MRC LOGISTICS

UNDERSTANDING CUSTOMER
SATISFACTION INDEX FOR MRC
LOGISTICS.

Project by:
Ram Bhavesh Sharan

Factors affecting sector

General economic conditions.
Congested infrastructure networks.
High railway tariffs
Railway carriage not easy for industries which cannot

provide full train load.

High turnaround times.
Poor road quality.
Rail terminal quality is poor.
Inadequate depth at ports.

Contribution to economy
Cost of logistic valued around 13 to 14% of GDP.
Logistics sector is valued at around US$ 110 billion and is

expected to touch US $200 billion by 2020.

65% of goods are transported by road.
Road transportation contributes about 4 to 4.5% of GDP.
100% FDI is allowed in the sector.
Source : The logistic event of India, confederation of
Indian industry, date: 15 to 17 feb 2013.

Vision and mission of company

To become one of the top 10 logistic companies with global

footprint, keeping pace with latest technology and best

practices in supply chain management.
To offer a comprehensive portfolio of all logistic services to
be a one stop solutions to our customers.
To remain preferred partner by continuously improving the
standards of our services and adding value.
To expand the network of branches by opening new offices,
appointing new franchisees, appointing business associates
and striking strategic alliances.
To build necessary infrastructure across the network.

Functional overview of MRC Logistics

Outbound logistics
Inbound logistics
Warehousing and distribution
Retail distribution
Reverse logistics
Material Handling Solutions
Packaging Solutions
Contract manufacturing
Inplant Logistics

Objectives
To calculate the customer satisfaction index of customers of

MRC Logistics.
To observe and identify the customer satisfaction index of
customers of MRC Logistics.
To observe the application of 5S and safety practices in
warehouse.

Methodology adopted
Observation method
Interviewing
Questionnaires

Activities involved
Understanding process of booking consignment.
Observing employees within the organisation.
Understanding role of different departments.
Discussing

processes and problems involved in

transportation.
Observing skid management and transhipment of goods.
Preparing questionnaires for customer feedback and
calculation of customer satisfaction index.
Calling and fixing appointments with client companies.
Visiting customers offices, taking feedback, asking
questions and interpretation of customers feedback.

Suggestions in transportation
Fixed contract with local transporters.
Tracking of goods.
Increase own vehicle.
Skilled drivers and labours.
MIS needs to improve .
Increase network .
Only one type of goods on vehicles.
Professional behaviour.

Suggestions in warehouse management

Shock absorbent material for unloading of skids.
Safety practices.
Implementation of 5S.
Avoid mishandling .
Change in layout .

Findings
All the customers (100%) take use of other service providers .
60 % customers consider service of MRC better than other

service providers. While 40 % feel it is same as compared to

others.
70 % customers consider the service in terms of safety,
security and time good or very good. While 30 % think it is
poor or very poor.
40 % customers want MRC logistics to open more distribution
centres across India.
Whenever MRC makes any error ,responsiveness to
acknowledge error and rectify the problem is very good or
good . only 10 % customers feel it is not so.

 80 % customers are highly satisfied with communication through

mail or calls. Still slight improvement is required.

30 % are not satisfied with competence of staff.
As far as low price and quality (timely delivery) is concerned , no
customer prefer low price. 30 % customers prefer both .
80 % of customers feel that MRC provides invoices with
supporting documents.
As far as low price and quality (timely delivery) is concerned , no
customer prefer low price. 30 % customers prefer both .
All the customers(100%) want improvement in tracking of goods.
80 % of customers feel that service of MRC lives upto their
expectations.

Learnings
Learned to calculate customer satisfaction index.
Learning of parameters required for understanding

customers satisfaction in logistics.

Use of skids and reverse logistics.
Application of 5S in warehouse.
Pricing strategy.

Methodology to calculate CSI

WEIGHTED AVERAGE METHOD

Weighted average method

Parameter

Weight-age assigned

Timely delivery
Tracking of goods
Information sharing
Customer service(answering
calls,mails,rectifying error)
Safety
Price
Staff competency

0.20
0.20
0.15
0.15
0.10
0.10
0.10

Points given by customers on a scale of 1 to

10 for each parameters

COMPANY
NAME
ATLAS
COPCO
CUMMINS
GEN TECH
KSB PUMPS
CUMMINS
INDIA LTD
CHAMP
ENERGY
VENTURES
THERMAX
AMPASET
SIMMONDS
MARSHALL
DSM INDIA
TETRAPAK
TOTAL
AVERAGE(A)
WEIGHTAGE
ASSIGNED(B
)
MAXIMUM
WEIGHTAGE
POINTS(10*
B)
WEIGHTED
POINTS
SCORED(A*B
)

TIMELY
DELIVERY

SAFET
Y

INFORMATIO
N SHARING

PRICE

STAFF
COMPETENC
Y

TRACKING
OF GOODS

COSTOMER
SERVICE

10

6.5

7.5

7.5

7.5

7
7

8
8

6
7

8
8

7
8

6
7

5
7

7
7
73
7.3

8
9
80
8

6
6
68.5
6.85

8
8
79
7.9

7
8
78
7.8

6
6
64
6.4

6
7
67.5
6.75

0.2

0.1

0.15

0.1

0.1

0.2

0.15

1.5

1.5

1.46

0.8

1.0275

0.79

0.78

1.28

1.0125

Representation of CSI from each company

Customers

CSI

Atlas copco

7.7

Cummins generator technologies

6.975

KSB pumps

7.65

Cummins India Limited

7.3

Champ Energy venture

7.475

Thermax

6.55

Ampaset

7.3

Simmonds Marshall

6.8

DSM India Pvt

6.7

Tetra pak

7.05

Average

7.15

Problems

Problems in hiring local lorries.

Delay in payment by customers.

Tracking of vehicles and goods.

Drivers not literate enough.

Bad weather.

Documentation charges for goods to be transported abroad like

Bangladesh.

On few occasions trucks go to some locations without having road

permit.

Ethical issues like loading goods more than allowed on vehicles,

loading goods with other goods without the consent of customers.

Observations
Just in Time approach is followed in skid management.
Implementation of 5S in warehouse to large extent.
But requires improvements like cleaning ,labelling.
Requires improving storing of goods in warehouse.
Requires periodic inspection by seniors.
Mishandling during loading and unloading of skids.
Lack of safety standards during welding of damaged skids.
Damaging of cartoons going for retail outlets like big

bazaar.
Issues regarding goods misplacement.

Customer responses to
questionnaires

Do you use other Service provider for the same services?

Use of other service provider

y es
no

100%

How do you rate MRC compared to other

service providers
MRC service compared to others
far better

better

same

below

40%

60%

Service in terms of safety, security and time

v ery good

10%

good

poor

v ery poor

10%

20%

60%

Responsiveness to acknowledge it and take

the responsibility to rectify the problem is:

10%

20%

v ery good
good
poor
v ery poor
7 0%

Communication from and to the MRC is satisfactory

(phone,email,fax etc) ?
Communication Satisfaction

20%

Y es
No

80%

MRC provide invoices in timely manner with

all relevant supporting documents?

20%

y es
no
80%

MRC services live upto expectations?

20%

20%

60%

Alway s
Sometime
Not at all

MRC provides you with adequate information about rates,

rules?

10%

y es
no
90%

MRC staff is competent in the field

30%

7 0%

y es
no

How is MRC network across India ?

40%

60%

v ery good
good
poor
v ery poor

What you prefer?: Low price, quality service or both

MRC should improve in following areas

Customer feedback and findings

Customers want people from MRC head office to visit

their plants some time.

Tracking of goods needs improvement.
Weekly MIS should reach. When customers order
vehicle to be placed at any location. Next day they
expect MIS to reach them immediately.
Customers want people from MRC to give presentation
to them on whatever things happened in last month
,week.

Continue...
Customers expect professional behaviour from us.

Sometimes they think that MRC hide facts.

They wants us to accept mistakes and work for goodwill
not only for money.
While transporting goods ,customers want us not to place
other goods on vehicles which can damage their goods.
MRC should increase distribution centres in small cities.
Improve timely delivery, avoid damages and
mishandling.
Scanned copy of POD should be sent to them
immediately.

Continue...
Certification of ropes, crane is required.
Proper inspection and labelling of equipments is required.
Few customers want improvement in timely supply of

invoices with proper documents.

MRC s northern and western branches in India should
improve in approachability. Pune based office and south
based offices are good.
MRC has improved during last one year as compared to
last 3 or 4 years.
MRC needs to improve services during emergency
situation.

Customer Satisfaction Index

7 .8
7 .6
7 .4
7 .2

Atlas Copco
Cummins Generator Technologies
KSB Pumps
Cummins India Ltd
Champ Energy Venture
Thermax
Ampaset
Simonds Marshall
DSM India Pv t Ltd
Tetra pak
Av erage

7
6.8
6.6
6.4
6.2
6
5.8
1