Professional Documents
Culture Documents
Chapter 1
Problem and its Background
Introduction
Nowadays, most of the people find it convenient to send or move
items/money through a courier company. One of the most entrusted courier
company is the LBC Inc. (previously known as Luzon Brokerage Company). It is
based in the Philippines. LBC has over 1,020 branches in the Philippines. LBC Inc.
offers different services to consumers and businesses. The customer service
includes Balikbayan Box, Sea Cargo, Online Remittance, Bills Xpress, Remit to
Account, Instant Pera Padala, Send and Swipe Card and Door-to-Door Delivery
while Business Services include: International Cargo, Courier and Parcel, Bulk
Mail, General Cargo, Less than a Truckload, Full Truckload, Full Container Load,
Less
Than
Container
Load,
RORO,
Warehousing,
Reverse
Logistics,
(PesoPak), Corporate IPP (Instant Peso Padala), Send and Swipe Card (SNS) and
Remit to Account (RTA). It is the easier process of transferring items/money. In this
present time, people don't have to go directly into the place they should send the
items or amount of money. Transferring things are done in an immediate way by the
help of courier company particularly the LBC Inc. This study offers an insightful
analysis and research about the efficiency of service delivery among the LBC
branches in Manila. We'll explain sort of unexpected troubles faced by the LBC Inc.
about the process of service delivery. We know that it is not always in a smooth
process. There are times that delayed service occurs. The efficiency of the service
will be a good satisfaction to the costumers but how does a courier company will be
able to achieve that? Well discover as we proceed on the following contents.
One of the local current issues is a complaint from a customer in LBC
Pureza. She stated that the LBC issue a send and swipe card that doesn't even
work. It cost her more to contact their LBC hotline and RCBC hotline just to inquire
the non-working card and in the end they just give her back the money. She send
without the service charge she paid before because they cant fix the card that the
LBC gave. Another complaint is about the delayed cargos and no update of LBC
According to the
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Inc.
article that we
have read. Some of the customer complained about the bad service of LBC,
including the status of their parcel is not updated, they have waited the status or
update for a long
period of time when it will be move up to delivery and after 24 hours, it is still in the
same spot, at the distribution center.
The complainant quoted the following, Is this how slow your service? If only
there are other courier services.
Where can we possibly file a formal complaint on the slow, delayed,
unsatisfactory service of this company?
It is high time they make a turn around and address these issues and get
penalized and give their customers compensation for these kind of service. Very
bad experience.
Aside from local current issue, weve searched also for an international
issue. A complainant from Al Amal, Riyadh Province about Pick up schedule. The
complainant
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quoted,
already ask for schedule last Saturday then they give a schedule on Monday but
until now they didn't pick up my box... i dont know if they make me angry because
this is not only happen now but twice... my house is five minutes away from LBC
Batha if you ride a car but i dont know they make very slow for pick up my box...
The truth i dont have a car and i cannot bring my box to their outlet.... Take note:
Some of your workers are not good in handling there costumer and have a bad
attitude. I think you need to reshuffle or change your workers here in Riyadh. The
objectives of this study
are to know the efficiency of the LBC company in the courier industry. Secondly, to
acknowledge the deficient delivery service to customers. Thirdly, to be informed
about the significance of the research. And lastly, to suggest and imply solutions in
deficiencies of the customer service.
Express
has
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LBC
been one of the
many courier companies in the Philippines known for its speed, trustworthiness,
and their passion to provide every Filipino a way to send their love back to the
Philippines. Although not considered as the first courier company to provide
international delivery services. Founded in the 1950s, a time in which every country
was devastated by World War II, LBC was first founded. LBC (or Luzon Brokerage
Company) was first founded as a brokerage and air cargo agent. After several
years, LBC was then expanded into a forwarding service provider, specializing in
air cargo. As a third party (or non-asset based) provider, LBC's first business
procedures were to dispatch shipments via asset-based carriers and books or
otherwise arranges space for those shipments. This was also the first time that LBC
introduced a new method of delivery, the 24 hour or overnight delivery service
Philippines. It is the
Philippines. LBC
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is committed to
moving lives, businesses and communities and delivering smile around the world. It
serve Filipinos by connecting them with their loved ones worldwide. It can also ship
passports, cellphones, gadgets and other similar items. To send goods and
businesses to anywhere in Manila, LBCs land cargo are reliable partners to ensure
efficient and reliable delivery. According to their company it save more time by
choosing from a wide array of money transfer services that let you send it the most.
The items that all ordered are delivered during business hours (from 9am-6pm).
Skip all the extras steps in sending money through the remit to account service
where you can send money straight to a specific bank. No middle man needed. All
of the said services is provided by their company. But we all known that in inside
the company, there is always a complain that they need to prevent. Many people up
to this day are choosing to send their want to send through courier services than to
give it personally to their loved ones because it can save more times. But many of
their customers complained about the poor services delivery that they encountered.
Based on some details and information that we have read, they complained that
sometimes the services are not as good as the
companys
objectives. And
according to customer who complained that it is so irritating and takes too long
when he ordered an items from lazada yet it is missed the standard delivery date.
Like for example, based on the site that we have read, the customer just want to
update the items he send because until now they didnt deliver it to them. So there
is a poor delivery services that are existing in their company. And that is the reason
why many of their customers that trusted this company will disappointed now. I
think that the reason why this kind of problems existed is because of many piled
items thats why many of their items will not send faster. So that their customers
filed a complaint letter.
Theoretical Framework
Negativity Theory
This theory developed by Carlsmith and Aronson (1963) suggests that any
discrepancy of performance from expectations will disrupt the individual, producing
negative energy. Negative theory has its foundations in the disconfirmation
process. Negative theory states that when expectations are strongly held,
consumers
will
respond
negatively
to
any
disconfirmation.
Accordingly
Mattila,
&
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ONeill,
J.W.
(2003) discuss that Amongst the most popular satisfaction theories is the
disconfirmation theory, which argues that satisfaction is related to the size and
direction of the disconfirmation experience that occurs as a result
should
what
he
be
the
case,
eliminate
any
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dissonant
Conceptual Framework
It is difficult for an individual to send item/money if the distance between him
and the receiver is too far. Nowadays, people prefer to choose a courier service so
it can help them, particularly the well known LBC Inc.
According
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to the theories
we have gathered, the service performance has a huge impact to the customer's
satisfaction if their expectation will not be disrupted and completely comply to the
standard. It shows how the service was delivered is more important than the
outcome of the service process.
In able to improve the service satisfaction they must evaluate the efficiency
of their service so that no disconfirmation response will occur.
Input
1. Respondents
Profile
Age
Sex
Civil Status
Educational
Attainment
Occupation
Monthly
Income
2. Common Problems
Security
Handling
Time
Delayed
Customers
complaints
Distance of
Location
Process
Survey
Interview
Research
Questionnaire
Statistical
Treatment
Output
Effective and
efficient
security
measures in
delivery
service.
Improvement
of
quality
service.
Increase
customer
service
satisfaction.
Feedback
Figure 1. Research Paradigm
study aims to
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This
know the
2.
3.
4.
5.
6.
1.1
Age
1.2
Sex
1.3
Civil Status
1.4
Educational attainment
1.5
Occupation
1.6
Monthly Income
How efficient is the delivery of goods and money in any Manila branch?
How satisfactory is the service of LBC?
What are the security measures provided by the service company?
What are the problems encountered in service delivery?
Is there any significant relationship between transaction and environment
satisfaction as regards the efficiency service delivery?
Hypothesis
There is no significant relationship between transaction and environment
satisfaction as regards the efficiency service delivery as assessed by the
respondents they
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are
grouped
following groups
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The
of people and
LBC Management- The LBC Management can evaluate the quality of their
service. They will be informed about the complaints of customers which can
Future Researchers- This study will serve as a support to further refine the
information taken and suggest improvements or recommendations crafted
by previous researchers.
Definition of Terms
The following terms are conceptually and operationally defined for better
clarity and understanding.
Analysis- detailed examination of the elements or structure of something, typically
as a basis for discussion or interpretation. The process of separating something
into its constituent elements.
Branch- divide into one or more subdivisions, one of the offices or groups that form
part of a large business organization.
Brokerage- a fee or commission charged by a broker or a company that buys or
sells goods or assets for clients.
Cargo- All articles, goods, materials, merchandise, or wares carried on board an
aircraft, ship, train, or truck, and for which an air waybill, or bill of lading, or other
receipt is issued by the carrier. It includes livestock, but usually does not include
bunkers (fuel for powering the vessel or vehicle), accompanying baggage, vessel
or vehicle's equipment and spare parts, mail, and stores. Personnel carried on
board are classified as crew or passengers.
Chapter 2
THE REVIEW OF RELATED LITERATURE AND STUDIES
This chapter comprehends the review of the related literature and studies
that are relevant to the research. They are taken from different references written
by foreign and local writers/authors, different concepts, theories, and past
researchers the sufficient background and information that serve as guide in the
composition of the research.
Foreign Literature
Customs Brokers: In Trade Facilitation. In United States, according to
Giermanski and Giermanski (2014) importers, even the smaller ones are continuing
to use third parties to provide services on clearing cargoes and from the belief of
Lee (2013), customs brokers play an important role in the supply chain.
Like the previous justifications, the above statements of Giermanski and
Giermanski as well as Lee which were generated from articles have something to
do with the present study. Customs broker is one of the third parties mentioned
But,
on
despite
the
justification of the relevance of the existence of the customs brokers, other people
or industries realize their failures in enhancing the value
of services. Some importers elect the do-it-yourself process of direct filing the
majority of their entries with customs (Anonymous, 2011) to be free from any error.
Since they know the information regarding the importations they made, they rather
take care of the preparations and processing of the entries.
Whether or not an importer should utilize a customs broker primarily depends upon
the amount of the imports the importer will have and the number of expertise of its
own personnel (Johnson and Bade, 2010).
Both explained that if the importer or importing company can provide the sufficient
personnel with significant expertise, these people can be trained to handle the job
of importing procedures and documentation. Hence, hiring a customs broker is not
necessary. But, on the other hand, if the importers lack enough personnel and
knowledge, they are expected to tap the services of customs brokers.
Local
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Literature
115 of importers and customs brokers who have repeatedly violated Customs
policies and procedures in filing import documents.
Additional issue reported by Almonte (2014) that Phoenix Petroleum was
alleged on oil smuggling and the controversial 1,700 containers of imported goods
vanishing in thin air while being trucked to Batangas City. Customs brokers were
linked to the said controversies and alleged to have participation in smuggling.
The above report made by an Anonymous and Almonte has relevance to the
present study because this is one of the problems encountered by customs brokers
by not conforming to the rules and regulations enforced by the government.
Importers and brokers habitually failed to disclose the detailed descriptions of the
imported articles.
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Failure
to
know who to talk and there are also customs employees who allow negotiation
Alex (2014).
The statements of Tabirara and Alex are connected to the present study
because these are contributory factors of the tarnished image of the customs
brokers which was frequently cited corrupt that limits the nations development
ambitions
and
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desires. On the
point of Tabirara, he argued that brokers dont really want to be in the bad light, but
it happened for the fulfilment of duties to their clients. For the realization of their
duties to the importers to clear the importations as fast as possible, they are forced
down to be in bad situation. On the disclosure of Alex, he is saying that smuggling
also occurs because the people working inside the government agency permit it to
happen. They adopt the under-the-table transactions and accepts large amount of
money from the brokers or importers just to tolerate the fast and immediate
clearance smuggled importations.
Customs brokers admit they have been hit by recent reports of colleagues
being linked to smuggling (Almonte, 2014), yet there are still importers and
customs brokers who are true to their businesses. Pablo (2014) reported the top
customs broker and importer (as cited in government data portal, 2013) in terms of
volume of imports and paid the highest duties and taxes. The biggest importer by
volume was Petron
Corporation who
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imported 22.307
billion kilograms and processed P178.905 billion worth of CIF (Cost, Insurance and
Freight); it paid P902.205 million in customs duties while Fedelina Pascua, one of
the oil giants brokers topped the list.
The statement of Almonte and the report of Pablo have direct bearing to the
current research because it is being implied that there are still companies and
brokers who comply with the proper exposure of the details of the imported articles
and payment of the right duties and taxes levied on goods imported. Customs
brokers are effective in the processing of importations and their role should not be
underestimated. Further, their services not just beneficial to the importers in the
instantaneous cargo facilitation but they also can secure the collection of the
Bureau of Customs through correct assessment of the duties and taxes.
The Challenged Profession. Due to the gross mistakes made by some
customs brokers which created negative public perception about their role in trade
facilitation, Almonte (2014) said that this lead to the national outrage that the fuelled
law (Customs Modernization and Tariff Act) makers push for a revamp of the
Customs and Tariff Act.
The article of Almonte has relationship to the study of the researchers
because the CMTA or the proposed modernization has direct impact to the role of
the customs
broker. The government sees the call to modernize the law on Customs
Administration. Further, due to Philippines accession to RKC, it is compelled to
update and review the existing trade framework and policies of the country
paralleled to the harmonized international customs procedures. But it would apt to
diminish or the worst is eliminating the important role played by the customs broker
in the facilitation of trade by allowing the importers to make entry and declare their
imported articles.
From the published article, the proposition acquired collective resistance
from the customs brokers. We are waging a battle because we are affected
(Tabirara, 2014).
The argument of Tabirara has an affiliation to the present study because it
stressed out the concern of Customs brokers to fight and secure their learned
profession. They studied for 4 years just to practice the brokerage services and
passing the examination is never been easy as eating peanuts as he expressed
that out of 4000 graduates of the Customs Administration course yearly, only 300 to
400 pass the examination. So, it is unjust to diminish their role because of the
modernization. Customs Administration is difficult and complex that even importers
ordinary persons
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and
are not capable
Foreign Study
Jessica Sze Yin Ho. International Conference on Economics, Business
Innovation IPEDR vol.38 (2012) (2012) IACSIT Press, Singapore.2012 states
that In the courier services industry, service quality is among the most crucial
determinant
for
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customer
satisfaction. This paper applies the Logistic Service Quality (LSQ) model, using
variables which include timeliness, condition/accuracy of order, quality of
information, and availability/quality of personnel in determining the most effective
dimension in providing sound service quality to achieve customers satisfaction in
the current market condition. The rationale is to observe whether there are any
changes in the market behavior towards the key variables of service quality.
Multiple regression
analysis based on 200 respondents indicated that timeliness has been replaced by
condition/accuracy of order as the courier services customers priority. The impact
of the shift from timeliness to condition/accuracy of order and areas to cover in
the future are also discussed.
Local Study
According
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to
Roderick
Abad ( 2014), the countrys largest cargo and logistics firm LBC Express Inc. has
launched a new offering to empower local enterprises when the 10 member-states
of the Asean integrate by next year.
Called the LBC 360, it is the first and only fully integrated payment and logistics
platform in the Philippines catered to all sizes of business.
Because it is seamless, micro, small, medium and big enterprises, as well as
multinational corporations operating in the country can now explore the global
market without worrying about the distance and geographical barriers of this island
nation.
LBC Chief Marketing Officer (CMO) Javier Mantecon said it is timely for Filipino
enterprises to become more prepared for the Asean Economic Community in 2015.
According to Edlen Vanezza Bayaton-Obispo (2014), the LBC has the widest
reach with over 1,000 domestic branches and 15 major international branches.
Their
specialized
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logistic
SYNTHESIS
The reviewed of related literature and studies manifest great similarities to
present research that reflects the same data and inputs as to the efficiency of
delivery service of LBC in Manila.
Further, the help of LBC services are completely acknowledged by many
people locally and internationally.
As the researchers of the study we found out the similarities of various
studies about courier services and how the process of it becomes helpful and
efficient in able to satisfy the customers. We cannot disregard that there are several
problems in delivering process but we want to give knowledge determining what is
a quality service.
Chapter 3
Research Methodology
Research Design
The study uses the descriptive method of research with this, best as cited by
Caraan (2010), descriptive research describes and interprets what is. It is
concerned with conditions of relationships that exist: practices that are being felt, or
trends
that
are
developing.
measurement
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are
treated
accordingly.
Description of Respondents
The respondents are regular customers of LBC
experienced to try the service of LBC Inc. They are the ones who are suitable in
this study.
researchers
The
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use
will
survey,
Statistical Treatment
After collecting the data it will be analysed and check by its completeness.
The feedbacks in the questionnaires will be reviewed and interpreted by the graphs
and tables helped with the use of statistical treatment.
The following statistical tools and techniques are used to ensure valid and
systematic presentation, analysis and interpretation of data.
Percentage.
Chisquare.
This
was used to compare the differences of two or more variables with data
that can be readily transformed into frequencies
x 2=
(OE)2
E
Where:
x 2 = the test statistic
= the sum of
O = the frequencies observed
E = the frequencies expected