UNDERSTANDING CUSTOMER SATISFACTION INDEX FOR MRC

LOGISTICS.

MRC LOGISTICS

Project by:Ram Bhavesh Sharan

Factors affecting sector

General economic conditions.Congested infrastructure networks.High railway tariffs Railway carriage not easy for industries which

cannot provide full train load.High turnaround times.Poor road quality.Rail terminal quality is poor.Inadequate depth at ports.

Contribution to economy

Cost of logistic valued around 13 to 14% of GDP.Logistics sector is valued at around US$ 110 billion

and is expected to touch US $200 billion by 2020.65% of goods are transported by road.Road transportation contributes about 4 to 4.5% of

GDP.100% FDI is allowed in the sector. Source : The logistic event of India,

confederation of Indian industry, date: 15 to 17 feb 2013.

Vision and mission of company

To become one of the top 10 logistic companies with global footprint, keeping pace with latest technology and best practices in supply chain management.

To offer a comprehensive portfolio of all logistic services to be a one stop solutions to our customers.

To remain preferred partner by continuously improving the standards of our services and adding value.

To expand the network of branches by opening new offices, appointing new franchisees, appointing business associates and striking strategic alliances.

To build necessary infrastructure across the network.

Functional overview of MRC Logistics

Outbound logistics Inbound logistics Warehousing and distribution Retail distribution Reverse logistics Material Handling Solutions Packaging Solutions Contract manufacturing Inplant Logistics

Objectives

To calculate the customer satisfaction index of customers of MRC Logistics.

To observe and identify the customer satisfaction index of customers of MRC Logistics.

To observe the application of 5S and safety practices in warehouse.

Methodology adoptedObservation methodInterviewingQuestionnaires

Activities involved

Understanding process of booking consignment.Observing employees within the organisation.Understanding role of different departments.Discussing processes and problems involved in

transportation.Observing skid management and transhipment of goods.Preparing questionnaires for customer feedback and

calculation of customer satisfaction index.Calling and fixing appointments with client companies.Visiting customers’ offices, taking feedback, asking

questions and interpretation of customers’ feedback.

Suggestions in transportation

Fixed contract with local transporters.Tracking of goods. Increase own vehicle.Skilled drivers and labours.MIS needs to improve . Increase network .Only one type of goods on vehicles.Professional behaviour.

Suggestions in warehouse management

Shock absorbent material for unloading of skids.Safety practices.Implementation of 5S.Avoid mishandling .Change in layout .

Findings

All the customers (100%) take use of other service providers .

60 % customers consider service of MRC better than other service providers. While 40 % feel it is same as compared to others.

70 % customers consider the service in terms of safety, security and time good or very good. While 30 % think it is poor or very poor.

40 % customers want MRC logistics to open more distribution centres across India.

Whenever MRC makes any error ,responsiveness to acknowledge error and rectify the problem is very good or good . only 10 % customers feel it is not so.

80 % customers are highly satisfied with communication through mail or calls. Still slight improvement is required.

30 % are not satisfied with competence of staff. As far as low price and quality (timely delivery) is concerned ,

no customer prefer low price. 30 % customers prefer both .80 % of customers feel that MRC provides invoices with

supporting documents.As far as low price and quality (timely delivery) is concerned ,

no customer prefer low price. 30 % customers prefer both .All the customers(100%) want improvement in tracking of

goods.80 % of customers feel that service of MRC lives upto their

expectations.

Learnings

Learned to calculate customer satisfaction index.Learning of parameters required for understanding

customers satisfaction in logistics.Use of skids and reverse logistics.Application of 5S in warehouse.Pricing strategy.

WEIGHTED AVERAGE METHOD

Methodology to calculate CSI

Parameter Weight-age assigned

Timely delivery Tracking of goodsInformation sharingCustomer

service(answering calls,mails,rectifying error)

Safety Price Staff competency

0.200.200.150.15

0.100.100.10

Weighted average method

Points given by customers on a scale of 1 to 10 for each parameters

COMPANY NAME TIMELY

DELIVERYSAFETY INFORMATION

SHARINGPRICE STAFF

COMPETENCYTRACKING OF

GOODS

COSTOMER SERVICE

ATLAS COPCO8 7 9 7 10 5 9

CUMMINS GEN TECH

7 8 6.5 8 7 7 6

KSB PUMPS 8 8 8 8 8 7 7

CUMMINS INDIA LTD

7.5 8 7 8 7 7 7

CHAMP ENERGY VENTURES

7.5 8 7 8 8 7 7.5

THERMAX 7 8 6 8 7 6 5AMPASET 7 8 7 8 8 7 7

SIMMONDS MARSHALL

7 8 6 8 8 6 6

DSM INDIA 7 8 6 8 7 6 6TETRAPAK 7 9 6 8 8 6 7TOTAL 73 80 68.5 79 78 64 67.5AVERAGE(A) 7.3 8 6.85 7.9 7.8 6.4 6.75

WEIGHTAGE ASSIGNED(B)

0.2 0.1 0.15 0.1 0.1 0.2 0.15

MAXIMUM WEIGHTAGE POINTS(10*B)

2 1 1.5 1 1 2 1.5

WEIGHTED POINTS SCORED(A*B)

1.46 0.8 1.0275 0.79 0.78 1.28 1.0125

Representation of CSI from each company

Customers CSI

Atlas copco 7.7

Cummins generator technologies 6.975

KSB pumps 7.65

Cummins India Limited 7.3

Champ Energy venture 7.475

Thermax 6.55

Ampaset 7.3

Simmonds Marshall 6.8

DSM India Pvt 6.7

Tetra pak 7.05

Average 7.15

Problems

Problems in hiring local lorries.Delay in payment by customers.Tracking of vehicles and goods.Drivers not literate enough.Bad weather.Documentation charges for goods to be transported abroad

like Bangladesh.On few occasions trucks go to some locations without

having road permit.Ethical issues like loading goods more than allowed on

vehicles, loading goods with other goods without the consent of customers.

Observations

Just in Time approach is followed in skid management.Implementation of 5S in warehouse to large extent.But requires improvements like cleaning ,labelling.Requires improving storing of goods in warehouse.Requires periodic inspection by seniors.Mishandling during loading and unloading of skids.Lack of safety standards during welding of damaged

skids.Damaging of cartoons going for retail outlets like big

bazaar.Issues regarding goods misplacement.

Customer responses to questionnaires

Do you use other Service provider for the same services?

100%

Use of other service provider

yesno

How do you rate MRC compared to other service providers

60%

40%

MRC service compared to others

far better better same below

Service in terms of safety, security and time

10%

60%

20%

10%

very good good poor very poor

Responsiveness to acknowledge it and take the responsibility to rectify the

problem is:

20%

70%

10%

very goodgoodpoorvery poor

Communication from and to the MRC is satisfactory (phone,email,fax etc) ?

80%

20%

Communication Satisfaction

Yes No

MRC provide invoices in timely manner with all relevant supporting documents?

80%

20%

yesno

 MRC services live upto expectations?

60%20%

20%

Always SometimeNot at all

MRC provides you with adequate information about rates, rules?

90%

10%

yesno

MRC staff is competent in the field

70%

30%

yesno

How is MRC network across India ?

60%

40%

very goodgoodpoorvery poor

What you prefer?: Low price, quality service or both

MRC should improve in following areas

Customer feedback and findings

Customers want people from MRC head office to visit their plants some time.

Tracking of goods needs improvement.Weekly MIS should reach. When customers

order vehicle to be placed at any location. Next day they expect MIS to reach them immediately.

Customers want people from MRC to give presentation to them on whatever things happened in last month ,week.

Customers expect professional behaviour from us. Sometimes they think that MRC hide facts.

They wants us to accept mistakes and work for goodwill not only for money.

While transporting goods ,customers want us not to place other goods on vehicles which can damage their goods.

MRC should increase distribution centres in small cities.

Improve timely delivery, avoid damages and mishandling.

Scanned copy of POD should be sent to them immediately.

Continue...

Certification of ropes, crane is required. Proper inspection and labelling of equipments is

required.Few customers want improvement in timely supply

of invoices with proper documents.MRC’ s northern and western branches in India

should improve in approachability. Pune based office and south based offices are good.

MRC has improved during last one year as compared to last 3 or 4 years.

MRC needs to improve services during emergency situation.

Continue...

Customer Satisfaction Index

15.8

6

6.2

6.4

6.6

6.8

7

7.2

7.4

7.6

7.8

Atlas CopcoCummins Generator TechnologiesKSB PumpsCummins India LtdChamp Energy VentureThermaxAmpasetSimonds MarshallDSM India Pvt LtdTetra pakAverage