ASSESSMENT OF LOGISTICS SERVICE

QUALITY
(Case study: Gamby Teaching General Hospital)

Aswan Lema
Balew Shiferaw
Binifer Sirak
Wasintu Gossaye

Logistics and Supply Chain Management Department

College of Business and Economics
Bahir Dar University

BAHIRDAR, ETHIOPIA
JUNE, 2017
 ASSESSMENT OF LOGISTICS SERVICE
QUALITY
(Case Study Gamby Teaching General Hospital)

A Research Submitted to the Department of Logistics and Supply Chain

Management in Partial Fulfillment of the Requirements for Bachelor of Arts
Degree in Logistics and Supply Chain Management

By
Aswan Lema
Balew Shiferaw
Binifer Sirak
Wasintu Gossaye

Advisor
Tigist Getnet

Logistics and supply chain management department

College of Business and Economics
Bahir Dar University
June, 2017
 BAHIR DAR UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
LOGISTICS AND SUPPLY CHAIN MANAGEMENT DEPARTMENT
“Assessment of Logistics Service Quality”: (In the case of Gamby Teaching General
Hospital)

Approved By:

------------------------- ------------------------ -----------------------

Advisor Signature Date

------------------------ ---------------------- ----------------------

Examiner Signature
Acknowledgement

Firstly we would like to thank GOD for his support throughout our academic life second we
would like to thank Bahir Dar University particularly the department of logistics and supply
chain management that gave us this opportunity to do this research paper and get valuable
knowledge regarding real life environment,

Thirdly; we would like to express our sincere appreciation and gratitude to our advisor Tigist
Getnet for her constant encouragement and valuable advice. Last but not least we would like to
thanks workers of Gamby Teaching General Hospital who cooperate with us, especially the
manager who stood beside us while we were gathering information for our study.
LIST OF ABBREVIATION

2RATE Reliability, Responsiveness, Tangibles, Assurance, and

Empathy
CSCMP Council of Supply Chain Management Professional
LSQ Logistics Service Quality
E.C Ethiopian Calendar
PDSQ Physical Distribution Service Quality
PHD Philosophy of Doctorate
E.g. Example
SERVQUAL Service Quality
LSQ Logistics Service Quality
Table of Contents
LIST OF ABBREVIATION ................................................................................................................................ iii
Abstract ......................................................................................................................................................... 1
CHAPTER ONE ............................................................................................................................................... 1
1. INTRODUCTION ........................................................................................................................................ 1
1.1 Background of the Study ....................................................................................................................... 1
1.3 Statement of the problem ................................................................................................................. ii
1.4. General Research Questions .......................................................................................................... iii
1.5 Objectives of the study ...................................................................................................................... iv
1.5.1General objective ......................................................................................................................... iv
1.5.2 Specific objective ........................................................................................................................ iv
1.6 Significance of the study .................................................................................................................... iv
1.7 Scope of the study ............................................................................................................................. iv
1.8 Limitation of the study ....................................................................................................................... iv
1.9 Organization of the paper ................................................................................................................... v
CHAPTER TWO ............................................................................................................................................. vi
2. REVIEW OF RELATED LITERATURE ........................................................................................................... vi
2.1 The concept of logistics .............................................................................................................. vi
2.2 Definition of logistics service quality .............................................................................................. vi
2.3 Customer perception and expectation of logistics Service Quality ..................................................xiii
2.5 Proposed model of logistics service quality................................................................................... xv
CHAPTER THREE ........................................................................................................................................ xviii
3 Research Methodology and procedure ................................................................................................. xviii
3.1 Research Design .............................................................................................................................. xviii
3.2 Population and Sampling Technique .............................................................................................. xviii
3.3 Sources of Data and Method of Data Collection .............................................................................. xix
3.4 Data Analysis and Interpretation ...................................................................................................... xix
4 Data Presentation Analysis and Interpretation ........................................................................................xx
4.1 Interview question analysis .......................................................................................................... xxxi
CHAPTER FIVE .......................................................................................................................................... xxxii
5. SUMMARY, CONCLUSION AND RECOMMENDATION .......................................................................... xxxii
5.1 SUMMARY OF MAJOR FINDINGS........................................................................................ xxxii
 5.2 Conclusion .................................................................................................................................... xxxiii
5.3 Recommendations ....................................................................................................................... xxxiii
Reference ................................................................................................................................................. xxxv
APPENDIX ................................................................................................................................................ xxxix
List of table’s page

Table 1 Customer Perception of logistics service Quality and Customer Satisfaction .............................. xv
Table 2 A Proposed Model of Logistics Service Quality ..............................................................................xvi
Table 3 logistics activities and number of employees ................................................................................ xix
Table 4 demographic characteristics of the respondents ...........................................................................xx
Table 5 level of logistics service quality ..................................................................................................... xxii
Table 6 the reliability of logistics service quality ....................................................................................... xxii
Table 7measurement of logistics service quality ...................................................................................... xxiii
Table 8 the hospital examine logistics service quality .............................................................................. xxiv
Table 9 hard work for achieving logistics service quality.......................................................................... xxiv
Table 10 provision of responsive service to customers ............................................................................. xxv
Table 11 : extent of the hospital ready and willing to help customers by providing prompt timely service.
.................................................................................................................................................................. xxvi
Table 12 the number of employee familiar with logistics concept ......................................................... xxvii
Table 13 attitudes towards important/advantages of logistics service quality...................................... xxviii
Table 14 the competence, courtesy and credibility of the hospital to inspire trusts to all deserved
customers.................................................................................................................................................. xxix
Table 15 attitudes towards the existence of independent logistics department in hospital. .................. xxix
Table 16 the dedication of employee towards meeting customer service ............................................... xxx

List of figure page

Figure 1 Customer Perception of logistics service Quality and Customer Satisfaction ................ xv
 Abstract

Highly competitive market in the hospital industry has caused increasing pressure on private hospital to
provide services with higher quality. Organizations existence is depending up on their customers’
existence with them; customers’ need quality service from the service provider. So that logistics service
quality is pivotal for satisfying customers, retaining them and creating loyalty amongst customers. The
main purpose of this research is to assess the logistics service quality (LSQ) at Gamby teaching general
hospital and investigate the logistics service quality of the hospital. The research addressed the objective
of the study like examining the reliability of hospitals to improve logistics service quality, identifying the
existence and advantage of effective logistics service quality system. Regarding with The methodology
mixed research design with descriptive type of research has been conducted. For selecting the sample
two-stage sampling technique has been used. Both primary and secondary sources of data have been
used. The student researchers have been used questioner and interview for collecting data. The study
also analyzes the collected data by using descriptive statistics. As the result of data analysis indicates
Gamby teaching general hospital has good logistics service quality.
 CHAPTER ONE
1. INTRODUCTION
1.1 Background of the Study
Logistics is an activity which is very essential to any organization. It plays a crucial role to
every organization whether private or government organization .the word logistics comes from a
French word logistiqu derived from a word logger which means quarter (accommodation of
troops) (council of logistics and supply chain management, 2000). The term logistics comes from
a military word, means it is the ability to efficiently and effectively distribute, store materials or
supplies performance were key factor in the success of use armed force (lambert.et al 1998)
In the context of business, logistics refers to the process of planning, implementing and
controlling efficient and effective movement and storage of materials, service and related
information from point of origin to point of destination for the purpose of conforming customer
requirement. It is the positioning of resource at the right time in the right place at the right cost at
the right quality (Lambert, et al 1998)

Logistics service quality is the main requirement of every organization in order to meet their
customer need or requirements and maximize their profit by decreasing cost. Logistics service is
a service which is rendering by every service provider organization. Logistics service quality is
one indicator of organizational prosperity (Lambert, et al, 1998)

Management has to focus on building of logistics service quality, maintaining good logistic
quality if it is possible through creating and providing high customer service, short lead time,
having good strategies and hiring logistics professional etc. In existing competitive and
distinctive competitive will only be gained through maintaining good logistics service quality.
Management has a great role to ensure quality of logistics service even if other stuff as well. In
order to maintain good logistics service quality management must establish different mechanism
such as active employee participation measuring customer satisfaction, recognition good worke
collaboration with outside or inside parties etc. in order to achieve organization objective
(Lambert ,et al,1998).

Therefore the research was aimed at assessing the logistics service quality and examin the
responsiveness, competence, empathy and reliability of Gamby teaching general hospital.
1.3 Statement of the problem

The problem of logistics service quality is not only a one time problem rather it is a long range
consequence that means if the organization has no good logistics service quality it will lost the
good will of organization as well as lost the customer which result in losses of profit and also it
is going on shut down the businesses. In addition the failure of logistics service activities have
many problems such as delaines of activities, loss of profit , loss of market share, loss of
customer, high cost etc…so the company should have built effective logistics service quality in
order to achieve their objectives. (Lam, 1997).

Hospitals provide similar services with different quality. The quality can be used as the strategic
differentiation for establishing a distinctive advantage, those difficult for rivals to follow or copy
(Lam, 1997). Many of researchers have emphasized on the importance of determining role of
quality in hospital choice by the patients, as well as satisfying and retaining customers and have
claimed that the improvement of the quality of hospital services will increase the number of
satisfied patients and thereby customer loyalty (Zeithmal and Bitner (2004)

Healthcare providers believe that, unlike managers in the manufacturing industry, they are
unable to predict patient mix and the demand for a particular item; hence they are unable to
control or project their schedules (Jarrett, 1998). Stochasticity in the patient mix and the average
length of stay in hospitals is also mentioned by Van Merode et al. (2004) as one of the problems
in scheduling of resources.
As Hospitals function is one of the service based sector, during the recent decade, the number of
private health centers providing health care services in Ethiopia has been ever increasingly
growing. However many of the hospitals seem not yet have adequate system of communicating
the public and Also numerous claims on logistics service quality in the local hospital managers
and administrators were identified it is known that weather manufacturing or service providing
company managing the quality of logistics service has a great role for the success of
maximization of company profitability.
On the other hand Poulin (2003) mentions that more than 30 percent of total hospital expenses
are invested in logistics activities and half of this cost could be eliminated through logistics
management. Improvements in the supply chain in hospitals can lead to excellent operating room
and pharmaceutical management, better inventory management, enhanced vendor relationships,
more satisfied patients and more effective work flow for hospital employees (Burt, 2006).The
logistics activities in hospitals involve purchasing, inventory management, management
information systems, food services, transportation and home care services (Aptel and Pourjalali,(
2001).
As was studied by (Parasurman et al, 1985) most of hospitals faces problems like poor logistics
service quality, competence of employees, reliability of logistics service quality at proper and
promised level , empathy of manager and employees towards achieving logistics service quality
in the hospital, and poor responsiveness
Consequently, it is important to examine the functions of this department to improve logistics
services quality and reduce costs from a more strategic perspective; we contend that within
hospital structures, the logistics department should act as an internal support to clinical activities,
rather than playing a more traditional neutral role (Wheelwright and Hayes (1985).

Based on the conducted investigation the student researchers has been addressed the problems
like poor logistics service quality, competence of hospital , reliability of logistics service quality
at proper and promised level , empathy of hospital towards achieving logistics service quality in
the hospital, and poor responsiveness. There for the basic question for this study is that of how
the hospital is successful in understanding the impact of logistics service quality in achieving its
objectives. The purpose of the study was therefore to examine the logistics service quality in
Gamby teaching General Hospital.

1.4. General Research Questions

how the hospital (Gamby teaching general hospital) investigate on the logistics service quality depend
on the study variables ?

This study attempted to answer the following sub research questions

1) Does the hospital assured logistics service quality at promised service level?
2) Is the hospital reliable to improve logistic service quality?
 3) Does the hospital have empathy towards the existence of independent logistics
department?

4) How the hospital is responsive to its customers (patients)?

1.5 Objectives of the study

1.5.1General objective
The general objective of this study was to investigate logistics service Quality in Gamby
teaching general hospital.

1.5.2 Specific objective

1) To examine the assurance of logistics service quality in the hospital.
2) To examine the reliability of hospitals in order to improve logistics service quality.
3) To assess the empathy towards the existence of independent logistics department.
4) To assess responsiveness of the hospital to their customers (patients).

1.6 Significance of the study

The study had the following importance for organization, researchers and other. For the
organization uses to give the way how to improve the quality of logistics service in order to meet
their customer request and maximize profit. It will serve as researcher for future study and it will
contribute as a new way of improving logistics service quality of the organization.

1.7 Scope of the study

The area of the study was limited to the topic of the “Assessment of Logistics Service Quality
(reliability, responsiveness, empathy and assurance)” in Gambi Teaching General Hospital
located in Bahir Dar city.

1.8 Limitation of the study

The study was conducted in Gamby teaching general hospital. Therefore the study cannot be
generalized to other hospital in Ethiopia. As the new concept of logistics term most of
employee was not familiar with the concept that was difficult to get more reliable data for
conducting our research and due to time and resource limitation uncovering the overall
performance of similar sector in Ethiopia.
 1.9 Organization of the paper

This paper contains five chapters. The first chapter is the introductory part; which contains
background of the study, statement of the problem, research questions, objective of the study,
significance of the study, scope of the study, limitation of the study, definition of terms and
organization of the paper. The second chapter discusses related literature review on logistics
concepts, and definitions logistics service and quality concepts. The third chapter is about the
research methodology including research design, source of data, method of data collection,
sampling technique and finally data presentation and analysis technique. The fourth chapter is
about data analysis and interpretation; finally summary, conclusion and recommendation are
included under chapter five.
 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1 The concept of logistics

According to council of supply chain management professional logistics is the process of
planning implementing and controlling procedure for the efficient and effective transportation
and storage of goods including service related information from the point of origin to the point of
consumption for the purpose of conforming to customer requirement and includes inbound and
outbound internal and external movement. The oxford definition of logistics is it is the brunch of
military science relating to procuring maintaining and transporting. Logistics is the management
of the flow of things between the point of origin and the point of consumption in order to meet
requirement of customers or corporation (Parasuraman et, al 1985).

2.2 Definition of logistics service quality

Logistics is the process of planning, implementing, and controlling procedures for the efficient
and effective transportation and storage of goods. It includes services, and related information
from the point of origin to the point of consumption, for the purpose of conforming to customer
requirements. This definition includes inbound, outbound, internal, and external movements.
“Logistics must ensure that a recipient is supplied from a point of origin in accordance with his
requirements with the correct product (in quantity and variety), in the right condition, at the right
time and in the right place at minimum cost. (Pfohl, H. Chr., 2004)

Logistics is that part of supply chain management that plans, creates and monitors the efficient,
cost-effective flow and storage of goods, semi-finished items and manufactured products as well
as related information between the point of origin and the point of consumption in order to meet
customers' requirements (Council of Supply Chain Management Professionals CSCMP, 2007).
logistics has main field of study such as procurement logistics, distribution logistics, after sale,
reverse, green logistics etc. The definition of service is that Service is a patch up activity to fulfill
some ones need in the market. Service is something which can be experienced but cannot be seen
and touched or seen. Service offered by service provider cannot be seen and touched as they are
intangible activities. Kotler et al 2000) a service is an activity or benefits that one party can offer
to another which is essentially intangible and does not result in the ownership of anything the
expected service and the perceived service sometimes may not be equal, thus leaving a gap.

Ten determinants that may influence the appearance of a gap described by Parasuraman et al.
(1985) as;

1. Competence is the possession of the required skills and knowledge to perform the service.
For example, there may be competence in the knowledge and skill of contact personnel,
knowledge and skill of operational support personnel and research capabilities of the
organization (Doll et al., 1994; Kaynamaand Black, 2000).
2. Courtesy is the consideration for the customer's property and a clean and neat appearance of
contact personnel, manifesting as politeness, respect, and friendliness.
3. Credibility is the factors such as trustworthiness, belief and honesty. It involves having the
customer's best interests at prime position. It may be influenced by company name, company
reputation and the personal characteristics of the contact personnel.
4. Security is the customer feeling free from danger, risk or doubt including physical safety,
financial security and confidentiality (Joseph et al, 1999).
5. Access is approachability and ease of contact. For example, convenient office operation
hours and locations (Parasuraman et al, (1985; Kaynama and Black 2000).
6. Communication means both informing customers in a language they are able to understand
and also listening to customers. A company may need to adjust its language for the varying
needs of its customers. Information might include for example, explanation of the service and
its cost, the relationship between services and costs and assurances as to the way any
problems are effectively managed (Doll et al.1994).
7. Knowing the customer means making an effort to understand the customer's individual
needs, providing individualized attention, recognizing the customer when they arrive and so
on. This in turn helps in delighting the customers i.e. rising above the expectations of the
customer (Zeithmalet al., 1988; Delone and Mclean 2003).
8. Tangibles are the physical evidence of the service, for instance, the appearance of the
physical facilities, tools and equipment used to provide the service; the appearance of
personnel and communication materials and the presence of other customers in the service
facility (Parasuramanet al.,1985 ; Zeithmalet al ., 1985.
9. Responsiveness is to the readiness and willingness of employees to help customers in
providing prompt timely services (Parasuramanet al 1985; Zeithmalet al, 1988).
Latterly, PZE (1988) were reduced the determinants to five: these are tangibles; reliability;
responsiveness; service assurance and empathy.

1. Tangibles; Physical facilities, equipment and appearance of personnel.

2. Reliability; Ability to perform the promised service dependably and accurately.
3. Responsiveness; Willingness to help customers and provide prompt service.
4. Assurance; Competence, courtesy, credibility, security, knowledge and courtesy of
employees and their ability to inspire trust and confidence (Free Press, 1990).
5. Empathy: Access, communication, understanding the customer, caring and individualized
attention that the firm provides to its customers (Kurtz et al , 2003).

10. Reliability is the ability to perform the promised service in a dependable and accurate
manner. The service is performed correctly on the first occasion, the accounting is correct,
records are up to date and schedules are kept (Parasuramanet al, 1985; Zeithmalet al, 1988 ;
2002) Yang and Fang (2004) Liu and Arnett (2000); Riel et al(2001.
Service are economic activities that create value and provide benefits for customers at specific
time and place as a result of bringing about a desired change in or on behalf of the receipt of the
service (Kotler et.al,1999) Service are the production of essential intangible benefits and
experience either alone or parts of tangible products through some form of exchange, with the
intention of satisfying the need wants and desire of the consumer (Christopher lovelock).
Quality is the key requirement in every field in terms of industrial growth. Quality plays an
important role and so should be understand and defined properly. Different management Guru in
different ways to define quality but the basic concept remains same that is “meeting to the need
of customer. In most generalized way the quality term can be defined as “the inclusion of all
specified feature and characteristics as defined for product or service and its ability to satisfy the
given needs as per the requirement of the user while using it. Quality is a conformance to the
requirement (Philip Crosby 1991);
Quality is the a degree of which a set of inherent characteristics fulfills the requirement (iso
9000).as per paresuroman, zeithaml , 1985) .
The service industry plays an increasingly important role in the economy of many countries.in
today global competitive environment delivering quality service is considered as an essential
strategies for successful service (Parasurman et al, 1985).
Now we go to define logistics service quality based on what the other define it literature review
on the contemporary studies on service quality in general and logistics Service quality (LSQ) in
particular has revealed that development of the definition and Conceptualization of this subject
has been built up from two approaches which can be termed Subjective and objective quality.
Service quality is a measure of how well the service level delivered matches customer
expectation. The first approach proposes that quality means adapting service to specifications
defined by service providers (Crosby 1991); this concept sees service as a physical object which
is observable and with attributes which can be evaluated (Garvin 1984).The second approach
proposes that quality is based on customers’ evaluation and perceptions.
Hence, the first approach is dominated by a traditional concept which defined logistics service
quality as being composed of physical distribution aspects of service, which means that this point
of view focuses only on service providers but not on customers. In other words, this school tries
to indicate how logistics executives can quantify the value which the provider firms create for
the customers but falls short of measuring the customers’ perceptions of the value created by
logistics services (Rafiq and Jaafar 2007). In the meantime, the second approach largely
contributed by Bienstocket al. (1997), Millen and Maggard (1997), Sohal et al. (1999), and
Mentzeret al. (1999, 2001) attempted to identify objective variables evaluated through
customers’ perceptions in relation to their expectations. As a result, a new concept of logistics
service quality is introduced by proposing a model that includes other customer service elements
called “Marketing Customer Service” Representing physical operations-based definitions of the
logistics service quality, whichBienstock et al. (1997) called physical distribution service quality
(PDSQ), are a number of authors.
LaLonde and Zinszer (1976) proposed that service quality comprises three dimensions: (1) an
activity to satisfy customers’ needs, (2) performance measures to ensure customer satisfaction,
and (3) a philosophy of firm-wide commitment. This proposal was in line with the work of
Novacket al. (1995) Mentzeret al. (1989) defined logistics service quality as having three
components, namely, availability, timeliness and quality. This model was on par with the work
of Bienstocket al. (1997), who called their model PDSQ (physical distribution service quality)
but putting in a small change to the third component. The later model consists of availability,
timeliness and condition. Here, condition refers to order condition and covers quality. Studying
logistics quality service from a different perspective, i.e. the customer perspective, several
authors argued that the conceptualization of logistic service quality would be more
comprehensive and fit into the logistics context if customers’ perceived attributes were added to
physically observable operational attributes.
Donabedian (1980) proposed three components of service quality, namely, structure, process and
outcome where structure and process refer to technical and functional characteristics of service
quality, and the outcome means the result of their interaction. Against this definition, a bi-
dimensional model of service quality was proposed (Lehtinen and Lehtinen 1991), with the two
dimensions being process and result. In their research, Lehtinen and Lehtinen (1991) defined
process as a consequence of the customers’ experience in logistics service delivery and linked
result to core or technical capability of service providers.
Similarly, McDougall and Levesque (2000), and Brady et al. (2001) simply described service
quality as consisting of two dimensions which are technical ability and perceived value.
Furthermore, two distinguished components of logistics quality which are objective and
perceived measures were recognized in the work of Maltz and Maltz (1998) in that objective
represents hard variables of service quality in relation to delivery reliability by logistics firms,
and perceived measures imply information, familiarity and responsiveness These classifications
were endorsed by later literature conducted in the study of Mentzeret al. (1997) who grouped
logistics service quality into two fundamental components, i.e. physical distribution service
quality and customer service quality. This two-element categorization is the same as the proposal
of Gronroos (2001) that argued logistics service quality is made up of technical and functional
service characteristics.
Going further from this definition, Mentzeret al. (1989) described the quality in logistics service
as consisting of two complementary elements which are marketing customer service (MCS) and
physical distribution service (PDS). This view is shared by others (such as Rinehart et al. 1989,
and Collier 1991) and is seen as an intelligent base for the integration of marketing and logistics
activities. Previously, this concept was mentioned as technical quality and functional quality
(Gronroos 1984), where technical quality refers to the service outcomes and functional quality
refers to the process of service delivery Davis (2006) commensurate with this line, putting
forward a bi-dimensional model of operational LSQ and relational LSQ, with the former
dimension referring to activities of physical distribution service and the latter one involving
activities of marketing customer service.
Further studies on PDSQ proposed by Bienstock et al. (1997) revealed that this
conceptualization was a component of a broader concept of logistics service quality and should
have other complementary components which involve people and procedures in relation to order
placement and handling. Based on this, Mentzeret al. (1999) conducted a study to assess the
accuracy of the PDSQ model with an integral focus on logistics. This revision and validation
proposed a new multidimensional model which they called LSQ. Rafid and Jaafar 2007) have
identified a set of dimensions for measuring LSQ which include timeliness, condition and
accuracy of the order, quality of information, availability and quality of contact personnel.
Among these dimensions, timeliness is of the greatest influence (LaLonde and Zinszer 1991,
Perrault and Russ 1974, Novacket al1994, Bienstocket al. 1997, Mentzeret al. 2001), and is
perceived as reception of the order placed by the customer at the agreed moment (Mentzeret al.
2001) Jian and Zhenpeng (2008) introduced a model of six dimensions: personnel’s quality;
information quality; order the course; intact intensity of the goods, the error is dealt with,
timeliness...., logistics in hospitals have two main chains, on internal chain and one external
chain. Logistics service requirements in the internal chain are immediate and have almost no lead
time. Therefore, hospitals need to focus on two aspects: the management of the external
supplychaintominimizethecostsandthemanagementoftheinternalsupplychaintomaximizeservicele
velsCustomer satisfaction can be measured according to the performance of processes to handle
the needs of the internal customer (Swinehart and Smith, 2005).
This means moving from a limited role of no strategic value to the organization, where the goal
is to minimize the negative impact of the logistics or material management department, to a more
proactive role, where logistics provides credible and significant support to the organization.
Logistics then becomes not only a source of savings in terms of support services, but also renders
clinical professionals more productive (Landry and Beaulieu,2002).the quality of logistics
services has become the relevant object of researches.
Romano et al. (2001) Proved that the practice of quality management and permanent observation
of quality in the area of logistics may improve the abilities of enterprise in order to satisfy the
expectations of a customer. The results of Thai (2008) researches have revealed the increase of a
customer’s satisfaction as the main result of the relationship between the quality of logistics
services and the achieved success of enterprise in the researches proving that the management of
the quality of logistics services determines the ability it is noted that the conception of quality
(and the measurement of quality) in the system of logistics argues that the conception of quality
services has substantially changed both the academic studies and the practice of logistics
business and that there are different opinions what constitutes the quality of logistics services of
actions and procedures that are related to it. In the quality of logistics services but only to
identify the dimensions and indicators of quality from the prospects of marketing and
logistics(Thai 2008)
The marketing emphasizes the evaluation of quality from a service recipient’s position but
ignores the necessity to involve the service provider’s technical skills as well as the results of
services. Thus the integrated approach is necessary that combines the perception of quality of
Services from the positions of both marketing and the management of logistics.
Despite the abundant theoretical and empirical integrated studies of the quality of logistics
services the aim of logistics is to supplement and help the enterprises in the process of marketing
activity, Provision of services of high-level quality. Thus the quality of logistics services has to
be conceptualized and measured from the prospects of logistics and the marketing of services. So
the models of the measurement of service quality of logistics have to integrate the approaches of
both disciplines there is a diversity of approaches and discussions concerning the issue of the
model of measurement of logistics services quality and the indicators of measurement of
logistics services model. The perception of services quality reveals the technical aspects of
service and customers’ variety of customers’ expectations that are related to their perception of
the quality of services. Thus in the present paper it is supposed that the model of quality
measurement has to be created from both customer’s prospects and provider’s prospects. A
customer’s prospect. This is one of the stages while the results of initial research are presented
in the present paper.
Logistics Services as one of the most important elements that helps to satisfy completely the
customers ‘needs. The management of the quality of logistics services is still a complicated task.
Dlugosz (2010) unique personality who has his/her wishes while being served. It is obvious that
there are no two identical customers who would express the same requirement for the quality of
provided services. Each customer’s strategy of logistics services . It often occurs that the
academics propose various methods of assessment of the quality of logistics services.
Dimensions of assessment of the quality of logistics services (delivery time, delivery reliability,
delivery quality) that allow to measure quality .Delivery time covers the period from receipt of
order to the delivery of goods to a customer and the curtailment of delivery time increases the
attraction constituent part that is more and more determined in the competitive process.
Delivery reliabilityis substantiated by the reliability of delivery time which means that the
agreement will be on time and harmonized capacity of provided services will be delivered
punctually. It is the ability to adapt quickly to the requirements of the changes needs. Delivery
quality means an exact requirement of purchasing agreement that is related to the types the state
of goods while receiving them. This method to assess the ratio of the prices of provided service
services complies with the provided quality. Another model of the measurement of the quality of
logistics services is presented by Franceschiniet al (200). Productivity, regularity, damage to the
product, the period of take-veracity (i.e. how many mistakes are made while conducting the
order). In these dimensions of the measurement of logistics services the concept of measure the
productivity of enterprise. It is noted that the indicators of prices in these dimensions are that the
majority of the presented indicators is more concentrated on the result of service itself rather than
on the means that are used that are necessary to reach the result.
After setting up the standards of customers ‘service or determining main criteria of the
evaluation evaluate the quality of logistics service according to composed of the classical
dimension of evaluation of service quality: reliability, reaction, empathy, assurance, and material
values classical model of the measurement of service quality causes the debate about its
relevance to measure the quality of logistics service.
Franceschiniet al. (2000)present the comparison of these two dimensions of models while
ascribing each dimension the types of relationships: strong connection (a strong connectionist
emphasized between the model of the quality of logistics service and the dimensions of the
quality of strong connection between these dimensions is noted defined)
2.3 Customer perception and expectation of logistics Service Quality
Customer’s expectations have been defined as an individual’s thought or belief of that a
customer has about the performance of a service performance is satisfied (Clow and kinz, 2003).
They reflect anticipated performance (Gilbert et al., 1982). Prior to using a service consumer will
have in his mind different scenario of the service that he/ she might express. So this expression
shapes satisfaction (Muddie and Cottam 1993).

Customers form service expectations from past experiences, word of mouth and advertisement.
In general, Customers compare perceived service with expected service in which if the former
falls short of the latter the customers are disappointed. On the other hand, perceptions have been
described as an individual’s formed opinion of the experienced service (Teas, 1993). Customer
expectations are beliefs by customers about service delivery that function as standards or
reference points against which performance is judged. This indicates that customers have
something in their mind about the service delivery by the company so that customers can
compare their perception of performance. Based on this comparison between expectation and
perception, service quality be measured (Zeithaml and Betner, , 2003). “Being wrong about what
customers want can mean losing a customers also mean expending money time and other
resources on things that do not count to the customer”. Customers hold different levels of service
expectations are desired service and adequate service between them is zone of tolerance (Van
Iwaarden et al., 2000) logistics service quality paradigm where quality is a result of the
difference between perceived and expected service (Ali Dehghan , 2006). Consensus in growing
that the two concepts are fundamentally different in terms of their underlying causes and
outcomes. Although they have certain things in common, satisfaction is generally viewed as a
broader concept, whereas service quality assessment focuses specifically on dimensions of
service. Based on this view, perceived service quality is a component of customer satisfaction
(Zeithaml and Betne, . 2003). Graphically the difference between the two concepts looks like;

Product
quality Situational factor

Interaction quality Situational factor

2RATE

Interaction quality Product quality Customer

satisfaction

2RATE Physical, environment

quality
Logistics Service
quality
2RAT Outcome quality Price Personal factors

NB. 2RATE (Reliability, Responsiveness, Assurance, Tangibles, Empathy)

Table 1 Customer Perception of logistics service Quality and Customer Satisfaction

Source: Zeithaml and Betner, (2003).

Over the years, several researchers have suggested that consumers judge the quality of service
based on their perceptions of the technical outcome provided, the process by which that outcome
was delivered, and the quality of the physical surroundings were the services delivered (Zeithaml
and Betner, , 2003).

Several studies have also shown that a high level of customer service quality can exert a positive
influence on customer satisfaction (Zeithamlet al., 1996). The relationship between logistics
service quality and customer satisfaction has been discussion during the past decade. According
to Jun et al. (2004), some authors (e.g., Grönroos, 1983) argued that there is a significant overlap
between these two concepts, and thus, they can be used interchangeably. Other researchers (e.g.,
Bitneret al., 1990; Carman, 1990; De Ruyteret al., 1997; Lee and Yoo, 2000), though, have
attempted to differentiate between these two constructs. They argued that whereas service quality
is an overall evaluation of the service under consideration, customer satisfaction is often viewed
as the result of specific service transactions. (Hsing-Yun Chang et al,, 2008)

Table 1 provides a summary of key relevant literature on logistics service quality along with
their main findings. It can be seen from the earlier discussion and Table 1 that there is currently
no universal framework to define logistics service quality properly taking into account both
service provider’s and customer’s perspective Table 1: Summary of selected literature on service
quality dimensions in logistics.

2.5 Proposed model of logistics service quality

It is apparent that the majority of the prevalent literature on logistics service quality has focused
on logistics service providers, and there has been a severe lack of research done in this respect
with regard to customers’ assessment and definition of this concept. Based on this argument, this
 Research attempts to explore how the service quality in logistics is defined from both service
providers’ and customers’ perspective. Customers’ perception of logistics service quality is
derived from a series of interactions in the interface process with the logistics service provider.
Quality attributes at each interface contribute to the customers’ overall perception of service
quality provided by logistics service providers. Besides, in many cases in logistics operations, the
relationships between the customers and logistics service providers are established indirectly
through the role of suppliers - the logistics service providers’ contractors -, which are popular
and indispensable part in logistics. Hence, whether or not the customers’ perceived service
quality is good depends largely on the quality of service provided by those contractors.
Additionally, with the new concept of stakeholder nowadays taking over the traditional one,
social responsibility emerges as a vital dimension which can foster or hinder the image or
reputation of an enterprise and hence the perceived quality of its service (Thai 2008). Compared
with the existing literature on logistics service quality, it can be seen that there has been a major
gap in the prevalent literature with the quality concept and conceptualization in such segments of
personnel contact, information, organization’s image, social responsibility and supplier quality
rarely investigated. As such, this research proposes a new model of logistics service quality
which consists of seven dimensions and 32 explaining items. This is summarized in Table 2.
These dimensions and attributes were derived directly from the gaps identified in the literature
and some common attributes validated in earlier studies, such as Thai (2008).

Table 2 A Proposed Model of Logistics Service Quality

Factors Items
1
Reliability . Logistics service quality at promised service level.
reliability to address logistics service quality dependably and
2. accurately
3 measure or evaluation logistics service quality in accurate
. manner
4
. Examine the existence of logistics service quality
Responsiveness 5 Managers has work toward achieving logistics service quality
 .
6
. Provide responsive service to customers(patients).
7.The readiness and willingness of employees and customers to
assist customers
.

Assurance 8.skilled and experienced workers through logistics concept

9.managers and employees recognize the advantage of logistics
service quality
10 Competence, courtesy, credibility of hospitals manager and
. employees

11.access and attitudes towards the existence of independent logistics

Empathy department
12. works of employees towards meeting customer satisfaction

Source: Thai (2008)

From the above illustration we have recognized the importance of logistics service quality as a
key component of customer satisfaction .as such the logistics service quality domain is explored
from its nine LQS process model dimension namely personal contact quality, order release
quantities, information quality, order producer, order condition ,order quality, timeliness, and
order discrepancies handling (mentezeret al 2001).
The domain of relationship of logistics service quality however was investigated from six
dimension namely satisfaction with logistics service quality, relationship satisfaction, trust,
perceived opportunities, calculative commitment and effective commitment .as most studies
focus on logistics service quality nor relationship quality. The result from this study would
provide insight into the effect of relationship among logistics service quality and customer
loyalties. Source; Thai (2000)

CHAPTER THREE

3 Research Methodology and procedure

3.1 Research Design

Since the research aims to asses Logistics Service Quality of Gamby Teaching General Hospital,
we used mixed research design with the descriptive type of research in conducting this study.
Since its expression enable by distributing questionnaires to assessing logistics service quality in
Gamby teaching general hospital.

3.2 Population and Sampling Technique

Since the research was aimed at assessing logistics service quality in Gamby teaching general
hospital, the target population was employees of the hospital. The total population of Gamby
teaching general hospital is 214(two hundred fourteen) from this the student researchers focused
on 33 who are working in logistics related departments such as purchasing department,
transportation, warehouse department, Inventory controlling department, Informatics, Return
goods handling and Customer service management departments.

The organizations were first divided as strata based on their work division as purchasing
department, transportation, warehouse department, Inventory controlling department,
Informatics, Return goods handling and Customer service management departments.

Then all 33 target employees were included in the study, because they are small in number. In
order to collect data and meet the objective of the study the student researcher selected subject
respondents from the total population based on two stage sampling technique, stratified random
sampling for selecting departments and census for selecting respondents from departments.

Logistics activities performed in the hospital and number of employees

Table 3 logistics activities and number of employees

No. Work division No. of population No. of sample size

1. Purchasing 6 6
2. Warehouse 5 5
3. Inventory management 6 6
4. Informatics 4 4
5 return goods handling 3 3
6 Transportation 4 4
7 Customer service management 5 5
Total 33 33

3.3 Sources of Data and Method of Data Collection

For this research we used both primary and secondary source of data. The primary data was
collected from the hospital’s employee by using structured questioner and interview method. The
secondary data was collected from the hospital journals, written material and related documents.

3.4 Data Analysis and Interpretation

Descriptive analyses method has been used in order to analyze the collected data. This method
was selected because it is an appropriate method to analyses and describes the collected data for
assessing the logistics service quality in case of Gamby teaching general hospital. Accordingly,
the quantitative data were analyzed using descriptive statistics like frequency count and
percentage to describe the extent of various responses on the issue raised. Data collected trough
interview were analyzed and then described or narrated based on the methods best suited to its
nature.
 CHAPTER FOUR

4 Data Presentation Analysis and Interpretation

This chapter deals with the presentation analysis and interpretation of data collected through
questioner. The respondents in the hospital are from purchasing, logistics and material
management, warehouse management, customer service management, and transportation and
quality assurance department. The research selected 33 respondents who are working in the
logistics activities department for questioner. Finally data obtained from different respondents as
follows.

Table 4 demographic characteristics of the respondents

No items Number of Percentage

Respondents
1 Sex of respondents
a) Male 21 64
b) female 12 36

Total 33 100%
2 Age
a) 20-30 15 45
b) 31-40 13 40
c) Above 41 5 15

Total 33 100%
3 Qualification of
respondents
a) Diploma 10 30
b) BA degree 21 64
c) Master degree 2 6
d) PHD - -

Total 33 100%
4 Work experience of
respondents 7 21
a) 0-2 years 16 48
b) 2-5 years 10 31
c) >5 years
Total 33 100%

Source: own survey (2017)

As indicated in the above table (4) about the demographic characteristics of respondents presents
that the majority of respondents 21(64%) are males and 12(36%) are females. On the other hand
13(40%) of respondents are in the age of group of 31-40 years. From those respondents 21 (64%)
of them are degree holder and 10(30%) of them have diploma and 2(6%) have master degree.
From the work experiences of the employee in the logistics and material management
department accordingly 7(21%) of the respondents have between 0-2 years of work experience
and 10(31%) of them have above 5 years of work experience whereas 16(48%) of the
respondents have 2-5 years of work experiences. From the table and interpretation it implies that
majority of the employees are degree holder and have two to five years of work experience.
Table 5 level of logistics service quality

Item Option Number of Percentage

respondents
The hospital Strongly agree 5 15
performs Agree 18 55
logistics No opinion 5 15
service Disagree 5 15
quality at Strongly dis agree - -
promised
level.
Total 33 100
Source: own survey (2017)

According to table (5) based on the level of logistics service quality in the hospital 18(55%) of
the respondents responded that there is highly sufficient level of logistics service quality in the
organization and 5(15%) of respondents replied that there is sufficient logistics service, while
5(15%) of the respondents replied that there is no sufficient level of service quality in the
organization. The rest 5(15%) of those respondents have said that they have no opinion about
level of logistics service quality. This implies that there is better logistics service level in the
hospital.

Table 6 the reliability of logistics service quality

Item Options Number of Percentage

respondents
The hospital is Strongly agree 7 21
reliable to address Agree 12 37
logistics service No opinion 12 36
quality. Disagree 2 6
Strongly disagree - -
 Total 33 100

Source: own survey (2017)

As shown the table (6) among the sample respondents based on the question of reliability to
address logistics service quality dependably and accurately to solve logistic service quality
problems 12(37%) of the respondents agree and 7(21%) of respondents strongly agree that the
hospitals is reliable to address logistics service quality and tackle logistics related problems on
the other hand 2(6%) of the respondents responded that workers are not provide accurate and
dependable logistics service quality. Generally the hospital is reliable to address logistics service
quality.

Table 7measurement of logistics service quality

Item Option Number of Percentage

respondents
The hospital measure Strongly agree 4 12
or evaluate logistics Agree 17 52
service quality in No opinion 10 30
accurate manner. Disagree 2 6
Strongly disagree - -

Total 33 100
Source: own survey (2017)

As shown in table (7) above, about the measurement and evaluation of logistic service quality
17(52%) of the respondents agree for that has evaluate and measure logistics service quality and
4(12%) of the respondents strongly agree that the hospital evaluates and measures the extent of
the logistic service quality while 2(6%) of the respondents responded that there is no any
measurement and evaluation regarding the logistic service quality on the other hand 10(30%) of
the respondents responded that they have no any information about logistic service quality. This
implies that the hospital evaluates and measure logistics service quality.
Table 8 the hospital examine logistics service quality

item Options Number of

respondents Percentage
The hospital examines the Strongly agree 5 15
existence of logistics service Agree 1 3
quality. No opinion 12 36
Dis agree 15 46
Strongly disagree - -

Total 33 100%
Source: own survey (2017)

As shown in the Table (8) that based on the question, does the hospital examine the existence of
logistics service quality, 15(46%) respondents replied that the hospital does not examine logistics
service quality while 6(18%) of those said that the hospital examine logistics service quality
properly, on the other hand 12(36%) of the respondents have no opinion about examination of
logistics service quality. this implies that the hospital does not examine logistics service quality.

Table 9 hard work for achieving logistics service quality

Item Options Number of

respondents Percentage
The hospital manager has works Strongly agree 6 18
toward achieving logistics service Agree 18 55
quality. No opinion 6 18
Disagree 2 6
Strongly disagree 1 3

Total 33 100%
Source: own survey (2017)
 As shown in the above Table (9) that based on the attitude towards the level of working towards
achieving logistics service quality in the hospital , 6(18%) of respondents replied that the
employee are highly eager for achieving logistics service quality and18(55%) of respondents are
said that workers of the hospital works towards logistics service quality. On other hand 3(9%) 0f
respondents replied that there is low level of working towards achieving logistics service quality
and 6(18%) of which said that they have no any opinion about working towards logistics service
quality.as result this shows that the hospital does work towards achieving logistics service
quality.

Table 10 provision of responsive service to customers

Item Option Number of Percentage

respondents
The hospital provides responsive service Strongly agree 1 3
to customer (patients). Agree 2 6
No opinion 16 49
Disagree 14 42
Strongly disagree - -

Total 33 100%
Source: own survey (2017)

Based on the above Table (10) regarding the hospital provide responsive service to customers 14(42%)
respondents argued that there is no strong responsive service to customers, 2(6%) of the remaining
respondents said that there is sufficient responsive services and 16(49%) of respondents suggested that
they have no opinion towards the responsive logistics service to customers and 1(3%) of the total
respondent said that there is provision of responsive service to customers. this implies the hospital does
not provide responsive logistics service.
Table 11 : extent of the hospital ready and willing to help customers by providing prompt
timely service.

Item options Number of Percentage

respondents
the hospital is ready and willing to Strongly agree 13 40
help customers by providing prompt Agree 16 48
service. No opinion 3 9
Dis agree - -
Strongly 1 3
disagree

Total 33 100%
Source: own survey (2017)

As indicated the above Table (11 ) indicated that extent to which the hospital is ready and willing
to help customers by provide prompt timely service the respondents respond that 13(40%) of
those said that the hospital highly ready and willing to provide timely service to customers and
those of 16(48%) respond the employee are ready and willing to provide timely service to
customers on the other hand 1(3%) of those respondents argued the hospital too late to provide
timely service to customers , while 3(9%) of respondents have no opinion about readiness and
willingness to provide timely service or not. this implies that the hospital is willing and ready to
help customers.
Table 12 the number of employee familiar with logistics concept

Item Options Number of Percentage

respondents

The hospital has skilled and Strongly agree - -

experienced employees Agree 8 24
through logistics concept. No opinion 7 21
Disagree 13 40
Strongly disagree 5 15

Total 33 100
Source: own survey (2017)

As shown in the table (12) based on the concept and skill of logistic service towards workers
8(24%) of the respondents replied that the workers in the hospital have equipped with concept
about logistic services and 18 (55%) of the respondents responded that the workers of the
organization have no concept towards logistic service in addition 7(21%) of the respondents
responded that majority of the workers have no opinion towards concept of logistic services.as a
result majority of the hospital employees have no logistics service quality concept.
Table 13 attitudes towards important/advantages of logistics service quality

Item Option Number Percentage

of
respondents
Hospital manager and Strongly agree 13 40
employee believe and Agree 14 42
recognize the importance No opinion 3 9
of logistics service Disagree 3 9
quality in overall Strongly disagree - -
operation
Total 33 100
Source: own survey (2017)

As shown in the above table (13) regarding the question of attitude of beliefs and recognize
towards the importance of logistic service quality13 (40%) of the respondents responded that the
logistic service quality has great importance toward achieving organizational goals and
objectives and14(42%) respondents responded that the hospital recognize the advantage of
logistics service quality on the other hand 3(9%) of respondents respond that they have no
opinion about the advantage/importance of logistics service quality on the over all operating
environment, while 3%(9%) of the respondents implied that logistic service quality has no
impact on achieving organizational goals and objectives.
Table 14 the competence, courtesy and credibility of the hospital to inspire trusts to all
deserved customers.

Item Options Number of percentage

respondents
The hospital competent, courtesy, Strongly agree 15 46
credible and able to inspire trust to Agree 12 36
all customers. No opinion 4 12
Disagree 2 6
Strongly disagree - -

Total 33 100%
From the table (14) shows that the respondents response towards competence, courtesy, and
credibility of the hospital 15(46%) said that the hospital is highly competent, courtesy and
credible to hospitals operation to inspire trust to all customers and those of 12(36%) respond the
hospitals is competent, courtesy, and credible to customers while 2(6%) of respondents argued
that the hospital is not competent, courtesy, and credible to customers. But those of respondents
4(12%) said that they have no opinion about competence, courtesy and credibility of hospitals
towards the customers .this implies that the hospital is competent ,courtesy, and credible to
inspire trust .

Table 15 attitudes towards the existence of independent logistics department in hospital.

Item Options Number of respondents Percentage

The hospital has great Strongly agree 7 21
attitude towards the Agree 13 40
existence of independent No opinion 8 24
logistics department. Dis Agree 4 12
Strongly 1 3
disagree
33 100%
Source: own survey (2017)
As shown in the above table (15) it indicates that the attitude of respondents towards the
existence of independent logistics department, from the respondents 7(21%)of the total implied
there is independent logistics department separately with 13(40%) of respondents response.
contrary to this 4(12%) of respondents respond there is no independent logistics department in
the hospital with 1(3%) strongly refused the existence of independent logistics department and
8(24%)of the respondents have no opinion towards the existence of independent logistics
department. This description implies that the existence of independent logistics department in
the hospital.

Table 16 the dedication of employee towards meeting customer service

item Options Number of Percentage

respondents
The hospital employee Strongly agree 26 79
s work towards meeting Agree 6 18
customer satisfaction. No opinion 0 0
Disagree 1 3
Strongly disagree - -

Total 33 100
Source: own survey (2017)

As shown in the table above (16) regarding employees attitude towards meeting customer
satisfaction indicates that 26(79%) of the respondents responded that the employees have very
good attitude towards meeting customer satisfaction while 6(18%) of the respondents responded
that employees have good attitude toward meeting customer satisfaction on the other hand 1(3%)
of the respondents responded that the hospital employee have low attitude towards meeting
customer satisfaction.

According to the data most of respondents replied that logistics is an important activities in the
hospital and also a significant cost reduction can be achieved through a good logistics
management. In order to meet the customer requirement having quality of logistics service have
a vital role that plays in the hospital and it is important to reduce delays that occur in the
operation etc.

4.1 Interview question analysis

Question1.What is the advantage of independent logistics department that exist in the hospital?

Based on the interview question that replied to manager responded that the advantage of
independent logistics department that exist in the hospital are, it is important to deliver the
required customer service by increasing the hospital responsiveness and also decreasing the cost
of delaine, for handling of patients effectively. Generally it is important to integrate all other
related department by planning controlling and implementing systems towards achieving a
hospital goal

Question2. What are the major problem that face the hospital to implement effective logistics
service quality system?

As the question replied to the manager that the manager responded as the problem that faced the
hospital for implementing effective logistics system is that divided into two as manager view this
are general and specific problem. The general problem are first there is insufficient level logistics
professional in the hospital and have no well-organized environment for implementation such as
modernized warehouse, latest technology for adaptation of the contemporary logistics system.
And also lack of networking system with internal and external customers and lack of budget are
the most general problems that faced the hospital. The specific problems are like insufficient
number of beds for patients .lack of computer that is most of activities are performed by
manually that increase deliance, insufficient number of ambulance that serve the society.

Question3. Does the organization have integrative logistics system with other department?

As the question replied to the manager responded that there is integrative logistics activities with
other departments such as logistics with finance, human resource management, warehousing,
customer service etc.as he said that if there is effective integrative system with other department
it is vital for having high level of logistics quality that render to the customer.
 CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATION

This Chapter deals with summary, conclusion and recommendation based on the analysis and
interpretations made in chapter four. The student researcher is tried to make recommendations
for the raised problems.

5.1 SUMMARY OF MAJOR FINDINGS

The purpose of this research was to assess logistics service quality in case of Gamby teaching
general hospital. Therefore according to the discussion and analysis of data presented under
chapter four the following findings were drawn.

 It was found that in the hospital there is sufficient level of service quality
 The result of analysis reveals that independent logistics department exists in the hospital
 as was found with the help of descriptive statistics analysis most of the hospital
employees have not logistics and related concepts
 As noted by most of the respondents most of the logistics activities are performed in the
hospital such as purchasing, warehousing inventory management, transportation customer
services and others.
 As it has been found effective operation of the logistics activities are not well coordinated
due to lack of enough logistics knowledge and using modern logistics technologies
 The result of analysis revealed that the hospital does not examine logistics service
quality.
 Most of the respondents agreed that the hospital have good attitude towards meeting
customer satisfaction
 It was found there is moderate ratio of provisions of reliability of logistics service quality.
 The result of the analysis shows that Gamby teaching general hospital is working towards
achieving logistics service quality.
 More over it has been found that the hospital does not provide responsive logistics
service to customers.
 5.2 Conclusion
This research was conducted to assess logistics services quality in case of Gamby teaching
general hospital. In particular this research attempted to answer the following four basic
questions:
1. Does the hospital examine the assurance of logistics service quality?

2. Does the hospital assess and examine the reliability to improve logistics service quality?

3. Does the hospital responsive to their customer (patients)?

4. Does the hospital have empathy towards the existence of independent logistics service quality?

Depending on the finding of the study, the following conclusions were made. Logistic service
quality of the hospital involves effective coordination and operations of purchasing, return
handling, inventory management, management information system, transportation etc. on the
other hand logistics services quality depends to equip the employees enough logistics knowledge
and developing effective mechanisms to improve logistics service quality . This study offers
more insights into the subject area of logistics services quality by combining the variables of
service quality, customer satisfaction. Motivated by this, the current study designed a construct
that included service quality, customer satisfaction. Out of 33 distributed questionnaires all of
them were collected and used for analysis and the following conclusions are given from these
responses: Based on the analysis results obtained by the researcher the following conclusions are
concluded.
Among the variables in the service quality the analyses showed that the first sensitive area is
evaluation and measurement of logistics service quality problems, like lack of awareness of
logistic importance Generally top important dimensions for Gamby teaching general hospital are:
there is no provision of responsive logistics service quality, the hospital managers and employees
does not examine logistics service quality and most of employees have not logistics related
concepts.

5.3 Recommendations

In view of the conclusion, the following build suggestion and recommendation were made in the
hope that they would minimize the problem identified in the study area.
This research has important practical findings for the hospital. Long term success in the market assumes
orientation on satisfaction of customer demands.

 According to the findings, the quality improvement efforts of private hospital is advised
to mostly focus on provide sufficient level of logistic service.
 Enhance the logistic knowledge of employees through continuous training
 Modernizing equipment, timeliness of care delivery, accuracy of performance as well as
on enhancing the interpersonal relationships and communication skills of its physicians,
nurses and other personnel.
 Make available provisions of responsive logistics services.
 Managing time in queuing
 Give employees effective training and development skill and give incentive to which able
employees to deliver prompt service to customers. According to the service profit chain
model the satisfaction of employees/internal customers contributes indirectly for the
satisfaction of external customers.
 Recognizing and Understand what customers really want through ongoing learning about
the expectations and perceptions of customers and number of customers by conducting
customer service.

Suggestions for Future Research

Based on the limitations that have been encountered in this study, certain points have been
suggested for future researchers. It will be considered worthwhile if it can be included whether
the researchers conducted with different practical variables and increasing the number of study
variables. implementation of logistics service quality has any impact on hospitals performance
and competitive advantage of it and can be used to measure LSQ. Finally, the conceptual
framework that has been developed in this study may need further testing because this study was
restricted on hospital (gamby teaching general hospital). There for the future researcher will
conduct on various hospitals, thus future researchers will conduct more sound research by
overcoming these limitations.
 Reference

Anderson, E. W., Fornell, C. and Lehrmann, D. R. 1994. “Customer Satisfaction, Market Share,
and Profitability”: Findings from Sweden. Journal of Marketing,

Bowersox, D. J., Mentzer, J. T. and Speh, T. W. 1995.” Logistics Leverage. Journal of

BusinessStrategies”,

Brady, M. K., Robertson, C. J. and Cronin, J. J. 2001”.Managing Behavioral Intentions in

Diverse Cultural Environments”: An Investigation of Service Quality, Service Value, and
Satisfaction for American and Education Fast-food Customers.Journal of International
Management,

Crosby, P. 1991. La calidad no cuesta. El arte de cercionarse de la calidad, Mejico: CECSA.

Davis, E. R. 2006. The Role of Logistics Service Quality in Creating Customer Loyalty.

Wheelwright, S.C.; Hayes, R.H. (1985)."Competing Through Manufacturing," Harvard

Business Review,

Aptel, O. and Pourjalali, H. (2001), “Improving activities and decreasing costs of logistics in
hospitals: a comparison of US and French hospitals”, The International Journal of Accounting,

Poulin, E. (2003), “Benchmarking the hospital logistics process: a potential cure for the ailing
healthcare sector”, CMA Management

Swinehart, K.D. and Smith, A.E. (2005), “Internal supply chain performance measurement:a
healthcare continuous improvement implementation”, Int. J. Healthcare Quality
Assurance,

Van Merode, G.G., Groothuis, S. and Hasman, A. (2004), “Enterprise resource planning for

Hospitals”, International Journal of Medical Informatics, .

Donabedian, A. 1980.”The Definition of Quality and Approaches to its

Assessment.Exploration inquality assessment and monitorin, Health Administration Press,”
Ann Arbor,MI.
Feng, Y., Zheng, B., and Tan, J. 2007. “Exploratory Study of Logistics Service Quality Scale
based on Online Shopping Malls”.

Garvin, D. A. 1984. “What does Product Quality Really Mean?.Sloan Management Review”,

Gronroos, C. 1984.” A Service Quality Model and Its Marketing Implications.European

Journal ofMarketing”

Gronroos, C. 2001. “The Perceived Service Quality Concept – A mistake?Managing

ServiceQuality”

LaLonde, B. J. and Zinszer, P. H. 1976.”Customer Service: Marketing and Measurement.

Chicago: National Council of Physical Distribution Management”.

LaLonde, B. J. and Zinszer, P. H. 1991. “Customer service: Meaning and Measurement. In:
Ballou, R. Ed. Logísticaempresarial, control y planificación”. Madrid: EdicionesDíaz de
Santos.

Lehtinen, U., and Lehtine, J. R. 1991”.Two Approaches to Service Quality

Dimensions.Theservices Industries”

Maltz, A. and Maltz, E. 1998.”Customer Service in the Distributor Channel Empirical

Findings”.

Journal of Business Logistics,

McDougall, G. H. G. and Levesque, T. 2000.” Customer Satisfaction With Services: Putting

Perceived Value into the Equation. Journal of Services Marketing”, .

Mentzer, J. T., Flint, D. J. and Kent, J. L. 1999.” Developing A Logistics Service Quality Scale”.

Journal of Business Logistics,

Mentzer, J. T., Flint, D. J. and Hult, T. M. 2001”.Logisics Service Quality as a Segment-

“Customized Process.Journal of Marketing,
Mentzer, J. T., Gomes, R. and Krapfel, R. E. 1989. “Physical Distribution Service: A
Fundermental Marketing Concept?” Journal of the Academy of Marketing Science,

Mentzer, J. T., Rutner, S. M. and Matsuno, K. 1997.” Application of the Means-End Value
Hierarchy Model of Understanding Logistics Service Quality”.International Journal of
PhysicalDistribution and Logistics Management,

Millen, R. and Maggard, M. 1997.” The Change in Quality Practices in Logistics:” 1995 versus
1991.Total Quality Management,

Novack, R. A., Langley Jr. C. J. and Rinehart, L. M. 1995.”Creating Logistics Value:” Themes
forthe Future.Oak Brook, IL: Council of logistics Management.

Novack, R. A., Rinehart, L. M. and Langley, C. J. 1994”.An Internal Assessment of Logistics

Value”.Journal of Business Logistics,

Rafiq, M. and Jaafar, H. S. 2007”.Measuring Customers’ Perceptions of Logistics Service

Quality of 3PL Service Providers.”Journal of Business Logistics,

Rahman, S. 2006.” Quality Management in Logistics”: An Examination of Industry Practices.

SupplyChain Management: An International Journal,

Richey, R. G., Daugherty, P. J. and Roath, A. 2007.” Firm Technological Readiness and
Complementary: Capability Impacting Logistics Service Competency and Performance.”
Journalof Business Logistics,

Rutner, S. M. and Langley, C. J. 2000”. Logistics Value: Definition, Process, and

Measurement”.International Journal of Logistics Management,

Stank, T. P., Goldsby, T. J. and Vickery, S. K. 1999.”Effect of Service Supplier Performance on

Satisfaction and Loyalty of Store Managers in the Fast Food Industry”.Journal of
OperationsManagement,

Stank, T. P., Goldsby, T. J., Vickery, S. K. and Savitskie, K. 2003.” Logistics Service
Performance: Estimating its Influence on Market Share”. Journal of Business Logistics,
Thai, V. V. 2008.” Service Quality in Maritime Transport: Conceptual Model and Empirical
Evidence”. Asia Pacific Journal of Marketing and Logistics,

Jian, X., and Zhenpeng, C. 2008.” Logistics Service Quality Analysis Based on Gray
Correlation Method.” International Journal of Business and Management,

Aptel, O., Pourjalali, H. (2001).” Improving activates and decreasing costs of logistics in

Hospitals”: A comparison of U.S. And French hospitals. The International Journal of

Accounting

Gilbert, A., Churchill, J.R. and Surprenant, C. (1982): “Expectations and norms in models of
consumer satisfaction”, Journal of Marketing Research, .

Kotler,P. (1999), “Kotler on Marketing”, 7th ed.

Teas, R.K. (1993): “Expectations, performance evaluation and consumers’ perceptions of

quality”, Journal of Marketing, October,

Davis et al (2006)” operational LSQ, relational LSQ.”

Dlugosz, j. (2010).”strategic nature of logistics customer service in the supply chain, electronic
scibution and logistics management,”

Christopher m. (2005)”.logistics and supply chain management. Creating value, adding

networks”.Third edition.Great Britain; prentive hall.

Parasurman, a zeithaml, v. a. and berry, l, l, (1988) “SERVQUAL: a multiple item scale for
measuring customer perception of service quality”. Journal of retailing,

Franceschini, f., Raffle, c. (2000)” quality evaluation in logistics service” –international journal
of agile management system, .

Doll et all (1994)” determinants of service quality.”

Council of logistics and supply chain management,(2000) “;concepts of logistics and supply
chain management devilry”.
 APPENDIX

Bahir Dar University

Collage of business and economics

Department of logistics and supply chain management
Dear respondents, we are logistics and supply chain management 3rd year graduating class
students at the College of Business and Economics, Bahir Dar university. Now we are
conducting our final research paper on “Assessment of Logistics Service Quality in case of
Gambi Teaching General Hospital”, for the partial fulfillment of a Bachelor of Arts degree in
Logistics and Supply Chain Management. Your response is very important for successful
accomplishment of this study. The information you provide will be used for academic purpose
only & everything will be kept confidentially. However, if you encounter with difficult question
or areas that you are not responsible, skip it.

We thank you in advance for your kind cooperation!

Instructions

 Please read carefully before making any decision, because your correct response will help
for the success of our study.
 Please put mark (  ) in the box in front of each question.
 No need to write your name and address.

SECTION ONE: Background Information

1. Personal information
2.
Sex: Male Female:
Age 20-30 31-40 41 and above
3. Education statuses
 PhD master degree BA degree diploma

4. for how long you have worked in your current position

Up to 2 years 2-5 years above 5 years

SECTION TWO: logistics service quality assessment

Scale:

To what extent do you agree/disagree with the following statements? (Scale: 1=strongly
disagree; 2= disagree; 3= no option (neutral); 4= agree; 5=strongly agree).

1 2 3 4 5
I. Reliability

1. The hospital performs logistics service quality at promised service level.

2. the hospital is reliable to address logistics service quality dependably and
accurately.
3.the hospital measure or evaluate logistics service quality in accurate manner
4. the hospital examine the existence of logistics service quality .

II. Responsiveness

1. The hospitals work towards achieving logistics service quality.

2. the hospitals provide responsive service to customers (patients)as required
manner.
3. the hospital is ready and willing to help customers by providing prompt
timely service.
III. Assurance

1. The hospital has skilled and experienced employees through logistics

service quality concept.
2. The hospital believe and recognize the advantage of logistics service
quality in overall operations.
3. the hospital is competent, courtesy , credible and able to inspire trust to all
deserved customers ( patients) requirement.

IV. Empathy

1. The hospital has great access or attitude towards the existence of independent
logistic department.

2. The hospital employees have work towards meeting customer

INTERVEIW QUESTION

1. What are the advantages of independent logistics department that exist in the
hospital?
2. What are the major problems that hinder the hospital for implanting effective
logistics service quality ?
3. Does the hospital have integrative logistics service system with other departments?a