CHAPTER I

INTRODUCTION

Today, logistic management has become an integral part of business and is

essential for any company’s success and customer satisfaction. Logistic management has
the power to boost customer service, reduce operating costs and improve the financial
standing of a company. A logistics activity is basically a group of independent
organizations connected together through the products and services that they separately
and/or jointly add value in order to deliver them to the end consumer. The right product
and the correct quantity have to be delivered in a timely manner, to be appeased both
producers and distributors.
Logistics is the process of planning, implementing and controlling the efficient
flow and storage of goods, services and related information as they travel from point of
origin to point of consumption. Logistics involves the integration of information,
transportation, inventory, warehousing, material handling, and packaging. Logistic
management is more than efficient movement of goods from its origin to destination
point. There are several types of strategic and operational decisions to be made in logistic
management in order to serve customers better and operate efficiently than competitors.
Logistic services and transportation in general are the blood stream of today’s society.
Among the important decisions to be made is a location decision from the side of
strategic decisions and transportation decisions from operational side to realize an
efficient logistic practices.
Each year, billions of dollars are spent globally to develop, manufacture, operate,
and maintain transportation systems such as aircraft, ships, trains, and motor vehicles.
These systems carry billions of tons of goods and billions of passengers annually from
one point to another point throughout the world. Transport tends to be the main
component of logistics services, and its share in overall logistics cost has actually been
increasing in recent years. Delivering quality service is considered as an essential
strategy for success and survival in today's competitive environment. In particular, the
growth of containerized transport, together with technological developments improving
the systems for transferring cargo between different modes, has considerably affected
modern transport patterns and practices.

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 The transport sector plays a central role in every country modern national
economy. Physical distribution has been recognized as vital to the economy of firms and
countries. Transportation provides two functions product movement and storage. As the
movement of people, animals and goods from one location to another and as storage
goods stay there until unloaded. It is only through the transport of goods (raw materials,
intermediate and finished products) and people (workers, travelers, consumers) that the
division of labour and the production of value added can be finally ensured in all sectors
of economic activity. Against that background of internationally growing trade in goods
and services, the transport sector has gained significance.
Road transport is one of the most used modes of transport due to its flexibility,
availability and speed. It is best suited for small shipments that need to be transporter for
short distances. Roads led to just about everywhere now a days and customers are used
to getting their products right to their home in little time. This is why most of the
shipments made from distribution centres to customers are made with road transport. An
inefficient road transportation system may lead to firm incurring high cost to deliver
product to customer, and this may lead to loss for the firm; and the transport system must
be able to address the major issues of the mode selection, route selection and fleet size
because it is the vital force for competition for the firm.
Freight transportation service is crucial for facilitating trade within Myanmar and
with other countries. Myanmar has significant export potential, particularly in sectors
such as agriculture, manufacturing, and natural resources. Freight transportation service
are essential for transporting these goods to local or international markets. Freight
transportation service enable the movement of goods from production centers to
distribution points, ensuring that products reach consumers in a timely manner. Efficient
freight transportation networks help reduce supply chain costs, increase market access,
and promote economic growth. Reliable logistics networks allow exporters to meet
delivery deadlines, maintain product quality, and compete effectively in the markets. The
availability of efficient freight transportation service is crucial for industrial development
in Myanmar. A well-functioning freight transportation service ensures the smooth flow
of materials and products, supporting industrial growth.
The road is the most important form of freight transport in Myanmar. And road
transport has become one of the predominant modes of transport in Myanmar, aside from
other modes like rail, water, and air. This mode of transport serves the vast majority of
Myanmar due to its cheap nature. With the population, distribution, and manufacturing
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growth in Myanmar, the transport industry has grown alongside. With this development,
there has been an emergence of small and medium-sized transportation companies to
meet the growing demand. Among them, Shwe Mandalay Transportation Service
Enterprise is one of the most popular and famous transportation service businesses
in Mandalay. Shwe Mandalay Transportation Service Enterprise is offering domestic
transportation service with the largest virtual truck to customers within Myanmar,
providing goods transportation and logistics for anywhere in the country. This
organization carries millions of tons of trucks every single day. This organization was
aimed at providing a fast, reliable, and regular connection to all customers. The
inefficient freight transportation operation of Shwe Mandalay Transportation Service
Enterprise will result in delivery delay, high cost of logistics, loss of customers, poor
quality of service, discrepancy in quantity delivered, production interruption, and an
extension of lead time. In today’s Myanmar, a large number of companies outsource
their logistics functions to freight transportation service providers in order to focus on
their core competencies. Therefore, freight transportation service providers have become
important players in many production, distribution, and manufacturing industries because
these take part in cost reduction, reduce transit time, and improve the service quality of
their customers.

1.1 Rationale of the Study

Logistics plays the most significant role in supply chain operations. Logistics is a
part of the supply chain process that plans, implements, and controls the efficient,
effective forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet
customers’ requirements. In the whole logistics activities, transportation service plays the
most important and significant role in logistics performance. Transportation ensures
efficient product delivery to the final consumer, that the ultimate customer needs are
served better, and that the organization yields maximum returns. Road transport is one of
the most important modes of transport and plays a major role in logistics activities.
Freight mobility is playing an increasingly important role in transportation planning,
service, and investment at local, state, regional, national, and international levels.
Transportation on roads can be roughly grouped into the transportation of goods
and transportation of people. The transportation of good has become a key component of
many industries today, as it provides a cost-efficient, quick transportation solution and
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truck can also be used for temporary storage at ports with limited warehousing facilities.
Road transportation creates flexibility of service since numerous routes and destinations
are possible. It offers directness and door-to-door communication is made possible. It
enables great speed and cheapness over short distances, continuous movement is made
possible. Road transportation carries more goods within localities because they are
normally constructed to connect towns and villages where rail, air and water
transportations are absent. Road transport is capable of high level of passenger and goods
utilization and energy efficiency; it is often more flexible than other transport such as rail
road and air transport.
Transportation service are an outsourcing of transport and logistics activities to
outside companies. Myanmar of transport sector is an important component of the
economy and a common tool used for development. Myanmar’s economy heavily relies
on agriculture and manufacturing sectors, which both require efficient transportation
networks to move raw materials, intermediate goods, and finished products. Local freight
transportation service on road enables farmers to transport their produce to markets
efficiently, reducing post-harvest losses. Similarly, manufacturing industries benefit from
reliable road transport for the distribution of inputs and finished goods. Nowadays,
Myanmar have a lot of freight transportation service companies for export and import
product with various truck types and transportation process to gain competitive
advantage via their firm’s logistics activities process.
Better freight transportation service has the potential to positively influence
firms’ performance in terms of cost reduction, timely delivery, reduced lead time,
demand realization, increased market share, quality products, and customer service
satisfaction. Therefore, many freight transportation service used logistics activities to
provide products to customers on time and at a lower cost than competitors, with the
objective of fulfilling the country’s export and import sectors.
Shwe Mandalay Transportation Service Enterprise is established more than 10
years ago, Shwe Mandalay Transportation Service Enterprise is one of the leading local
providers of integrated logistics and freight forwarding services. It supports the local
transport of goods between industrial and trading companies by offering local road
freight and associated logistics services. Facing the intensive competition in the
transportation service industry, in order to keep competitive, Shwe Mandalay
Transportation Service Enterprise must go in the front of providing their customers with
better logistic service but lower cost. Transport reliability, accessibility, capacity, safety
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and information, known as the backbone of the logistic operation, plays a central role in
exploring more effective and efficient logistic solutions.
Today, a customer who purchases road transportation service first looks at
whether or not the transportation service can make the delivery of their goods reliable or
not. It is because if they purchase a road freight transportation service that is unreliable,
the products or goods will not arrive on time, as well as any damage that may occur.
Therefore, minimizing time, avoiding damage, and reducing costs while ensuring reliable
delivery of goods depend on the efficient transportation system of Shwe Mandalay
Transportation Service Enterprise. Freight shipments take hours to several days,
depending on the destination of the freight and the nature of the freight. At this time,
safety and travel times were important, because if there is an accident or waiting due to a
traffic jam, Shwe Mandalay Transportation Service Enterprise has the responsibility to
minimize the damage to the goods in trucks as much as possible. to store and better
understand the costs, rates, and actual delivery times. If there is any damage, the firm
will have to pay compensation to customers, and repair costs will be incurred, which can
lead to a bad relationship with the customer and affect the profit of the business.
Shwe Mandalay Transportation Service Enterprise is trying to increase the
number of truck lines (or) road modes year by year in order to deliver all local freight
routes. Because if this transportation service can serve more local freight routes and
transport more trucks, customers rely on this organization more than other transportation
businesses’ lines, so Shwe Mandalay Transportation Service Enterprise hopes to get
more benefits for this business. Truck capacity management is also an important part of
Shwe Mandalay Transportation Service Enterprise. Many types of trucks have been
arranged in order to transport more tons and capacities of goods. If the tonnage between
the goods and the cargo or truck is not balanced, there may be a car accident during the
delivery process, there may be fines due to the government’s freight regulations, and
there may be damage to the product due to overloading. Depending on the quantity of the
customer's goods, Shwe Mandalay Transportation Service Enterprise has to negotiate the
capacity of the trucks and comply with regulations with the allowances of tons so that
they can be delivered within the specified time without damage or cost. In addition,
information technology is also considered a factor for Shwe Mandalay Transportation
Service Enterprise to fulfill quick responses according to customer requirements and to
smother the information flow of the delivery operation process. All customers want to

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minimize time and the right place by providing correct information and quick responses
in the process of transportation.
Therefore, Shwe Mandalay Transportation Service Enterprise recognizes that its
highway-freight performance affects all components of logistics costs—transport costs,
compensation costs, and inventory costs. Within this organization, the logistic activities
include all functions involved in receiving and filling a customer request. Improved
highways directly reduce the cost of carriage, transit time, and the buyer-supplier
relationship. Reduced transit times; it also reduces vehicle operating costs. The smoother
the information flow, the earlier information can be reached to customers and the internal
operation process.
The study mainly focuses on the five dimensions of transportation service such as
reliability – accurate service without making any mistakes; accessibility – quality of
trade and availability of a range of services; capacity—ability of track and load size;
information technology – to fulfill quick responses according to customer requirements;
and safety –offering stability and safety during transit. The study addresses how much
the Shwe Mandalay Transportation Service Enterprise effects the overall performance
using the transportation service and also measures in terms of time delivery, improved
information, reduced transit time, and an improved buyer-supplier relationship.

1.2 Objectives of the Study

The objectives of the study are;
1. To identify the freight transportation service of Shwe Mandalay
Transportation Service Enterprise.
2. To analyze the effects of freight transportation service on the performance of
Shwe Mandalay Transportation Service Enterprise.

1.3 Methods of Study

This study focuses on the freight transportation service of the Shwe Mandalay
Transportation Service Enterprise in Mandalay. This study was used both primary data
and secondary data. There are managerial level 43 employees and non-managerial level
74 employees, totaling 117 employees in Shwe Mandalay Transportation Service
Enterprise in Mandalay. Among them, this study selected 40 managerial-level employees
and 35 non-managerial-level employees (staff and drivers) as sample respondents at
Shwe Mandalay Transportation Service Enterprise in Mandalay. These 75 employees are
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responsible for the operation processes of goods or flight transportation service at Shwe
Mandalay Transportation Service Enterprise. The respondents were selected using a
simple random sampling method. The primary data was collected by using structured
questionnaires with a five-point Likert scale. Moreover, personal interviews were
conducted with the owners, managers and staff about their organization of freight
transportation service at Shwe Mandalay Transportation Service Enterprise. Secondary
data was obtained from company reports, text books, journals, previous research papers,
and articles on the internet. The data collection periods November, 2023.
Descriptive statistics, correlation analysis and regression analysis were used in
this study. Descriptive statistics was used to describe the profile of respondents and their
perceptions of transportation service and firm performance. Correlation analysis was
used to test the relationship between transportation service and firm performance.
Multiple regression analysis was used to analyze the effect of transportation service on
firm performance of Shwe Mandalay Transportation Service Enterprise.

1.4 Scope and Limitations of the Study

Among the transportation service, the study emphasized transportation service
(reliability, accessibility, capacity, safety, and information technology) to examine the
performance of Shwe Mandalay Transportation Service Enterprise. There are over 50
registered road freight transportation service organizations in Mandalay. Among them,
Shwe Mandalay Transportation Service Enterprise was selected for this study. This study
was only focused on the freight transportation service of Shwe Mandalay Transportation
Service Enterprise. In this study, only 75 employees were asked about the importance of
transportation services for firm performance. Therefore, this study does not cover all of
the employee perceptions of the transportation service of Shwe Mandalay Transportation
Service Enterprise in Mandalay. In addition, this study does not cover other areas such as
employee performance, employee satisfaction and customer loyalty.

1.5 Organization of the Study

This study includes five chapters. Chapter I describes introduction, rationale of
the study, objectives of the study, methods of the study, scope and limitations of the
study and organization of the study. Chapter II presents the literature review on logistics
concept, transportation management, firm performance, previous research studies on
transportation service and the conceptual framework of the study. Chapter III presents
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the profile Shwe Mandalay Transportation Service Enterprise, organization structure of
Shwe Mandalay Transportation Service Enterprise and freight transportation service of
Shwe Mandalay Transportation Service Enterprise. Chapter IV presents analysis the
effects of the freight transportation service on the performance of Shwe Mandalay
Transportation Service Enterprise in Mandalay. In the last Chapter V, represents
conclusions based on the findings, suggestions and recommendation, limitation and
needs for further research.

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 CHAPTER II
LITERATURE REVIEW

This chapter presents the literature review of logistics management,

transportation management, freight transportation service, firm performance, and
previous research studies on freight transportation service and conceptual framework of
the study. Firstly, the concept of logistics is described. And, the concept of transportation
management is presented and the five components of the freight transportation service
are explained. Third, the concept of firm performance is described. Finally, the previous
study on road freight transportation service is described and conceptual framework of the
study is presented.

2.1 Concept of Logistics Management

In 1991 the Council of Logistics Management, a trade organization based in the
United States, defined 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.” Logistics management is a big part of the supply chain
management within an organization. Logistics management is defined by Council of
Supply Chain Management Professionals (CSCMP) as “that part of supply chain
management that plans, implements, and controls the efficient, effective forward and
reverse flow and storage of goods, services and related information between the point of
origin and the point of consumption in order to meet customers' requirements.” Along
with logistics management usually also includes transportation, warehousing, inventory
control, order fulfilment, material handling, packaging and the planning of supply and
demand. In some companies also procurement and sourcing, production planning and
scheduling, reverse logistics, and customer service are included in the logistics
management tasks (Vitasek, 2013).
According to Kotler (1998), “logistics involve planning, implementing and
controlling physical flow of material and final (finished) goods from the point of origin
to the point of use to meet customer requirements, at a profit. Logistics management is
that part of the supply chain process that plans, implements and controls the efficient,

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effective flow and storage of goods, services, and related information from the point-of-
origin to the point-of-consumption in order to meet customers’ requirements (Waters,
2003).
Logistics management is the process of anticipating customer needs and wants;
acquiring the capital, materials, people, technologies, and information necessary to meet
those needs and wants; optimizing the goods or service producing network to fulfill
customer requests; and utilizing the network to fulfill customer requests in a timely way
(Coyle, 1996). A basic definition of logistics is the process of strategically managing the
procurement, movement and storage of materials, parts and finished inventory and
related information flows through the organization and its marketing channels in such a
way that current and future profitability are maximized through the cost-effective
fulfilment of orders (Bowersox et al., 2020).
The goal of logistics management is to ensure that goods are delivered to the
right place, at the right time, and in the right condition, while minimizing costs and
maximizing efficiency. This involves optimizing the supply chain to achieve the best
balance between customer service and cost-effectiveness. Logistics management plays a
crucial role in business operations, particularly in industries such as manufacturing,
retail, and e-commerce, where timely and efficient delivery is critical for customer
satisfaction and retention. It helps organizations improve their supply chain efficiency,
reduce transportation and warehousing costs, and increase their overall competitiveness
(Iimm, 2020).
The purpose of logistics management is to obtain efficiency of operations through
the integration of all material acquisition, movement, and storage activities. When
logistics issues are significant or expensive, many firms opt for outsourcing the logistic
function. Logistics management is an integrating function, which coordinates and
optimizes all logistics activities, as well as integrates logistics activities with other
functions including marketing, sales manufacturing, finance, and information technology
(Heizer & Render, 2006).
Logistics activities can be sorted into two groups, primary and supporting
activities. There are four primary activities: customer service, transportation, inventory
management, and order processing which help most in the logistics management goals
and objectives and represent the biggest costs (Ballou, 2004) the. The primary activities
in logistics management are also considered the core logistics elements. This is because
they crucial in completing logistics task and usually account for the most of the costs
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associated with logistics management. The supporting activities are not necessary a part
of every organization logistic activity but support the primary activities in reducing costs
and improving service. These are for example warehousing, purchasing, material
handling, packaging, production scheduling, and information maintenance. (Lai & Cheng
2009)
The key issues normally considered in logistic management are (i) logistics
integration, (ii) facility location and network design, (iii) transportation and vehicle
routing, (iv) material handling and order picking, (v) customer service, (vi) product
design, (vii) logistics of production and operations, (viii) warehouse management and
distribution strategies, (ix) inventory management, (x) information systems and DSS, (xi)
e-commerce and e-logistics, and (xii) reverse and green logistics. These areas interact to
a large degree with other functions of the organization, and with other elements of the
supply chain. They can hence benefit a great deal from efficient management based on
information and optimization systems (Sinha, 2020). The primary objective of logistics
management is to maintain a smooth flow of materials in a supply chain effectively so as
to fulfil the customers’ desired level of satisfaction. Logistics management involves
storage, distribution, warehousing, good handling, transportation, monitoring and
delivery of goods. It also entails planning, organizing, managing, coordinating and
controlling the flow of goods to ensure that goods reach the right place, at the right time,
for the right cost and in the right condition. Logistics management also strives to
maintain ethical integrity throughout the organization (Iimm, 2020).

2.2 Transportation Management

Transportation moves goods between origins and destinations using vehicles and
equipment such as trucks, tractors, trailers, crews, pallets, containers, cars and trains.
Transportation represents the major role and most important element in logistics because
of its considerable cost. Transportation usually represents the greatest distribution cost. It
is usually easy to calculate because it can be related directly to weight or numbers of
units. Costs must be carefully controlled through the mode of transport selected amongst
alternatives, and these must be constantly reviewed (Rezapour, 2011).
Transportation is essential in physical distribution. It does with both movements
of raw materials to the plant and of semi-finished products or finished product to the
market. Transportation is responsible for the movement of goods between facilities and
between points in the supply chain. The hearts of logistics are transport vehicles moving
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goods between suppliers and customers (Cochran, 1991). The mode of transport
describes the type of transport used. There are basically five different options – rail, road,
water, air, pipeline and intermodal transport. Each mode has different characteristics, and
the best in any particular circumstances depends on the type of goods to be moved,
locations, distance, value and a whole range of other things (Water and Soman, 1990).
Transportation management can be defined as the movement of goods from one
place to another as it moves from the supplier to the final customer. Transportation
management includes outbound transportation management, which refers to the
management of transportations from company to customer, and inbound transportation
management, which in turn is the management of transportations from supplier to
company. Transportation allows goods to come a long way from suppliers, in sometimes
completely different continents, to distribution centres from where they continue their
journey to stores and final customers. Sometimes however the customer is not happy
with the product and they want to return it in which case transportation is needed in
reverse, from end customer back to company. Not only finished goods are being
transportation, sometimes raw materials, or works in progress also need to be transported
to the next process in manufacturing, any time even a small component of the final
product needs to be moved from one place to another its part of transportation
management (Bhatnagar, 2009).
Transportation management is a very visible part of logistics. Consumers are
accustomed to seeing trucks and trains transporting product or parked at business
facilities. Few consumers fully understand just how dependent their economy is upon
economical and reliable transportation. Transportation provides two major logistical
services: product movement and product storage. Whether in the form of materials,
components, work-in-process, or finished goods, the basic value provided by
transportation is to move inventory to specified destinations throughout the supply chain.
The performance of transportation is vital to procurement, manufacturing, and customer
accommodation. Transportation also plays a key role in the performance of reverse
logistics. Without reliable transportation, most commercial activity could not function.
Transportation consumes time, financial, and environmental resources. Transportation
also uses financial resources. Transportation cost results from driver labor, fuel, vehicle
maintenance, capital invested in equipment, and administration. In addition, product loss
and damage can represent significant costs. A less visible aspect of transportation is the
provision of product storage. When a product is in transportation vehicle, it is being
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stored. Transportation vehicles can also be used for temporary product storage at
shipment origin or destination (Bowersox et al., 2020).
Transport is responsible for the physical movement of materials between points
in the supply chain. It is the heart of the all logistics. As transport also takes time, it can
make the direct impact on time utility and therefore it’s crucial to understand the role of
the transportation. There are several types of transportation systems available and each
concerns with the selection of most economical transportation mode e.g. sea, rail, road,
and air. Every organization uses transportation whether it’s for raw material or finish
product to end customers (Waters, 2009).

2.3 Freight Transportation Service

The transportation part of the logistics processes one of the most visual parts as
everything has seen deliveries being made, UPS cars, trucks on the highway, trains with
bulk shipments, and some might even have seen a cargo ship. Each mode has different
characteristics, and the best in any particular circumstances depends on the type of goods
to be moved, locations, distance, value and a whole range of other things (Bhatnagar
2009).
According to Gunasekaran & Kobu (2007) and Strathman et al. (2012), freight
transportation service is categorized by eight parties: transit line, reliability, level of
service (loss), accessibility, safety, capability, information technology (IT), and
infrastructure. Katsikides et al. (2017) measures the transport service which includes
truck travel times, travel time reliability, safety, infrastructure conditions, and
congestion. Other tools include freight demand measures such as freight capacity and
truck parking and freight efficiency measures such as travel time, speed, reliability and
freight bottlenecks. Therefore, this study is focused mainly on the reliability,
accessibility, capacity, safety and information technology in the transportation service to
enhance the firm performance level.

2.3.1 Reliability
Reliability is the capacity of driver the expected service dependable and
accurately. A reliable transport is one that arrives on time. Reliability is defined as the
ability to perform the promised service dependably and accurately. In broad sense
reliability means, service firms' promises about delivery, service provisions, problem
resolutions and pricing. Customers like to do business with those firms, who keep their
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promises. So, it is an important element in the service quality perception by the customer
and his loyalty. Hence the service firms need to be aware of customer expectation of
reliability. In the case of transportation service, the reliability dimension includes -
regularity, attitude towards complaints, consistency, procedures and etc (Beshers, 2015).
According to Varma (2012), the probability that an item will carry out its stated
mission satisfactorily for the specified time period when used according to the specified
conditions. This category refers to both network (N) and service (S) reliability and ability
of shippers and carriers to meet customers’ expectations using network of infrastructure
and as well as dealing with all administrative, regulatory, and business processes
impacting freight movement. The considerations increasingly complex for international
and global movements as supply chains are long and involved. This category is very
much intertwined with travel time, capacity, and access categories. Businesses are not
much hung up on exact values of time or distances or capacity but would rather have an
understanding of the ranges within which they have to develop their business plans to be
successful and deal with contingencies. Freight industry is committed to meet customer’s
expectation and provide reliable service. Thus, travel times during incidents—weather or
accident related--and emergencies, is important to develop a sense of the range within
which one has to operate.
Reliability is a key dimension that customers can evaluate the quality between
they received and what the provider promised during the delivery process e.g. service
provision, problem resolution and pricing. In view of this, all firms need to be aware of
customer expectations of reliability (Bebko, 2000). This is the ability to perform the
promised service accurately and dependably, which means the organization provides its
customers with accurate service the first time without making any mistakes, and delivers
what it has promised to do by the time that has been agreed upon (Berry et al., 1994)
Improved transportation reliability allows business to reduce the cost of logistics.
Reducing late deliveries enables a reduction in inventories (safety stocks) and allows
more centralized warehousing and delivery processes to be put in place. The reliability
tool takes information on the type of highway, projected traffic volume, speed, lanes and
capacity, and generates measures for travel time index, average delay, buffer time, and
cost of delay (Beshers, 2015).

2.3.2 Capacity

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 Capacity is the ability of a mode to handle any transport requirement, such as
load size. Water transport is the most capable. Capacity is the supply side measure of the
ability of a facility to carry traffic. It is the maximum number of motorized vehicles per
hour that can travel on a particular stretch of roadway under relatively ideal conditions
such as proper lane widths, no parking, no bus blockages, etc. Capacity is a function of a
number of variables including number of lanes, lane width, shoulder width, presence and
type of control devices, free flow speed, and other features (Strathman et al., 2012)
Capacity is defined as the maximum hourly rate at which vehicles can reasonably
be expected to traverse a point or uniform section of a lane or roadway during a given
time period under prevailing roadway, traffic and control conditions. Capability is the
ability of a system to cope with changes. As a key solution, it increases the variety of
volumes and delivery dates of services/products reducing costs thanks to quick decision-
making and adaptability. It fosters adaptation as speedy service depends on the
operation’s flexibility while diminishing the waste of time in “changing over” from each
task. Thus, maintaining the operation on time will forestall from unexpected events (Yu
et al., 2015).
This category refers to network and facility as well as vehicle and equipment
capacity issues related to freight movement. Having an adequate access to a major
generator could be treated as an access issue, which in turn could translate into capacity
issue for that mode as it restrains how much cargo can be moved within a certain time
frame. Often times, inability to move freight at desired volume/weight level and in
acceptable time frame is treated as capacity issue. For truck freight, tonnage flows need
to be converted into truck trips using estimates of payload and temporal factors. Since
medium- and heavy-duty trucks take up more roadway capacity than passenger vehicles,
truck trips need to be converted into passenger equivalent trips. (Varma, 2012).

2.3.3 Accessibility
Accessibility generally refers to physical access to goods, services and
destinations, which is what people usually mean by transportation. Accessibility refers to
the ease of reaching goods, services, activities and destinations, which together are called
opportunities. It can be defined as the potential for interaction and exchange.
Accessibility can be defined in terms of potential (opportunities that could be reached) or
in terms of activity (opportunities that are reached). Even people who don’t currently use

15
a particular form of access may value having it available for possible future use, called
option value (Engwicht, 1993).
Access is the ultimate goal of most travel activity, so accessibility-based planning
tends to best reflect what users want from a transportation system, and offers the widest
range of potential solutions to transport problems. Access is the goal of most transport
activity, except the small portion of travel for which mobility is an end in itself (e.g.,
jogging, cruising, leisure train rides). Even recreational travel usually has a destination,
such as a resort or campsite (Litman, 2023).
Accessibility is a point, zonal, district or area-wide measure of the availability of
a range of opportunities such as employment, schools, shopping, medical, recreation, etc,
by mode. Accessibility measures typically include travel distance and travel time. Other
factors such as level of congestion, parking availability/cost, tolls, and safety may be
included directly or indirectly. A destination may be physically close by but if obstructed
by a freeway or river or other restrictions, it may not be very accessible. No single
accessibility measure captures all possible factors. Accessibility is typically an area or
point measure and requires a network. Accessibility can be evaluated from various
perspectives. It is often measured for particular users, modes, activities, locations, times
and scales, such as the numbers and types of jobs or stores accessible to measure
multiple people’s ability to access multiple services and activities in an area (Levinson &
Wu, 2020).
Accessibility refers to access to physical facilities or type of vehicle or equipment
needed for freight movement. Freight connectors are good example of facilities related to
access issues. Need for containers and equipment for loading and unloading at transfer
centers can also be an access issue for freight industry—shippers and carriers; it may
impair their abilities and limit their choices, which in turn can have cost, rate, and
reliability implications (Varma, 2012).
Two types of freight accessibility measures are infrastructure-based and area-
based. Infrastructure-based measures focus on the mobility associated with transportation
infrastructure or services. Area-based measures quantify the accessibility of a given
location. These two measures differ in their measurement approach, but are interrelated
in their capacity to identify and assess freight accessibility problems or constraints.
Infrastructure-based measures are best suited to identifying the transportation
performance factors that may constitute the sources of accessibility constraints. Area-

16
based measures quantify the accessibility of a given location or user group (Geurs &
Wee, 2004).

2.3.4 Safety
According to Dhillon (2011), safety means that the conservation of human life
and the prevention of damage to items as per mission-specified requirements. In
addition, safety as the state of being safe; freedom from the occurrence of risk, danger, or
loss. It is the quality of averting or not causing injury, danger, or loss. Changes over time
in the level of transport safety, with a reduction in the number of accidents or the number
of killed or injured people defined as an improvement in safety performance. Transport
safety can be assessed in terms of the frequency and socio-economic cost of accidents
and injuries. Injuries is often an imperfect indicator of the level of transport safety.
According to Hussaini (2013), the concept of safety differs depending on the
perspective being adopted. Some categories it as maintaining zero incident/accident
occurrences, reducing hazards, and mitigating risks of malfunctions or errors. In the field
of customer behavior, the perception of safety is theorized as overlapping emotions of
nervousness, concern, and fear.
Safety metrics consist of truck-involved accident reports. This information should
consider fatalities, injuries, time of day, weather conditions, speeds, type of roadway,
type of truck, and other vehicles involved. Law enforcement typically produces
documentation for every truck crash that is reported. While this is a good source of
information, it is not uncommon for the information collected by law enforcement
(involving truck crashes) to be incomplete. Education of the need for accurate accident
reporting is key to obtaining accurate data to serve as performance measures (Knipling et
al., 2003).
Transportation safety management involves a number of diverse practices
ranging from equipment management (e.g., preventive maintenance) to driver-safety
incentive programs. Safety is a hierarchy in the quality of transport, which consists of
different class security is identified as a degree of safety from three aspects: safety from
crime/ safety from accidents/ perceptions of security. Improving transportation networks,
facilities, and infrastructure can indirectly decrease traffic facilities by encouraging non-
driving transport modes (Knipling et al., 2003).

2.3.5 Information Technology

17
 According to Sorensen and Buatsi (2002), information technology means as a
wide range of increasingly convergent and linked technologies that process the
information as well as the information that business generates and use. IT systems are
ever more required to perform activities more gracefully. Using information technology
in an organization has changed from being simply a tool for handling transactions to a
weapon that can influence an organization’s competitive position (Blanton et al., 1992).
Information technology has changed the way corporations run many businesses, and
changing traditional logistics system into an electronic logistics system has to be
considered by logistic service provider.
Information technology is a key element in the worldwide logistics productivity
improvements as technology continues to improve at an amazing rate. This allows the
well-equipped companies to achieve high levels of channel integration required to gain a
big share of the global market place. The adoption of information system also helps them
in having strategic relationship with their customers. The challenge in front of them is to
vision and build these systems in the most cost-effective way. Information and
operations systems for logistics management continue to be vitally important in
leveraging logistics to achieve a competitive advantage (Vaidyanathan, 2005).
The application of information technology is gradually spreading in most areas
of the companies especially to the logistics process. Information Technology is a vital
element for third party logistics performance because the integration of logistics provider
systems with its clients is must. Information Technology links members of a supply
chain, such as transportation firms, distributors, manufacturers, and retailers, as it
automates some components of the logistics workload, such as order status inquires,
shipment tracking, inventory management and order processing. Transactions costs can
be decreased and supply chain participants can also manage the increased complications
if considerable Information Technology improvements are made (Lewis & Talalayevsky,
2000).
The quality of transport service is also determined in terms of the manner and
type of information transfer. The forms and channels of information expected by the
client are: printed information marketing channels, a network of travel information
centers (transport services), modern telephone services (e.g. helplines), electronic
displays at communication points and in vehicles, carriers’ websites, mobile telephony,
integrated intermodal systems that enable obtaining information on the functioning of
various means of transport, as well as on additional services (Kim et al., 2007).
18
 Logistics user firms are more and more relying on transportation service to
utilize their advanced information technologies. Therefore, information technology in
transportation management plays vital role to synchronize complex supply chain
activities across logistics users and their customers, and works as a bridge of connecting
customers in supply chain and logistics users (Wang et al., 2008).

2.4 Firm Performance

Performance measurement is very important as a strategic tool and also provides
means to achieve the objectives required, fulfilling a firm's mission or strategy statement.
Many firms have been observed to evaluate performance, mainly on the basis of cost and
efficiency (Skinner, 1971). Besides the financial measures, the non-financial measures
which include time, quality and flexibility. Time element has strategic importance in
business and hence time has to be used as a strategic metric in performance measurement
(Stock et al, 1990). Organizational performance encompasses three specific areas of firm
outcomes: financial performance (profits, return on assets, return on investment); market
performance (sales, market share); and, customer satisfaction value added. The
performance of an organization is evaluated by how it reduces cost or increases value
(Tuttle & Heap, 2007).
Firm performance is measured through operational cost reduction and customer
service delivery levels. Firm performance include – return on asset (ROA), return on
investment (ROI), market share, sale growth, customer satisfaction, cost, employee
satisfaction, lead time and profit. Cost, lead time and customer satisfaction are one of the
most widely used measures of performance in logistics management. Cost is that most
organizations want low costs, but some adopt a positive strategy of minimizing their
logistics costs. This leads to high profits for the organization and lower prices for
customers. Time is that customers generally want products as soon as possible, so a
common logistics strategy guarantees fast deliveries. Timing can also mean rapid supply
of new products, or delivering at the time specified by a customer (Koufteros, 2005).
The firm performance is divided into three types: operational, financial, and
strategic performance. The operational performance is more relative to improvement of
the organizational activities, such as logistics cost reduction, on-time delivery, inventory
turnover, and cycle time reduction. The organizational financial performance is
measured based on the relationship between total revenue and cost that can be proxy by
profitability, return-on-investment, and return-on-sales. Finally, the strategic
19
performance is the improvement of market goals, such as sales, market share, growth in
sales and market share (Morgan, 2012).
McMullen et al. (2010) described that freight performance measures are tools
used to evaluate the level of accountability, efficiency, and effectiveness throughout the
various freight modes including air, rail, highway, and water/ marine transportation.
Performance measures provide a way to focus attention on the goals that an organization
has defined while monitoring whether those goals are being attained. On time delivery is
one of the most important determinants of delivery performance and delivery time is a
measure of customer satisfaction and helps in conceptualizing the link between
organizational operations and delivery channels. Customer satisfaction is at the heart of
every logistics strategy, no performance measurement is possible without taking into
account the customer satisfaction (Anand & Grover, 2015).

2.5 Previous Studies

Findings from previous study, regarding the transportation service and firm
performance are describes. These previous studies can be seen in the following Table
(2.1).

20
 Table (2.1) Findings from Previous Studies
Sr. No. Author / Year Independent Variables Dependent Variable Findings
1 Mulugeta Reliability Firm Performance Based on the findings of this research, service
(2017) Safety reliability, information technology, and infrastructure
IT and Infrastructure have positive and significant effects on the performance
of Ethiopian Shipping Logistics Service Enterprise.
(Ethiopian Shipping Logistics Service Enterprise in
Ethiopian)
2 Saura Reliability Firm Performance This study results indicate that reliability and safety
(2018) Safety have positively and significant effect on performance of
freight transport service providers by road, maritime
and air in Spain.
(Freight Transportation Services in Spain)
3 Burmeister Accessibility Firm Performance Finding of this study that reliability, capacity and
(2019) Reliability information flow had positive correlation with firm
Capacity performance of 50 transportation service organizations
Information Flow located in the North of France.
(Transportation service organizations in France)
4. Suhaiza et al. Reliability Firm Performance Among the four selection factors, safety, capacity and
(2019) Safety information have significant effects on performance of

21
 Sr. No. Author / Year Independent Variables Dependent Variable Findings
Capacity Korean marine transportation industry.
Information (Marine transportation industry in Korean)
5 Aworemi et al. Information Firm Performance The results of the multiple regression showed that
(2021) Technology transport management practices have a significant
Capacity effect on the performance of food and beverages
Safety and Monitoring transportation service in Nigeria.
(Food and beverages transportation service in Nigeria)
Sources: Own Compilation based on Previous Studies

22
 According to the Table (2.1), Mulugeta (2017) analyzed the transportation
service and firm performance: a case study in Ethiopian Shipping Logistics Service
Enterprise. Primary data was used for the data collection process. The data was collected
directly from the employees of ESLSE through the questionnaire survey method. A
sample size of 111 is used from the total population of 378 employees of ESLSE.
Moreover, the study used a quantitative research method to analyze the collected data.
The research participants were selected through a non-probability convenience sampling
technique and multiple regression analysis were conducted to assess the relative
predictive influence of the independent variables on the dependent variable. This study
of transportation service are reliability, safety and IT and infrastructure to examine the
performance of Ethiopian Shipping Logistics Service Enterprise. Based on the findings
of this research that service reliability and information technology and infrastructure
have significant impact on firm performance (reduce transit time) of Ethiopian Shipping
Logistics Service Enterprise.
Gloria (2018) described the effects of transportation service (reliability and
safety) and firm performance (customer satisfaction) of freight transport service
providers by road, maritime, and air in Spain. Data was derived through questionnaires
distributed to selected employees of Spanish freight transportation services with a target
population of 205 employees. Data analysis was done through descriptive statistics. This
study results indicate that there is a positive significant relationship between reliability,
safety and performance of freight transport service providers by road, maritime and air in
Spain.
Burmeister (2019) described the evaluating freight transport on performance of
Freight Transportation Businesses in France. The study involved 50 freight
transportation service providers in France. This study employed the descriptive research
design. In this study, reliability, capacity, accessibility and information flow are regarded
as an independent variable while firm performance (improved on time delivery) is
regarded as dependent. Results of this study indicate that accessibility Finding of this
study that reliability, capacity and information flow positive correlation with firm
performance of 50 transportation service organizations located in the North of France.
Suhaiza et al. (2019) analyzed the effects of transportation management on the
organization performance of Korean marine transportation industry. Based on an online
survey with those in the Korean marine transportation industry, this study conducted
statistical analyses using structural equation modeling. Based on relevant previous
23
studies, the current study constructed a total of 55 survey questions. A sample size of 213
is used from employees of Korean marine transportation industry. The independent
variables of the research included reliability, safety, capacity and information. The
dependent variable is organizational performance. Empirical results reveal that the four
dimensions of transportation service – safety, capacity and information have significant
effects on firm performance of Korean marine transportation industry by improving
customer satisfaction.
Aworemi et al. (2021) conducts the impact of transportation management on
organizational performance of food and beverages transportation service in Nigeria. The
research design employed was descriptive in nature and focuses on the impact of
transportation management on organizational performance of transportation service. The
study used sample random sampling techniques. 45 respondents participated in the study.
Descriptive statistics and regression analysis was applied in this study. The independent
variables of the research included information technology, capacity and safety and
monitoring. The dependent variable is organizational performance (improved
information flow, enhanced shipment tracking and mproved improved on time delivery).
The results of the multiple regression showed that transport management practices have a
significant effect on the firm performance of food and beverages transportation service in
Nigeria.

2.6 Conceptual Framework

The framework for the study was modified from the empirical study described in
Figure (2.1). The Figure illustrates freight transportation service of Shwe Mandalay
Transportation Service Enterprise in Mandalay.

24
 Figure (2.1) Conceptual Framework of the Study

Independent Variables Dependent Variable

Freight Transportation Service

Reliability

Capability

Accessibility Firm
Performance

Safety

Information Technology
Source: Own Compilation based on Previous Studies

According to Figure (2.1), the conceptual framework explains the relationship

between the independent and the dependent variables in the study. The independent
variables are reliability, capability, accessibility, safety and information technology in
the study. Dependent variable is performance – improved on time delivery, improved
information, reduce transit time and improved buyer-supplier relationship. The study
expected that performance (time delivery, improved information, reduce transit time and
improved buyer-supplier relationship) have a significant effects of transportation service
and performance of Shwe Mandalay Transportation Service in Mandalay.

25
 CHAPTER III
FREIGHT TRANSPORTATION SERVICE OF SHWE MANDALAY
TRANSPORTATION SERVICE ENTERPRISE

This chapter describes the profile of Shwe Mandalay Transportation Service

Enterprise in Mandalay and its organization structure. In addition, this chapter presents
freight transportation service – reliability, accessibility, capacity, information technology
and safety of Shwe Mandalay Transportation Service Enterprise in Mandalay.

3.1 Profile of Shwe Mandalay Transportation Service Enterprise

Shwe Mandalay Fright Transportation Service Enterprise is a prominent logistics
company based in Mandalay, Myanmar. This company is a private-owned business to
serve and provide road freight transportation service for customer’s import and export
products that are required everywhere. This company’s primary activities are domestic
transportation throughout Myanmar with over 50 prime mover and various truck. And,
this company committed to comply with timely transportation, no damage cargo and
road safety. Shwe Mandalay Fright Transportation Service Enterprise is established at
2013 in Mandalay. This company has 10 years’ experience in local fright transportation
service industry. Shwe Mandalay Fright Transportation Service Enterprise’s owner aims
to better serve the shipping services requirements of the people of local. Nowadays,
Shwe Mandalay Transportation Service Enterprise is also one of the leading local
providers of integrated logistics and freight forwarding service in Mandalay. This
company services transportation for the whole country in Myanmar. It supports the local
exchange of goods between industrial and trading companies by offering local road
freight and associated logistics services. The company specializes in providing efficient
and reliable freight transportation service to various industries and businesses in the
region. With a strong commitment to customer satisfaction and a focus on delivering
goods in a timely manner, Shwe Mandalay Transportation Service Enterprise has

26
established itself as a trusted partner for logistics solutions. Today, this company was
operated and opened office and branch in 7 townships in Myanmar.
This company offers its customers a wide range of local freight and shipping
service with various truck and types by providing timely pick-up and delivery and door
to door service for their customer. The Shwe Mandalay Transportation Service
Enterprise head office is situated No. 36, between 115 and 116 Street, 73 Road,
Patheingyi Distributary, Mandalay.
The vision of Shwe Mandalay Transportation Service Enterprise is “To be the
one of the top performing and an inspiration of Myanmar”.
The mission of Shwe Mandalay Transportation Service Enterprise is
“performance base, by way of execution in delivering optimal results for partners,
employees and customers”.
Shwe Mandalay Transportation Service Enterprise’s Core Value is ingrained with
six corporate values. There are-
1. Honesty
2. Accountability
3. Trustworthiness
4. Collaboration
5. Communication
6. Quality (total quality)

3.2 Organization Structure of Shwe Mandalay Transportation Service

Enterprise
Shwe Mandalay Transportation Service Enterprise is organized with five main
departments which are Admin and Human Resources, Finance and Account, Customer
Services, logistics Department and IT Department. It employed efficient employees who
are professional and accountable on their duty and responsible in each of department to
meet organizational goal and objective. The organization structure of Shwe Mandalay
Transportation Service Enterprise is shown in Figure (3.1).

27
 Figure (3.1) Organization Structure of Shwe Mandalay Transportation Service Enterprise

Chairman

General Manager

Admin & HR Customer Sale and

Finance Dept; IT Dept; Logistic Dept;
Dept; Service Dept; Marketing Dept;

Manager Manager Manager Manager Manager Manager

Chief Assistant Driver

Supervisor Supervisor Engineers Supervisor
Accountant Manager

Staffs Accountant Assistant Staffs

Staffs Supervisor Supervisor Driver

General Cashiers Staffs Helper

Staffs
Workers

General General
Workers Workers

Source: Shwe Mandalay Freight Transportation Service Enterprise (October, 2023)

28
 According to Figure (3.1), organizational structure of Shwe Mandalay
Transportation Service Enterprise at the top-level management person is owner who is
main authority person to management wholes organization. Under the control of owner
have a general manager. In this organization, general manager is operated concern with
overall department’s management function who can administer systematically the
department of admin and human resources, finance and accounting department, customer
service department, IT department, logistic department and sale and marketing
department function in this company. In addition, each of department was appointed a
manager to control, monitoring and guideline on their relative department employee’s
duties and responsibilities. The following Table (3.1) is presented the number of
employees and structure of departments of Shwe Mandalay Transportation Service
Enterprise.

Table (3.1) Number of Employees in Shwe Mandalay Transportation Service

Enterprise
Sr. No. Department Position No. of Employees
1 Administration and Human Manager 1
Resource Supervisor 2
Staffs 2
General Worker 2
2 Finance and Accountant Manager 1
Accountant 1
Cashiers 2
3 Customer Services Manager 1
Supervisor 2
Staffs 8
4 Information Technology Manager 1
Engineer 1
Supervisor 1
Staffs 2
5 Sale and Marketing Manager 1
Supervisor 1
Staff 2
6 Logistic Manager 1

29
 Sr. No. Department Position No. of Employees

Assistant Manager 30
Driver 10
Assistant Driver 2
Supervisor 2
Staffs 30
Helper 10
General Workers 1
Total 117
Source: Shwe Mandalay Transportation Service Enterprise (October, 2023)

According to Table (3.1), the number of employees was appointed at Shwe

Mandalay Transportation Service Enterprise is altogether 117 employees. All those
employees are performing their respective duties actively at their respective department.

3.3 Freight Transportation Service of Shwe Mandalay Transportation Service

Enterprise
Freight transportation service play a crucial role in the global economy by
facilitating the movement of goods and materials across various regions. Shwe Mandalay
Transportation Service Enterprise, as a provider of freight transportation services, holds
significant importance in supporting trade and commerce activities. Shwe Mandalay
Transportation Service Enterprise is a leading transportation company in Mandalay,
Myanmar that offers a wide range of transportation service to its customers. The
company's transportation service include: passenger transportation and freight
transportation for local road. Transport reliability, accessibility, capacity, safety, and
information are all crucial factors when evaluating the importance of a freight
transportation service enterprise by Shwe Mandalay. These aspects play a significant role
in ensuring efficient and effective transportation for individuals and goods. Therefore,
Therefore, this section presents the transportation service such as transport reliability,
accessibility, capacity, safety, and information technology practiced by Shwe Mandalay
Transportation Service Enterprise.

30
3.3.1 Reliability
Reliability is a fundamental aspect of any transportation service. Moreover,
businesses depend on reliable transportation to ensure the timely delivery of goods and
service. In Shwe Mandalay Transportation Service Enterprise, maintaining transport
reliability includes the ability of the service provider to consistently deliver
transportation service as affordable price, scheduled, without delays or disruptions.
Additionally, implementing effective scheduling systems and employing skilled drivers
who adhere to timetables and routes contribute to overall reliability.
One of the key aspects of transportation reliability is the affordability of service.
Shwe Mandalay Transportation Service Enterprise offers competitive pricing options for
their freight service. This company strives to provide cost-effective solutions without
compromising on the quality of their service. By offering reasonable prices, they ensure
that their customers can access reliable transportation options without exceeding their
budget. Shwe Mandalay Transportation Service Enterprise provides a transparent pricing
structure based on factors such as distance, weight, and type of goods. They offer
different pricing packages tailored to meet the specific requirements of their customers.
And, Shwe Mandalay Transportation Service Enterprise have been established a strong
policy regarding price that there is no difference between the head office and the branch
gates in the prices per ton of the cargo according to the route. Table (3.2) describes that
the estimate price structure of delivery goods by Shwe Mandalay Transportation Service
Enterprise.

Table (3.2) Price Structure of Shwe Mandalay Transportation Service Enterprise

for Delivery Goods
Sr. Weight of Goods Basic Price (Kyats)
Type of Goods
No. Kg Ton Minimum Maximum
1 Electronics 1 - 2,600 4,500
2 Textiles 1 - 2,000 4,500
3 Construction Equipment and 1 - 2,600 5,500
Material
4 Steel - 1 650,000 700,000
5 Chemicals/ Paint - 1 400,000 550,000
6 Agricultural Products 1 2,000 6,000
400,000
31
 Sr. Weight of Goods Basic Price (Kyats)
Type of Goods
No. Kg Ton Minimum Maximum
1 500,000
7 Agricultural Equipment - 1 450,000 550,000
Source: Shwe Mandalay Transportation Service Enterprise (October, 2023)

According to Table (3.2), there have offered different pricing packages based on
types of goods for customers in Shwe Mandalay Transportation Service Enterprise. Shwe
Mandalay Transportation Service Enterprise charges a minimum of 2600 Kyats and a
maximum of 4,500 Kyats from customers per 1 kg weight for electronic goods. For
Textile, there have offered between 2000 Kyats to 4,500 kyats for per 1 kg weight. And,
there charges between 2600 Kyats to 5,500 Kyats from customer per 1 kg weight for
construction equipment and material. For steel, there have offered between 650,000
kyats to 750,000 Kyats for per 1 ton weight incurred by customers. And, there charges
between 400,000 Kyats to 550,000 Kyats from customer per 1 ton weight for chemicals/
paint and material. For agricultural products, there have offered between 2,000 Kyats to
6,000 Kyats for per 1 Kg, and between 400,000 Kyats to 500,000 Kyats for per 1 ton
weight incurred by customers. Between 450,000 Kyats to 550,000 Kyats will be incurred
for transporting agricultural equipment by customers.
Another crucial aspect of transportation reliability is the timely delivery of goods.
Shwe Mandalay Transportation Service Enterprise utilizes advanced tracking systems
and efficient route planning to optimize travel time. By employing experienced drivers
who are familiar with the routes and traffic conditions, they can minimize delays and
ensure timely delivery of goods. In addition, Shwe Mandalay Transportation Service
Enterprise accurately describes the departure time of the cargo and clarify the estimated
arrival time based on distance and tons before the customer purchase to the service.
Table (3.3) shows the estimated delivery time of Shwe Mandalay Transportation Service
based on modes and distances of the transportation process.

32
 Table (3.3) Type of Modes of Shwe Mandalay Transportation Service
Delivery Time
Distance (Miles)
Sr. No. Type of Modes (Arrival Time)
Start End Minimum Maximum
1 Short 0 50 3:00 3:30
2 Medium 0 350 8:00 9:00
3 Long 0 350+ 1 Day 3 Day
Source: Shwe Mandalay Transportation Service Enterprise (October, 2023)

According to Table (3.3), depending on the distance to deliver goods, it can take
from a minimum of less than 5 hours to a maximum of 3 days. If the drivers experience
delay in delivery process due to unforeseen issues (such as traffic, weather and etc.,)
during the transportation of the customer’s goods, this organization are provided timely
information for each customer and head office.
Shwe Mandalay Transportation Service Enterprise always considers minimizing
the risk of damage to goods while transporting fragile or sensitive items. This
organization use specialized packaging materials and secure them properly within the
vehicles to prevent any potential damage. Additionally, their fleet of vehicles is well-
maintained and regularly inspected to ensure that they are in optimal condition for
transportation.

3.3.2 Capacity
Shwe Mandalay Transportation Service has a better goods transportation
capacity, enabling them to handle various types of cargo efficiently. The company
operates a fleet of trucks and trailers that are well-maintained and equipped to transport
goods of different sizes and weights. This company's trucks have a typical payload
capacity ranging from 5 to 30 tons. Shwe Mandalay Transportation Service is also
capable of transporting industrial goods such as machinery, equipment, raw materials,
and finished products. Depending on the size and weight of the cargo, Shwe Mandalay
Transportation Service Enterprise can provide suitable trucks or trailers equipped with
necessary features like cranes or ramps for loading and unloading. In addition, Shwe
Mandalay Transportation Service Enterprise has experience in transporting agricultural
products like grains, fruits, vegetables, and livestock. They ensure proper handling and

33
storage conditions to maintain the freshness and quality of these perishable goods during
transit. The company transports construction materials such as cement, bricks, steel bars,
and timber. They have specialized trucks with appropriate load-bearing capacities to
safely transport these heavy materials to construction sites. Table (3.4) shows that the
capacity of each truck for various goods provided by Shwe Mandalay Transportation
Service Enterprise.

Table (3.4) Types of Trucks and Capacity Provided by Shwe Mandalay

Transportation Service Enterprise
Available Load Capacity
Sr. No. Types of Trucks Size (Feet)
(Tons)
1 Light Duty Truck 10 5
2 Box Truck 10 6
3 Open Truck 10 6
4 Box Truck 14 15
5 Duty Truck 19 21
6 Duty Truck 21 24
7 Duty Truck 24 30
Source: Shwe Mandalay Transportation Service Enterprise (October, 2023)

According to Table (3.4), Shwe Mandalay Transportation Service offers a variety

of truck options for their customers, including light-duty trucks, box trucks, and open
trucks. These trucks are designed to cater to different transportation needs and provide
efficient freight services.
Light-duty trucks of Shwe Mandalay Transportation Service are suitable for
transporting smaller loads or goods. These trucks are typically used for local deliveries
or short-distance transportation. It has a lower weight capacity compared to other truck
types but offer better fuel efficiency and maneuverability. Light-duty trucks are
commonly used for delivering packages, small appliances, or perishable goods.
Box trucks are equipped with an enclosed cargo area that provides protection
from weather conditions and theft. Shwe Mandalay Transportation Service used these
trucks to transport fragile or valuable items that require extra security.
Shwe Mandalay Transportation Service also offers duty trucks with varying
weight capacities. Duty trucks are designed to handle heavier loads and provide

34
increased durability and strength. These trucks are commonly used for long-distance
transportation or carrying bulk goods. The weight capacity of duty trucks can range from
21 tons to 30 tons, depending on the specific model.

3.3.3 Accessibility
Shwe Mandalay Transportation Service Enterprise in Mandalay, transportation
accessibility involves assessing the distance and availability of transportation options for
customers and businesses in the area. Mandalay is the second-largest city in Myanmar
and serves as a major economic hub. It is located in the central part of the country,
making it strategically important for trade and commerce. In terms of road networks,
Mandalay is well-connected to other major cities in Myanmar through a network of
highways. The city is served by the Mandalay-Muse Highway, which connects it to the
border town of Muse, facilitating trade with China. Additionally, the Mandalay-
Mawlamyine Highway links Mandalay to the southern part of Myanmar, providing
access to ports such as Yangon. Shwe Mandalay Transportation Service Enterprise aims
to provide efficient logistics solutions for businesses operating in local. The company has
a strong network of transportation routes and infrastructure that enables it to provide
efficient and reliable goods transportation service to its customers.
Shwe Mandalay Transportation Service Enterprise operates various fleet of
trucks, cargo and mini truck for road transportation. There has a well-established
network of routes that cover major cities and towns across Myanmar. Their trucks are
equipped with modern tracking systems to monitor the movement of goods and ensure
timely delivery. In the following Table (3.5) presented availability of trucks provided by
Shwe Mandalay Freight Transportation Service Enterprise.

Table (3.5) Types of Trucks Provided by Shwe Mandalay Transportation Service

Enterprise
Sr. Size
Types of Trucks Number of Truck Model
No. (Feet)
1 Light Duty Truck 10 3 Nissan Vanette 2006
2 Box Truck 12 5 2019 ISUZA FTR 850
3 Open Truck 12 5 Isuzu NPR 2008

4 Box Truck 14 7 Isuzu NPR 2006

35
 Sr. Size
Types of Trucks Number of Truck Model
No. (Feet)
5 Duty Truck 19 7 Mitsubishi FUSO 2011
6 Duty Truck 21 7 Mitsubishi FUSO 2009
7 Duty Truck 24 6 Mitsubishi FUSO 2012
Total 40
Source: Shwe Mandalay Transportation Service Enterprise (October, 2023)

According to Table (3.5) Shwe Mandalay Transportation Services is provided

various types of truck, truck size, number of truck and models provided for its customers.
Shwe Mandalay Transportation Services offers only domestic transportation services.
Shwe Mandalay Transportation Services covers a wide range of destinations within the
country, including major cities, towns, and industrial zones. There have established
reliable routes and schedules to ensure timely delivery of goods across different regions.
In the following Table (3.6) shows that available of destinations provided by Shwe
Mandalay Transportation Services for customers.

Table (3.6) Availability of Destinations Provided by Shwe Mandalay

Transportation Service Enterprise
Sr. No. Availability of Destinations Number of Delivery (Rate)
1 Mandalay ᴝ Yangon 2 ⬌ 2 (Daily)
2 Mandalay ᴝ Magwe 2 ⬌ 2 (Daily)
Yangon ᴝ Magwe
3 Mandalay ᴝ Minbu 2⬌2 (Daily
Yangon ᴝ Magwe
4 Mandalay ᴝ Yangon ᴝ MawlaMyine ᴝ 2 ⬌2 (Weekly)
MuDon ᴝ Than Pyu Za Yark ᴝ Yay
9 Mandalay ᴝ Yangon ᴝ Pathein 2 ⬌ 2 (Weekly)
10 Mandalay ᴝ Yangon ᴝ Him Tha Da 2 ⬌ 2 (Weekly)
11 Mandalay ᴝ Pyin Oo Lwin ᴝ Lashio ᴝ Muse 3 ⬌ 3 (Weekly)
12 Mandalay ᴝ Aungban ᴝ Taunggyi 3 ⬌ 3 (Weekly)
13 Mandalay ᴝ Tarchilake 1 ⬌ 1(Weekly)
14 Mandalay ᴝ Sagaing ᴝ Monywa 1 ⬌ 1 (Weekly)
Source: Shwe Mandalay Transportation Service Enterprise (September, 2023)

36
 According to Table (3.6), some of the available destination routes of Shwe
Mandalay Transportation Services Enterprise include Mandalay to Yangon, Mandalay to
Magwe, Mandalay to Minbu, Mandalay to Mawlamyine, Mandalay to Mu Don,
Mandalay to Than Pyu Za Yark, Mandalay to Yay, Mandalay to Bathein, Mandalay to
Him Tha Da, Mandalay to Pyin Oo Lwin, Mandalay to Lashio, Mandalay to Muse,
Mandalay to Aungban, Mandalay to Taunggyi, Mandalay to Targyilake, and Mandalay
to Sagain. Mandalay to Yangon route is one of the most popular and frequently serviced
by the company. Shwe Mandalay Transportation Service offers daily deliveries from
Mandalay to Yangon, ensuring timely and efficient transportation of goods between
these two major cities. Another common route provided by the company is from
Mandalay to Magwe. Similar to the Mandalay-Yangon route, this route also has a daily
delivery service, allowing for regular shipments between these locations. Shwe
Mandalay Transportation Service Enterprise also offers a route from Mandalay to
Minbu, with a corresponding route from Yangon to Minbu. These routes have a delivery
rate of 2 (daily), ensuring that shipments between these cities are transported promptly
and regularly. Shwe Mandalay Transportation Service Enterprise provides a more
extensive delivery service that includes multiple destinations. According to above table,
there is a route from Mandalay to Yangon, Mawlamyine, MuDon, Than Pyu Za Yark,
and Yay. This route has a delivery rate of 2 (weekly), indicating that shipments are
transported between these cities twice a week. Similarly, there is another route from
Mandalay to Yangon, Bathein, Him Tha Da with the same delivery rate of 2 (weekly).
Lastly, there is a route from Mandalay to Pyin Oo Lwin, Lashio, Muse with a delivery
rate of 3 (weekly). These routes provide customers with the flexibility to transport their
goods to multiple destinations within Myanmar. Shwe Mandalay Transportation Service
Enterprise also offers delivery services to Aungban and Taunggyi, with a delivery rate of
3 (weekly). Additionally, they provide transportation to Targyilake, Sagain, and
Moneyar with a delivery rate of 1 (weekly). Shwe Mandalay Transportation Service
Enterprise offers a comprehensive range of destination routes with varying delivery
rates. Their frequent and reliable transportation service enable businesses and individuals
to transport their goods efficiently across Myanmar.

3.3.4 Safety

37
 Transportation safety is a critical aspect of the delivery process for any freight
transportation service. Shwe Mandalay Transportation Service Enterprise prioritizes
safety for the well-being of its employees, customers, and the cargo being transported.
Shwe Mandalay Transportation Service Enterprise always consider various factors such
as road conditions, traffic patterns, weather forecasts, and potential hazards are taken into
account when determining the most suitable routes for each delivery. Therefore, Shwe
Mandalay Transportation Services regularly inspects its fleet of trucks. This includes
checking the brakes, tires, lights, and other essential components to minimize the risk of
accidents caused by mechanical failures.
Shwe Mandalay Transportation Service Enterprise also focuses on driver training
and qualification. All drivers employed by the company undergo thorough background
checks and are required to have a valid commercial driver's license. They receive
comprehensive training on defensive driving techniques, cargo handling, and emergency
procedures. By investing in driver training, Shwe Mandalay Transportation Service
Enterprise aims to reduce the likelihood of accidents caused by human error. The
company also emphasizes the importance of defensive driving techniques to minimize
the risk of accidents caused by other road users.
Shwe Mandalay Transportation Service Enterprise strictly adheres to all relevant
regulatory standards governing transportation safety. This includes compliance with
local traffic laws, weight restrictions, and hours-of-service regulations for drivers. Thus,
Shwe Mandalay Transportation Service Enterprise always communicate with drivers
about driving speed limits and following traffic regulations within legal boundaries.
Shwe Mandalay Transportation Service Enterprise also implements GPS tracking
systems in all their vehicles. These systems provide real-time monitoring of the fleet's
location, speed, and other relevant data. This allows the company to closely monitor
driver behavior, identify any potential safety concerns, and take immediate action if
necessary.
Shwe Mandalay Transportation Service Enterprise offers cargo insurance to
customers to protect their products against damage or loss during transit. This will
provide financial compensation in the event of any accidents or unforeseen events. And,
all warehouses and storage facilities of Shwe Mandalay Transportation Service
Enterprise are secure and well-maintained, with adequate lighting, security cameras, and
personnel to prevent theft and damage.

38
3.3.5 Information Technology (IT)
Information technology (IT) is driving modern employment creation with
networking sites enabling people to interact through internet, phone and fax. To
efficiently manage Shwe Mandalay Freight Transportation’s operations and provide
excellent customer service, there have utilized various information technology (IT)
solutions. And, this company organized a customer service department within the
organization and appoints well-experienced IT technicians and staff to handle all IT
operations concerning transportation processes.
In Shwe Mandalay Transportation Service Enterprise, information and
technology are the main processes to quickly respond to and inform on customer
inquiries, the organization’s transportation process, and the goods storage process. Shwe
Mandalay mainly used GPS tracking systems to monitor the location of their vehicles in
real-time. This enables them to provide accurate shipment tracking information to their
customers and optimize route planning based on traffic conditions and other factors.
Furthermore, Shwe Mandalay also utilizes computer data entry system to
facilitate seamless communication and data exchange with their branch office, customers
and partners. Computer data entry system of this organization includes for the data
transmission of business documents such as purchase orders, invoices, and delivery items
in a standardized format.
In addition, this organization’s IT process includes email, internet and phone.
This company gives advance information sharing and provides one-stop services for
customs process, cargo services ordering and emergency case in the delivery process by
using online network system likes Viber, phone and others to reduce costs by exchanging
rapid information. In addition, this organization takes and informs the accurate time for
shipping departure/ arrival about time, and gives reliable information times about import/
export product item amount in containers, tax rates and commercial invoices from the
original company for all their customers by managing and facilitating the information
flow.

39
40
 CHAPTER IV
ANALYSIS ON THE EFFECTS OF FREIGHT TRANSPORTATION
SERVICE ON PERFORMANCE OF SHWE MANDALAY
TRANSPORTATION SERVICE ENTERPRISE

The main purpose of this chapter is to analyze the effects of transportation service
on the performance of Shwe Mandalay Transportation Service Enterprise in Mandalay.
This chapter includes two sections. The first section is the demographic profile of the
respondents. The second section analyzes the effects of freight transportation service on
the performance of Shwe Mandalay Transportation Service Enterprise.

4.1 Demographic Profile of Respondents

In this study, demographic profile of respondents is measured with eight items:
gender, age, marital status, education, position, department and experience and monthly
salary of the respondents. The study involved 75 respondents from Shwe Mandalay
Transportation Service Enterprise. For each question, the most possible answer is
provided to respond and they can choice in relevant answer.

4.1.1 Respondents by Gender

Respondents by gender are divided into two groups such as male and female.
Frequencies of gender are shown in Table (4.1).

Table (4.1) Respondents by Gender

Sr. No. Gender Number of Respondents Percentage
1 Male 65 86.67
2 Female 10 13.33
Total 75 100.00
Source: Survey Data (October, 2023)

According to Table (4.1), there are 65 male and 10 female respondents in this
study. The male respondents contribute 86.67 percent, and the female respondents are
13.33 percent. It shows that the majority of the respondents are male because the nature

41
of this organization makes it more suitable to appoint more female workers than male
workers.
4.1.2 Respondents by Age
Age of respondents is classified into five groups. They are under 25 years,
between 26 and 35 years, between 36 and 45 years, between 46 and 55 ears and above
56years. Frequencies of age are shown in Table (4.2).

Table (4.2) Respondents by Age

Sr. No. Age (Year) Number of Respondents Percentage
1 Under 25 3 4.00
2 26 – 35 32 42.67
3 36 – 45 22 29.33
4 46 – 55 12 16.00
5 56 and above 6 8.00
Total 75 100.00
Source: Survey Data (October, 2023)

According to Table (4.2), 3 respondents are the age under 25 year which
represented 4.00 percent, 32 respondents are the ages between 26 and 35 year which
represented 42.67 percent, 22 respondents are the ages between 36 and 45 year which
represented 29.33 percent, 12 respondents are the ages between 46 and 55 year which
represented 16.00 percent and 6 respondents are the ages of above 56 year and it
contributed 8.00 percent. According to the Table, age between 26 and 35 is maximum
percentage of 42.67. This is because age of adults is active to work in Shwe Mandalay
Transportation Service Enterprise. Therefore, majority of the respondents are between
26-35 year.

4.1.3 Respondents by Marital Status

Marital status of respondents is classified into single and married. This is shown
in Table (4.3).

42
 Table (4.3) Respondents by Marital Status
Sr. No. Marital Status Number of Respondents Percentage
1 Single 18 24.00
2 Married 57 76.00
Total 75 100.00
Source: Survey Data (October, 2023)

According to Table (4.3), 18 respondents are single and 57 respondents are

married. As percentage, (24.00%) of respondents are single and (76.00 %) of
respondents are married. It can be deducted that most of the respondents are married.

4.1.4 Respondents by Education Level

Education level of respondents is divided into five groups which are high school,
college / university (studying), graduate level, post-graduate level and other (Diploma,
Certificate). This is shown in Table (4.4).

Table (4.4) Respondents by Education Level

Sr. No. Education Level Number of Respondents Percentage
1 High School 13 17.33
2 College / University
2
(Studying) 2.67
3 Graduate Level 48 64.00
4 Other (Diploma, Certificate). 12 16.00
Total 75 100.00
Source: Survey Data (October, 2023)

According to Table (4.4), 13 respondents are high school level and it contributed
17.33 percent of the sample size, 2 respondents are college / university (studying) and it
also contributed 2.67 percent, 48 respondents are graduate level which represented 64.00
percent, 12 respondents are other (diploma, certificate) which represented 16.00 percent
of the sample size. This is because most of the employees have joined the Shwe

43
Mandalay Transportation Service Enterprise after graduating. There are no respondents
at the postgraduate level. Therefore, most employees are graduated.

4.1.5 Respondents by Position

Position level of respondents is classified into five groups. There are manager
level, assistant manager, supervisor, staff and general workers. This is shown in the
following Table (4.5).

Table (4.5) Respondents by Position

Sr. No. Position Number of Respondents Percentage
1 Manager 7 9.33
2 Assistant Manager 27 36.00
3 Supervisor 21 28.00
4 Staff 12 16.00
5 General Worker 8 10.67
Total 75 100.00
Source: Survey Data (October, 2023)

According to Table (4.5), 7 respondents (9.33 %) are managers, 27 respondents

(36.00 %) are assistant managers, 21 respondents (28.00 %) are supervisors, 12
respondents (16.00 %) are staffs and 8 respondents (10.67%) are general workers. It is
found that most of the respondents are assistant manager. It is because assistant
managers are responsible for supporting the supervisor, staff, and general workers and
ensuring smooth operations under the leadership of managers.

4.1.6 Respondents by Department

Department of respondents is classified into six groups. There are admin and HR,
finance and accounting, IT, customer service, logistic and sale and marketing. This is
shown in the following Table (4.6).

Table (4.6) Respondents by Department

Sr. No. Department Number of Respondents Percentage
1 Admin and HR 5 6.67

44
 Sr. No. Department Number of Respondents Percentage

2 Finance and Accounting 1 1.33

3 Customer Service 4 5.33
4 IT 2 2.67
5 Logistic 61 81.33
6 Sale and Marketing 2 2.67
Total 75 100.00
Source: Survey Data (October, 2023)

According to Table (4.6), 5 respondents (6.67%) admin and HR department, 1

respondent (1.33%) are finance and accounting department, 4 respondents (5.33 %) are
customer service department, 2 respondent (2.67%) are IT, 61 respondents (81.33%) are
logistic department, and 2 respondents (2.67%) are sale and marketing department.
Therefore, most of respondent are logistic department. This is because most Shwe
Mandalay Transportation Service Enterprise is organization that primarily deals with
transportation and logistics. And, the organization’s core business relies heavily on the
logistic department’s ability to manage and coordinate transportation, warehousing, and
distribution processes.

4.1.7 Respondents by Working Experiences

Working experiences of respondents is classified into four groups: less than 1
year, between 1 and 3 years, between 4 and 6 years, 7 years and above. It can be seen in
Table (4.7).

Table (4.7) Respondents by Working Experiences

Sr. No. Working Experiences (Year) Number of Respondents Percentage
1 1-3 13 17.33
2 4-6 27 36.00
3 7 and above 35 46.67
Total 75 100.00
Source: Survey Data (October, 2023)

45
 According to Table (4.7), working experiences of respondents in Shwe Mandalay
Transportation Service Enterprise is founded that 13 respondents describing (17.33%)
are between 1 and 3 years, 27 respondents describing (36.00%) are between 4 year and 6
years and 35 respondents describing (46.67 %) are 7 years and above. It can be deducted
that most of the respondents 7 years and above. This result means that Shwe Mandalay
Transportation Service Enterprise prioritized retaining skilled and experienced
employees, as they are more likely to contribute to the organization’s success and
maintain a high level of expertise within the organization.

4.1.8 Respondents by Monthly Salary

Monthly salary of respondents is classified into four groups: less than 200,000
kyats, between 200,001 and 500,000 Kyats, between 500,001 and 800,000 Kyats, and
above 800,000 Kyats. It can be seen in Table (4.8).

Table (4.8) Respondents by Monthly Salary

Sr. No. Monthly Salary (Kyats) Number of Respondents Percentage
1 200,001– 500,000 34 45.33
2 500,001 – 800,000 32 42.67
3 Above 800,000 9 12.00
Total 75 100.00
Source: Survey Data (October, 2023)

According to Table (4.8), the monthly salary of respondents in Shwe Mandalay

Transportation Service Enterprise is found to be between 200,001 and 500,000 Kyats for
34 respondents (45.33%), 500,001 to 800,000 Kyats for 32 respondents (42.67%), and
above 800,001 Kyats for 9 respondents (12.00%). There are no respondents at the less
than 200,000 Kyats. It can be deduced that most of the respondents got between 200,001
and 500,000 Kyats, which is deemed appropriate for the industry.

4.2 Analysis of Freight Transportation Service and Performance of Shwe

Mandalay Transportation Service Enterprise
The employee perception on freight transportation service is analyzed based on
reliability, capacity, accessibility, safety and information technology. Firm performance
are based on five different items of freight transportation service – capacity,

46
accessibility, safety, and information technology by Shwe Mandalay Transportation
Service Enterprise. Employee perception level is evaluated based on the mean value if
each item which are provided to managerial level and non-managerial employees.
To determine the freight transportation service and firm performance, five points
Likert scale is applied and it is used from strongly disagree to strongly agree. According
to Best (1977), the mean values of five-point Likert scale items were interpreted as
follows:
The score among (1.00 - 1.80) means strongly disagree.
The score among (1.81 - 2.60) means disagree.
The score among (2.61 - 3.40) means neither agree nor disagree.
The score among (3.41 - 4.20) means agree.
The score among (4.21 - 5.00) means strongly agree.
Standard deviation is measured the amount of variation or dispersion of a set of
data values. A low standard deviation indicates that the data points tend to be closed to
the mean of the set, while a high standard deviation indicates that the data points are
spread out over a wide range of values (Bland & Altman, 1996).

4.2.1 Reliability Test

Before analysis freight transportation service and its effect, reliability test is
conducted initially. To measure the reliability of the instruments, Cronbach’s coefficient
Alpha was calculated. This method has been recognized as an effective and widely-used
approach to determine the internal consistency of study instruments. Reliability is one
important factor to consider when evaluating a survey instrument. The reliability of the
measuring instrument will be tested to ensure consistency during the measurement of a
concept. For the purposes of this study Cronbach’s Alpha coefficients will be calculated
to ensure the reliability of the scales measuring the various independent and dependent
variables. As a result, Cronbach’s Alpha is calculated for this study. Generally, an Alpha
value close to 1.0 indicates high internal consistency reliability, an alpha value less than
0.6 is considered to be poor, values of 0.7 are considered acceptable and values above
0.8 are deemed to be good (Cronbach, 1951). In this study, the Alpha value for each
variable is described in following Table (4.9).

47
 Table (4.9) Reliability Analysis of Variables
Sr. No. Variables No. of Items Cronbach’s Alpha
1 Reliability 11 0.841
2 Capacity 11 0.855
3 Accessibility 11 0.797
4 Safety 10 0.879
5 Information Technology 11 0.729
6 Firm Performance 13 0.781
Source: Survey Data (October, 2023)

In Table (4.10), the results show that the Cronbach’s Alpha values of reliability,
capacity, accessibility, safety and information technology and firm performance are
0.841, 0.855, 0.797, 0.879, 0.729 and 0.781. The values are more than 0.7 and it can be
concluded that all variables have the acceptable reliability level. Therefore, scale items
directed toward one dimension. It can be concluded that scale items of questionnaires are
consistent and reliable.

4.2.2 Employee Perception on Reliability

The following Table (4.10) describes employee perception on reliability with
mean and standard deviation values. There are eleven factors for reliability.

Table (4.10) Employee Perception on Reliability

Sr. Standard
Description Mean
No. Deviation
1 Being carefully handled on goods during transportation 3.71 0.767
2 Putting proper maintenance schedules in place to ensure the 3.71 0.673
reliability of vehicles
3 Keeping a promise to deliver the right place and all goods 3.71 0.767
without damage
4 Communicating with customer regarding delivery schedules 3.52 0.777

48
 Sr. Standard
Description Mean
No. Deviation
and updates
5 Giving provision of monetary penalty for the late delivery 3.67 0.794
and damages
6 Giving attention to reaching the destination at the scheduled 3.92 0.632
time
7 Having ability to deliver goods on time without any damage 3.76 0.883
and delay
8 Giving accurate promise of departure and arrival times 3.52 0.777
9 Providing services at the promised time 3.71 0.767
10 Having dependability and accountability in handling 3.71 0.673
customer service problems
11 Having a reasonable price for multimodal transport 3.97 0.636
Overall Mean 3.72
Source: Survey Data (October, 2023)

According to the results Table (4.10), the overall mean value of the employee
perception on reliability is 3.72. This result presents the agree level because this
organization well performs various aspects of its operations, such as handling goods
during transportation, communication with customers, and punctuality, which contribute
to this positive perception. Having a reasonable price for multimodal transport showed a
maximum mean value of 3.97 at an agree level. This result indicates that employees
think their organization offers reasonable prices for multimodal transport for customers
because offering a reasonable price helps the organization maintain its competitiveness
and attract more customers. But, the minimum mean value of respondent perceptions on
reliability is 3.52 in two items: communicating with customers regarding delivery
schedules and giving accurate promises of departure and arrival times. This result means
that employees believe Shwe Mandalay Transportation Service Enterprise consistently
communicates with customers regarding delivery schedules and updates. And employees
recognized that Shwe Mandalay Transportation Service Enterprise had a relatively weak
level of accuracy in providing accurate promises regarding departure and arrival times.

4.2.3 Employee Perception on Capacity

49
 The following Table (4.11) describes respondent perception on capacity with
mean and standard deviation values. There are eleven factors for capacity.

Table (4.11) Employee Perception on Capacity

Sr. Standard
Description Mean
No. Deviation
1 Processing of transportation operates at domestic with 3.75 0.548
sufficient transportation units for their customers
2 Using heavy trucks for a majority of the shipments 3.64 0.849
among all groups
3 Having sufficient vehicles to provide current transportation 3.67 0.794
modes and destination
4 Considering the maximum weight and volume of shipments 3.89 0.559
in selecting the truck
5 Having a strong policy concern that using only the average 3.28 0.781
load capacity of each vehicle for processes
6 Having various types of vehicles that are available to 3.95 0.517
provide delivering service to customers
7 Arranging extra vehicles for customers’ urgent requirements 3.53 0.759
8 Having its own warehouses or storage facilities 3.75 0.548
9 Offering additional services, such as packaging, labeling, or 3.95 0.517
customs clearance for customer’s goods
10 Having sufficient transportation service available for urgent 3.85 0.562
or time-sensitive deliveries
11 Having any limitations on the size or weight of goods that 3.80 0.838
can be transported
Overall Mean 3.73
Source: Survey Data (October, 2023)
According to the results in Table (4.11), the overall mean value of the
respondents’ perceptions of capacity is 3.73 at agree level. This result presents the agree
level because this organization manages its transportation capacity by optimizing the
utilization of vehicles, infrastructure, and other resources to meet customer demands
efficiently. Having various types of vehicles (e.g., trucks, vans, and containers) that are
available to provide service to customers and having its own warehouses or storage
facilities showed a maximum mean value of 3.95 with an agreed level. Employees
believes that Mandalay Transportation Service offers various types of vehicles to cater to

50
customer delivery needs, and Mandalay Transportation Service provides additional
services like packaging, labeling, or customs clearance for customer’s goods. Having a
strong policy concern that using only the average load capacity of each vehicle for
processes showed the minimum mean value of 3.28, with neutral level of employees.
Employees cannot determine whether the organization have a strong policy concern that
the average load capacity of each vehicle. Shwe Mandalay Transportation Service
Enterprise has a policy concerning using only the average load capacity of each vehicle
for processes.

4.2.4 Employee Perception on Accessibility

The following Table (4.12) describes employee perception on accessibility with
mean and standard deviation values. There are nine factors for accessibility.

Table (4.12) Employee Perception on Accessibility

Sr. Standard
Description Mean
No. Deviation
1 Offering several trucks to run on all routes daily 3.64 0.536
2 Accessing to many locations in the local area 3.76 0.675
3 Having enough accessible storage on the bus 3.48 0.742
4 Being operated at domestic with the several trucks 3.73 0.741
5 Providing a specific service for the route that customer's 3.40 0.697
urgent requests for their goods
6 Allowing various types of goods and tons for delivery 3.92 0.632
7 Providing high quality and condition of the bus station and 3.73 0.741
warehouse
8 Having any specific requirements or restrictions for 3.95 0.517
transporting goods

9 Considering maximizing storage density to balance 3.45 0.759

accessibility and selectivity at the port material handling
area
Overall Mean 3.67

Source: Survey Data (October, 2023)

51
 According to the results in Table (4.12), the overall mean value of the employee
perception of accessibility is 3.67 at the agreed level. This result shows that this
organization’s transportation services have successfully implemented strategies to
enhance accessibility in their operations by offering multiple locations, utilizing several
trucks, maintaining high-quality bus stations and warehouses, accommodating various
types of goods for delivery, establishing specific requirements or restrictions for
transportation, and optimizing storage density at material handling areas. Allowing
various types of goods and tons for delivery services showed maximum mean valued of
3.92 with agree level. Employee believes that Shwe Mandalay Transportation Service
Enterprise has a diverse fleet of vehicles capable of transporting different types of goods
and varying tonnages. This demonstrates the organization’s ability to handle different
types of goods and tons, making their services versatile and accessible. Providing a
specific service for the route that customers' urgent requests for their goods showed a
minimum mean value of 3.40 with neutral level. It implies that employees cannot clearly
determine whether the organization can provide a specific service based on the
customer's urgent requests for their goods. But there is a commitment to meeting
customer needs by offering tailored services for specific routes and urgent requests.

4.2.5 Employee Perception on Safety

The following Table (4.13) describes employee perception on safety with mean
and standard deviation values. There are ten factors for safety.

Table (4.13) Employee Perception on Safety

Sr. Standard
Description Mean
No. Deviation
1 Making regularly communicates with all employees about 3.89 0.559
vehicle and transportation safety procedures
2 Having accurate preparation and records of vehicle 3.67 0.794
maintenance
3 Making regularly inspected and maintained inspections of 3.89 0.559
all trucks and vehicles by hiring technicians
4 Training employees in proper cargo handling techniques to 3.67 0.664
ensure a safe and secure process

52
 Sr. Standard
Description Mean
No. Deviation
5 Having guidelines or procedures in place for loading and 3.69 0.615
unloading cargo safely
6 Having a strong policy in place regarding drug and alcohol 3.92 0.539
testing for drivers
7 Hiring meet or exceed a minimum number of years of 3.95 0.517
driving experience to provide safe delivery process
8 Providing driver training and retraining programs that 3.64 0.849
specifically focus on safety and to reduce all types of
accident risk
9 Prioritizing safety measures during transit for its 3.95 0.517
transportation services
10 Having full accountability to protect goods from theft or 3.93 0.414
damage during the transportation process
Overall Mean 3.82
Source: Survey Data (October, 2023)

According to the results in (Table) 4.13, the overall mean value of the employee
perception of safety is 3.82 with an agree level. This result suggests that the organization
places a high emphasis on ensuring the safety of customer goods, which ultimately
contributes to improved firm performance. Among the factors, the maximum mean value
of employee perception on safety is 3.95 in two items. These items indicted that hiring
meet or exceed a minimum number of years of driving experience to provide a safe
delivery process, and having a strong policy in place regarding drug and alcohol testing
for drivers. These results indicate that employees believe the organization has a robust
policy concerning drug and alcohol testing to ensure driver safety and the organization
places importance on hiring experienced drivers to ensure safe deliveries. Providing
driver training and retraining programs that specifically focus on safety and to reduce all
types of accident risk showed the minimum mean value of 3.64 with agree level.
Employees perceive that training programs are provided to enhance their skills in cargo
handling and maintain a safe working environment.

53
4.2.6 Employee Perception on Information Technology
The following Table (4.14) describes employee perception on information
technology with mean and standard deviation values. There are nine factors for
Information Technology.

Table (4.14) Employee Perception on Information Technology

Sr. Standard
Description Mean
No. Deviation
1 Having consistency of IT application portfolios which are a 3.71 0.767
set of different types of IT application with business
processes
2 Providing training programs for their staff to upgrade their 3.53 0.759
IT knowledge
3 Providing customers with accessing real-time information 3.89 0.559
about the status and location of their goods
4 Having digital platforms or mobile applications available for 3.71 0.767
customers to book and track shipments
5 Utilizing tracking systems to monitor shipments 3.71 0.673
6 Using computer laboratory; goods input and output for data 3.95 0.517
capture
7 Allowing customers' payments by the IT system 3.76 0.883
8 Using a cargo tracking and tracing system to handle 3.71 0.785
customer’s information and provide a specific location
9 Communicating via telephone, SMS, and email about 3.76 0.750
important updates or changes regarding deliveries
Overall Mean 3.75
Source: Survey Data (October, 2023)

According to the results Table (4.14), the overall mean value of the customer
perception on information technology is 3.75 at agree level. This result presents the
employees generally have a positive perception of the IT systems and tools used in the
organization. Using computer laboratories; goods input and output for showed the

54
maximum mean value of 3.95 with agree level. Employees believes that the organization
uses a computer laboratory, which helps in maintaining an organized record of shipments
to improved tracking and monitoring systems. Therefore, employees agree this aspect of
IT as highly valuable in Shwe Mandalay Transportation Service Enterprise due to its
ability to enhance efficiency, accuracy, standardization, and integration in data
management processes. Providing training programs for their staff to upgrade their IT
knowledge gets minimum mean value of 3.53. But it gained agree level of employees.
This result indicates that employees have received proper training on how to effectively
use the cargo tracking and tracing system.

4.2.7 Summary of Employee Perception on Freight Transportation Service of Shwe

Mandalay Transportation Service Enterprise
In this study, employee perception on freight transportation service of Shwe
Mandalay Transportation Service Enterprise was measured with five factors. These
factors are reliability, capacity, accessibility, safety and information technology which
overall mean values for each factor are presented in Table (4.15).

Table (4.15) Summary of Employee Perception on Freight Transportation Service

Sr. No. Freight Transportation Service Overall Mean
1 Reliability 3.72
2 Capacity 3.73
3 Accessibility 3.67
4 Safety 3.82
5 Information Technology 3.75
Source: Survey Data (October, 2023)

According to the Table (4.15), the results show that employee perception of
freight transportation service of Shwe Mandalay Transportation Service Enterprise for
each stage. All of employee perceptions are agree level. Among these five factors, safety
has the maximum mean value 3.82 in this organization. This means that this organization
is most performed safety than other items in freight transportation service. It is because;
safety is a critical concern in any transportation operation, especially when it involves
moving goods and products. Ensuring the safety of the goods being transported is
essential to preventing accidents, damage, or loss. On the other hand, accessibility has

55
the minimum mean value 3.67 among five variables of freight transportation service in
this organization. It can be assumed that Shwe Transportation Service is considered to
have a good capacity to handle a large volume of goods and materials. For goods to
move efficiently and access transportation service easily, there have been inadequate
infrastructure, inadequate transportation networks, insufficient resources allocated, and
difficulties reaching certain locations.

4.2.8 Employee Perception on Performance

Employee perception on performance of Shwe Mandalay Transportation Service
Enterprise is measured with thirteen items. The mean value and standard deviation for
each statement is presented in Table (4.16).

Table (4.16) Employee Perception on Performance

Sr. Standard
Description Mean
No. Deviation
1 Providing accurately preparation and procedures of 3.79 0.722
transportation process reduces transit time and improves
customer relationship
2 Having reliability and service reputations for the company 3.84 0.658
that customers consider when selecting a goods
transportation company
3 Using efficient route planning minimizes delays, reduces 3.85 0.630
transit time, and improves the buyer-supplier relationship.
4 Providing a large geographic area with various 3.55 0.859
transportation trucks to increase customer satisfaction and
time delivery
5 Providing less damage or lost transit time helps improve 3.67 0.827
customer reliability and satisfaction
6 Having shipment monitoring practices enhances better 3.51 0.760
services and timely delivery
7 Having efficient capacity planning reduces transportation 4.00 0.545
costs and minimizes delays
8 Providing sufficient and efficient trucks for goods 3.81 0.730
transportation that increase on-time delivery and transit

56
 Sr. Standard
Description Mean
No. Deviation
time
9 Handling systematically unexpected events, such as 3.81 0.730
inclement weather or traffic congestion, improves timely
delivery and reduces transit time
10 Using advance technology optimizes routes and improves 3.76 0.883
delivery times
11 Using advance information and technology systems reduce 3.31 0.735
lead time by timely delivering of services to customers
12 Undertaking preventive maintenance improve the safe 3.65 0.797
transportation process, reduces transit time, and increases
customer satisfaction.
13 Offering safe transportation reduce transit time and 3.89 0.559
customer satisfaction by keeping and delivering all
materials in good condition and with minimal damage
Overall Mean 3.73
Source: Survey Data (October, 2023)

According to the results Table (4.16), the overall mean value of the employee
perception on performance of Shwe Mandalay Transportation Service Enterprise is 3.73
at agree level. This result indicates that employees believe the company is performing
well in freight transportation service by focusing on reliability, accessibility, capacity,
safety and information to improve its performance and maintain a competitive edge in
the freight transportation industry. Efficient capacity planning reduces transportation
costs and minimizes delays, as shown by the maximum mean value of 4.00 with an agree
level. This means that employees believe efficient capacity planning, such as vehicles,
drivers, warehouses, and distribution centers, is an important factor in reducing
transportation costs and minimizing delays. Using advance information and technology
systems reduce lead time by timely delivering of services to customers shows the
minimum mean value of 3.31 with neutral level. This indicates that employees cannot
decide whether using advanced information and technology systems can reduce lead time
by timely delivering services to customers. But this organization’s utilization of

57
advanced information and technology systems helps reduce lead time in delivering
services to customers.

4.3 Correlation Analysis of Freight Transportation Service and Performance

This section presents the freight transportation service on performance of Shwe
Mandalay Transportation Service Enterprise. The relationship between the freight
transportation service and performance of Shwe Mandalay Transportation Service
Enterprise can determine through correlation analysis. The correlation coefficient is a
statistical measure that calculates the strength of the relationship between the relative
movements of the two variables. The range of values for the correlation coefficient
value is ranges from -1.0 to 1.0. If the correlation coefficient is greater than 1.0 or less
than -1.0, the correlation measurement is incorrect. A correlation of -1.0 shows a perfect
negative correlation, while a correlation of 1.0 shows a perfect positive correlation. To
interpret its value, the value of r is closed to ± 0.1, ±0.2, ±0.3, ±0.4 are weakly, ±0.5,
±0.6, ± 0.7 are moderately correlated and ±0.8, ±0.9 are strongly correlated between two
variables.
In this study, the correlation of independent variables (reliability, accessibility,
capacity, safety and information technology) was tested to show their correlation with
dependent variables (firm performance). The results of the correlations of the measured
variables are show in Table (4.17)

Table (4.17) Correlation Between Freight Transportation Service and Performance

Sr. No. Freight Transportation Service Person Correlation Coefficient P-value
1 Reliability 0.736** 0.000
2 Capacity 0.775** 0.000
3 Accessibility 0.739** 0.000
4 Safety 0.871** 0.000
5 Information Technology 0.658** 0.000
Source: Survey Data (October, 2023)
** Correlation is significant at the 0.01 level (2-tailed).
Dependent Variable: Firm Performance

Regarding to the results shown in Table (4.17), the freight transportation service;
reliability, accessibility, capacity, safety and information technology have positive

58
correlation with the firm performance at 0.01 levels (2-tailed). The strongly correlation
between safety and firm performance is (r = 0.871, P < 0.01). It shows that safety factors
to correlate on firm performance. And also, the positive and strong correlation
coefficient between capacity and firm performance is (r = 0.775, P < 0.01). The positive
and moderately correlation coefficient between reliability and firm performance is (r =
0.736, P < 0.01). Then, accessibility, information technology and firm performance is
moderate positive correlation coefficient (r = 0.739, P < 0.01) and (r = 0.658, P < 0.01)
The correlation results showed that freight transportation service are essential to promote
firm performance of Shwe Mandalay Transportation Service Enterprise.

4.4.1 Multiple Regression Analysis of Freight Transportation Service and

Performance
The multiple regression analysis is the model for simple linear regression is
extended to account for the relationship between the dependent variable and independent
variables. It is used to predict the value of a variable based on the value of two or more
other variables. In the multiple regression models, the dependent variable is firm
performance while the independent variables are freight transportation service
(reliability, accessibility, capacity, safety and information technology). The results of
multiple regression analysis are shown in Table (4.18).

The proposed model is:

Yi = β0 + β1 X1 + β2 X2 + β3 X3 + β4 X4 + β5 X5 + ε i
Were,
Y = Firm Performance
β0 = Constant (intercept)
β1, β2, …, β5 = Coefficients (Regression Coefficients)
X1 = Reliability
X2 = Capacity
X3 = Accessibility
X4 = Safety
X5 = Information Technology
εi = Random Error

59
 Table (4.18) Multiple Regression Analysis of Freight Transportation Service and
Performance
Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 4.525 3.038
Reliability 0.444 0.168 0.451 2.646 0.010
Capacity 0.285 0.14 0.253 2.036 0.046
Accessibility 0.347 0.173 0.219 2.005 0.049
Safety 0.352 0.135 0.308 2.613 0.011
Information Technology -0.309 0.191 -0.236 -1.617 0.110
R2 0.771
Adjusted R2 0.754
Source: Survey Data (October, 2023)
P < 0.01, P < 0.05, P < 0.10
Dependent Variable: Firm Performance

The results of multiple regression analysis provided that reliability, capacity,

accessibility and safety have significant and positive effect on firm performance (b =
0.444, t = 2.646, p <0.05), (b = 0.285, t = 2.036, p <0.05), (b = 0.347, t = 2.005, p<0.05)
and (b = 0.352, t = 2.613, p<0.05)

The estimated model for the Study:

Ŷ= b0 + b1 X1 + b2 X2 + b3 X3 + b3 X3 + b4 X4+ b5 X5

Firm Performance = 4.525 + 0.444 Reliability + 0.285 Capacity + 0.347 Accessibility +

0.352 Safety - 0.309 Information Technology
According to Table (4.18), the model can explain 75.4 % about the variance of
the independent variables (reliability, accessibility, capacity, safety and information

60
technology) and dependent variable (firm performance) because adjusted R square is
0.754.
The coefficient for the factor of reliability is 0.444. It shows that the amount of
firm performance would increase by 0.444 in the factor of reliability when all others
variables are constant. This implies that the reliability factor has a significant positive
effect on firm performance. It can be concluded that the organization effectively handles
goods during transportation, maintains seamless communication with customers, and
ensures punctuality in its operations in order to improve the customer’s reliability and the
firm's performance. By providing timely delivery and reducing transit time, an
organization’s reliability enhances its performance. Therefore, an organization’s
reliability will help to enhance its performance by increasing customer satisfaction,
ensuring timely delivery, and reducing transit time.
The coefficient for the factor of capacity is 0.285. It shows that the amount of
firm performance would increase by 0.285 in the factor of capacity when all others
variables are constant. This implies that the capacity has positively significant effect on
firm performance. It can be concluded that this organization effectively utilizes vehicles,
infrastructure, and other resources within a given space and time period to meet customer
demands, optimize resource utilization, and ultimately achieve its business objectives.
Therefore, this organization's efficient management of transportation capacity ensures
that it meets customer demands in a timely manner while minimizing costs and
maximizing profitability.
In addition, the coefficient for the factor of accessibility is 0.347. It shows that
firm performance would increase by 0.347 in the factor of accessibility when all other
variables were constant. It can be concluded that the organization’s accessibility has had
a positively significant effect on the performance of Shwe Mandalay Transportation
Service Enterprise. It means that the organization is able to reach a larger customer base,
provide convenient access, and provide timely delivery services.
Then, the coefficient for the factor of safety is 0.352. It shows that the amount of
firm performance would increase by 0.352 in the factor of safety when all others
variables are constant. This implies that the safety has positively significant effect on
firm performance. This result suggests that the company places a high emphasis on
ensuring the safety of customer goods, which ultimately contributes to improved firm
performance. Therefore, this organization's systematic safety measures reduce the
likelihood of accidents, losses, or damage to goods, which helps minimize operational

61
disruptions, costly repairs, legal liabilities, and negative publicity associated with safety
incidents.
The factor of information technology is not significant effects on firm
performance. This factor cannot influence the performance of Shwe Mandalay
Transportation Service Enterprise. It can be said that Shwe Mandalay Transportation
Service Enterprise have limited IT infrastructure or capabilities. And, this organization
have less recognized to invest in advanced IT systems and technologies for its
transportation service operation. Without adequate IT infrastructure, the firm may not
fully leverage the potential benefits of IT on its performance. Therefore, this
organization needs to recognize that the efficient utilization of information technology
leads to cost reductions, improved customer satisfaction and loyalty, ultimately leading
to increased firm performance.
This study tested freight transportation service on performance of Shwe
Mandalay Transportation Service Enterprise. The result revealed that four factors
(reliability, capacity, accessibility and safety) are essential for performance in Shwe
Mandalay Transportation Service Enterprise. On the other hand, information technology
has not significant effect on performance of Shwe Mandalay Transportation Service
Enterprise. The final results of the multiple regression analysis are described in Figure
(4.1).

Figure (4.1) Conceptual Framework with Results

Independent Variables Dependent Variable

freight transportation service

β = 0.451
Reliability

β = 0.253
Capacity

β = 0.219
Accessibility Firm Performance
β = 0.308
β = -0.236
Safety

Significant
Information Technology
Not Significant
Source: Source: Own Compilation based on Finding

62
 Figure (4.1) shows the final results of the multiple regression analysis of this
study. It can be seen that reliability, capacity, accessibility, and safety have a significant
and positive relationship with firm performance. This result indicates that the
performance of Shwe Mandalay Transportation Service Enterprise is improved by
building consistency and dependability in transportation service, handling the volume of
goods efficiently, reaching large geographic areas or offering multiple modes of
transport, and ensuring the well-being of drivers and goods during transit. Although,
information technology is also significant relationship with performance of Shwe
Mandalay Transportation Service Enterprise. Therefore, organization is needed to focus
on its information technology systems such as GPS tracking systems, fleet management
software and online booking platform to enhance operational efficiency but also
contributes to customer satisfaction.

63
 CHAPTER V
CONCLUSION

This chapter includes findings and discussion, suggestions and recommendations,

and needs for future research. This study focuses on Shwe Mandalay Transportation
Service Enterprise, with two objectives. The first objective is to identify the freight
transportation service of Shwe Mandalay Transportation Service Enterprise, and the
second is to analyze the effects of freight transportation service on the performance of
Shwe Mandalay Transportation Service Enterprise. After these two objectives are
explored and analyzed, a conclusion for this study is described in this chapter. Besides,
suggestions and recommendations derived from the findings of the study are also
discussed. By describing the need for further research in this chapter.

5.1 Findings and Discussions

The objectives of this study are to identify freight transportation service of Shwe
Mandalay Transportation Service Enterprise, and to examine the effects of freight
transportation service on performance of Shwe Mandalay Transportation Service
Enterprise. The transportation service includes reliability, capacity, accessibility, safety
and information technology of Shwe Mandalay Transportation Service Enterprise.
Shwe Mandalay Transportation Service Enterprise provides a transparent pricing
structure based on factors such as distance, weight, and type of goods. Shwe Mandalay
Transportation Service Enterprise utilizes advanced tracking systems and employs
experienced drivers. In addition, Shwe Mandalay Transportation Service Enterprise
accurately describes the departure time of the cargo and clarifies the estimated arrival
time based on distance and tons before the customer purchases the service. Shwe
Mandalay Transportation Service Enterprise has a better cargo transportation capacity,

64
enabling them to handle various types of cargo efficiently. The transportation
accessibility of Shwe Mandalay Freight Transportation Services provided various types
of trucks for domestic transportation services. For transportation safety, Shwe Mandalay
Transportation Service Enterprise regularly inspects its fleet of trucks and employs
skilled drivers who have a commercial driver's license. And Shwe Mandalay
Transportation Service Enterprise provides cargo insurance to customers to protect their
products against damage or loss during transit. with networking sites enabling people to
interact through the internet, phone, and fax. To efficiently manage Shwe Mandalay
Freight Transportation’s operations and provide excellent customer service, they have
utilized various information technology (IT) solutions.
In this study, 75 employees of Shwe Mandalay Transportation Service Enterprise
in Mandalay is selected as the sample. According to the survey data, in gender group,
male respondents are more than female respondents. The major age group of age
respondents is between 26 and 35 years. In marital status groups, the married
respondents are more than single groups. Most of the respondents are graduated. Most of
the respondents are assistant manager level. And, most of the respondents are logistics
department. In length of services, the majority of respondents have 7 years and above in
Shwe Mandalay Transportation Service Enterprise. In this survey, the monthly salary of
most respondents is between 200,001 and 500,000 Kyats.
According to the results of the reliability test, all variables are reliable. In the
descriptive analysis of transportation service at Shwe Mandalay Transportation Service
Enterprise, safety has the highest mean value. It can be concluded that the organization
can successfully provide on its safety factors because it has always emphasized the goods
or products of customers to minimize accidents, injuries, and property damage during the
transit time or delivery process. On the other hand, accessibility has the minimum mean
value among the five variables of freight transportation service in this organization. It
can be concluded that there has been weakness in infrastructure, transportation networks,
resource allocation, and reaching certain locations in providing freight transportation
service effectively.
The correlation result shows that there is a positive relationship between freight
transportation service and the performance of Shwe Mandalay Transportation Service
Enterprise. Among the freight transportation service, safety has the strongest positive
relationship with firm performance. This result shows that safety has many factors to
influence firm performance. The other freight transportation service —reliability,

65
capacity, accessibility, and information technology—have a moderately positive
relationship with firm performance. These results show that more freight transportation
services need to be managed and provided by Shwe Mandalay Transportation Service
Enterprise to improve its performance.
In addition, multiple regression analysis was used to test the effects of freight
transportation service on performance of Shwe Mandalay Transportation Service
Enterprise. The results show that reliably, capacity, accessibility and safety have
positively significant effects on firm performance. It is concluded that the reliably,
capacity, accessibility and safety of this organizaztion are essential for improvement of
its performance. This means that freight transportation service of this organization is
effective and improved performance by for its.
Information technology is not significant factor to influence on firm performance.
This factor cannot influence the firm performance in Shwe Mandalay Transportation
Service Enterprise. The factor of information technology is not significant effect on firm
performance. It can be said that this organization has limited IT infrastructure or
capabilities, as well as a lack of investment in advanced IT systems and technologies for
its transportation service operation. And, the organization primarily operates within a
local or regional market with well-established relationships and customer networks, it
relies more on traditional methods of communication and customer acquisition rather
than extensive IT systems. This has led to the organization having difficulty estimating
real-time tracking and monitoring of shipments, facilitating efficient route planning,
enhancing communication between stakeholders, and supporting decision-making
processes.

5.2 Suggestions and Recommendations

This section contains the recommendations based on the findings of the study.
This study analyzed the effect of freight transportation service on firm performance.
Based on the findings of this study, suggestions and recommendations are provided for
the benefit of the organization in understanding the essential impact of freight
transportation service on firm performance and achieving organizational success through
improving firm performance.
According to the multiple regression results, reliability, capacity, accessibility
and safety are the significant factors for firm performance of Shwe Mandalay
Transportation Service Enterprise. These important freight transportation service should

66
be retained because these can aid to improve firm performance and gain long-term
organizational success.
Therefore, the organization should continually maintain its reliability in
transportation by consistently delivering goods on time and without any significant
disruptions for all customers. In addition, this organization should strive to provide fair
and reasonable pricing that aligns with market standards by conducting thorough market
research and analyzing competitors’ pricing strategies. To offer competitive pricing, this
organization should consider various factors such as fuel costs, labor expenses,
maintenance and repair costs, and overhead expenses. By carefully evaluating these
factors, this organization can determine an optimal pricing structure that not only covers
their costs but also remains attractive to customers. Therefore, this organization should
clearly communicate its pricing policies to customers, ensuring there are no hidden fees
or unexpected charges. The organization should provide detailed invoices and receipts to
build trust with customers and contribute to the overall reliability of the service.
This organization should more invest in advanced routing system or tracking
system that optimizes routes based on factors like traffic conditions, distance, and
delivery deadlines. This enables them to minimize delays and ensure timely deliveries.
Shwe Mandalay Transportation Service Enterprise should train their staff on proper
handling techniques to minimize the risk of mishandling goods. By focusing on
providing reliability transportation service, this organization can improve their overall
firm performance such as customer satisfaction, operational efficiency, reputation and
brand image and etc.
Capacity has been revealed significant factor that positively influence on the firm
performance. Therefore, the organization well maintains and provides for its
transportation’s capacity by managing and handling available spaces and trucks for
customers' delivery goods, which can lead to increased revenue and market share. In
addition, this organization should consider investing more in a diverse fleet of trucks
with varying capacities to accommodate the transportation needs of their clients.
Although, this organization should focus on optimizing their fleet utilization by
analyzing the types of goods their clients transport, and adjusting their fleet accordingly.
If a significant portion of their clients transports heavy construction materials, the
organization should more invest in trucks with higher payload capacities. On the other
hand, if a large number of clients transport lighter goods, investing in smaller, more fuel-
efficient trucks can help reduce costs and improve overall efficiency . By having a diverse

67
fleet, this can offer customized solutions to their clients based on their specific
requirements, thus improving customer satisfaction and increase market shares.
Furthermore, this organization should develop and communicate clear policies regarding
their transportation capacity. This will help customers understand the organization’s
capabilities and plan their shipments accordingly.
Accessibility has been revealed significant factor that positively influence on firm
performance. Therefore, the organization should impress accessibility by providing a
diverse range of transportation options to cater to different customer preferences and
needs. In addition, Shwe Mandalay Transportation Service Enterprise should have well-
located terminals or stations to enhance accessibility for customers. This organization
should expand its service coverage to reach more areas within the locality than it
currently does. This organization should establish partnerships to provide shuttle services
or designated pick-up/drop-off points at key locations, making it more convenient for
customers to access their services.
Safety has been revealed significant factor that positively influence on the firm
performance. Therefore, the organization well maintains on its safety by regularly
inspecting and maintaining vehicles, ensuring proper loading and securing of goods, and
training employees on safe handling practices. And, there should implement driver
training programs or education is crucial for ensuring the competence and awareness of
Shwe Mandalay Transportation Service Enterprise’s drivers. Shwe Mandalay
Transportation Service Enterprise should strictly enforce adherence to traffic regulations
by its drivers.
Shwe Mandalay Transportation Service Enterprise should focus more on
information technology than other factors because it is not significantly related to firm
performance, according to the results of the multiple regression analysis. It is because
information technology also plays a significant role in enhancing the efficiency and
effectiveness of transportation service. Therefore, this organization needs to be carefully
examined for its current information technology systems and practices to enhance
operational efficiency, improve decision-making processes, enable effective
communication and collaboration, and provide access to valuable data and information.
Shwe Mandalay Transportation Service Enterprise should install more reliable
and high-quality GPS tracking systems for trucks to monitor the location, speed, and
route of their vehicles. Adopting GPS tracking systems can help this organization
optimize their vehicle utilization, reduce fuel consumption, and improve maintenance

68
scheduling. This system can provide real-time updates on vehicle locations, automate
dispatching processes, and facilitate efficient route planning. In addition, the
organization should more effective communication and collaboration within the
organization through the use of IT platforms, such as email, instant messaging, and video
conferencing tools, employees can easily communicate with each other regardless of
their location. This facilitates coordination between different departments and improves
overall operational efficiency. Therefore, efficient utilization of information technology
can lead to cost reductions, improved resource allocation, increased customer
relationship and enhanced overall operational performance.
Without the practice of these freight transportation service, it is not sure that firm
performance can be created by the organization or not. The results of this study
suggested that the organization must understand the significant influence of freight
transportation service on firm performance in the real workplace because the effective
freight transportation service (reliability, capacity, accessibility and safety) are essential
for the organization to increase performance.

5.3 Needs for Further Research

The limitations of the study can be fulfilled by further research. The study mainly
focused on freight transportation service (reliability, capacity, accessibility, safety and
information technology). Other freight transportation service should be tested in the
same factory or in other areas. The respondents are the employees of Shwe Mandalay
Transportation Service Enterprise. The other transportation service companies are the
area to be emphasized by further research. The expected outcome is firm performance.
The other outcomes such as customer satisfaction, customer loyalty, etc. should be
analyzed by further research.

69
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 APPENDIX
QUESTIONNAIRE

Dear Respondent,
I am a Master of Business Administration (MBA) student from Meiktila
University of Economics. I am conducting research for my Master degree thesis
regarding performance of Shwe Mandalay Transportation Service Enterprise in
Mandalay. It aims to collect information from the employee concern with transportation
services on performance in this organization. I promised that all your information
provided would remain confidential and this survey would be used exclusively for
academic purpose.

Section A: General Information

(Please tick (√ ) in appropriate box that you think suitable answer)

(1) Gender
Male
Female

(2) Age (Year)

Under 25
26 – 35
36 – 45
46 – 55
56 and over

(3) Marital Status

Single
Married

(4) Education Level

High School
 College / university (studying)
Graduate
Post graduate
Other, Please Specify ---------------.

(5) Department
Administration and Human Resources
Finance & Account
Customer Service Department
Warehouse & Storage
IT
Sale and Marketing

(6) Position
Manager
Assistant Manager
Supervisor
Staff
General Worker

(7) Working Experiences (Year)

Less than 1 year
1 – 3 years
4 – 6 years
7 years and Above

(8) Monthly Salary (Kyat)

Below 200,000
200,001 – 500,000
500,001 – 800,000
Above 800,000
 Section B: Freight Transportation Services
Please tick (√) the appropriate number to which you agree or disagree with the
following statements regarding transportation services activities. (1 Strongly Disagree, 2
Disagree, 3 Neutral, 4 Agree and 5 Strongly Agree)

(1) Reliability
Sr. No. Statement 1 2 3 4 5
1 The company always carefully handles goods during
transportation.
2 The company puts proper maintenance schedules in place
to ensure the reliability of vehicles.
3 This company keeps a promise to deliver the right place
and all goods without damage.
4 The company regularly communicate with customers
regarding delivery schedules and updates.
5 This company gives provision of monetary penalty for the
late delivery and damages.
6 This company always plays attention to reaching the
destination at the scheduled time
7 This company gives accurate promise of departure and
arrival times.
8 The company has ability to deliver goods on time without
any damage and delay.
9 The company provides services at the promised time
10 The company has dependability and accountability in
handling customer service problems.
11 The company’s price of multimodal transport is reasonable
for customers.
(2) Capacity
Sr. No. Statement 1 2 3 4 5
1 Company’s transportation process is operated at domestic
with the sufficient transportation units for their customer.
2 Company uses heavy trucks for a majority of the
shipments
among all groups.
3 The company has sufficient vehicles to provide current
transportation modes and destination.
4 This company always considers the maximum weight and
volume of shipments in selecting the truck.
5 The company has a strong policy concern that using only
the average load capacity of each vehicle for processes.
6 The company has various types of vehicles (e.g., trucks,
vans, container) that are available to provide delivering
service to customers.
7 This company arranges extra vehicles for customers’
urgent requirements.
8 The company’s transportation service has its own
warehouses or storage facilities
9 The company offers additional services, such as
packaging, labeling, or customs clearance for customer’s
goods.
10 The company has any limitations on the size or weight of
goods that can be transported.
11 The company has sufficient transportation service
available for urgent or time-sensitive deliveries
(3) Accessibility
Sr. No. Statement 1 2 3 4 5
1 The company offers several trucks to run on all routes
daily.
2 The company's goods transportation services access to
many locations in the local area
3 The company’s trucks have enough accessible storage on
the bus.
4 The company’s transportation services is operated at
domestic with the several trucks.
5 The company provides a specific service for the route that
customer's urgent requests for their goods
6 This company allows various types of goods and tons for
delivery services.
7 The company provides high quality and condition of the
bus station and warehouse used for transporting goods.
8 The company has any specific requirements or restrictions
for transporting goods.
9 This company always considers maximizing storage
density to be balanced against accessibility and selectivity
at port material handling area.
(4) Safety
Sr. No. Statement 1 2 3 4 5
1 The company regularly communicates with all employees
about vehicle and transportation safety procedures
2 The company has accurate preparation and records of
vehicle maintenance.
3 The company regularly inspected and maintained
inspections of all trucks and vehicles by hiring technicians.
4 The company hires meet or exceed a minimum number of
years of driving experience to provide safe delivery
process.
5 The company has guidelines or procedures in place for
loading and unloading cargo safely.
6 The company has a strong policy in place regarding drug
and alcohol testing for drivers.
7 Employees of the company are trained in proper cargo
handling techniques to safe and secure process.
8 The company provides driver training and retraining
programs that specifically focus on safety and to reduce all
types of accident risk.
9. The company always prioritizes safety measures during
transit for its transportation services.
10 The company’s employees have full accountability to
protect goods from theft or damage during the
transportation process.
(5) Information Technology
Sr. No. Statement 1 2 3 4 5
1 The company has consistency of IT application portfolios
which are a set of different types of IT application with
business processes.
This company provide training programs for their staff to
upgrade their IT knowledge.
3 The company provides customers with accessing real-time
information about the status and location of their goods.
4 There have digital platforms or mobile applications
available for customers to book and track shipments
5 The company’s transportation service utilizes tracking
systems to monitor shipments.
6 The company uses a computer laboratory; goods input and
output for employees' instructions and data capture.
7 Customer’s payment is supported by IT system.
8 This company uses a cargo tracking and tracing system to
handle customer’s information and provide a specific
location.
9 The company regularly communicates via telephone, SMS
and email important updates or changes regarding
deliveries.
(6) Firm Performance
Sr. No. Statement 1 2 3 4 5
1 Providing accurately preparation and procedures of
transportation process reduces transit time and improved
buyer-supplier relationship.
2 Reliability and service reputation of the company that
customers consider when selecting a goods transportation
company
3 Using efficient route planning helps reduce minimize
delays and reduce transit time and improved buyer-supplier
relationship.
4 Providing a large geographic area with various
transportation trucks helps to increase the buyer-supplier
relationship than other transportation services.
5 Providing less damage or lost transit time can help improve
customer reliability and customer satisfaction.
6 Having shipment monitoring practices enhance better
services, timely delivery, and possible way to be satisfied
their customers.
7 Efficient capacity planning can help reduce transportation
costs and minimize delays.
8 Providing sufficient and efficient trucks for goods
transportation that can increase on-time delivery and transit
time.
9 Handling systematically on unexpected events such as
inclement weather or traffic congestion that can improved
timely delivery, and reduce transit time.
10 Using advanced technology of the company’s
transportation services has optimized their routes and
improved delivery times.
11 Advance information and technology systems reduce lead
time by timely delivering of services to customers.
Sr. No Statement 1 2 3 4 5
12 Undertaking preventive maintenance achieves
improvement safe transportation process that can reduce
delivery time, transit time and improve customer
satisfaction.
13 Safe transportation is to reduce transit time and customer
satisfaction by keeping and delivering all materials in good
condition and with minimal damage.