Critical Analysis of Improving the Delivery Accuracy in Cargo Handing
CHAPTER ONE
Objective of the Study
The aim of this study is to critically analyze ways of improving cargo handling delivery accuracy in ARIK AIRLINE
Other Objectives are:
- To discover whether the Airline adhere to best management practices in cargo handling.
- To establish the determinants of service delivery in cargo handling
- To determine customer’s satisfaction levels with Arik Airline cargo handling
- To determine the relationship between perceived service delivery and customer satisfaction in Arik Airline cargo handling
CHAPTER TWO
LITERATURE REVIEW
Service delivery
Quality is often used to signify “excellence” of a product or service. People talk about “Rolls-Royce Quality” and top quality. Quality is also defined as meeting the customer requirements. Crosby defines it as conformance to requirements while Juran refers to it as fitness for purpose. By consistently meeting customer requirements we can move to a different plan of satisfying and delighting the customer (Oakland, 2000). The most significant change in managing for quality in recent years is the focus on customer satisfaction as the prime organization objective. According to Cartin (1999), satisfying customer needs and expectations has become the driving force for quality improvement however; most organizations in the service sector do not have a tradition of managing for quality or identifying and assigning responsibility for quality activities. An organization needs to identify processes that are highly important to customers and their satisfaction rating. A gap analysis should then be conducted based on this to be able to identifying the primary process and if the company had existing work areas or processes that were aligned to meet this needs.
Service delivery is founded on a comparison between what the customer feels should be offered and what is provided (Parasuraman, Zeithaml and Berry, 1985). Quality of service delivered is an internal concept measured by comparing what is delivered with the standards set. Parasuraman et al. (1985), in developing the service delivery model, defined service delivery as the gap between the expected service and perceived performance. Quality evaluations are however not made solely on the outcomes of a service; they also include the evaluation of the process of service delivery. In airline services as with other players in the hospitality industry, every interaction between a consumer and a service provider is a “moment of truth.” The wide range of customers who consume services offered by an airline make it even more difficult to design a service that will meet the all the customers’ expectations.
Different models for the assessment of service delivery have been developed based on the idea that service delivery is a function of expectations, performance and gaps. Approaches to the concept of service delivery based on two different measurement models will be introduced and discussed in regard to the specific research purpose at hand.
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
The study adopted a descriptive survey research. Descriptive survey research designs are used in preliminary and exploratory studies to allow researchers to gather information and summarize, present and interpret data for the purpose of clarification (Orodho, 2003). The descriptive approach is considered the most appropriate for this proposed study because, descriptive studies report the way things are for understanding the status quo. According to Mugenda and Mugenda (2003) the purpose of descriptive research is to determine and report the way things are and it helps in establishing the current status of the population under study. The design was chosen for this study due to its ability to ensure minimization of bias and maximization of reliability of evidence collected.
Study Population
The population of targeted respondents comprised all cargo customers using the airline under study. These customers are categorized under Known Shippers, Courier Companies, Regulated Agents and walk-in customers. Regulated agents are companies which have been authorized by the regulator – Arik to handle cargo on behalf of customers. Known Shippers are regulated agents who also comply with KQ’s security requirements for cargos handling hence are exempt from some of the processes during goods acceptance or clearance. Currently there are 150 registered agents with the airline. This formed the study population since over 80% of the cargo business is generated from this pool while most of the walk-in clients also end up dealing with the organization through these agents.
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION
Demographic Information
Background information of the respondents
The study sought to find out the distribution of the respondents by category to find out which group was predominant in airline cargo handling. This is for general information and is not a direct objective of the study.
Distribution of respondents by frequency of use
The frequency or the number of times the respondents had used the airline’s cargo in the last one year was important to this study. This was necessary because respondents who frequent use the airline’s cargo are much better placed to give opinions that can be relied upon compared to respondents that have hardly used it based in their level of exposure and awareness. It could also provide a good indicator of customer loyalty and repeat business.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Summary
The main aim of this research study was to find out what the key determinants of perceived service delivery in cargo handling and their impact on customer satisfaction at Arik Airline Cargo using the SERVQUAL theoretical framework. The literature review extensively covered areas that have been researched on and some of the findings. Out of the literature review a study frame work comprising of five main areas was developed. The main areas covered under this study were tangibles, reliability, responsiveness assurance and empathy. The target population comprised cargo shipping agents and walk-in customers at the Arik Airline Cargo offices at JKIA Cargo centre. The research instrument used in data collection was a questionnaire from the respondents. The researcher was able to collect views from 68 respondents who had used Arik cargo in the past one year and therefore capable of giving credible responses.
Majority of the respondents who participated in the survey were agents from Known Shipping companies while the walk-in customers were very few. This revealed that airline cargo handling in Kenya are largely dominated by few freight forwarding organizations that have registered agents. The findings indicated that most customers had used Arik cargo based on urgency or due to the perishable nature of their cargo. The findings further revealed that most customers base their decision to use Arik cargo on the operating schedule of the airline and the connections offered to various destinations, however the customers found KQ expensive and were not sure whether they would recommend it since it was not based on their personal preference.
The study findings on customer expectations of service delivery in cargo handling highlighted the importance of tangibility and assurance dimensions which had the highest weights. They showed that customers have very high expectation of employee appearance, appearance of the facilities and employee knowledge and the customers depicted generally high service delivery expectations.
Perceptions of service delivery in airline cargo handling define the extent to which cargo customers find various attributes within the airline’s operations important in enhancing their overall satisfaction with the airline. In the present study, it was revealed that the main dimensions of perceived quality in cargo handling were tangibility and assurance. Tangibility emerged as the most important predictor of perceived service delivery. In the airline operations, this dimension refers to having modern equipment and facilities that are consistent with industry standards in cargo handling. The lowest perception item was on notification and proper handling when there has been damage to the consignment. This revealed that the notification and claims process when damage occurs was deemed not sufficient. The findings also revealed that the staff were perceived to be highly reliable staff and unlikely to engage in corrupt dealings. Furthermore, the respondents also highly rated the tracking system and adequacy of security at the premises as key items that contribute towards perceived quality.
In identifying the quality gaps in the overall measure of customer satisfaction, the findings showed that the customers are satisfied with the modern equipment used at KQ facilities and the courtesy and promptness of employees in overall service delivery. The findings however revealed that the widest quality gap was in the reliability dimension. Whereas the respondents considered services being delivered at the promised time very important, their perception was that the airline does not deliver as promised with regard to maintaining their schedule integrity.
Conclusions
On the basis of the above findings the following conclusions were made on service delivery and customer satisfaction on airline cargo handling. The study found that the airline had ensured that their facilities at the cargo terminal are equipped with modern equipment and conform to industry requirements in cargo operations. The study established that most of the employees at Arik Airline cargo are reliable and courteous in how they handle the cargo customers and they offer prompt service.
The study revealed that customers are not satisfied with reliability in provision of services at promised times, and also found the airline is not dependable when it comes to handling customer service problems. To remain competitive, the airline therefore needs to focus its operational strategies on ensuring schedule integrity and reliability and enhancement of service recovery initiatives when problems arise to increase service delivery.
Recommendations
On the basis of the above conclusions, the following recommendations were made for enhancing service delivery and customer satisfaction for Arik cargo handling.
From findings the study recommends that the airline explores the possibility of increasing capacity on the various routes for a reduction in reliability challenges that have been previously experienced. The study also recommends extension of the customer satisfaction initiatives that tend to solely focus on revenue passengers rather than cargo to include the shippers and all cargo customers.
From the findings the study recommends that the airline continues to also provide the employees with adequate support to ensure that the reliable and courteous interactions go on. Similarly the airline should continue maintaining industry standard and complying with all regulated industry requirements.
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