Assessmentof Logistics Service Quality) : (Case Study:gamby Teaching General Hospital
Assessmentof Logistics Service Quality) : (Case Study:gamby Teaching General Hospital
Assessmentof Logistics Service Quality) : (Case Study:gamby Teaching General Hospital
Aswan Lema
Balew Shiferaw
Binifer Sirak
Wasintu Gossaye
BAHIRDAR, ETHIOPIA
JUNE, 2017
ASSESSMENT OF LOGISTICS SERVICE
QUALITY
(Case Study Gamby Teaching General Hospital)
A Research Submitted to the Department of Logistics and Supply Chain
Management in Partial Fulfillment of the Requirements for Bachelor of Arts
Degree in Logistics and Supply Chain Management
By
Aswan Lema
Balew Shiferaw
Binifer Sirak
Wasintu Gossaye
Advisor
Tigist Getnet
Approved By:
Examiner Signature
Acknowledgement
Firstly we would like to thank GOD for his support throughout our academic life second we
would like to thank Bahir Dar University particularly the department of logistics and supply
chain management that gave us this opportunity to do this research paper and get valuable
knowledge regarding real life environment,
Thirdly; we would like to express our sincere appreciation and gratitude to our advisor Tigist
Getnet for her constant encouragement and valuable advice. Last but not least we would like to
thanks workers of Gamby Teaching General Hospital who cooperate with us, especially the
manager who stood beside us while we were gathering information for our study.
LIST OF ABBREVIATION
Highly competitive market in the hospital industry has caused increasing pressure on private hospital to
provide services with higher quality. Organizations existence is depending up on their customers’
existence with them; customers’ need quality service from the service provider. So that logistics service
quality is pivotal for satisfying customers, retaining them and creating loyalty amongst customers. The
main purpose of this research is to assess the logistics service quality (LSQ) at Gamby teaching general
hospital and investigate the logistics service quality of the hospital. The research addressed the objective
of the study like examining the reliability of hospitals to improve logistics service quality, identifying the
existence and advantage of effective logistics service quality system. Regarding with The methodology
mixed research design with descriptive type of research has been conducted. For selecting the sample
two-stage sampling technique has been used. Both primary and secondary sources of data have been
used. The student researchers have been used questioner and interview for collecting data. The study
also analyzes the collected data by using descriptive statistics. As the result of data analysis indicates
Gamby teaching general hospital has good logistics service quality.
CHAPTER ONE
1. INTRODUCTION
1.1 Background of the Study
Logistics is an activity which is very essential to any organization. It plays a crucial role to
every organization whether private or government organization .the word logistics comes from a
French word logistiqu derived from a word logger which means quarter (accommodation of
troops) (council of logistics and supply chain management, 2000).The term logistics comes from
a military word, means it is the ability to efficiently and effectively distribute, store materials or
supplies performance were key factor in the success of use armed force (lambert.et al 1998)
In the context of business, logistics refers to the process of planning, implementing and
controlling efficient and effective movement and storage of materials, service and related
information from point of origin to point of destination for the purpose of conforming customer
requirement. It is the positioning of resource at the right time in the right place at the right cost at
the right quality (Lambert, et al 1998)
Logistics service quality is the main requirement of every organization in order to meet their
customer need or requirements and maximize their profit by decreasing cost. Logistics service is
a service which is rendering by every service provider organization. Logistics service quality is
one indicator of organizational prosperity (Lambert, et al, 1998)
Management has to focus on building of logistics service quality, maintaining good logistic
quality if it is possible through creating and providing high customer service, short lead time,
having good strategies and hiring logistics professional etc. In existing competitive and
distinctive competitive will only be gained through maintaining good logistics service quality.
Management has a great role to ensure quality of logistics service even if other stuff as well. In
order to maintain good logistics service quality management must establish different mechanism
such as active employee participation measuring customer satisfaction, recognition good worke
collaboration with outside or inside parties etc. in order to achieve organization objective
(Lambert ,et al,1998).
Therefore the research was aimed at assessing the logistics service quality and examin the
responsiveness, competence, empathy and reliability of Gamby teaching generalhospital.
1.3 Statement of the problem
The problem of logistics service quality is not only a one time problem rather it is a long range
consequence that means if the organization has no good logistics service quality it will lost the
good will of organization as well as lost the customer which result in losses of profit and also it
is going on shut down the businesses.In addition the failure of logistics service activities have
many problems such as delaines of activities, loss of profit , loss of market share, loss of
customer, high cost etc…so the company should have built effective logistics service quality in
order to achieve their objectives. (Lam, 1997).
Hospitals provide similar services with different quality. The quality can be used as the strategic
differentiation for establishing a distinctive advantage, those difficult for rivals to follow or copy
(Lam, 1997). Many of researchers have emphasized on the importance of determining role of
quality in hospital choice by the patients, as well as satisfying and retaining customers and have
claimed that the improvement of the quality of hospital services will increase the number of
satisfied patients and thereby customer loyalty (Zeithmal and Bitner(2004)
Healthcare providers believe that, unlike managers in the manufacturing industry, they are
unable to predict patient mix and the demand for a particular item; hence they are unable to
control or project their schedules (Jarrett, 1998). Stochasticity in the patient mix and the average
length of stay in hospitals is also mentioned by Van Merode et al. (2004) as one of the problems
in scheduling of resources.
As Hospitals function is one of the service based sector, during the recent decade, the number of
private health centers providing health care services in Ethiopia has been ever increasingly
growing. However many of the hospitals seem not yet have adequate system of communicating
the public and Also numerous claims on logistics service quality in the local hospital managers
and administrators were identified it is known that weather manufacturing or service providing
company managing the quality of logistics service has a great role for the success of
maximization of company profitability.
On the other hand Poulin (2003) mentions that more than 30 percent of total hospital expenses
are invested in logistics activities and half of this cost could be eliminated through logistics
management. Improvements in the supply chain in hospitals can lead to excellent operating room
and pharmaceutical management, better inventory management, enhanced vendor relationships,
more satisfied patients and more effective work flow for hospital employees (Burt, 2006).The
logistics activities in hospitals involve purchasing, inventory management, management
information systems, food services, transportation and home care services (Aptel and Pourjalali,(
2001).
As was studied by (Parasurman et al, 1985) most of hospitals faces problems like poor logistics
service quality, competence of employees, reliability of logistics service quality at proper and
promised level , empathy of manager and employees towards achieving logistics service quality
in the hospital, and poor responsiveness
Consequently, it is important to examine the functions of this department to improve logistics
services quality and reduce costs from a more strategic perspective; we contend that within
hospital structures, the logistics department should act as an internal support to clinical activities,
rather than playing a more traditional neutral role (Wheelwright and Hayes (1985).
Based on the conducted investigation the student researchers has been addressed the problems
like poor logistics service quality, competence of hospital , reliability of logistics service quality
at proper and promised level , empathy of hospital towards achieving logistics service quality in
the hospital, and poorresponsiveness. There for the basic question for this study is that ofhow the
hospital is successful in understanding the impact of logistics service quality in achieving its
objectives. The purpose of the study was therefore to examine the logistics service quality in
Gamby teachingGeneral Hospital.
The study was conducted in Gamby teaching general hospital.Therefore the study cannot be
generalized to other hospital in Ethiopia.As the new concept of logistics term most of employee
was not familiar with the concept that was difficult to get more reliable data for conducting our
research and due to time and resource limitation uncovering the overall performance of similar
sector in Ethiopia.
1.9 Organization of the paper
This paper contains five chapters. The first chapter is the introductory part; which contains
background of the study, statement of the problem, research questions, objective of the study,
significance of the study, scope of the study, limitation of the study, definition of terms and
organization of the paper. The second chapter discusses related literature review on logistics
concepts, and definitions logistics service and qualityconcepts. The third chapter is about the
research methodology including research design, source of data, method of data collection,
sampling technique and finally data presentation and analysis technique. The fourth chapter is
about data analysis and interpretation; finally summary, conclusion and recommendation are
included underchapter five.
CHAPTER TWO
2. REVIEWOFRELATED LITERATURE
Logistics is that part of supply chain management that plans, creates and monitors the efficient,
cost-effective flow and storage of goods, semi-finished items and manufactured products as well
as related information between the point of origin and the point of consumption in order to meet
customers' requirements (Council of Supply Chain Management ProfessionalsCSCMP,
2007).logistics has main field of study such as procurement logistics, distribution logistics, after
sale, reverse, green logistics etc. The definition of service is that Service is a patch up activity to
fulfill some ones need in the market. Service is something which can be experienced but cannot
be seen and touched or seen. Service offered by service provider cannot be seen and touched as
they are intangible activities. Kotler et al 2000)a service is an activity or benefits that one party
can offer to another which is essentially intangible and does not result in the ownership of
anything the expected service and the perceived service sometimes may not be equal, thus
leaving a gap.
Ten determinants that may influence the appearance of a gap described by Parasuraman et al.
(1985) as;
1. Competence is the possession of the required skills and knowledge to perform the service.
For example, there may be competence in the knowledge and skill of contact personnel,
knowledge and skill of operational support personnel and research capabilities of the
organization (Doll et al., 1994; Kaynamaand Black, 2000).
2. Courtesy is the consideration for the customer's property and a clean and neat appearance of
contact personnel, manifesting as politeness, respect, and friendliness.
3. Credibility is the factors such as trustworthiness, belief and honesty. It involves having the
customer's best interests at prime position. It may be influenced by company name, company
reputation and the personal characteristics of the contact personnel.
4. Security is the customer feeling free from danger, risk or doubt including physical safety,
financial security and confidentiality (Joseph et al, 1999).
5. Access is approachability and ease of contact. For example, convenient office operation
hours and locations (Parasuraman et al, (1985; Kaynama and Black 2000).
6. Communication means both informing customers in a language they are able to understand
and also listening to customers. A company may need to adjust its language for the varying
needs of its customers. Information might include for example, explanation of the service and
its cost, the relationship between services and costs and assurances as to the way any
problems are effectively managed (Doll et al.1994).
7. Knowing the customer means making an effort to understand the customer's individual
needs, providing individualized attention, recognizing the customer when they arrive and so
on. This in turn helps in delighting the customers i.e. rising above the expectations of the
customer (Zeithmalet al., 1988; Delone and Mclean 2003).
8. Tangibles are the physical evidence of the service, for instance, the appearance of the
physical facilities, tools and equipment used to provide the service; the appearance of
personnel and communication materials and the presence of other customers in the service
facility (Parasuramanet al.,1985 ; Zeithmalet al ., 1985.
9. Responsiveness is to the readiness and willingness of employees to help customers in
providing prompt timely services (Parasuramanet al 1985; Zeithmalet al, 1988).
Latterly, PZE (1988) were reduced the determinants to five: these are tangibles; reliability;
responsiveness; service assurance and empathy.
10. Reliability is the ability to perform the promised service in a dependable and accurate
manner. The service is performed correctly on the first occasion, the accounting is correct,
records are up to date and schedules are kept (Parasuramanet al, 1985; Zeithmalet al, 1988 ;
2002) Yang and Fang (2004) Liu and Arnett (2000); Riel et al(2001.
Service are economic activities that create value and provide benefits for customers at specific
time and place as a result of bringing about a desired change in or on behalf of the receipt of the
service (Kotler et.al,1999) Service are the production of essential intangible benefits and
experience either alone or parts of tangible products through some form of exchange, with the
intention of satisfying the need wants and desire of the consumer (Christopher lovelock).
Quality is the key requirement in every field in terms of industrial growth.Quality plays an
important role and so should be understand and defined properly. Different management Guru in
different ways to define quality but the basic concept remains same that is “meeting to the need
of customer. In most generalized way the quality term can be defined as “the inclusion of all
specified feature and characteristics as defined for product or service and its ability to satisfy the
given needs as per the requirement of the user while using it. Quality is a conformance to the
requirement (Philip Crosby 1991);
Quality is the a degree of which a set of inherent characteristics fulfills the requirement (iso
9000).as per paresuroman, zeithaml , 1985) .
The service industry plays an increasingly important role in the economy of many countries.in
today global competitive environment delivering quality service is considered as an essential
strategies for successful service (Parasurmanet al, 1985).
Now we go to define logistics service quality based on what the other define it literature review
on the contemporary studies on service quality in general and logistics Service quality (LSQ) in
particular has revealed that development of the definition and Conceptualization of this subject
has been built up from two approaches which can be termed Subjective and objective quality.
Service quality is a measure of how well the service level delivered matches customer
expectation. The first approach proposes that quality means adapting service to specifications
defined by service providers (Crosby 1991); this concept sees service as a physical object which
is observable and with attributes which can be evaluated (Garvin 1984).The second approach
proposes that quality is based on customers’ evaluation and perceptions.
Hence, the first approach is dominated by a traditional concept which defined logistics service
quality as being composed of physical distribution aspects of service, which means that this point
of view focuses only on service providers but not on customers. In other words, this school tries
to indicate how logistics executives can quantify the value which the provider firms create for
the customers but falls short of measuring the customers’ perceptions of the value created by
logistics services (Rafiq and Jaafar 2007). In the meantime, the second approach largely
contributed by Bienstocket al.(1997), Millen and Maggard (1997), Sohalet al. (1999), and
Mentzeret al. (1999, 2001) attempted to identify objective variables evaluated through
customers’ perceptions in relation to their expectations. As a result, a new concept of logistics
service quality is introduced by proposing a model that includes other customer service elements
called “Marketing Customer Service” Representing physical operations-based definitions of the
logistics service quality, whichBienstock et al. (1997) called physical distribution service quality
(PDSQ), are a number of authors.
LaLonde and Zinszer (1976) proposed that service quality comprises three dimensions: (1) an
activity to satisfy customers’ needs, (2) performance measures to ensure customer satisfaction,
and (3) a philosophy of firm-wide commitment. This proposal was in line with the work of
Novacket al. (1995) Mentzeret al. (1989) defined logistics service quality as having three
components, namely, availability, timeliness and quality. This model was on par with the work
of Bienstocket al. (1997), who called their model PDSQ (physical distribution service quality)
but putting in a small change to the third component. The later model consists of availability,
timeliness and condition. Here, condition refers to order condition and covers quality. Studying
logistics quality service from a different perspective, i.e. the customer perspective, several
authors argued that the conceptualization of logistic service quality would be more
comprehensive and fit into the logistics context if customers’ perceived attributes were added to
physically observable operational attributes.
Donabedian (1980) proposed three components of service quality, namely, structure, process and
outcome where structure and process refer to technical and functional characteristics of service
quality, and the outcome means the result of their interaction. Against this definition, a bi-
dimensional model of service quality was proposed (Lehtinen and Lehtinen 1991), with the two
dimensions being process and result. In their research, Lehtinen and Lehtinen (1991) defined
process as a consequence of the customers’ experience in logistics service delivery and linked
result to core or technical capability of service providers.
Similarly, McDougall and Levesque (2000), and Brady et al. (2001) simply described service
quality as consisting of two dimensions which are technical ability and perceived value.
Furthermore, two distinguished components of logistics quality which are objective and
perceived measures were recognized in the work of Maltz and Maltz (1998) in that objective
represents hard variables of service quality in relation to delivery reliability by logistics firms,
and perceived measures imply information, familiarity and responsiveness These classifications
were endorsed by later literature conducted in the study of Mentzeret al. (1997) who grouped
logistics service quality into two fundamental components, i.e. physical distribution service
quality and customer service quality. This two-element categorization is the same as the proposal
of Gronroos (2001) that argued logistics service quality is made up of technical and functional
service characteristics.
Going further from this definition, Mentzeret al. (1989) described the quality in logistics service
as consisting of two complementary elements which are marketing customer service (MCS) and
physical distribution service (PDS). This view is shared by others (such as Rinehart et al. 1989,
and Collier 1991) and is seen as an intelligent base for the integration of marketing and logistics
activities. Previously, this concept was mentioned as technical quality and functional quality
(Gronroos 1984), where technical quality refers to the service outcomes and functional quality
refers to the process of service delivery Davis (2006) commensurate with this line, putting
forward a bi-dimensional model of operational LSQ and relational LSQ, with the former
dimension referring to activities of physical distribution service and the latter one involving
activities of marketing customer service.
Further studies on PDSQ proposed by Bienstocket al. (1997) revealed that this conceptualization
was a component of a broader concept of logistics service quality and should have other
complementary components which involve people and procedures in relation to order placement
and handling. Based on this, Mentzeret al. (1999) conducted a study to assess the accuracy of the
PDSQ model with an integral focus on logistics. This revision and validation proposed a new
multidimensional model which they called LSQ. Rafid and Jaafar 2007) have identified a set of
dimensions for measuring LSQ which include timeliness, condition and accuracy of the order,
quality of information, availability and quality of contact personnel.
Among these dimensions, timeliness is of the greatest influence (LaLonde and Zinszer 1991,
Perrault and Russ 1974, Novacket al1994, Bienstocket al. 1997, Mentzeret al. 2001), and is
perceived as reception of the order placed by the customer at the agreed moment (Mentzeret al.
2001) Jian and Zhenpeng (2008) introduced a model of six dimensions: personnel’s quality;
information quality; order the course; intact intensity of the goods, the error is dealt with,
timeliness...., logistics in hospitals have two main chains, on internal chain and one external
chain. Logistics service requirements in the internal chain are immediate and have almost no lead
time. Therefore, hospitals need to focus on two aspects: the management of the external
supplychaintominimizethecostsandthemanagementoftheinternalsupplychaintomaximizeservicele
velsCustomer satisfaction can be measured according to the performance of processes to handle
the needs of the internal customer (Swinehart and Smith, 2005).
This means moving from a limited role of no strategic value to the organization, where the goal
is to minimize the negative impact of the logistics or material management department, to a more
proactive role, where logistics provides credible and significant support to the organization.
Logistics then becomes not only a source of savings in terms of support services, but also renders
clinical professionals more productive (Landry and Beaulieu,2002).the quality of logistics
services has become the relevant object of researches.
Romano et al. (2001)Proved that the practice of quality management and permanent observation
of quality in the area of logistics may improve the abilities of enterprise in order to satisfy the
expectations of a customer. The results of Thai (2008) researches have revealed the increase of a
customer’s satisfaction as the main result of the relationship between the quality of logistics
services and the achieved success of enterprise in the researches proving that the management of
the quality of logistics services determines the ability it is noted that the conception of quality
(and the measurement of quality) in the system of logistics argues that the conception of quality
services has substantially changed both the academic studies and the practice of logistics
business and that there are different opinions what constitutes the quality of logistics services of
actions and procedures that are related to it. In the quality of logistics services but only to
identify the dimensions and indicators of quality from the prospects of marketing and
logistics(Thai 2008)
The marketing emphasizes the evaluation of quality from a service recipient’s position but
ignores the necessity to involve the service provider’s technical skills as well as the results of
services. Thus the integrated approach is necessary that combines the perception of quality of
Services from the positions of both marketing and the management of logistics.
Despite the abundant theoretical and empirical integrated studies of the quality of logistics
services the aim of logistics is to supplement and help the enterprises in the process of marketing
activity, Provision of services of high-level quality. Thus the quality of logistics services has to
be conceptualized and measured from the prospects of logistics and the marketing of services. So
the models of the measurement of service quality of logistics have to integrate the approaches of
both disciplines there is a diversity of approaches and discussions concerning the issue of the
model of measurement of logistics services quality and the indicators of measurement of
logistics services model. The perception of services quality reveals the technical aspects of
service and customers’ variety of customers’ expectations that are related to their perception of
the quality of services. Thus in the present paper it is supposed that the model of quality
measurement has to be created from both customer’s prospects and provider’s prospects. A
customer’s prospect. This is one of the stages while the results of initial research are presented in
the present paper.
Logistics Services as one of the most important elements that helps to satisfy completely the
customers ‘needs. The management of the quality of logistics services is still a complicated task.
Dlugosz (2010) unique personality who has his/her wishes while being served. It is obvious that
there are no two identical customers who would express the same requirement for the quality of
provided services. Each customer’s strategy of logistics services. It often occurs that the
academics propose various methods of assessment of the quality of logistics services.
Dimensions of assessment of the quality of logistics services (delivery time, delivery reliability,
delivery quality) that allow to measure quality.Delivery timecovers the period from receipt of
order to the delivery of goods to a customer and the curtailment of delivery time increases the
attraction constituent part that is more and more determined in the competitive process.
Delivery reliabilityis substantiated by the reliability of delivery time which means that the
agreement will be on time and harmonized capacity of provided services will be delivered
punctually. It is the ability to adapt quickly to the requirements of the changes needs. Delivery
quality means an exact requirement of purchasing agreement that is related to the types the state
of goods while receiving them. This method to assess the ratio of the prices of provided service
services complies with the provided quality. Another model of the measurement of the quality of
logistics services is presented by Franceschiniet al (200). Productivity, regularity, damage to the
product, the period of take-veracity (i.e. how many mistakes are made while conducting the
order). In these dimensions of the measurement of logistics services the concept of measure the
productivity of enterprise. It is noted that the indicators of prices in these dimensions are that the
majority of the presented indicators is more concentrated on the result of service itself rather than
on the means that are used that are necessary to reach the result.
After setting up the standards of customers ‘service or determining main criteria of the
evaluation evaluate the quality of logistics service according to composed of the classical
dimension of evaluation of service quality: reliability, reaction, empathy, assurance, and material
values classical model of the measurement of service quality causes the debate about its
relevance to measure the quality of logistics service.
Franceschiniet al. (2000)present the comparison of these two dimensions of models while
ascribing each dimension the types of relationships: strong connection (a strong connectionist
emphasized between the model of the quality of logistics service and the dimensions of the
quality of strong connection between these dimensions is noted defined)
2.3 Customer perception and expectation of logistics Service Quality
Customer’s expectations have been defined as an individual’s thought or belief of that a
customer has about the performance of a service performance is satisfied (Clow and kinz, 2003).
They reflect anticipated performance (Gilbert et al., 1982). Prior to using a service consumer will
have in his mind different scenario of the service that he/ she might express. So this expression
shapes satisfaction (Muddie and Cottam 1993).
Customers form service expectations from past experiences, word of mouth and advertisement.
In general, Customers compare perceived service with expected service in which if the former
falls short of the latter the customers are disappointed. On the other hand, perceptions have been
described as an individual’s formed opinion of the experienced service (Teas, 1993). Customer
expectations are beliefs by customers about service delivery that function as standards or
reference points against which performance is judged. This indicates that customers have
something in their mind about the service delivery by the company so that customers can
compare their perception of performance. Based on this comparison between expectation and
perception, service quality be measured (Zeithaml and Betner, , 2003). “Being wrong about what
customers want can mean losing a customers also mean expending money time and other
resources on things that do not count to the customer”. Customers hold different levels of service
expectations are desired service and adequate service between them is zone of tolerance (Van
Iwaardenet al.,2000)logistics service quality paradigm where quality is a result of the difference
between perceived and expected service (Ali Dehghan, 2006). Consensus in growing that the two
concepts are fundamentally different in terms of their underlying causes and outcomes. Although
they have certain things in common, satisfaction is generally viewed as a broader concept,
whereas service quality assessment focuses specifically on dimensions of service. Based on this
view, perceived service quality is a component of customer satisfaction (Zeithaml and Betne, .
2003). Graphically the difference between the two concepts looks like;
Product
quality Situational factor
2RATE
Over the years, several researchers have suggested that consumers judge the quality of service
based on their perceptions of the technical outcome provided, the process by which that outcome
was delivered, and the quality of the physical surroundings were the services delivered (Zeithaml
and Betner, , 2003).
Several studies have also shown that a high level of customer service quality can exert a positive
influence on customer satisfaction (Zeithamlet al., 1996). The relationship between logistics
service quality and customer satisfaction has been discussion during the past decade. According
to Jun et al. (2004), some authors (e.g., Grönroos, 1983) argued that there is a significant overlap
between these two concepts, and thus, they can be used interchangeably. Other researchers (e.g.,
Bitneret al., 1990; Carman, 1990; De Ruyteret al., 1997; Lee and Yoo, 2000), though, have
attempted to differentiate between these two constructs. They argued that whereas service quality
is an overall evaluation of the service under consideration, customer satisfaction is often viewed
as the result of specific service transactions. (Hsing-Yun Chang et al,,2008)
Table 1 provides a summary of key relevant literature on logistics service quality along with
their main findings. It can be seen from the earlier discussion and Table 1 that there is currently
no universal framework to define logistics service quality properly taking into account both
service provider’s and customer’s perspective Table 1: Summary of selected literature on service
quality dimensions in logistics.
Factors Items
1
Reliability . Logistics service quality at promised service level.
reliability to address logistics service quality dependably and
2. accurately
3 measure or evaluation logistics service quality in accurate
. manner
4
. Examine the existence of logistics service quality
5
Responsiveness . Managers has work toward achieving logistics service quality
6
. Provide responsive service to customers(patients).
7.The readiness and willingness of employees and customers to
assist customers
.
From the above illustration we have recognized the importance of logistics service quality as a
key component of customer satisfaction .as such the logistics service quality domain is explored
from its nine LQS process model dimension namely personal contact quality, order release
quantities, information quality, order producer,order condition,order quality,timeliness, and order
discrepancies handling(mentezeret al 2001).
The domain of relationship of logistics service quality however was investigated from six
dimension namely satisfaction with logistics service quality,relationship
satisfaction,trust,perceived opportunities,calculative commitment and effective commitment.as
most studies focus on logistics service quality nor relationship quality. The result from this study
would provide insight into the effect of relationship among logistics service quality and customer
loyalties.Source; Thai (2000)
CHAPTER THREE
Since the research was aimed at assessing logistics service quality in Gamby teaching general
hospital, the target population was employees of the hospital. The total population of Gamby
teaching general hospital is 214(two hundred fourteen) from this the student researchers focused
on 33 who are working in logistics related departments such as purchasing department,
transportation, warehouse department, Inventory controlling department, Informatics, Return
goods handling and Customer service management departments.
The organizations were first divided as strata based on their work division as purchasing
department, transportation, warehouse department, Inventory controlling department,
Informatics, Return goods handling and Customer service management departments.
Then all 33 target employees were included in the study, because they are small in number. In
order to collect data and meet the objective of the study the student researcher selected subject
respondents from the total population based on two stage sampling technique, stratified random
sampling for selecting departments and census for selecting respondents from departments.
This chapter deals with the presentation analysis and interpretation of data collected through
questioner. Therespondents in the hospital are from purchasing, logistics and material
management, warehouse management, customer service management,and transportation and
quality assurance department. The research selected 33 respondents who are working in the
logistics activities department for questioner. Finally data obtained from different respondents as
follows.
Total 33 100%
2 Age
a) 20-30 15 45
b) 31-40 13 40
c) Above 41 5 15
Total 33 100%
3 Qualification of
respondents
a) Diploma 10 30
b) BA degree 21 64
c) Master degree 2 6
d) PHD - -
Total 33 100%
4 Work experience of
respondents 7 21
a) 0-2 years 16 48
b) 2-5 years 10 31
c) >5 years
Total 33 100%
As indicated in the above table (4)about the demographic characteristics of respondents presents
that the majority of respondents 21(64%)are males and 12(36%) are females. On the other hand
13(40%)of respondents are in the age of group of 31-40 years. From thoserespondents 21(64%)
of them are degree holder and 10(30%) of them have diploma and 2(6%) have master degree.
From the work experiences of the employee in the logistics and material management
department accordingly 7(21%) of the respondents have between 0-2 years of work experience
and 10(31%) of them have above 5 years of work experience whereas 16(48%)of the respondents
have 2-5 years of work experiences. From the table and interpretation it implies that majority of
the employees are degree holder and have two to five years of work experience.
Table 5 level of logistics service quality
Total 33 100
Total 33 100
Source: own survey (2017)
As shown in table (7) above, about the measurement and evaluation of logistic service quality
17(52%) of the respondents agree for that has evaluate and measure logistics service qualityand
4(12%) of the respondents strongly agree that the hospital evaluates and measures the extent of
the logistic service quality while 2(6%) of the respondents responded that there is no any
measurement and evaluation regarding the logistic service quality on the other hand 10(30%) of
the respondents responded that they have no any information about logistic service quality. This
implies that the hospital evaluates and measure logistics service quality.
Total 33 100%
Source: own survey (2017)
As shown in the Table (8) that based on the question, does the hospital examine the existence of
logistics service quality, 15(46%)respondents replied that the hospital does not examine logistics
service quality while 6(18%) of those said that the hospital examine logistics service quality
properly, on the other hand 12(36%) of the respondents have no opinion about examination of
logistics service quality.this implies that the hospital does not examine logistics service quality.
Total 33 100%
Source: own survey (2017)
As shown in the above Table (9) that based on the attitude towards the level of working towards
achieving logistics service quality in the hospital , 6(18%) of respondents replied that the
employee are highly eager for achieving logistics service quality and18(55%) of respondents are
said that workers of the hospital works towards logistics service quality. On other hand 3(9%) 0f
respondents replied that there is low level of working towards achieving logistics service quality
and 6(18%)of which said that they have no any opinion about working towards logistics service
quality.as result this shows that the hospital does work towards achieving logistics service
quality.
Total 33 100%
Source: own survey (2017)
Based on the above Table (10) regarding the hospital provide responsive service to customers 14(42%)
respondents argued that there is no strong responsive service to customers, 2(6%) of the remaining
respondents said that there is sufficient responsive services and 16(49%) of respondents suggested that
they have no opinion towards the responsive logistics service to customers and 1(3%) of the total
respondent said that there is provision of responsive service to customers.this implies the hospital does not
provide responsive logistics service.
Table 11: extent of the hospital ready and willing to help customers by providing prompt
timely service.
Total 33 100%
Source: own survey (2017)
As indicated the above Table (11) indicated that extent to which the hospital is ready and willing
to help customers by provide prompt timely service the respondents respond that 13(40%) of
those said that the hospital highly ready and willing to provide timely service to customers and
those of 16(48%) respond the employee are ready and willing to provide timely service to
customers on the other hand 1(3%) of those respondents argued the hospital too late to provide
timely service to customers , while 3(9%) of respondents have no opinion about readiness and
willingness to provide timely service or not. this implies that the hospital is willing and ready to
help customers.
Total 33 100
Source: own survey (2017)
As shown in the table (12) based on the concept and skill of logistic service towards workers
8(24%) of the respondents replied that the workers in the hospital have equipped with concept
about logistic services and 18 (55%) of the respondents responded that the workers of the
organization have no concept towards logistic service in addition 7(21%) of the respondents
responded that majority of the workers have no opinion towards concept of logistic services.as
aresult majority of the hospital employees have no logistics service quality concept.
As shown in the above table (13) regarding the question of attitude of beliefs and recognize
towards the importance of logistic service quality13 (40%) of the respondents responded that the
logistic service quality has great importance toward achieving organizational goals and
objectives and14(42%) respondents responded that the hospital recognize the advantage of
logistics service quality on the other hand 3(9%) of respondents respond that they have no
opinion about the advantage/importance of logistics service quality on the over all operating
environment, while 3%(9%) of the respondents implied that logistic service quality has no
impact on achieving organizational goals and objectives.
Table 14 the competence,courtesy and credibility of the hospital to inspire trusts to all
deserved customers.
Total 33 100%
From the table (14) shows that the respondents response towards competence, courtesy, and
credibility of the hospital 15(46%) said that the hospital is highly competent, courtesy and
credible to hospitals operation to inspire trust to all customers and those of 12(36%) respond the
hospitalsis competent, courtesy, and credible to customers while 2(6%) of respondents argued
that the hospital is not competent, courtesy, and credible to customers. But those of respondents
4(12%) said that they have no opinion about competence, courtesy and credibility of hospitals
towards the customers.this implies that the hospital is competent ,courtesy, and credible to
inspire trust .
As shown in the above table (15) it indicates that the attitude of respondents towards
theexistence of independent logistics department, from the respondents 7(21%)of the total
implied there is independent logistics department separately with 13(40%) of respondents
response. contrary to this 4(12%) of respondents respond there is no independent logistics
department in the hospital with 1(3%) strongly refused the existence of independent logistics
department and 8(24%)of the respondents have no opinion towards the existence of independent
logistics department. This description impliesthat the existence of independent logistics
department in the hospital.
Total 33 100
Source: own survey (2017)
As shown in the table above (16) regarding employees attitude towards meeting customer
satisfaction indicates that 26(79%) of the respondents responded that the employees have very
good attitude towards meeting customer satisfaction while 6(18%) of the respondents responded
that employees have good attitude toward meeting customer satisfaction on the other hand 1(3%)
of the respondents responded that the hospital employee have low attitude towards meeting
customer satisfaction.
According to the data most of respondents replied that logistics is an important activities in the
hospital and also a significant cost reduction can be achieved through a good logistics
management. In order to meet the customer requirement having quality of logistics service have
avital role that plays in the hospital and it is important to reduce delays that occur in the
operation etc.
Question2.Whatare the major problemthat face the hospital to implement effective logistics
service quality system?
As the question replied to the manager that the manager responded as the problem that faced the
hospital for implementing effective logistics system is that divided into two as manager view this
are general and specific problem. The general problem are first there is insufficient level logistics
professional in the hospital and have no well-organized environment for implementation such as
modernized warehouse, latest technology for adaptation of the contemporary logistics system.
And also lack of networking system with internal and external customers and lack of budget are
the most general problems that faced the hospital. The specific problems are like insufficient
number of beds for patients .lack of computer that is most of activities are performed by
manually that increase deliance, insufficient number of ambulance that serve the society.
Question3. Does the organization have integrative logistics system with other department?
As the question replied to the manager responded that there is integrative logistics activities with
other departments such as logistics with finance, human resource management, warehousing,
customer service etc.as he said that if there is effective integrative system with other department
it is vital for having high level of logistics quality that render to the customer.
CHAPTER FIVE
This Chapter deals with summary, conclusion and recommendation based on the analysis and
interpretations made in chapter four. The student researcher is tried to make recommendations
for the raised problems.
5.1 SUMMARY OF MAJOR FINDINGS
The purpose of this research was to assess logistics service quality in case of Gamby teaching
general hospital. Therefore according to the discussion and analysis of data presented under
chapter four the following findings were drawn.
It was found that in the hospital there is sufficient level of service quality
The result of analysis reveals that independent logistics department exists in the hospital
as was found with the help of descriptive statistics analysis most of the hospital
employeeshave not logistics and related concepts
As noted by most of the respondents most of the logistics activities are performed in the
hospital such as purchasing, warehousing inventory management, transportation customer
services and others.
As it has been found effective operation of the logistics activities are not well coordinated
due to lack of enough logistics knowledge and using modern logistics technologies
The result of analysis revealed that the hospital does not examine logistics service
quality.
Most of the respondents agreed that the hospital have good attitude towards meeting
customer satisfaction
It was found there is moderate ratio of provisions of reliability of logistics service quality.
The result of the analysis shows that Gamby teaching general hospitalisworking towards
achieving logistics service quality.
More over it has been found that the hospital does not provide responsive logistics
service to customers.
5.2 Conclusion
This research was conducted to assess logistics services quality in case of Gamby teaching
general hospital. In particular this research attempted to answer the following four basic
questions:
1. Does the hospital examine the assurance of logistics service quality?
2. Does the hospital assess and examine the reliability to improvelogistics service quality?
Depending on the finding of the study, the following conclusions were made.Logistic service
quality of the hospital involves effective coordination and operations of purchasing, return
handling, inventory management, management information system, transportation etc. on the
other hand logistics services quality depends to equip the employees enough logistics knowledge
and developing effective mechanisms to improve logistics service quality . This study offers
more insights into the subject area of logistics services quality by combining the variables of
service quality, customer satisfaction. Motivated by this, the current study designed a construct
that included service quality, customer satisfaction. Out of 33 distributed questionnaires all of
them were collected and used for analysis and the following conclusions are given from these
responses: Based on the analysis results obtained by the researcher the following conclusions are
concluded.
Among the variables in the service quality the analyses showed that the first sensitive area is
evaluation and measurement of logistics service quality problems, like lack of awareness of
logistic importance Generally top important dimensions for Gamby teaching general hospitalare:
there is no provision of responsive logistics service quality, the hospital managers and employees
does not examine logistics service quality and most of employees have not logistics related
concepts.
5.3 Recommendations
In view of the conclusion, the following build suggestion and recommendation were made in the
hope that they would minimize the problem identified in the study area.
This research has important practical findings for the hospital. Long term success in the market assumes
orientation on satisfaction of customer demands.
According to the findings, the quality improvement efforts of private hospital is advised
to mostly focus on provide sufficient level of logistic service.
Enhance the logistic knowledge of employees through continuous training
Modernizing equipment, timeliness of care delivery, accuracy of performance as well as
on enhancing the interpersonal relationships and communication skills of its physicians,
nurses and other personnel.
Make available provisions of responsive logistics services.
Managing time in queuing
Give employees effective training and development skill and give incentive to which able
employees to deliver prompt service to customers. According to the service profit chain
model the satisfaction of employees/internal customers contributes indirectly for the
satisfaction of external customers.
Recognizing and Understand what customers really want through ongoing learning about
the expectations and perceptions of customers and number of customers by conducting
customer service.
Based on the limitations that have been encountered in this study, certain points have been
suggested for future researchers. It will be considered worthwhile if it can be included whether
the researchers conducted with different practical variables and increasing the number of study
variables. implementation of logistics service quality has any impact on hospitals performance
and competitive advantage of it and can be used to measure LSQ. Finally,the conceptual
framework that has been developed in this study may need further testing because this study was
restricted on hospital (gamby teaching general hospital). There for the future researcher will
conduct on various hospitals,thus future researchers will conduct more sound research by
overcoming these limitations.
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APPENDIX
Instructions
Please read carefully before making any decision, because your correct response will help
for the success of our study.
Please put mark ( ) in the box in front of each question.
No need to write your name and address.
1. Personal information
2.
Sex: Male Female:
Age 20-30 31-40 41 and above
3. Education statuses
Scale:
To what extent do you agree/disagree with the following statements? (Scale: 1=strongly
disagree; 2= disagree; 3= no option (neutral); 4= agree; 5=strongly agree).
1 2 3 4 5
I. Reliability
II. Responsiveness
1. The hospital has great access or attitude towards the existence of independent
logistic department.
INTERVEIW QUESTION
1. What are the advantages of independent logistics department that exist in the
hospital?
2. What are the major problems that hinder the hospital for implanting effective
logistics service quality ?
3. Does the hospital have integrative logistics service system with other departments?a