Transportation Services Activities
Transportation Services Activities
Transportation Services Activities
INTRODUCTION
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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.
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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.
8
CHAPTER II
LITERATURE REVIEW
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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).
2.3.1 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
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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-
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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).
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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
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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.
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Figure (2.1) Conceptual Framework of the Study
Reliability
Capability
Accessibility Firm
Performance
Safety
Information Technology
Source: Own Compilation based on Previous Studies
25
CHAPTER III
FREIGHT TRANSPORTATION SERVICE OF SHWE MANDALAY
TRANSPORTATION SERVICE ENTERPRISE
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)
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Figure (3.1) Organization Structure of Shwe Mandalay Transportation Service Enterprise
Chairman
General Manager
General General
Workers Workers
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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.
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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)
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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.
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.
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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.
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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.
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)
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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.
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).
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.
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 (4.4), 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.
44
Sr. No. Department Number of Respondents Percentage
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.
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).
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.
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.
49
The following Table (4.11) describes respondent perception on capacity with
mean and standard deviation values. There are eleven factors for capacity.
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.
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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.
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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.
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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.
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.
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.
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.
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.
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
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).
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
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.
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.
69
REFERENCES
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.
(1) Gender
Male
Female
(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
(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.