 21 .000 .55
Cost of Service -6.521 21 .000 -1.64
24/7 Availability -5.434 21 .000 -1.36
Employee Behaviour 2.592 21 .017 .36
Sea-Freight Clearance Credit Policy -1.555 21 .135 -.45
On time delivery .680 21 .504 .14
Quality 2.881 21 .009 .41
Cost of Service -8.078 21 .000 -1.86
24/7 Availability -4.006 21 .001 -.82
More than one service Credit Policy -8.063 51 .000 -1.37
Quality -.244 51 .808 -.04
Cost of Service -7.859 51 .000 -1.37
24/7 Availability -10.210 51 .000 -1.25
Employee Behaviour -.139 51 .890 -.02
Table 5.2.3: Importance given to factors based on the services the company avail
Inference: For companies who need only document clearance service, quality, on time delivery and
employee behaviour are the most important factors. All other factors are not important.
For companies who need only transportation, customized service, domain consultation, additional
services, 24/7 availability, quality, on time delivery and employee behaviour are the most important
factors. All other factors are not important.

49
For companies who need only air-freight clearance service, quality and on time delivery are the only two
important factors.
For companies who need only sea-freight clearance service, credit policy, quality and on time delivery are
the important factors.
For companies who need more than one service, employee behaviour, quality, on time delivery and
having a defined process are the important factors.
5.2.4 Is there any significant difference for the importance given for each
factor amongst the companies based on the service they avail?
ANOVA
Sum of
Squares df Mean Square F Sig.
On time delivery Between Groups 4.734 4 1.184 1.912 .113
Total 81.504 128
Credit Policy Between Groups 24.406 4 6.102 4.328 .003
Within Groups 174.819 124 1.410
Total 199.225 128
Customized Service Between Groups 11.043 4 2.761 3.136 .017
Total 116.688 124
Quality Between Groups 11.938 4 2.985 4.222 .003
Total 99.597 128
Cost of Service Between Groups 11.811 4 2.953 2.351 .058
Within Groups 155.740 124 1.256
Total 167.550 128
Defined Process Between Groups 7.363 4 1.841 1.487 .210
Within Groups 153.475 124 1.238
Total 160.837 128
Employee Behaviour Between Groups 8.525 4 2.131 2.566 .041
Total 111.504 128
24/7 Availability Between Groups 7.704 4 1.926 1.737 .146
Within Groups 137.521 124 1.109
Total 145.225 128

50
Additional services Between Groups 10.170 4 2.543 2.230 .070
Within Groups 141.380 124 1.140
Total 151.550 128
Domain Consultation Between Groups .941 4 .235 .173 .952
Within Groups 169.075 124 1.364
Total 170.016 128
Table 5.2.4: Importance given for each factor amongst the companies based on the service they avail
Inference: The difference in rating given to different factors is significant only in credit policy, quality,
employee behaviour and customized service.
5.2.5 Does area of operation has any association with the service provider
selection?
Hypothesis:
H0: Area of operation has no association with the service provider selection.
H1: Area of operation has association with the service provider selection.
Freight Forwarder * Area of operations Crosstabulation
Area of operations
TotalDomestic International GCC
Freight Forwarder Worldnet Logistics
L.L.C
Count 1 2 1 4
Expected Count .9 2.0 1.1 4.0
Freight House L.L.C Count 11 18 13 42
Expected Count 9.4 21.2 11.4 42.0
Swift International
L.L.C
Count 17 45 21 83
Expected Count 18.7 41.8 22.5 83.0
Total Count 29 65 35 129
Expected Count 29.0 65.0 35.0 129.0
Table 5.2.5: Association of area of operation and the service provider
Inference: From the above table, there is no significant difference between the count and the expected
count, so there is no association between the area of operation of the company and service provider
selection.
Chi-Square Tests

51
Value df
Asymp. Sig.
(2-sided)
Pearson Chi-Square 1.465(a) 4 .833
Likelihood Ratio 1.469 4 .832
Linear-by-Linear
Association
.006 1 .941
N of Valid Cases
129
Inference: From the above table, we can infer that the statistical significance ie. .833 is more than the
postulated significance that is .05. Hence we accept the null hypothesis. So the proposed hypothesis
which states that there is no association between the area of operation of the company and service
provider selection is supported.
5.2.6 Does services availed has any association with the service provider
selection?
Freight Forwarder * Services availed Crosstabulation
Services availed Total
Freight
Forwarder
Document
Clearance
Transporta
tion
Air-Freight
Clearance
Sea-Freight
Clearance
More
than one
service
Worldnet
Logistics L.L.C
Count
1 2 1 0 0 4
Expected Count .8 .2 .7 .7 1.6 4.0
Freight House
L.L.C
Count
17 0 8 0 17 42
Expected Count 8.8 2.0 7.2 7.2 16.9 42.0
Swift
International
L.L.C
Count
9 4 13 22 35 83
Expected Count 17.4 3.9 14.2 14.2 33.5 83.0
Total Count 27 6 22 22 52 129
Expected Count 27.0 6.0 22.0 22.0 52.0 129.0
Table 5.2.6: Association of services availed and the service provider selection

52
Inference: From the cross tabulation we can see that there is a significant different between the count and
expected count for some of the services availed and freight forwarder. So we can say that there is an
association between the service provider selection and the different type of services company want.
Hypothesis:
Null Hypothesis H0:Type of services a company want has no association with the service provider
selection.
Alternate Hypothesis H1:Type of services a company wants has association with the service provider
selection.
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Pearson Chi-Square 45.594(a) 8 .000
Likelihood Ratio 43.744 8 .000
Linear-by-Linear
Association
12.048 1 .001
N of Valid Cases
129
a 7 cells (46.7%) have expected count less than 5. The minimum expected count is .19.
Inference: As the statistical significance (.000) is less than the postulated significance .05, we reject the
null hypothesis. So the proposed hypothesis which states type of services a company wants has no
association with the service provider selection is not supported.

53
CHAPTER 6. RESEARCH FINDINGS

54
1. 40.31 % of companies need more than one service. The percentage of companies who require
transportation is less(Only 4.67%) compared to other services.
2. Half of the companies (50.39%) either export or import goods out of Dubai.
3. 59.04 % of the customers of the Swift International L.L.C are satisfied with the service they are
getting. 50 % of the customers of the Worldnet Logistics L.L.C are satisfied with the service they
are getting. Only 28.57 % of the customers of the Freight House LLC are satisfied with the
service they are getting. The difference between the satisfaction levels of three companies is
significant.
4. A huge 79.8 % of the companies can change their service provider easily.
5. 87.8 % of the companies believe that on time delivery is an important factor in choosing their
service provider.
6. Ranks given to factors that influence the selection of a service provider is given below in the
ascending order. Quality, On time delivery and Employee Behaviour are the top three factors.

55
Factor Rank
Quality 1
On time delivery 2
Employee Behaviour 3
Defined Process 4
Domain Consultation 5
Customized Service 6
24/7 Availability 7
Credit Policy 8
Additional Services 9
Cost of Service 10
7. The average ratings given to each factor differ from service provider to service provider. But
irrespective of the service provider, Quality and On time delivery are the most important
factors.For Worldnet Logistics L.L.C customers: The next important factors are customized
service, additional services and employee behaviour. Domain consultation, 24/7 availability,
credit policy and cost of service are also important. Having a defined to process to serve the
customers is not important. For Freight House L.L.C customers: Employee behaviour and having
a defined process to serve the customers are also important. All the other factors are not
important.For Swift International L.L.C customers: Employee behaviour is also an important
factor. All other factors are not important.
8. The average ratings given to each factor differ based on the service a company avail. For
companies who need only document clearance service, quality, on time delivery and employee
behaviour are the most important factors. For companies who need only transportation,
customized service, domain consultation, additional services, 24/7 availability, quality, on time
delivery and employee behaviour are the most important factors. All other factors are not
important. For companies who need only air-freight clearance service, quality and on time
delivery are the only two important factors. For companies who need only sea-freight clearance
service, credit policy, quality and on time delivery are the important factors.For companies who
need more than one service, employee behaviour, quality, on time delivery and having a defined
process are the important factors.
9. Even though the ratings given to factors are different for different service providers, the
difference is significant only in the case of credit policy, quality, employee behaviour and
customized service.

56
10. The service provider selection has no association with the area of operation( domestic, GCC or
international)
11. Companies choose service provider depending upon what kind of service they need.

57
CHAPTER 7. RECOMMENDATIONS

58
Worldnet logistics should:
1. Worldnet should try to provide multiple services as 40.31 % of the companies require more than
one service. In the budget minimum money should be allocated for Transportation as only 4.67 %
need only transportation.
2. Separate department should be created for international services as half of the companies either
export or import goods out of Dubai.
3. Create a customer service department as only half of the customers are happy with the service
Worldnet Logistics is providing.
4. Customer retention programmes should be included as 79.8 % of the companies can change their
service provider easily.
5. Create a quality control team as all the companies have maximum rating to Quality and On time
delivery as the deciding factor while choose their service provider.
6. Provide trainings to Employees as Employee Behaviour is the third important factor while
choosing a service provider.

59

60
CHAPTER 8. CONCLUSION
Third Party Logistics (3PL) provider handles all or most of freight of the organizations including
the management of information by the third party, freeing the company from day to day

61
interaction with carriers, and having to oversee hundreds or thousands of shipment. Like in any
other business there are different factors which companies consider while choosing a service
provider for their logistics needs. This study has identified different factors which companies
consider and the importance given to each factor by different companies. The different factors
based on their rank are Quality, Quality, on time delivery, Employee Behaviour, Defined
process, Domain Consultation, Customized service, 24/7 Availability, Credit Policy, Additional
Services, Cost of service. This study will help the third party logistics providers to concentrate
on specific areas of work to improve the customer loyalty. The managers of a third party
logistics should concentrate on the quality of service, on time delivery, employee behaviour, in
creating a well defined process to provide the service. In order to improve the employee
behaviour and productivity, different training sessions can be arranged to the employees. As
most of the companies have international operations, companies should implement technological
solutions based on internet which will benefit the international customers.

APPENDIX

ANNEXURE 1: BIBLIOGRAPHY
Books referred
1. P. Saravanavel (2003) , “Research Methodology” KitabMahal, Patna India
P 304-312
2. Research methodology – C R Kothari (second revised edition, page
numbers: 55-60, 95-105 and 191-194)
3. NasehaKanwal, Shakil Ahmed,( June 2009)”Sales Force Automation And
Organization Profitability The Case of Unilever And Dalda Companies”
International Review of Business Research Papers, Vol. 5 No. 4 Pp.
365‐373
4. S L Gupta,(2006), Sales and Distribution Management, Excel Publishers
(page10-55)
Websites
1. http://en.wikipedia.org/wiki/Chi-square_test
2. http://en.wikipedia.org/wiki/Pearson's_chi-square_test

3. http://www.experiment-resources.com/anova-test.html
4. http://www.physics.csbsju.edu/stats/anova.html
5. http://en.wikipedia.org/wiki/Third-party_logistics
6. http://www.iimm.org/knowledge_bank/1_growth-in-logistic-
anoverview.htm
ANNEXURE 2: QUESTIONNAIRE
Name:
Address:
Phone:
Email ID:
Type of services the company uses:
1. Document clearing
2. Transportation
3. Air – freight clearance
4. Sea freight clearance
5. More than one service
Area of operations:
1. Domestic
3. GCC

2. International
1. Are you satisfied with the existing service provider?
Yes No
2. Is it easy for you to change your service provider if you want?
Yes No
How would you rate the following factors? (Choose from a scale of 1 to 5)
5. Strongly Agree 4. Agree 3. Indifferent 2. Disagree 1. Strongly Disagree
3. On time delivery is very important
4. Credit period for the payments for both customs duty and service charge affects my decision making
5. A customized service from a company will impact my decision making
6. Quality of the service is very important
7. I prefer an economic service even if the service is slow.
8. I like the companies which have a well defined process for the service processing
9. I like companies whose employees behave cordially
10. I like service which is available round the clock(24/7)

11. I prefer companies who provide additional services like loading, unloading facilities.
12. I prefer companies which provide consultation about customs/shipment procedure.

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