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A PROJECT REPORT ON
Undertaken at
In
Declaration
I, BHAVESH CHANDRA ROY, Student of BIMM – Balaji Institute of
Modern Management, Pune, hereby declare that this project entitled
“CUSTOMER SATISFACTION SURVEY (INACTIVE CORPORATE
CUSTOMERS) OF SAFEXPRESS IN NOIDA AND GHAZIABAD” for
Safexpress Logistics and Supply chain management, is a bonafide record of
work done by me during the course of summer internship project work of PGDM
program and all contents and facts are prepared and presented by me without any
bias. I also declare that it has not previously formed the basis for the award to me
for any degree/diploma associate ship, fellowship or other similar title, of any
Institute/Society.
CERTIFICATE
Acknowledgement
I would like to acknowledge all those who have been instrumental in shaping up
this project with their guidance and inspiration.
I feel immense pleasure in expressing my sincere thanks and deep sense of
gratitude to Mr. Sanjay Raj for his time and valuable efforts. He constantly
encouraged me right from the selection of the title to final preparation of my
project. He has been a constant source of knowledge, information, help and
motivation for me. I am thankful for his constant inspiration and guidance
throughout the project.
I am also thankful to the Retail team, HR of Safexpress Pvt. Ltd., whose insights
were of great help in arriving at the findings.
Preface
A Project is a scientific and systematic study of real issues on a problem with the
application of management concept and skills. The study can deal with small or
big issues in any division of an organisation. It can be case study where a problem
has been dealt with, through the process of management. The essential equipment
of a project is that, it should contain scientific collection of data, analysis and
interpretation of data leading to valid conclusion.
This Project report tends to give a sharp picture of the different parameters which
affects the dealer’s decision for selecting a logistics and supply chain
management company.
I hope, this study can be helpful in understanding the reasons behind customer
inconsistency and can help Safexpress in gaining back a few customers.
TABLE OF CONTENTS
Chapter No Topic Page No.
1 CONTEXTUAL BACKGROUND
17
E. Purpose of study with Objectives
2 LITERATURE REVIEW 18-21
5 Summary
37
Recommendation(s)
6 Bibliography/Courses/References 37
Appendix
38-40
Executive Summary
The project was focused on the study and analysis of data collected from the
customers who are dealing with various companies in the logistics and supply
chain industry. The purpose was to know the importance level of various
parameters which affects the customer satisfaction, knowing the parameters on
which the company lacks, satisfaction level of customer with Safexpress,
improvement areas for Safexpress.
Factors like Rate per consignment, transit time, documentation & other
formalities required, post transaction services are few of the determinants of
customer’s satisfaction and consistency. During my two months internship, I
went to 85 companies and interviewed the concerned person through a
questionnaire. The data was collected in the Noida and Ghaziabad region, which
reveals some facts about the brand image of Safexpress in the minds of the
customers and satisfaction derived by them. At last I have concluded the report
with the interpretation of the data and information collected is presented with the
help of the charts and diagrams.
Chapter 1
Introduction
A. A brief introduction to Safexpress and Indian logistics industry
Company Background
Vision
"To revolutionize the Supply Chain & Logistics industry in India and
consequently contribute to the growth of our economy. By way of our
unsurpassable expertise in providing Value-added Supply Chain & Logistics
services, we will enhance our 'Knowledge Leadership' and 'Market Leadership'".
Mission
"We shall adopt and internalize a work culture which demonstrates a 'We Can
We Will' attitude to reflect in our daily responsibilities so as to far exceed our
objectives, consistently striving towards market dominance. We will create
historical landmarks forming a strong edifice for the future overcoming all
obstacles proactively, as our personal responsibility and commitments are to
create delight for the customer with impeccable personalized services".
ARC Advisory Group categorizes supply chain challenges in India into two
groups: demand side challenges and supply side challenges.
Future prospects
The logistics firms are moving from a traditional setup to the integration of IT
and technology to their operations to reduce the costs incurred as well as to meet
the service demands. The growth of the Indian logistics sector depends upon its
soft infrastructure like education, training and policy framework as much as the
hard infrastructure.
To support India’s fast paced economy growth of logistics industry is very
essential. It is estimated that the Indian logistics industry will continue to show
robust growth of 10-15% annually, leading the pace of growth of the economy at
large.
The global economic outlook, indeed that of India is expected to significantly
improve as India Inc begins to tackle the economic downturn. With the current
government many policies are expected to be implemented which will give a
fresh impetus to India’s growth engine particularly in the corporate and SME
sector which in turn will expand demand for the logistics sector.
With the implementation of GST, the logistics companies, which are currently
forced to set up many small warehouses across multiple cities can set up just a
few, big warehouses region wise and can follow the hub-and-spoke model for
freight movement from the warehouses to the different manufacturing plants,
wholesale outlets, retail outlets and the various POS. This growth is backed by
the boom in the e-commerce sector and expansionary policies of the FMCG firms.
This has increased the service geography of the logistics firms but they also have
to meet the demands of quick delivery and tight service level agreements. The
industry has moved from being just a service provider to the position which
provides end to end supply chain solutions to their customers. Thus, all this has
paved the way for further growth of Logistics and Warehousing industry in the
coming years.
Surface
A pioneer in Express Distribution, Safexpress continues to innovate its offerings.
We ensure time-definite deliveries through our robust network supported by 'hub
and spoke' model, which is intended to minimize the distance travelled. This
offering enables 'just in time' and lean supply chain requirements of the
customers. This service also allows them to plan their in transit inventory – an
important input for advanced materials and distribution requirements planning.
We fully utilize our infrastructure, technology resources, research and
development, network, fleet and our ecosystem of partners to provide an
unrivalled fastest transit time in the industry.
Safe Air
Safe Air is our specialized air service that complements the surface logistics in
offering optimal multimodal solutions and faster deliveries. Our experience in
surface and air network design results in cost effective routing of valuable air-
worthy cargo
SAFEXPRESS
SWOT Analysis
Competition
1. Gati
2.DHL
Competitors 3.Blue Dart
E. Objectives:
Primary Objective
Secondary Objective
F. VARIABLES:
INDEPENDENT VARIABLES
DEPENDENT VARIABLE
Customer Satisfaction
CHAPTER-2
LITERATUTRE REVIEW
Companies today can’t afford to lose their customer base and repeat business.
While focusing on new customer acquisition should always be a goal, it can cost 7
times more to gain a new customer than retaining a current one. Brands that excel
at winning repeat business get 76% of their revenue from repeat customers (RJ
Metrics).
It’s easier to sell to your existing customers than it is to sell to new customers.
However, the inevitable attrition occurs for the majority of brands. A marketer
typically has a list of customers, with as many as 25-50% of these people
classified as “inactive”. These inactive buyers no longer need to sit dormant, there
is an option to reactivate these opt-in consumers and drive additional revenue. By
every measure, reactivation pays tremendous dividends when well executed,
demonstrating that successful brands must view reactivation as an ongoing
strategic tool rather than a one-and-done activity.
When it comes to both customer acquisition and retention, email ranks higher
than any other strategy according to Target Marketing’s Media Usage Survey.
But some marketers may still be missing out of some of today’s best practices in
reactivation marketing. Let’s review the strategies that are most effective in
stimulating a renewed relationship with your dormant customers, and reducing
customer defection and churn.
If you need backup to justify your investment in customer reactivation, here are
some useful stats:
Before you can plan your best intervention tactics, you need to develop answers
to several key questions:
4. How will you know success when you see it? For many companies,
reactivation is measured by conversion to repurchase. A useful metric is the
win-back rate, calculated as the number of reactivated customers divided by
the number of inactive at the beginning of the period. For your business, the
success metric may be something different. The point is to identify the most
appropriate metric in advance, and track the results of your reactivation
program over time.
DATA DECAY
CHAPTER 3
a) INTRODUCTION
The design of any research project requires a considerable attention to the
research methods and the proposed data analysis. Within this section, I
have attempted to provide some information about how to produce a
research design for a study. I offer a basic overview of the research
methods portion of a research proposal and then some data analysis
templates for different types of designs.
b) TYPE OF DATA
Primary data: - Questionnaire
The survey is conducted by making prior appointments with the
respondents and visiting the respondents preferred location at his/her
convenient timings. Then a face to face interview has been conducted and
the questionnaire is filled up to collect the primary data for analysis.
The questionnaire mainly had closed ended questions.
c) RESEARCH DESIGN FOR PRIMARY DATA COLLECTION
Research Design: - Descriptive Research
Blend of Descriptive method has been used in this research for the
collection of data. As the research is related to the study of customer
activeness, which can more effectively be studied through direct questions
personal interview and informal talks. Also, considering the time
constraints, descriptive research leading to conclusive result is the most
suitable design for this research.
Target Population:
The inactive retail customer of Safexpress were the targets. The person
who used to take major business related decisions, was interviewed.
CHAPTER-4
Test Hypothesis:
H0: Factors influencing choice of a supply chain management and logistic
company do not differ in magnitude of importance (mean ranks are equal).
H1: Factors influencing choice of supply chain management and logistics
company differ in magnitude of importance (mean ranks are not equal)
Observations:
TABLE: 1
Test Statisticsa
N 85
Chi- 47.762
Square
Df 3
Asymp. .000
Sig.
TABLE: 2
a. Friedman Test
Mean rank
Pricing 2.75
Documentation 1.81
Formalities
Services 3.09
Conclusion
Since the p value (0.000) is less than the level of significance 0.05, the null
hypothesis is rejected. Hence it is concluded that factor influencing choice of
logistics company significantly differ in magnitude of importance.
Interpretation
From the mean rank table we know that services with a mean rank 3.09 play
the most important role for customers at the time of selecting a logistics
company followed by pricing offered by the company and then transit time
while documentation formalities is considered to be the least important.
2. Ranking the performance of Safexpress
Statistical Test: Friedman Test
Variable and Measurement: Respondents are asked to tell what they think
about the performance of Safexpress on the following factors
1) Services
2) Pricing
3) Transit Time
4) Documentation Required
Each factor was measured on a 5 point scale (1= highly dissatisfied, 5
highly satisfied)
Test Hypothesis:
H0: Factors affecting the level of satisfaction towards Safexpress do not differ
in magnitude of importance (mean ranks are equal).
H1: Factors affecting the level of satisfaction towards Safexpress differ in
magnitude of importance (mean ranks are not equal).
Level of Significance: alpha (α) = 0.05
TABLE: 3
Test Statisticsa
N 85
Chi-Square 17.146
Df 3
TABLE: 4
a. Friedman Test
Ranks
Mean
Rank
Services 2.30
Pricing 2.22
Conclusion:
Since the pvalue (0.000) is less than the level of significance 0.05, the null
hypothesis is rejected. Hence it is concluded that factors affecting the level of
satisfaction for Safexpress significantly differ in magnitude of importance.
Interpretation:
From the rank table, we can find that services have a mean rank of 2.30, pricing
has a mean rank of 2.22, transit time has a mean rank of 2.69, documentation
required 2.79.
Reasons
Rate Service business is
issue Issue down other Total
Conversion Yes 14 13 10 2 39
No 8 14 4 4 30
maybe 0 13 1 2 16
Total 22 40 15 8 85
Interpretation: Out of total 85 inactive customers 39 say that they are ready to
become active if their issues are resolved. 16 are not sure about it and 30 are not
ready to convert.
Chart 1
18%
9%
47%
26%
INTERPRETATION
4) To find out the share of other logistic players with whom the inactive
customers of Safexpress are currently working
CHART-2
TCI
15%
GATI
19%
OTHERS
13%
LOCAL
TRANSPORTERS
25%
INTERPRETATION
25% of total inactive customers say that they use local transporters to
send their consignments, followed by 19% with Gati, 16% with DHL
and 15% with TCI.
5) The time period for which the customers were associated with
Safexpress before becoming inactive
CHART-3
18% 21%
1-2 YEARS
15%
2-4YEARS
LESS THAN A YEAR
46%
MORE THAN 4 YEARS
INTERPRETATION
46% of customers were active for a period of 2-4 years and then
became inactive
While 15% of customers didn’t like the services provided by safexpress
in the initial stage only and thus became Inactive within a year.
CHART-4
11%
7%
29%
22%
31%
INTERPRETATION
31% customers out of the total sample have a monthly business potential
of Rupees 40000-60000
While 11% customers have the potential to give the business of more than
100000 per month
CHART-5
35% Maybe
46% No
Yes
19%
INTERPRETATION
46% Customer agree that if their complain is resolved then they will be
interested in doing the business again.
CHART-6
33
35
28
30
25
20 16
15
10 5
3
5
0
1 2 3 4 5
INTERPRETATION
CHART-7
41% Maybe
42%
No
Yes
17%
42% of the total customers will refer Safexpress to others, 41% are not
really sure about it and 17% won’t refer it to others.
CHAPTER-5
5.1 Finding
1. According to table number 1 service is the most important factor and the
documentation required is the least important factor while selecting a
logistics company.
2. From the table of cross tabulation we find that majority of inactive
customers are ready to convert but there are still many customers who are
not ready to convert even if the problem is resolved.
3. According to chart 1 majority of customers have become inactive due to
service issues and the next most important reason is rate issues.
4. According to chart 2, 25% of the inactive customers are currently working
with local transporters while GATI at 19% is the most used logistic player
in the organised sector, while DHL, TCI and VRL are also strong
competitors.
5. According to chart 3, 46% of the inactive customers were active for a
period of 2 to 4 years but started facing issues after that.
6. Around 31% of inactive customers have a monthly potential of Rs 40000-
60000 and 11% have a monthly potential of more than Rs 100000.
5.2 Recommendations
1. Work on an easy and unified pricing system through which customers can
calculate their freight charges by themselves.
2. Work on attributes where Gati is positioned well.
3. Launch awareness drives for Safexpress mobile application.
4. Join hands with Indian railways for better and faster delivery.
5. Try to give the customers a better value for money
5.3 Limitations
5.4 REFRENCES
http://www.safexpress.com/
https://blog.help.com/2015/04/20/3-steps-to-reactivate-churned-
customers/
http://www.logisticsindia.net/Safexpress_Logistics_India
http://www.iamwire.com/2017/04/indian-logistics-industry-
scenario/151331
APPENDIX
QUESTIONNAIRE
Gati
DHL
VRL
TCI
Local transporters
Others________
7. What are the reasons that you are no longer an active customer of
Safexpress?
1. Service issues
2. Pricing issues
3. Transit time
4. Pending complaints
5. Others
FACTORS 1 2 3 4 5
SERVICES
PRICE/RATE
DOCUMENTATION
FORMALITIES
TRANSIT TIME