the implementation of crm in logistic...
TRANSCRIPT
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The implementation of CRM in logistic
enterprises
A study submitted in partial fulfillment
of the requirements for the degree of
Master of Science in Information Management
At
THE UNIVERSITY OF SHEFFIELD
By
WENLI FENG
September 2008
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Abstract
Background: Logistic is an industry specially providing logistic trade service for
customers. Compared with the traditional logistics, the competitive ability of modern
logistic industry comes from the rising value provided by customers. The customer
relationship management (CRM) system provides strong technical support for
logistic enterprises. The emergence of CRM enables more and more people pay great
attention on the relationship between enterprises and the customer. Increasingly
practices have proved that the key matter enable business success is not only
depending on paying attention on the customers‘ needs and providing customers the
products or services they need, but also depending on to maintain the long-term
customer relationship.
Aims: The schema of CRM should be adopted according to specific customer
characteristics which vary from one to another. In light of this, the necessity of CRM
in the third party logistics enterprises (TPL) has been pointed out and a reasonable
CRM model is provided as well in this article on the basis of the thorough customer
analysis of the TPL enterprises. The TPL enterprise is a new industry, which put
service as their main business. The CRM has a direct relationship with the success of
an enterprise. At present, although the value of CRM has been recognized by the
business community, the research of CRM on TPL enterprises is less than other
businesses. This paper will analysis the TPL enterprise customer. Then describe the
importance and urgency of those enterprises to implement CRM system. This paper
makes a special discussion on the problem of structure and construction of CRM
system of logistic industry in the light of characteristics of logistic industry.
Methods: The author creates two questionnaires to the customer and TPL company
internal clients respectively. What is more, there are three interviews in this paper to
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help this research.
Results: There are some issues in the implementation of CRM in TPL enterprise.
the company‘s lack of communication with customers; the service in some TPL
enterprises lack of personalized service; the enterprise should put more emphasis on
the customer loyalty; the enterprise lack of customer information; domestic Chinese
TPL enterprise face huge competition from the international enterprises
Conclusion: The author compares with the successful experience of some
international enterprises, give some advice to both the international TPL enterprise
and the Chinese domestic enterprises.
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Acknowledge
I would like to express my sincerely gratitude to people who contribute to this
dissertation.
First and foremost, I would like to thank my supervisor Ms. Sheila Webber who
answered all my questions, give suggestions and always treats me very patiently and
friendly. Without her help, my work cannot be smoothly.
Secondly I would like to thank my parents who gave me support through the whole
process of my work.
Thirdly I would like to thank all my friends and people who help me to complete the
questionnaire and interviews. There view have a huge significant to this essay.
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ABSTRACT 2
ACKNOWLEDGE 4
1 INTRODUCTION: 8
1.1 PURPOSE OF THE STUDY 8
1.2 STATEMENT OF THE PROBLEM AND RESEARCH QUESTIONS 9
1.3 GENERAL STRUCTURE 11
2 LITERATURE REVIEW: 12
2.1 THE EVOLUTION OF CRM 12
2.2 THE DEFINITION OF CRM 13
2.3 THE IMPLEMENTATION OF CRM IN DIFFERENT COUNTRIES AND INDUSTRIES: 20
2.4 TPL 22
2.5 THE RELATIONSHIP BETWEEN LOGISTICS PROCESS AND CRM 28
3 RESEARCH METHODS 33
3.1 INTRODUCTION 33
3.2 DATA COLLECTION 34
3.2.1 QUESTIONNAIRES 35
3.2.1.1 Literature review 35
3.2.1.2 Questionnaire for customers 37
3.2.1.3 Questionnaire for company client 40
3.2.2 INTERVIEW 42
3.2.2.1 The different implication of interview and questionnaire 42
3.2.2.2 Interview for the customers 43
3.2.2.3 Interview for the clients 43
3.2.2.4 Interview for the manager 44
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4 ANALYSIS AND FINDINGS 45
4.1 ANALYSIS AND CONCLUSIONS FROM THE QUESTIONNAIRE 45
4.1.1 QUESTIONNAIRE OF CRM FOR CUSTOMERS 45
4.1.2 QUESTIONNAIRE OF CRM FOR COMPANY CLIENT 52
4.2 ANALYSIS AND CONCLUSIONS FROM THE INTERVIEW 57
4.2.1 ANALYSIS AND CONCLUSIONS FROM THE INTERVIEW FOR THE CUSTOMERS 58
4.2.2 ANALYSIS AND CONCLUSION FROM THE INTERVIEW WITH THE INTERNAL CLIENT 59
4.2.3 ANALYSIS AND CONCLUSIONS FROM THE INTERVIEW WITH THE MANAGER 60
4.3 THE CONCLUSION OF THE ANALYSIS AND FINDINGS 61
5 CONCLUSION AND RECOMMENDATION 63
5.1 THE COMMUNICATION WITH CUSTOMERS 63
5.1.1 THE CORE PROBLEMS 63
5.1.2 RECOMMENDATION: 63
5.2 LACK OF PERSONALISATION 64
5.2.1 THE CORE PROBLEMS 64
5.2.2 RECOMMENDATION 65
5.2.2.1 Provide Personalized, dynamic service 65
5.2.2.2 Construct automated customer intelligence. 65
5.2.2.3 Implication classified customer management strategy to meet the needs of different
clients 66
5.3 CUSTOMER LOYALTY 68
5.3.1 THE NEED FOR CUSTOMER LOYALTY 68
5.3.2 RECOMMENDATION: 69
5.3.3 THE METHOD TO IMPROVE THE CUSTOMER LOYALTY. 69
5.4 LACK OF CUSTOMER INFORMATION 71
5.5 FOREIGN COMPETITION 73
5.6 RECOMMENDATIONS ON THE CRM SYSTEM 73
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REFERENCE: 75
APPENDIX 1- INTERVIEW THE CUSTOMER: 84
APPENDIX 2- INTERVIEW THE CLIENT: 86
APPENDIX 3- INTERVIEW THE MANAGER: 88
APPENDIX 4- QUESTIONNAIRE FOR CUSTOMER 91
SECTION A ABOUT CRM 91
SECTION B ABOUT TPL 91
APPENDIX 5- QUESTIONNAIRE OF CRM FOR COMPANY CLIENT 93
APPENDIX 6-FIGURES AND TABLES 97
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1 Introduction:
1.1 Purpose of the Study
In recent years, along with the economical globalization and the development of
modern information technology, modern logistics as one advanced economy
movement management technology, obtained the vigorous development in almost the
world scope. Accompanying the speedy development of economics in some
developing countries, the majority of those countries pay more attention to the
development of logistics market. Since the 1980s, Europe, the United States and other
developed countries began a TPL competition. According to the survey of Hui (2006),
the TPL are gradually replacing the inhouse logistics. In the United States, more than
60 percent of the logistics are completed through TPL enterprises. According to the
research of Hui(2006), in Europe, the proportion of the customer who chose the TPL
enterprises service was 76 percent. And in Japan, TPL enterprises account for the
entire logistics market as high as 80 percent. In China, although were nearly 70,000
logistics enterprises, only about 4 000 of them were TPL enterprises (Hui, 2006).
What is more, the TPL services business is mainly focused on foreign-funded
enterprises. For instance, the customer of ZhongHai logistics enterprises are IBM,
NOKIA, Sanyo, Toshiba, Samsung while the customer of Baogong logistics
enterprises are Philips, Nestle, Wal-Mart and other enterprises (ShenZhen logistic
website). Thus famous foreign companies which founded branches in China have
thrown a huge threat to the Chinese domestic logistics enterprises.
CRM as a modern technology has increasingly important implications for different
industries. King (2007:49) stated that, ―when it (CRM) works well, can encourage
customer loyalty and the development of long-lasting profitable relationships for the
provider.‖ However, CRM as a modern technology is mainly used in communications,
financial and other industries, especially in those developing countries (King, 2007).
In the logistics industry, there are few companies using it now. If logistics enterprises
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implement CRM, it will help them to communicate with the some customers
effectively, obtain the customer resources, and then have a greater opportunity to have
long-term partnerships with customers. It will allow companies to earn stable and
increased profits and have a competition advantage in the same industry. The purpose
of this dissertation is to explore the current and potential benefits to Chinese logistics
enterprise of implementing CRM..
1.2 Statement of the problem and research questions
As global economic integration, diversification of consumption, the arrival of the
flexible and efficient production flow in this era, social and logistics services to
customers has been increasingly demanded. However the logistics enterprise is a new
kind of enterprises in some developing countries. Taking China as an example, the
number of logistics enterprises in China is large. As have been mentioned above,
According to the research of Hui (2006), there are approximately 10,000 logistics
enterprises now in China, but the company which has a certain scale is very few. The
small scale, mostly using low level technology, the non-standard features, the lack of
competitive advantage and able to provide a package of service to very few. This is
true portrayal of logistics enterprises in China. And the comprehensive strength of
foreign logistics companies such as DHL, UPS, APL, EXEL and FedEx, by virtue of
their advanced ideas and technology, abundant capital and a high degree of networking
and alliances through merger or equity. Specialized logistics enterprises, are able to
function as professional "third-party logistics" logistics service providers and offer
customers nationwide distribution, international logistics services, multimodal
transport and mail courier services. According to the survey of Hui (2006) the number
of those companies accounted for only 0.13 percent of the number of logistics
companies operation in China. However, their market share is as high as 8 percent.
The huge gap of the market share between the domestic logistics enterprises and
foreign logistics enterprises has attracted the attention of citizens in China.
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Also since CRM is a new concept for the citizens in China, the vital implementation of
CRM has not been noticed by the majorities. The situation in China is that, compared
with the operation of domestic logistics enterprises, there is one thing that, strongest
foreign big companies are using sophisticated CRM systems to obtain greater
advantage. Domestic enterprises are aware of the importance of CRM and have
accumulated a certain amount of customer information. However, lack of theoretical
knowledge, lack of resources, technical limitations, and imperfect systems, result in
less than thorough implementation of CRM. Internal customer information can not be
shared and the internal resources can not be fully integrated, which results in high
costs, and the total value of customers can not be improved. That, in turn affects the
customer satisfaction and loyalty and increasing the profits of enterprises is
impossible.
However, it is gratifying that a small number of domestic enterprises are gradually
close to a modern logistics. According to the survey of Chinese logistic industry
reports, (Chinese logistic industry reports, 2006) the position of three large logistics
companies in the top 500 Chinese enterprises in 2005 has risen. The number of large
and medium-sized logistics enterprises is increasing. What is more, more than 47
percent logistics enterprises chose CRM as their most intensive needs of the
information management construction direction. (Chinese logistic industry reports,
2006)
This dissertation will summarise the success experiment of some logistics enterprises
in the developed countries and illustrates the vital effect and the successful
experiences it brings to these enterprises. The dissertation will identify the
characteristics of those enterprises and how they can survive under the huge pressure
of the world famous enterprises. So there are three questions the dissertation will focus
on:
How can CRM help the logistics enterprises?
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What are the opinions of customers about the adoption of CRM system in
logistics enterprises?
What are the benefits that customers, enterprises themselves and the client in the
enterprise can gain after using CRM system?
1.3 General structure
In chapter two, there is the review of prior literatures to show the recent research
situation of CRM and TPL. Chapter three will be research methodology, which will
indicate the data collection, questionnaire design and the purpose of interview. After
this chapter, the research will analyse the data from questionnaires and interviews and
present findings. Finally, in the last chapter of the paper, there will be the conclusion
and suggestions based on the research findings.
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2 Literature Review:
2.1 The evolution of CRM
Xu (2002) research the evolution of CRM, stating that, ―The first surf of CRM
solutions came in the late 1980s and early 1990s.‖ At that time, it was thought that
merging customer data from the field (sales) with call centre interactions would result
in more informed interactions with the customer (Osarenkhoe, 2007:145). Then in the
mid-1990s the web emerged. 3com Corp (2001) pointed out that, ―a new market
segment of eCRM emerged.‖ Xu (2002) summarized the history of CRM into a table.
Age Year Lesson learned Milestones
introduction 1980s to early 1990 Very expensive to maintain Focusing on automating and
standardizing the internal
processes to make the
customers an asset
Growing Mid-1990 to end
1990
Some vendors are slow to
respond to the internet
Cue to the emergence of the
web, client/ server
architecture behind CRM
applications would disappear
Current 2000 N/A E-ERM
future After2000 N/A N/A
Table 2.1-1- Adopting customer relationship management technology (2002)
In the early time, Most of the companies carry out CRM in order to increase profits, to
survive the competition, for development of technology, and/or as demanded by the
company‘s customer, etc. (Foss & Stone, 2000). But the market grows saturated when
the production techniques in place become mature as the purchase groups stable. With
market assimilation proceeds, competition on price grows stiff. Mass media is losing
its targets especially that organisations can hardly expect results from broad
advertising (Brown, 2000). Companies come to realise that raising the average
satisfaction of customers generate little profits, or worse, minus (Lombardi & Passino).
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In addition Ryals, Knox, and Maklan (2000) also suggested that loyal customers
(consumer ‗sticky to‘ the products/services that company sells) tend to be more
profitable. According to report by Jupiter Media Metrix (eCRM, 2001), loyal
customers can help to cut down 27 percent of cost and enlarge order size by 60 percent.
Moreover, enduring relationships with customers can hardly be duplicated by the
competitors. Companies succeed in relationship management can therefore largely
benefit from this sustainable advantage, especially in the turbulent and tough market
place (Foss & Stone, 2000). These indicate another important cause to the CRM
emergence – the urgent demands for relationship marketing, which burst out under the
heated competition.
2.2 The definition of CRM
The implementation of CRM to support marketing, sales and services functions may
be traced back to the 1990‘s. Law (2003) pointed that, ―It has attracted great attention
from businesses, because of it can give mutual benefit to both the customer and the
company.‖ Sower (2001) stated that, ―marketing was the first functional area to
embrace the concept of CRM and tailor it to the needs of its managers.‖
There are so many different definition of CRM based on the different understandings
of CRM. Scott (2001) defines CRM as ―a set of business processes and overall policies
designed to capture, retain and provide service to customers‖. In a similar vein, Swift
(2001) emphasises CRM as a business process by saying that, ―CRM is a process
designed to collect data related to customers, to grasp features of customers, and to
apply those qualities in specific marketing activities‖
Xu (2002:442) focused on the aspect of technologies of CRM said that, ―CRM is an
information industry term for methodologies, software, and usually Internet
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capabilities that help an enterprise manage customer relationships in an organized
way‖.
While Bose (2002:89) combine the thinking of Swift and Xu said that, ―CRM is an
integration of technologies and business processes used to satisfy the needs of a
customer during any given interaction.‖ The same view as Galbreath and Rogers (1999)
stated that, ―CRM normally involves business process change and the introduction of new
information technology, consequently effective leadership is important.‖
However all these definitions are not emphasis the vital role of CRM in the organization
and how CRM can help the organization to develop. In this aspect, Butler (2001) gave
a better definition, ―Customer Relationship Management is a term used to encompass
the methodologies, software, and communication capabilities that help organizations
to structure and manage their customer relationships and interactions, with the
objective of increasing customer satisfaction with the organizations‘ products or
service.‖
Chen and Popovich (2003:676) describe that, ―A CRM implementation model that
integrates the three key dimensions of people, process, and technology within the
context of an enterprise-wide customer-driven, technology-integrated,
cross-functional organization is proposed in Figure 2.2-1.”
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Diagram 2.2-1- Understanding customer relationship management (CRM) People, process
and technology (2003)
1) People: Implementation of enterprise technology, such as CRM and ERP, requires
changes to organizational culture (Al-Mashari and Zairi, 2000). Chen and
Popovich (2003:676) supported their view and pointed out, ―While both
technology and business processes are both critical to successful CRM initiatives,
it is the individual employees who are the building blocks of customer
relationships.‖
2) Process: Customer relationship management is an enterprise-wide
customer-centric business model that must be built around the customer. It is a
continuous effort that requires redesigning core business processes starting from
the customer perspective and involving customer feedback. (Chen and Popovich,
2003:682). The Seybold Group starts this process by asking customers what
barriers they encounter from the company (Seybold, 1998; Seybold et al., 2001).
In a product-focused approach, the goal is to find customers for the products using
mass marketing efforts. In a customer-centric approach, the goal becomes
developing products and services to fit customer needs. In Seybold‘s work, five
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steps in designing a customer-centric organization were suggested:
(1) Make it easy for customers to do business;
(2) Focus on the end customer;
(3) Redesign front office and examine information flows between the front and
back office;
(4) Foster customer loyalty by becoming proactive with customers;
(5) Build in measurable checks and balances to continuously improve.
3) Technology: Information technology (IT) has long been recognized as an
enabler to radically redesign business processes in order to achieve dramatic
improvements in organizational performance (Davenport and Short, 1990;
Porter, 1987). IT assists with the re-design of a business process by
facilitating changes to work practices and establishing innovative methods to
link a company with customers, suppliers and internal stakeholders (Hammer
and Champy, 1993). CRM applications take full advantage of technology
innovations with their ability to collect and analyze data on customer patterns,
interpret customer behaviour, develop predictive models, respond with
timely and effective customized communications, and deliver product and
service value to individual customers. Furthermore, Peppard (2000)
suggested that technological advances in global networks, convergence and
improved interactivity, are key to explaining the growth of e-business and
CRM. The increasing use of digital technologies by customers, particularly
the Internet, is changing what is possible and what is expected in terms of
customer management (Tamminga and O‘Halloran, 2000). The appropriate
use, for instance, of automation technologies, such as interactive voice
response systems and Web-based frequently asked question pages, could be
popular with customers and highly cost effective (Petrissans, 2000).
According to the research of Kincaid (2003), CRM comprises three major functional
areas:
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1) Marketing;
2) Sales;
3) Services and Support.
West (2001) supported the view by stating, ―These three components may be seen as
the life cycle of a customer relationship that moves from marketing, to sales, to service
and support‖. Also, Kincaid (2003) pointed out that, ―IT and IS are the other crucial
components in supporting and maintaining these three functional areas as well as the
whole CRM process‖. Thus, the classification framework is based on these four areas,
which are Marketing, Sales, Services and Support, and IT and IS. Nagi (2005) drew a
picture to show the CRM general category.
Diagram 2.2-2–Customer relationship management research (2005)
Then Nagi (2005) explain the figure below:
CRM. This is the core part of the classification framework that includes general
discussion, concept, and managerial aspects of CRM.
Marketing. Marketing is the function most often associated with CRM (Kincaid,
2003). CRM is founded in marketing (Russell-Jones, 2002) and relationship
marketing (Ryals and Knox, 2001). Ling and Yen (2001) have described the
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evolution of CRM from direct sales to mass marketing, target marketing, and then
to customer relationship marketing thus emphasising that marketing and CRM are
inseparable. Xu (2002:445) summaries the pros and cons of CRM from a
marketing perspective by stating that: ―it identifies and targets best customers
based on recency, frequency and monetary scoring. It helps manage marketing
campaigns with clear goals and quantifiable objectives. It also creates and
manages solid sales leads for field and telesales representatives. Marketing and
cross-selling opportunities are also increased. The enabled tight and accurate
targeting and one-to-one marketing increases returns on marketing investments.‖
Sales. The sales function is direct interaction with customers, which makes up
CRM (Kincaid, 2003). It is important to develop sales strategies at the customer
level to build and maintain relationships with customers to achieve revenue goals
(Ingram et al., 2002). With technologies emerging for the sales function, it is
possible to make the sales process more efficient and automated to increase sales.
Xu (2002:446) support the view by stating that, ―sales efficiency is increased
through wireless and internet-based order entry.‖
Service and support. High quality customer service and support is the key to
improving customer retention rates and maintaining a good relationship with
customers (Yelkur, 2000). In today‘s highly competitive environment, companies
must pay attention to fulfilling the needs of each customer quickly and accurately.
Customer satisfaction is hard to win and easy to lose. If customers are not satisfied,
they will simply move on to other companies. Xu (2002:446) supported these
views by stating that, ―customer satisfaction and retention are ensured by solving
customer problems quickly. The management of people and materials within the
service organization are smoothly integrated. Customer satisfaction is ensured by
allocation, scheduling and dispatching the right people, with the right parts, at the
right time.‖
IT and IS. IT and IS play a key role in the development of CRM (Kincaid, 2003;
Ling and Yen, 2001). They can be used to automate and enable some or all
CRM processes. Bose (2002:89) pointed that, ―in IR terms, CRM means an
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enterprise wide integration of technologies working together such as data
warehouse, web site, intranet/extranet, phone support system, accounting, sales,
marketing and production. Appropriate CRM strategies can be adopted through
the assistance of technology, which can manage the data required to understand
customers. The use of IT and IS can enable the collection of the necessary data
to determine the economics of customer acquisition, retention, and life-time
value. Moreover, Dewhurst (1999) added that, ―IT can facilitate and enhance
customer relationships in various ways, but mainly enables companies to attain
customization, the essence of the customer-centric orientation, through the
deployment of sophisticated customer relationship management (CRM)
systems.‖ Advanced technology involves the use of databases, data warehouses,
and data mining to help organizations increase customer retention rates and
their own profitability. Web-based support functionality directly to the
customers can decreased the costs of support and service (Xu, 2002). It also
permits businesses to leverage information from their customer databases to
achieve customer retention, and to cross-sell new products and services to
existing customers (Falque, 2000; Foss and Stone, 2001; Ghodeswar, 2000;
Natarajan and Shekar, 2000).
By analyzing those definitions, Greenberg (2001) pointed that CRM systems basically
make three things possible:
Having an integrated, single view of customers, by using analytical tools.
Managing customer relationships in a single way, regardless of the
communication channel: telephone, website, personal visit, and so forth.
Improving the effectiveness and efficiency of the processes involved in
customer relationships.
Therefore as the research of Bergeron (2001), using CRM systems can be predicted
following improvements:
Greater customer satisfaction, through offering a better
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Service.
Greater business coherence, defining corporate objectives linked to customer
satisfaction.
Managing to increase the number of customers and secure greater loyalty
thanks to the reorganization and computerization of business processes
surrounding the customer relations life-cycle (sales, marketing and customer
care services).
Improving and extending customer relationships, generating new business
opportunities.
Knowing how to segment customers, differentiating profitable customers from
those who are not, and establishing appropriate business plans for each case.
Increasing the effectiveness of providing customer service by having complete,
homogeneous information.
Lower costs
Sales and marketing information about customer requirements, expectations
and perceptions in real time.
2.3 The implementation of CRM in different countries
and industries:
CRM is becoming one of the hottest areas in enterprise applications and enable the
enterprise and even the whole world market earns huge profit. For example, it was
predicted that the total aggregate revenue of the CRM market is anticipated to grow
from $1.2 billion in 1997 to $11.5 billion in 2002 with an annual growth of more than
50 percent. CRM license revenue would top $7.5 billion by 2002 against $762 million
in 1997 CRM applications and market penetration was expected to significantly grow
to new levels when the market was continuing striving to leverage the strategic
advantages. (NameProtect, 2001a)
.
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According to the Research AMR (2002), The CRM software market was expected to
increase from $7 billion in 2000 to $23 billion in 2005, even though conventional
wisdom was that 30 to 50 percent of CRM initiatives fall short of meeting company
objectives, while another 20 percent actually damage customer relationships.
The use of CRM is increasing rapidly throughout the world. According to the survey
of international data corporation, in 1998 Western Europe represented almost half of
the CRM market. USA and Western Europe were still the main market of CRM. But
the development of rest of the world especially the implementation in developing
countries should not be neglected.
1998 1999 2000 2001 2002 2003 ARG
98-03
USA 12.03
1
16.21
1
22.06
6
29.65
1
39.23
3
51.87
6
33.90
percen
t
Western Europe 6.966 8.766 11.07
6
14.17
0
18.22
3
23.62
7
27.70
percen
t
Rest of the
world
5.836 7.017 8.772 11.20
9
14.76
1
18.63
8
26.10
percen
t
Total 24.83
3
31.99
4
41.91
4
55.03
0
72.21
7
94.13
2
30,50
percen
t
Table 2.3-1-CRM market- Geographic Analysis (millions of dollars)-International Data
Corporation, 1999 AGR: Average Growth Rate
Potentially, most firms can make use of CRM technology, but there are certainly some
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that are better suited for CRM than others (Bose, 2002: 95). The Harvard Management
Update (2000) identifies companies who are most likely to benefit from CRM and
those who are less likely:
Most likely to benefit are companies who ―accumulate lots of data on each
customer‘s buying patterns in the course of their business‖; for example,
financial or telecommunications companies. Clearly, a key component to CRM
is lots of information about the firm‘s consumer.
Least likely to benefit are businesses where the consumer is not in contact with the
marketers, where the lifetime value of customer is low, or businesses with huge
customer churn. It is important to note, though, that some of these problems might
actually be overcome with a better understanding of the customer via the use of
CRM.
The current use of marketing in UK retailing:
According to a survey by Gartner Group (2001), apart from a select few, the UK‘s
largest retail store companies are lagging significantly behind other sectors, notably
financial and insurance services, in adopting customer relationship management
(CRM) technology and systems. However, the survey by Gilbert and Summer (2004)
the traditional retail stores (such as grocery convenience retailers and audio,
photographic and IT specialist retailers) are characterized by their continued focus on
price competition while the retail service providers (such as retail banking, financial
services providers and optical, health, hair and beauty service providers) emphasis the
use of CRM and other customer-specific strategies. The same feature of the retail
service providers are that, it is important to build relationship with customers and
make customer satisfied at those industries.
2.4 TPL
TPL originally began during the 1970s as public warehousing, when manager‘s of
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warehouses began to sell space to business organizations when it ran out of space
during busy seasons (Aghazadeh, 2003). By 1980s TPL expanded into selling not only
space but also offering through put to physical distribution managers who wanted to
improve customer service with their current customers (Tompkins, 1999). However,
the last decade of the twentieth century was characterized by consolidations by TPL
providers to offer logistics support through value-added services and offer
opportunities to organizations to reduce costs and provide higher levels of customer
satisfaction (Sohail and Al-Abdali, 2005). Moreover, the TPL industry has also
resulted in the emergence of large companies that have the capabilities to offer
sophisticated logistics solutions on a continental or even global scale. Such logistics
service providers (LSPs) strive to assume a more strategic role within the supply chain
of clients, expanding their scale and scope of operations (Selviaridis and Spring,
2007).
A further insight into the literature on international logistics providers reveals that
there have been three waves of entrants into the TPL market (Berglund et al., 1999).
The first wave date backs to the 1980s or even earlier with the emergence of
―traditional‖ logistics providers, whose activities usually emerged from a traditionally
strong position in either transportation or warehousing. The second wave dates from
early 1990, when a number of network players, for example DHL, TNT and FedEx
started their logistics activities. The third wave dates from the late 1990s where a
number of players from areas of information technology, management consultancy
and even financial services are working together with players from first and second
waves.
Overall, the evolution of the TPL market is explained with reference to three distinct
phases (Berglund et al., 1999):
(1) In the 1980s, many transportation and warehousing firms have developed into 3PL
providers (e.g. Exel Logistics and Frans Maas).
(2) In the early 1990s, firms that specialise in express parcel deliveries entered the
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market (e.g. DHL, TNT, UPS and FedEx).
(3) In the late 1990s, companies originally specializing in financial services, IT
services and management consulting entered the market by developing competences
in information systems and supply chain planning (e.g. Andersen Consulting).
In recent past, the third-party logistics (TPL) has received considerable attention from
logistics scholars, which result in a plethora of research and discuss in this field. Lieb
(1992:29) stated that, TPL involves ―the use of external companies to perform
logistics functions that have traditionally been performed within an organization. The
functions performed by the third party can encompass the entire logistics process or
selected activities within that process‖. Coyle et al. (2003:425) have the similar vein
by saying that, TPL involves an external organization ―that performs all or part of a
company‘s logistics functions‖. Both the two definition emphasis that the activities of
TPL are to perform logistics functions. Both of those ―broad‖ definitions appeal to
suggest that TPL included any form of outsourcing of logistics activities.
Alternative, ―narrower‖ definitions connect the TPL to some distinctive functional and
interorganizational characteristics of the logistics outsourcing relationship. Berglund
et al. (1999:59) emphasis the supply of management support in addition to operational
activities by providers and the duration of the relationship as follows: ―Third-party
logistics are activities carried out by a logistics service provider on behalf of a shipper
and consisting of at least management and execution of transportation and
warehousing. Further Van Laarhoven et al (2000:426) they state that other activities
might be included, such as ―inventory management, information related activities like
tracking and tracing goods, assembly and installation of products or even supply chain
management.‖ By these narrower definitions, Skjoett-Larsen (2000) summarized
that, ―TPL appears to be distinguished from the ―traditional‖ outsourcing of logistics
functions on a transaction-by-transaction basis presupposing that several features are
fulfilled before the relationship between buyer and provider of logistics services can
be characterized as TPL. These features include the provision of a broad range of
25
services, a long-term duration, joint efforts to develop cooperation, the customization
of the logistics solution, and a fair sharing of benefits and risks, and suggest that TPL
incorporates strategic and not just tactical dimensions.‖
Bask (2001:474) who gave a definition between the alternative broader and narrower
views stated that, ―TPL as relationships between interfaces in the supply chains and
third-party logistics providers, where logistics services are offered, from basic to
customized ones, in a shorter or longer term relationship, with the aim of effectiveness
and efficiency‖. Selviaridis and Spring (2007) summarized that, ―Different definitions
tend to emphasize different aspects of outsourcing arrangements such as the service
offering, nature and duration of relationships, performance outcomes, extent of third
party responsibility over the logistics process and position/role in the supply chain.‖
The research of the impact of CRM on the TPL customers will at the ―narrow‖ side
of TPL while the impact of CRM on the TPL enterprise itself will be the ―broad‖
side of TPL.
TPL is usually associated with the offering of multiple, bundled services, rather than
just isolated transport or warehousing functions (Leahy et al., 1995). Contemporary
TPL arrangements are based on formal (both short- and long-term) contractual
relations as opposed to spot purchases of logistics services (Murphy and Poist, 1998).
In recent years, the term fourth party logistics (4PL) has also emerged to describe more
advanced contracting arrangements. Van Hoek and Chong (2001:463) define 4PL as:
―a supply chain service provider that participates rather in supply chain co-ordination
than operational services. It is highly information based and co-ordinates multiple
asset-based players on behalf of its clients.‖
Users of TPL have cited a number of benefits to the company. The typical benefits
realized by firms in Australia, USA and WE are cost reduction, improved expertise
26
and a reduction in capital requirements for the user firm (Millen et al., 1997). Similar
benefits were reported from the Singapore study (Bhatnagar et al., 1999). Acccording
to the survey of CAWS (Chinese association of warehouse and storage) (2001:29), the
satisfaction gap between TPL and self logistic has become obvious in China.
The satisfaction of production enterprises to the logistics operation:
22%
11%
67%
23.00%
23.00%
54.00%
0% 20% 40% 60% 80% 100%
not completelysatisfied
not satisfied
satisfied
Self
TPL
Figure 2.4-1 the third report of Chinese logistics industry (2001:29)
The satisfaction of commercial enterprises to the logistics operation:
21%
38%
43%
40.00%
7.00%
53.00%
0% 20% 40% 60% 80% 100%
not completelysatisfied
not satisfied
satisfied
Self
TPL
Figure 2.4-2- the third report of Chinese logistics industry (2001:29)
The reason not satisfied to the TPL:
27
Reason factors Production
enterprises
commercial
enterprises
high operation cost 7 percent 0
information not prompt and
accurate 21 percent 34 percent
low operation speed 21 percent 33 percent
uncompleted service content 7 percent 0
high products damage rate 7 percent 0
high rate faults 13 percent 0
bad service attitude 0 percent 0
without online service 7 percent 33 percent
cannot satisfied the demand
waves 0 percent 0
Table 2.4-1- reasons for dissatisfaction with TPL -the third report of Chinese logistics industry
(2001:29)
The reason not satisfied to the self-logistics:
Reason factors Production
enterprises
Commercial
enterprises
high operation cost 11 percent 11 percent
information not prompt and
accurate 22 percent 0 percent
low operation speed 0 percent 33 percent
uncompleted service content 0 percent 34 percent
high products damage rate 11 percent 11 percent
high rate faults 23 percent 11 percent
bad service attitude 0 percent 0
without online service 11 percent 0
cannot satisfied the demand 22 percent 0
28
waves
Table 2.4-2- Reasons for dissatisfaction with inhouse logistics- the third report of Chinese
logistics industry (2001:29)
Survey shows that: the demand for the adoption of TPL enterprises, 67 percent of the
production enterprises and 54 percent of the commercial enterprises are satisfied with
the TPL services. 23 percent of manufacturing enterprises and 7 percent of the
commercial enterprises are not satisfied with the third-party logistics services. The
reason not satisfied, first of all because of the slow speed of operations and logistics
information is not accurate. Followed by operational error rate is high, high operating
costs. It can be seen that the first thing the production enterprises and commercial
enterprises care about of TPL services is the quality of operation and operation of
capacity which including the logistics information. Followed is the cost. At the same
time, the quality and operation of enterprises has become the biggest obstacle to
self-logistics.
2.5 The relationship between logistics process and CRM
It is universally acknowledged that the logistics process have close relationship with
customers‘ activities. Gunasekaran (2003:827) stated that, ―Logistics processes and
related activities comprise order fulfillment processes, customer relationship
management, and customer service, and procurement and demand management.
Customer relationship management (CRM) focusing on clients to make sure that there
is no communication gap so that goods are made available as required and delivered on
time: there are several ways by which communication between the logistics company
and clients can be established. These include via strategic alliances, frequent meetings
between suppliers and customers, and shared information systems.‖ Viswanadham
and Gaonkar (2001:4) stated the important role of CRM play in the logistics
enterprises, who stated that, ―Most logistics companies can be considered to be a
29
bundle of three primary processes: a customer relationship management (CRM)
process, a product innovation process, and an infrastructure management process.
Each plays a unique role, employs different kinds of people, and has different
economic, competitive, and even cultural imperatives. The role of CRM is to find
customers and build relationships with them.‖
The rapid development of CRM market enables more and more industries using CRM
to gain more benefits. The logistic industry as a new research region, different
countries have their own developments and situations of using CRM in logistics
enterprises. In some Asian countries, Wang (2002) stated that, ―In a service sector like
the 3PL industry in Singapore, customer satisfaction and retention are two pertinent
issues that have major impact on the competitiveness and profitability of a company.
Many 3PL companies are now trying to leverage on the tools of Customer
Relationship Management (CRM) to address the above issues.‖ The situation in
Turkish which pointed by Goll (2007:384) is that, ―With continuing pressure on
improving their relationship skills, 3PLs should focus more on CRM activities in an
effort to exceed customer expectations.‖
Yu (2007) combine characteristics of the TPL business customers drawing a flow chart
(figure 2.5.1), which suit the logistics enterprises to implement the CRM.
30
Diagram 2.5-1- TPL enterprise CRM flow chart-CRM in TPL research (2007:16)
The operation concept of TPL enterprises CRM is same as the general CRM. It is a
management concept. Meanwhile, it is a set of management software system. This
system starting from the end-customer demand, with information technology and
network technology, through analysis of customer information, the demand of
information integration and specific implication establish supporting the use of the
function level system to connect between the business and customer relations. It
provides a basic platform for the enterprise collection, management and use of
customer information.
Specifically, according to different parts of the functions the TPL, CRM system can be
classified in information sources layer, information processing layer, basic functions
layer and decision support layer. Its system structure is as shown in Diagram 2.5-2.
The first part The second part The third part
Customer
Service
Customer info
Service system
Info analysis
Info integrate
operation
Decision
support
Implement feedback phase
31
Diagram 2.5-2- TPL enterprises CRM system structure chart-CRM in TPL research (2007:16)
The information source layer includes customers and partners, which is the
fundamental starting point and final destination of CRM system. TPL enterprises hold
the dualism of the end-customers, which means the customer satisfaction and
company competitiveness can be improved only if it can meet the logistics demands
of both the final customers and the manufacturers; it can play from the effects of the
satisfaction proliferation and improve the competitiveness of enterprises. Therefore, in
the TPL CRM system, the information source layer is important for the customer
information collection and information integration.
Information processing is a layer enterprises to process and integrate information,
which mainly use the web portal and call centre those two channels to realise the
integrity management between enterprises and customers, partners.
Basic functions layer mainly includes the automated management, marketing
Information
sources layer
Information
processing
layer
Basic
functions
layer
Decision
support
layer
End-
customer
partners
Web
portal
Call
centre
automate
managemen
t marketing
managemen
t customer
service
business
intelligence
Informatio
n data
warehouse
Decision
analysis
module
32
management, customer service, business intelligence, and other modules to realise the
logistics optimized and automate. Automation Project Modules include account
management, pricing management. Through this module it can be realized that from
price, ordered to pay the full automation of commission. And also provide based
Internet auto sales functions, which allow customers to order products or services
personalize via Internet. Marketing module started from the customer demand and
market information to detail logistics market. And that, in turn found the high-quality
marketing opportunities, get important customers information, which provide quality
personalized service for high-value customers. Also for potential customers trace their
value fully. Customer Service Module can provide customer support, automation the
after sales service and it is an integral part of the CRM system.
Decision support layer includes decision analysis module and information data
warehouse. Information data warehouse contain all the information data which related
to the CRM. It is the foundation of the entire CRM system. Decision analysis module
through the methods of on-line analysis and data mining to analysis, admission,
conversion and integrate the information, which in turn to the acquisition,
cross-selling, personalized customer service of logistics enterprises‘ new customers
provide effective support.
CRM system is an organic integration. Through the effective implementation of CRM
system, the TPL enterprise can make full access to enterprise customers and provide
personalized service, realise the automation during the process of sales and marketing,
improve customer service and after-sales service management, which enable
enterprises to provide a unified, complete and accurate service in the shortest time.
33
3 Research methods
3.1 Introduction
The methodology of this dissertation involves both quantitative research and
qualitative research. Because the similarity research has been surveyed by the
researcher, the range of answers has been already been research. Thus the questions
in the questionnaire should be closed or limited choice of answer. This type of
question is most amenable to quantitative analysis. The demographic questions in the
final part of the questionnaire count as closed or limited option questions. However,
because the research in this field has not been fully explored, it needs some
interviews and open questions to find the perceptions and preferences of the
interviewer. At that stage, the qualitative research will be helpful.
The research addresses three different populations. The first group is the customer who
is the user of those logistics enterprises. Because the focus of CRM is the feeling of
customer, the thought of customers is crucial to those enterprises. The question on this
questionnaire will focus on the acknowledgement the customer‘s view of CRM and if
CRM system is a key factor when they choose logistics enterprises. The second group
is the internal who deals with the system or who use this system to deal with something
relative with customers. The CRM system not only influences the thought and work of
customers, but also the clients in the companies. For instance, the client works in the
customer service department. After using it, if their work changed or do they think it
really help will be the key point. The last group consists of managers of those logistic
enterprises. The emphasis will be on exploring why those managers make such
decision, what is their feeling about CRM and how the CRM system helps them to
manage.
The methodology of research on the first group will be both questionnaire and
interviews. Because the population in this group will have little speciality knowledge,
34
the questionnaire will focus on demographic data about the client and some multiple
choice questions, which will be easy to answer, encouraging response. What is more,
there will be one or two interview to particular people to know more information about
their feelings. Those two kinds of data collection will also be used with the second
group. The difference is that the questions on the questionnaire given to the second
group will be more specialised and complex. The research on the last group will be
only interview, which will get more information of the situation in the whole company.
In this case, the research ethics can be those of business confidentiality. The entire
interviewer in this survey has known what would happen to the data. The data in
this dissertation collected safe and it will be destroied when it was no longer need.
3.2 Data collection
The data collection will include collecting both primary data and secondary data.
Primary data and secondary data play different role in research. Hollensen (2003)
defined the primary data as follows, ―Primary data is data that collected for the first
time for the specific purpose of a particular market research study and secondary data
is data that already exist but were collected in the first instance for another purpose.‖ In
this case, the primary data will be collected by interviews and questionnaires and the
secondary data will be gathered from documentations, such as reports of company,
surveys done by the company, business records and the literature. The literature
review in the last chapter belongs to the secondary data. At that chapter it has been
examined the literature in order to identify previous relevant research and review that
research. The type of the sources includes the books, e-journals, newspapers, reports,
essays and the web database. The literature in this dissertation was all chose by the
library or some authority website, for instance, Google scholars, Emerald and Dialog,
which provide academic essay.
35
3.2.1 Questionnaires
3.2.1.1 Literature review
The design of questionnaires is used to collect the primary. Proctor (2000) defined that,
―A questionnaire is a data-collection instrument. It formally sets out the way in
which the research questions of interest should be asked.‖ Talking about the function
of questionnaire, Brace (2004:4) said that, ―the questionnaire is the medium of
communication between the researcher and the subject, albeit sometimes
administered on the researcher‘s behalf by an interviewer. In the questionnaire, the
researcher articulates the questions to which he or she wants to know the answers
and, through the questionnaire, the subjects‘ answers are conveyed back to the
research.‖
The structure of the questionnaire is comprised of three major parts: (Proctor, 2000)
The introduction -to explain to the respondents the aim of this survey. It must
be persuasive and qualify respondents as someone who belongs in the sample.
The body - the content of the questionnaire full of any types of questions.
The range of topics covers facts, knowledge, opinions, attitudes, possible
future behaviour, and etc.
The basic data - a section for collecting information of respondents, which
normally consists of name, address, occupation, telephone number, email, and
etc.
In addition, Barribeau et.al(2005) pointed out that, ―All researchers must make two
basic decisions when designing a survey--they must decide: 1) whether they are going
to employ an oral, written, or electronic method, and 2) whether they are going to
choose questions that are open or close-ended.‖ A common definition is: A closed
36
question can be answered with either a single word or a short phrase.
(Changingmind.org, 2008). The characteristics of the closed questions are that,
They give you facts.
They are easy to answer.
They are quick to answer.
They keep control of the conversation with the questioner.
An open question can be defined as: ―An open question is likely to receive a long
answer.‖Open questions have the following characteristics :(Changingmind.org)
They ask the respondent to think and reflect.
They will give you opinions and feelings.
They hand control of the conversation to the respondent.
The aim of questionnaire is to research the different implication of CRM on
customers and company clients. So the questionnaire has been separated into two
parts. The one is for the customer and the other one is for the company clients.
Because the number of customers who have business with TPL enterprise is so big and
also there are so many clients in the TPL enterprise, using mail survey, telephone
survey or email survey throughout a country is not a good idea. Therefore, sampling
is a good way to collect the data from both customers and clients.
In the market research, there is a population of objects of interest. Usually the
population consists of an enormous number of objects, so some objects which are quite
few are selected and to be studied. This is called sampling and the selected objects are
called the sample (Blankenship et al., 2001).
The sample of the first group is selection from the population,
Elements: Males and females, who visit the webpage of the questionnaire.
Units: individual person
Time:18th
July – 5th
Aug, 2008
37
The sample of the second group is the clients both in the international companies
and the Chinese companies. Because the object of the questionnaire for this group
is to explore the whole view of the client, the result should be implying both the
international companies and the Chinese companies. The interviewer of the
interview is the client of DHL, who is working in the DHL customer department
now. Because one of the object of this paper is to know what the different with the
international company and the local company in China, as a well-known company
in the world, the feedback of the clients is very important to the compare. What
is more, the customer service department is the department which have the most
direct contact with the customer and using the CRM system. Their view will be
significant.
The interviewer of the third group is marketing director of FedEx. The purpose to
choose the manager in this company is as similar as the reason choosing DHL‘s
clients. FedEx is a well-known international TPL enterprise, as well. The view of
the manager will be different from the view of clients. Both the view of the client
and manger should be considered and analyzed in the following chapters.
3.2.1.2 Questionnaire for customers
The purpose of the questionnaire is to explore the feelings of customers. It is
universally acknowledged that the feedback of customers will have huge direct
implementation on the enterprise. So to pay more attention to the feedback of
customer will enable the enterprise get improvement.
The questionnaire has been divided into two sections. Section A is the question about
CRM and section B is about TPL.
Section A about CRM
The question in Section A aims to explore two general problems, which in order to
38
acknowledge if the customers have a concept of the CRM and the general impression
of CRM. The aim of Q1 is to know that if the concept CRM have been accepted or
acknowledged by the customers. In some developing countries, CRM is a very new
concept, which only has been used in the big company or international company now.
The contribution of CRM should be seen through the increase of enterprise profits
and the level of customer satisfaction. If the customer has no concept of CRM or
does not acknowledge the value which it can bring to the enterprise, then it will be
more difficult for them to comment on this issue. Also the aim of this question is that
because this research is to explore the implication of CRM on logistic enterprises,
enabling more people who had previously never heard about CRM to know the
helpful role of CRM. At the same time, Q1 is the basic of Q2. Only if the answer of
the customer is A (yes), he or she can answer the question B.
Q2 is a more difficult question to answer. Because the majority of customers do not
know, if the company they have business action have a CRM system. However, if the
customer who answers the questionnaire does have the acknowledgement of this
aspect, or they have had business with both companies that do not have a CRM
system, their view will have more significance for the research. The object of
interview is also chosen depending on the answer to this question. This will be fully
explained by the following sections.
Section B about TPL
From Q3 to Q9 are some questions to research the view customers‘ view of TPL.
The purpose of Q3 has the same usage as Q1. The answer to Q3 also has the direct
implement on the chose of interview object, too. Because TPL is a new concept for
some customers in China, but maybe they just not know this noun, it does not mean
those customers have never had business with the TPL enterprise..
Q3 will explore what degree the customer knows the logistic and logistic enterprise.
The logistic industry as a modern industry in recent years has been known by many
39
business individuals especially in developed countries. To some developing countries
such as China, the business men maybe have a long cooperation relationship with
TPL enterprises. But majority of them even do not know what is TPL. Which is TPL
enterprise? However it will not implement their cooperation with them and after they
know which is TPL enterprise, their view will also contribute to this survey.
The number of times the company has done business with the TPL enterprise will
illustrate the huge contribution in the business area. Q4 aims to find out this data not
only in the business area but also in the general public. Because the general public
will also needs TPL enterprises to do some individual things.
The period the customer cooperation with the TPL enterprise will illustrate the
development and being known level in the public to some extent. Q5 is a basic of
following questions as well. The longer period cooperation with the TPL enterprise
the more information this industry will be known by customers. After that the
customer may have more choice on the different companies.
There are two kinds of TPL enterprises in china. One is the local companies, which
found by the local themselves. Their main work area is in the domestic. Some big
companies maybe have business with the foreign companies. The majority company
in China is the branch of the international companies. Their main office has been
found for a long time. But their branches in China may be just built. There must be
some compete relationship with this two kinds of companies and the aim of this
essay have close relationship with those two kinds of companies. Q6 is a direct
question to explore the view of customers to these companies. If the customers do
not know which company is the local one or which is the international companies.
There are some samples in the brackets.
Q7 is a multiple choice question. Because there will be many things to implement the
customers‘ choice. The question is design to find which are the most important
40
reason and the auxiliary implication of other reasons. If there is other reasons may
affect the customers‘ choice which did not mention in the choice. The customer can
write down it and it can also be considered by the final data analysis.
Q8 can find the customer view to change companies. Because there are so many
companies in China including international companies and domestic enterprises, the
customer has a large choice region. Some individuals and companies still have
business with only one TPL company. Others have business with several companies
at the same time or often change it. This question is also the basic for Q9.
If the customer changes the cooperation companies, it must have reasons. This
reason is very vital to the TPL enterprise to improve their business. Q9 as Q7 is also
a multiple choice question. Because sometimes there is not one specific reason which
can affect the customer to change their mind, the customer can also write their own
reasons which not included in the questionnaire.
3.2.1.3 Questionnaire for company client
The questionnaire for company internal client is designed of the internal clients of
TPL enterprise. From Q1 to Q8, the question is design for the client who works in
the TPL enterprise. The aim of these questions will explore the client‘s acknowledge
and feeling of CRM system.
Q1 is question to know the basic situation of the CRM system in the interviewer‘s
company. Clients can fill in the definite year on the questionnaire.
Q2 asked for the entire feeling of clients to the CRM system in their company. This
is a general question. The implementation included the clients, the customers and the
managers in the company.
41
Because the client is the person who has contact with CRM system everyday and
they can feel the change of enterprise at the first time. So Q3 is a question want to
know if the company can obtain the advancement through CRM.
From Q4 there will be some detailed questions about the clients‘ everyday work.
There are a few methods the client can contact with customers. There may be not
only one way. The aim of this question is to know which is the most often way which
the client contact to the customers. Because the different customer have different
require, the most often way may be not suit for all the customers. After that it can be
given some advices through the result of this question.
Q5, Q6 and Q7 are based on the Q4. Q5 take phone as an example to explore more
information about the contact. Q5 is focus on the contact times. Q6 is focus on the
content while Q7 is focus on the communication time.
The customer information is an important resource to the enterprise. However, keep
too much records will consume the company‘s resource and reduce working
efficiency. In the contrary, too little information does not have implication to the
analysis of customers. So update and modify customers‘ consumer behaviors in some
specific period is a good idea to the company. But different companies have the
different year limitation depending on the different situations. Q8 is a question
design to find this information.
There will be something different for the clients‘ work because of the CRM system.
But different person in different department maybe have different feelings about that
while different person in same department maybe have different feeling as well. Q9
will enable the client to choose.
Based on Q9, Q10 will special on the clients‘ comment and salary aspect. It is
42
cleared that comment and salary is the most important benefits for the client who
working in the company.
The final four questions will record the interviewer‘s information. The four questions
are age, sexual, degree and salary..
3.2.2 Interview
3.2.2.1 The different implication of interview and questionnaire
This essay not only included questionnaire but also interviews. Both questionnaire and
interview have their advantages and disadvantages. The essay adopt internet
questionnaire to survey. An Internet questionnaire is a form of written survey.
Respondents may be invited to participate in the survey through email or they visit a
particular web page. In this survey, it adopts the method to invite the individual to
visit a specific web page. On the one hand, the pros of this method are that, Fast to
conduct and tabulate. Some software products allow questionnaires to be customized
depending on the respondent‘s answers, which avoids interviewers‘ bias and
distortion. Answers unlikely socially influenced, easy to administer, and relatively
low costs. On the other hands, there are some cons of this method. Such as
information transferred via the internet may not be confidential; poor control over
respondent selection; follow-up difficult to conduct; difficult to obtain probability
sample; and, like mail surveys, this is the most difficult type of questionnaire to
design.
According to the features of the internet questionnaire, in this essay, there are also
three interviews. Face-to-face interview is that, interviews or personal interviews are
surveys conducted in person by an interviewer who usually travels to the person
being surveyed. Pros of this method is such as, high response rates; can clarify
43
questions, if necessary control over respondent selection can use longer, more
complex questionnaire; and easier to motivate the respondent. While the con is that
high costs, time-consuming, and more administrative requirements Also, there is a
tendency for respondents to give socially acceptable answers.
3.2.2.2 Interview for the customers
The first interview group will be the customer who answers the questionnaire.
Because the questionnaire only has the choice question and the question is more
basic, it is difficult to have deep research according to the result. The interview in the
first group will choose the customer who give the A (yes) answer to the Q1, Q2 and
Q3. So the interviewer is a person who has been had business with DHL and TNT
for a long time. There are three questions here. (See Appendix 1)
The first question is that how long have you corporation with TPL enterprises,
which enterprise is the best one you corporation and the reason that he choose
this company.
Then the second question is that why the interviewer does not choose the
domestic TPL enterprise of China.
The third question is that why the customer changes their enterprise, which items
will affect their decision.
3.2.2.3 Interview for the clients
The object of the second interview is the client of DHL who works in the customer
service department. The aim of this interview is to explore how is there work in
customer service department. What the implementation the CRM system brings into
their work and their comments as well. There are five questions here. (See Appendix
2)
The first question is that could you introduce your work department for me?
44
The second one is that could you tell me if the CRM system have some effects on
your work?
Could you tell me how many kinds of requests do you have and what are the
different methods to reply those requests.
The fourth question is that what will implement your performance score.
The last question is that how your company keeps the customer information and
how can you get customer from your competitors?
3.2.2.4 Interview for the manager
The aim of the interview is to know the general operation situation of a well-known
TPL enterprise. The third interviewer is the marketing director of FedEx. According
to her answer, it is clear that how the CRM system operation in her enterprise and the
benefits can be brought by the CRM system. There are two main questions here. (See
Appendix 3)
The first question is that let the interviewer describe the process of CRM system
in her company in details.
Then the second question is that what value the CRM system creates to the
FedEx?
45
4 Analysis and Findings
In accordance with the explanation of the research methodology in Chapter 3, in this
Chapter, firstly all the results of the questionnaire which stored through Access and
have been analyzed using Excel will be described while the interview content will be
analyzed later in this Chapter. The data from questionnaire will be described
narratively first and then put into diagrams. Through the analysis, the situation in
China now and the issues in the implementation of CRM in TPL industry in both
China and some developed countries can be illuminated.
4.1 Analysis and conclusions from the questionnaire
TPL industry is a big market in China. In this survey, there 200 questionnaires were
sent to individuals and 200 questionnaires to TPL company's internal clients. On the
one hand, all the questionnaires for customers had been given to the citizens of
Beijing, which is the capital of China. The response rate was 74 percent, because
some of the questionnaire did not complete or some of respondents miss some
questions. On the other hand, the questionnaire which designed for the TPL
company's client had been sent to the internal client of some TPL enterprises. The
majority of enterprises are Chinese enterprises. So the result will mainly describe the
situation of Chinese TPL industry. The response rate to this questionnaire was 89.5
percent.
4.1.1 Questionnaire of CRM for customers
There are 148 individuals intend to this survey. The group which answer the
questionnaire are almost covered the whole age range. More than half of them are
between 20-29 years old. About 10% are teenagers and about one third of them are
more than 30 year's old. These results might be indicative of the response of
customers in Beijing. The result of this question shows below.
46
8.11%
4.05%
22.97%
29.73%
24.32%
8.11%
2.70%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
more than 37
34-37
30-33
26-29
22-25
18-21
less than 18
Figure 4.1-1 the result of personal information Q1
The female respondents out number the male. However this both male and female
are represented. There are 60.81 percent female and 39.19 percent males intend this
research
The majority of interviewers have bachelor degree or more than that. Only one fifth
of them have the degree below bachelor. So the questionnaire can describe the view
in the different groups.
1.35%
10.81%
66.22%
17.57%
4.05%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
other
more than bachelor
bachelor degree
the junior colledge
high school or less
Figure 4.1-2 the result of personal information Q3
47
There is no interviewer have less than 1000RMB salary. Most of them earned
2000-5000RMB every month. About one of forth interviewers earned more than
10000RMB per month. As a result, the survey could show the situation in different
groups.
20.27%
22.97%
40.54%
16.22%
0.00%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
more than 1000RMB
5000-10000RMB
2000-5000RMB
1000-2000RMB
less than 1000RMB
Figure 4.1-3 the result of personal information Q4
It can be seen clearly in Q1 that the degree of the citizens acknowledge the CRM
is low. There are even half of them (51.35%) have heard not about CRM yet. If the
manager of a company lacks of knowledge, the company cannot be improve. If the
customers lacks of the knowledge, sometimes it will result in poorer decisions.
Q2 based on Q1 show that if the implement of CRM system in TPL enterprises will
effect the decision of customers. Although more than half individuals believed that it
will not implicate their choice. There are 43.24 percent of them thought it will
influence their choice.
As Q1, Q3 focus on the knowledge of customers on the term of TPL. The result is
better than Q1. More than two thirds of respondents have heard about TPL. However
48
it still has 32.43 percent of people have not heard about this industry.
Q4 will explore the business situation of customers with TPL enterprises. Most of
individuals have business with TPL enterprises about once a month. More than one
thirds of interviewers never have business with these companies. 14.86 percent
customers have business with TPL enterprises nearly every day. Because there are
some examples of which company is TPL enterprises, nearly all the respondents
answered this question.
The interviewee of the customer was chose in the group who has business about once
a week. The analysis of customer interview will be described in the sections later on
in this chapter.
14.86%
8.11%
41.89%
35.14%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
nearly every day
about once a week
about once a month
never
Figure 4.1-4 the result of customer questionnaire Q4
In the results from Q5, it can be seen that about half number of customers have
business with TPL enterprises for about 1 year. This is the group which has the most
members. About the same number of customers have business with TPL enterprises
about 2-5 or more than 5 years. Only 4.05 percent of customers have business with
TPL enterprises more than ten years, which illustrate that the TPL industry has been
49
recognized in recent 5 years. This data is in coherence with the data in Chapter 2
literature review.
4.05%
14.86%
32.43%
48.65%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
more than ten years
more than 5 years
about 2-5 years
about 1 year
Figure 4.1-5 the result of customer questionnaire Q5
As the result of Q6 shows, more than half of people believed that they would like to
have business with both the international companies and the native enterprise of
China. The customer who prefer to the international companies is less than the
customer who prefer to the Chinese enterprises. The view of customers will benefit
from the development of local Chinese TPL enterprises.
54.05%
24.32%
21.62%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
both of them
the nativeenterprises of China
the big companies ofdeveloped countries
50
Figure 4.1-6 the result of customer questionnaire Q6
From the result of Q7, it can be seen that the customer put the reputation of a
company as the first consideration thing when they chose a company. The good
service attitude is also important to the decision of the customers. More than half of
customers thought that the cheap price is one of the key reasons when they chose a
company. In addition, just under half of customers put the online tracing system as a
condition. There are 6.76 percent customers believed that there are some other things
they will be considering when they make a decision. Respondents had the
opportunity to add other considerations, such as if the service will suitable their need,
the suggestion of friends and the special need of the service.
6.76%
44.59%
62.16%
56.76%
68.92%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
others
has the onlinetrading system
good serviceattitude
cheap price
the good reputationof the company
Figure 4.1-7 the result of customer questionnaire Q7
The result of Q8 shows that how often the customer changed the logistics company.
More than half numbers of people claimed that it not easy to say. Almost 10 percent
of individuals have never changed the company.
51
51.35%
13.51%
25.68%
9.46%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
not easy to say
often
almost never
never
Figure 4.1-8 the result of customer questionnaire Q8
It can be clearly seen from the result of Q9, why people changed their TPL
companies. More than 60 percent of interviewees chose the answer of the unsatisfied
service, which means the customer still put the service as the first considered thing.
Just under half of members thought that the high cost and the product damaged or
lost is the reason made them changed the company as well. The number of the two
groups is same. Then about one fourth of interviewers believed that the company
they chose in the beginning does not have the suitable project for them. Lack of an
online tracing system prompted 14.86 percent customers to change the company. The
other reasons including some private reasons and the problems maybe very special.
52
6.76%
24.32%
14.86%
44.59%
44.59%
60.81%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
others
the project does notfit me
without onlinetracing system
the product damagedor lost
high cost
because of theunsatisfied service
Figure 4.1-9 the result of customer questionnaire Q9
4.1.2 Questionnaire of CRM for company client
The following paragraphs will present the result of the questionnaire of CRM for
company internal clients.
From the answer of Q1, it can be seen that most TPL enterprise has implemented the
CRM system more than 5 years. There are also some companies have not
implemented it yet.
It can be seen clearly in the result of Q2, the majority of clients thought that the
CRM system do not have excellent or good performance in their company. Only
10.56 percent clients thought that their company's CRM system is excellent.
However, more than one fourth clients believed that the implementation of CRM
system in their company is very poor.
53
29.05%
29.60%
20.11%
11.17%
10.56%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
very poor
poor
fairly good
good
excellent
Figure 4.1-10 the result of internal clients questionnaire Q2
Like the prior question, Q3 focuses on the benefit, a CRM system brings into the
TPL Company. No client thought that the company got no benefit from a CRM
system. Almost all clients give the confirmed answer to this question. The result of
this question is that 94.97 percent of respondents give the confirm answer on this
question and 5.03 percent of respondents chose ―Don‘t know‖ .
The internal client such as the client in the after service department is the person who
can help the enterprise to contact customers directly. So the method they use will
effect the improvement of the enterprise. There are many methods the client can use.
But more than half of clients choose telephone to contact with their customers. The
number of contact by internet and by text message is similar. There are 13.42 percent
of clients choose others and give some example on this, such as by fax and by email.
The detailed number has been show below.
54
13.42%
5.03%
18.99%
58.10%
4.47%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
others
by text message
by mail
by telephone
by internet
Figure 4.1-11 the result of internal clients questionnaire Q4
Q5 to Q7 is based on Q4 to explore more information about the contact situation by
phone. Q5 is to survey the number of the call in one day. More than one third of
clients receive ten to twenty phones per day. This is the most frequent situation. The
times which the client received less than ten phone calls, twenty to thirty phone calls
and more than thirty phone calls are very similar. They all accounted for one fifth of
the result.
20.11%
20.67%
39.11%
20.11%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
more than thirty
twenty to thirty
ten to twenty
less than ten
Figure 4.1-12 the result of internal clients questionnaire Q5
Q6 focus on the content of the phone calls, because if the external customer takes the
55
initiative to contact the internal, because once the customer contact with the client
initiatively, it must be something happened or something they want to know. More
than 40 percent customers call the client to ask where their package is now, whether
the company has online trace system or not. Very few customers calls to complain
about a lost package and to ask the price of different services. More than half clients
choose the questionnaire option ―others‖. They give some examples about that, such
as to complain about another colleague's service, to complain about damaged
shipment or fax invoice and airway bill, to check duty charge or ask when they can
deliver the shipment will take to arrive at its destination.
50.84%
5.59%
3.35%
40.22%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
others
to ask the price ofdifferent service
to complain the lostpackage
to ask where istheir package now
Figure 4.1-13 the result of internal clients questionnaire Q6
The duration of a phone call will reflect the importance of the problem and the
abilities the client resolve the problem. Q7 aims to explore the situation. Almost half
number of the phone call lasts 3 minutes. And the opportunity the call lasts one
minute, five minute, ten minutes and more than ten minutes are alike. Some
enterprise has some rules about the duration of phone calls. More than that time or
less than that time, the client's work is judged to be poor. This will be further
described in the interview part in details.
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10.61%
11.73%
15.64%
48.04%
13.97%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
more than tenminutes
ten minutes
five minutes
three minutes
one minute
Figure 4.1-14 the result of internal clients questionnaire Q7
The period that the company keeps the records of customers' consumer behaviors
depends on the company's policy and the database content. Because the customer is
coming and leaving every time, it does not mean, the longer the company keeps a
record of the customers' consumer behaviors, the better the company's service will be.
Almost three quarters of companies store this information less than one year. There
are about 15 percent companies which store the information for 1-2 years, as well.
The other figures surveyed by Q8 show in the following diagram.
6.15%
5.03%
15.64%
73.18%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
>5 years
3-5 years
1-2 years
<1 year
Figure 4.1-15 the result of internal clients questionnaire Q8
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The prior questions have been explored the impact of CRM system for customers and
the enterprise, Q9 is to know if it has impact on the clients, too. More than half
number of the client believed that it does not have any effects on there everyday
work. However, it also has more than 17 percent of clients claimed that CRM system
has huge impact on their work.
17.32%
28.49%
54.19%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
very much
a little
never
Figure 4.1-16 the result of internal clients questionnaire Q9
The most things the client care about is their salary and feedback. Q10 aims to know
if CRM system has implication on the client's salary, promotion and feedback. No
client thinks that it does not have effect on them. In the contrary, 31.28 percent of
clients believed that the CRM system has a huge impact on these while 61.72 percent
of clients thought that the CRM system has a little impact on these.
4.2 Analysis and conclusions from the interview
In this chapter, it will analysis the response to the interviews. There are three
interviews have been undertook. The content of the interview not only involved the
international enterprises such as FedEx, TNT, DHL, but also some domestic
enterprises of China. From the interview, it can be seen why customers choose this
58
company and the different advantages of the different international enterprises.
The order of the analysis of interview will be, firstly the analysis and conclusion
from the interview for the customers, then the analysis and conclusion from the
interview with the internal clients. The last one is the analysis and conclusion from
the interview with the manager.
4.2.1 Analysis and conclusions from the interview for the customers
According to the interview and the questionnaire, it can be seen that the majority of
citizens responding to this survey make international enterprises their first choice,
because of their good reputation and good service. In this case, the special thing is
that TNT has a corporation with the Swiss post office. This specialty is more fit the
need of the interviewer.
The way the TPL enterprise communicates with customers is very limited. As the
result from the questionnaire, the most frequent way is contact by telephone,
following by mail, text message, internet and fax. This is the general problems in
present TPL industry. As all the service in those companies are very good, price still
as the first considering thing when the interviewer choice their company. This result
is in coherence with the questionnaire results. And also, sometimes the massive
service items can not attract more customers. Too many choices may make the
customers spend more time on understanding the different service and make them
lose patience.
The interviewee has a bad image of the domestic TPL enterprise. Because the
company he cooperated with can not check the situation of his document when the
client who responsible to the document is occupy. And other clients cannot help him
at the same time.
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4.2.2 Analysis and conclusion from the interview with the internal
client
This interview is based on the internal clients questionnaire Q10 to explore how the
CRM system to influences the client's advancement, feedback and salary. The
interview for the client in customer service department of DHL introduces a new
noun that is performance wages. Using CRM system can record the client's usual
performance, which will be taken into account the wages of the clients.
According to the interview, there are four kinds of requests in DHL. Each kind of
request will resolve one kind of problems.
The first type of request which they called No.1 request is that the customer
call in to request the shipment information. The client will set call back time
depending on when the customers call in. The manager will check five or
seven queries monthly and make a score for every client. Because the system
is recording in English, the score will be made depending on how many
misspellings the clients make and the client‘s effectiveness in solving the
problem. Further more, because the system will record every calling from
customers and the client have the regular process to say something in rule.
Depending on the different situation, the client can also provide the shipment
information to foreign colleagues.
The second request called non-delivery. Many shipments which are imported
to China the sender provide the wrong recipient's information. So the client in
China can not distribute the items through all kinds of methods. At that time
the Chinese clients will re-link the sender to provide new contact way. The
performance and the effectiveness of their work should be checked by
managers.
The third category request which called no.9 is called by foreign colleagues to
60
check. Generally the manager will check two of the no.9 requests monthly for
clients' performance.
The fourth category is called initiative request. DHL have specialized colleagues
to track every express every day. If there are some problems the client will
request customers proactively and to tell customers what are the problems also
set the call back. So the score standard is just like no.1 request.
In addition to check the case, the client also has a lot of performance standards. DHL
regulates that every requirements need to be resolved in 3 days. This part will also be
scored and put into the whole performance evaluation.
Each request has the different resolve method and standard process enable the work
of the client more effective and more normal. This kind of method will encourage the
client work harder. And also make the wage more equally and transparent.
DHL also emphasise gathering more information on their competitors‘ customer,
which enable them to get more customers. The client of DHL believed that the good
service and more contact will help them to keep the old customers.
4.2.3 Analysis and conclusions from the interview with the manager
Federal Express (FedEx) is one of the most famous TPL enterprises in the world.
Over these years, FedEx has always insisted that services, technology, cooperative
with customers to expand the market as their business ideas. And the achievement of
the benefit from the CRM system is to a large extent.
FedEx's CRM system consists of two parts, the front desk and the back desk. The
front desk is mainly the enterprises' website. Besides the front desk of FedEx's CRM
system, there is a strong information management system operating platform in the
61
background. The most important thing is FedEx's intelligent transport management
system which builds on the Internet. For customers, FedEx's intelligent transport
management system can provide a seamless connection between customers and
enterprise or straight involved into the user's transportation through the web pages. In
this way, any companies can directly put FedEx massive air and land team as their
transport resources in logic. FedEx launched the "the whole is greater than the parts"
collaboration, intelligence solutions project, which welcomed by all types of
enterprises.
For individual users, the standardization work flow of FedEx website enable them
carry out self-service easily. They can access the orders, submit transport business,
track parcels, and collect information. Each month there are more than 300 million
visitors on the Chinese website. All the data can be store into the company's internal
network at the same time. Because about two third of the transport process through
the system automatically, it greatly reduced the huge costs which the user call the
FedEx response centre. Thus save a large number of funds for users. Federal Express
helps users to reduce logistics costs. It also means that it enhances the user's
competitiveness in the market. This is the value that Federal Express's CRM system
creates. At the same time, FedEx also creates many loyal customers for themselves
which enable they own a dominant position in the competition market.
4.3 The conclusion of the analysis and findings
According to the result of questionnaires and interviews, the issues of adoption CRM
in TPL enterprise can be summarized into five points.
The company‘s lack of communication with customers
The service in some TPL enterprises lack of personalized service
The enterprise should put more emphasis on the customer loyalty
The enterprise lack of customer information
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Chinese TPL enterprise face huge competition from the international enterprises
The first four of them aim at the whole TPL enterprises. However the last issue is
focus on the situation in Chinese enterprises.
The following chapter will describe the five issues in detail and give some
recommendations to each of them.
63
5 Conclusion and recommendation
5.1 The communication with customers
5.1.1 The core problems
According to the result of internal clients questionnaire Q4, at present, the logistics
enterprises mainly adopted telephone, fax and other communications methods to
connect with customers. The efficient use of network was also minimal. The
customer was not willing to take the initiative to contact, because of the time factor,
or troublesome. And the corporate marketing staffs also lack the habit to take the
initiative asking. So it is difficult to gain feedback from customers. And which in
turn, it is very difficult for enterprises to obtain the customer satisfaction.
5.1.2 Recommendation:
Construct a variety of communication channels.
(1) The establishment of a modern call centre
The main function of Call Centre is to:
Provide the customers each week seven days, 24 hours a day services;
Provide for the customers multiple-choice communications in addition to the
traditional voice, free telephone, e-mail, fax and et al. ;
Collect market conditions, customer information, increase sales potential for
logistics enterprises
Maintain customer loyalty, enable customers feel the value.
(2) Establishing the Internet-based self-help service
The Internet-based self-help website can provide further service than the call center,
through providing customers online consulting, online complaints service. It can
promptly solve problems for customers.
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(3) Establishing an information exchange platform.
Information exchange platform is for two-way exchange of information between
enterprises and customers. The main function is to realize contact and influence
between each other. In essence, CRM is the process of information exchange.
Though CRM also can achieve effective information exchange and maintain good
business between customers and enterprises. On the one hand, through modern
technology in business organizations, CRM can provide products and service
information to customers timely, provide technical support and a good after-sales
service to customers. On the other hand, collect important information from the
customer. Customer feedback is important to find issues which happened in the
customer service promptly. Customer complaint is the primary way of feedback, how
to correctly handle the customers views and complaints, the elimination of customer
dissatisfaction, safeguarding the interests of customers and win the trust of customers
are important guarantee to permit good customer relationship.
The three recommendations above are according to Chen and popovich (2003), who
pointed out technology as one of the three dimensions in CRM.
5.2 Lack of personalisation
5.2.1 The core problems
When customers are looking for logistics services process, they are not satisfied with
the service providers. One of the main reasons is that they can not gain personalised
services. In addition, the enterprises based on the same service standards will have
different customers. Satisfaction level they obtain should therefore be different. It is
important to Logistics enterprises to have personalised service for customers in the
implementation of CRM.
As the different customers hold the different product characteristics, procurement
strategy, marketing strategy and customer service policies, so whatever the service
65
content, services methods or the speed of response to the request, all show strong
personalized service characteristics. According to different customers the TPL
enterprise should provide personalized service for warehousing, transportation and
raw materials. To the finished products, it should provide storage, distribution,
packaging, and distribution, billing, information processing and a series of Logistics
services to meet their individual logistics needs.
Diversification includes two aspects. On the one hand, for different customers adopt
different service delivery model. On the other hand for the same customer adopt
different services at different times. Because CRM is a concept, which emphasizes
customer-centric management, the enterprise should put customers at the centre to
enhance its competitiveness.
5.2.2 Recommendation
5.2.2.1 Provide Personalized, dynamic service
The TPL Customers need timely, safe and cheap services. So logistics enterprises
should establish a personal profile for individual customers. Focus on each customer
to implement personalized service, improve service quality and enhance customer
loyalty. The fact that a TPL enterprise has a small number of customers and has
large-scale increases the feasibility of this option. In addition, enterprises should pay
attention to logistics service development trends and strive to offer a wide range of
services. Not only focus on to different customers to adopt different Service model,
but also for the same customer at different times to adopt different mode of service,
which help to improve customer satisfaction and increase customer loyalty.
5.2.2.2 Construct automated customer intelligence.
The main objective of customer intelligence is to achieve the ―one-on-one
66
marketing," or personalized services, so as to enhance customer satisfaction and
loyalty. Specifically, technology should support the call center and web. The TPL
company should collect customer data, recognize, distinct, rationale the customer and
grasp the personalized customer demand. There should be focus on the different
customers to adopt different strategies. Amazon Bookstore is a typical example of
using the C R M customer intelligence successfully. When the user bought the books
in Amazon Bookstore, its C R M system will record the user‘s purchase and the books
the user has scanned, and analyse the preference of the user. When this user log in
again, the system will recognise the user‘s identity, then the system will recommend
books in accordance with the preferences. When a new book arrives, Amazon will
automatically mail the user who may be Interested. The information which has been
recorded by the system is the customer‘s consumer behaviours. This method is the
same as the view of he Harvard Management Update (2000) which pointed out the
companies who are most likely to benefit from CRM is the company which record the
customer consuming behavior.
Different companies keep this for a different amount of time. The situation has been
discussed when analysing the result of questionnaire for internal clients Q8. This
targeted service is extremely helpful maintain customer loyalty.
5.2.2.3 Implication classified customer management strategy to meet the
needs of different clients
According to the value of customers bringing to the enterprise, the other words, how
much interest customers can bring to the enterprise. The enterprise can divide the
customers into A, B, C three categories as has been mentioned in the Literature
review. To different types of customers determine the different goal of CRM and
design different customer project.
67
For the customer in C category, it is recommended that companies. The firstly, build
customer files. Secondly, they should send regular information the enterprise
customer about new products and the third thing is the random telephone exchanges
with the customer and reinforces the communication with customers. In percent,
from the current situation of China's logistics enterprises, mostly of them are in the
early stage of development which has been mentioned in literature review Therefore,
the small clients can not be ignored.
For class B, the emphasis of CRM should focus on retention of customers. The
exception of the management category C above, it can perform Membership
management system. Once the potential customer becomes a member of the
company, they can get the special treatment by enterprise. Thus enable customers
willing to maintain further business contact with enterprises. They can give
suggestions and opinions on products and services of the enterprise and maintain
better cooperation relations with enterprises. The interviewee of the customers had
been invited to become the member of DHL after the first cooperation with them.
For customers in category A, in addition to the CRM projects above, they also need
to be provided one-on-one personalized service. The specific measures are as follows:
Firstly, for each customer in Class A set up customer service representatives who can
contact by telephone or in door visits directly to maintain good customer
relationships. Secondly, based on customers‘ needs to provide a comprehensive
range of services, which including transportation, storage, packaging, loading,
unloading, distribution, circulation processing, information processing and supply
chain management. Thirdly, create a ―win-win‖ partnership with customers. The
enterprise can have business analysis activities in regular or irregular and provide
report to them. So that customers can feel the special services from the enterprise
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5.3 Customer loyalty
5.3.1 The need for Customer loyalty
The various practical activities that enterprise pursuit the satisfaction of customers is
ultimately attributable to a centre, which is, how to enhance existing customer
loyalty. The result of customer questionnaire Q5, Q8 and Q9 are focus on this
aspect.
The calculation method of the retention rate is very simple. If an enterprise lost 100
customers in one week, at the same time expand another 100 customers. Therefore
the level of business sales is good. But the cost of such practice is so much greater
than maintain 100 old customers and expand new customers at the same time. The
business operations mainly rely on the repeat purchase of customers. According to
Hui (2006) shows that nearly 70 percent of sales share from the sale of the old
customers. The cost of development a new customer is more than eight times higher
than to maintain an old customer. According to the survey of Hui(2006), if the
customer loyalty increases 5 percent then the enterprise profits can be increased 25
percent-85 percent.
Therefore make customer satisfied and improves customer loyalty is an effective way
to increase sales. CRM provides a variety of communication ways to customers. Also
confirm the data in the various communication channels keeping consistency and
continuity. Sales departments can use these data to make the right response rapidly
for customers‘ demands which allows customers to purchase products satisfied and
intended to maintain effective communication and business relationship with
enterprises in the same time.
69
5.3.2 Recommendation:
Enterprises should not only familiar with the entities customers, but also understand
network customers and their future development goals. On the one hand, this can
improve their customer loyalty; on the other hand also can discover potential
customers. Comparing with bank, the telecommunications industry and other sectors
with third-party logistics enterprises, the customer in this industry is much less then
number of those sectors. So to establish personalized profile and focus on every
customer to implement personalized service can enhance customers‘ loyalty.
5.3.3 The method to improve the customer loyalty.
(1) Customer identification:
Build customer database is the base of keeping the long-term contact with the
customer. Customer database is an information management system which
accumulates stores and analyses the related information of the customer. The data in
the database not only can get through the market survey, but also can get through the
customer complaints records. Staff should enter customer information into the
database as much as possible and store customer information orderly according to the
specially designed classification structure, which can increase the efficiency of
customer information. At the same time, it is vital to constantly improve and enhance
data quality, verification and update customer information and delete outdated
information. Customer‘s data sources can help enterprises to understand customer
preferences and other important information, so as to provide them with appropriate
products and services. At the same time, according to the information provided by
the database, it can provide related products and services information to customers
regularly. Using mail and phones to strengthen and establish long-term sustainability
communication relationship with customers.
(2) Analysis of the differences between customers
Enterprises should understand that there are two major differences among in
70
different between customers. Firstly, different customers have different values for the
business. In another words, it is more productive to focus on the largest and most
profitable customers. The largest and most profitable customers said here are the
golden business customers. The enterprise should give the most valuable clients the
most attention and investment. For majority customers who can bring some profit to
the enterprises. The enterprise should attract them to the core customer‘s level.
Secondly, different customers hold the different need for the products and services.
Enterprises can provide them with different products respectively.
(3) To aim at logistic enterprises, the different analysis of customers can be based
on the following questions. Firstly, which enterprise is the most one that the
enterprise itself wants to establish a business relationship? Secondly, which big
enterprises repeatedly complained about the enterprises‘ products or services in
the last year? List the name of these enterprises and trace to research. Thirdly,
identify the number of transactions for the biggest customer last year. If there is
no business transactions in this year or business transactions descend. The
enterprise should analysis the reason from both inside and outside of company
deeply.
Maintain good contact with customers
When logistics enterprises in CRM, there is an important thing that can reduce the
contact cost of enterprises with customer and increase the effectiveness of contact.
The specific methods a TPL company should,
Try to contact with competitors‘ customers, to understand the services level
of competitors and then compare with itself improve its own inadequacies
and increase the service level.
Treat every call from customers as a good opportunity to contact with
customers.
Test the quality of automated voice systems in the Customer Service Centre
to ensure contact channels between customer and enterprises connected.
71
Track promptly the corporate records which record the customer information
in the text or paper. Obtain various of the customer-related information
promptly. This information includes that find which customer can bring a
higher value to the enterprise talk with them more actively.
Through the application of information technology enables the businesses
between customers and enterprises more convenient.
Improve the handling of customer complaints, get understanding from
customers and win the trust of customers.
(4) Simplify the transaction channel with customers
Customer loyalty largely depends on the difficult level of contact with customers.
The specific practices to solute this question is that,
Easy to communicate with customers
The client does not have to call a lot or pay a visit to their house.
Easy to transact
Customers can have Business transactions in the way they like. Such as to visit the
relevant departments of the enterprise, access the Internet or telephone contact.
To provide customers the comprehensive information and analysis tools,
which enable customers to select Products and services rapidly?
The enterprises should make the customer familiar with industry products,
services and understand all the aspects of business information.
5.4 Lack of customer information
The majority of logistics enterprises in China lack customer data collection and
customer analysis abilities.
Logistics enterprises do not pay attention to collecting detailed information about
customers before the trading process and in the process of transaction with the
customer. From the perspective of the supply chain, having a comprehensive
72
understanding of customer needs helps logistics companies to provide
comprehensive services for the customer promptly. However, as regards small or
new customers, there are few Chinese TPL companies taking the initiative to care
about the customers‘ preferences and other issues. In this aspect, the overseas
companies in developing countries set a good example. According the survey of Hui
(2005), for example U P S established a specialized client files, record each customer
unit‘s information, contact methods, the use of the items and the evaluation of the
company. To identify major customers enterprises need to clearly outline their
development potential and the potential effectiveness they can bring to enterprises
through the analysis of data. Thereby it needs the marketing staff to target customers.
So logistics enterprises should try to take the initiative to obtain and record customer
information, to understand customer behaviour and preferences through data
excavation and data analysis. Those help enterprise to know customers consumption
patterns and the change of habits and cultivate insight capability of enterprises. The
following methods are to resolve this problem.
Focus on customer data collection and analysis.
The analysis result of Logistics enterprises for customer information can help
companies identify categories into A B C customers, which has been discussed in
preceding paragraphs. Customer analysis capacity is the basis of customers‘ data
collection and analysis. The function of customers‘ data collection can through several
methods including that design of customer information forms in details to assign to
marketing staffs as a visit log sheet; using Web site registration information and the
user's browser web log document records information. These can help Logistics
enterprises research customers demands, preferences and consumption patterns
development trend, better understand customers and turn potential passengers into
actual customers. Through various channels to obtain a lot of customer information,
integrate them to the corporate database or data warehouse. And then use data mining
technology to find the valuable customer knowledge for supporting business
decisions.
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5.5 Foreign competition
Overall, logistics enterprises‘ CRM in China is still in the initial stage. Most of
logistics enterprises‘ CRM is not regulated. Many customers are held in the hands of
marketers. Customer data collection and classification is a complex task and current
Chinese TPL enterprise lake the internal systems to deal with this task. The lack of a
core staff can take away many corporate customers. It can be seen in the analysis of
the customer interview, Sometimes if a member of the company occupy, the
customers he was responsible do not get timely business contact with the company.
Other staff who would like to help does not know how to help them. So it often gives
a less care impression to the customers, which result resource flow. However, the
foreign logistics enterprises, Such as the U P S, DHL, T N T depending on strong
abilities, advanced management rationale, outstanding service, especially the
all-round care for customers makes the majority of Chinese enterprises willing to
cooperate with them. Therefore, it brings a huge competition pressure to the Chinese
enterprises.
5.6 Recommendations on the CRM system
CMM system is a huge and powerful system. From the IT perspective, CRM is an
application system software. It includes the operational management subsystems,
customer‘s cooperative management subsystem, data analysis and management
subsystem and Information technology management systems. The enormous cost of
system implementation (for example, US$50 million for SeibleT and PSFT system)
make many logistics enterprise in China have to give up at the end. Even if some of
these modules should cost over millions, for many logistics enterprises is a huge cost.
Besides the capital problems, to the modern logistics enterprises the situation is
74
different, which include different service projects, different scale, the forces of
modern information technology, and the level of the personnel quality. Some
enterprises fit to adopt CRM system immediately while some enterprises should
suspend the implementation. In addition, in the system design stage, software
companies and logistics enterprises should build a small group which closely around
the actual business and the future development planning develop a truly suited CRM
system to the enterprise.
CRM system is extremely complex system, which involve all aspects of business.
And the investment costs of such a system have long cycle and slow results.
Especially in the early construction stage, it will increase the workload and bring
troubles to some staffs in enterprises. Therefore the implementation of CRM system
must get the strong support from business leaders. To maintain the CRM project
implementation must get enough time, money and other resources. What is more, the
assistance of all employees plays a vital role in the implication of the system.
Words count:15858
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Appendix 1- Interview the Customer:
Interviewer: Sherry Customer: Mr Bang
S: Good morning, I am a postgraduate student undertaking an MSc in Information
Management in the University of Sheffield. My dissertation is specializes in CRM in
the TPL enterprise. Could you tell me how long have you corporation with TPL
enterprises, which enterprise is the best one you corporation?
B: well, because the business content of our company, we have many corporations
with TPL enterprise since 2000 I think. Usually I choose TNT as my first choice, I
also have corporation with DHL as well.
S: could you explain why you put TNT as you your first choice?
B: because we are a travel company in Switzerland, we do have some logistic
business between china and Switzerland and internal Switzerland. TNT is the only
TPL enterprise I can find in post office. It is very convenient for me. And also the
low price is another reason I choose them.
S: As you have said you do have some business between china and Switzerland, why
you not choose the domestic TPL enterprise in China?
B: as you know the international enterprise built a good reputation which I can trust
one hundred percent. Also some domestic TPL enterprise of china only can do
domestic business or have few businesses with Switzerland. Those may affect the
delivery time of our goods. Also I think the price in the international enterprises is
reasonable.
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S: OK. So when do you have business with DHL? Why you change your mind to
TNT?
B: I just have once or twice business with DHL. I think the service of them is good,
too. But as I have been said, because the do not have corporation with post office, it
not convenient enough. By the way, after the first business, the client of DHL called
me to join into their membership, which may provide more choices for me. But I
think it is too much for me to read and understand all of them, so I rejected. The most
important thing is that DHL is more expensive than TNT.
S: those enterprises just contact you with telephone or they also have other methods?
B: the most way is the telephone, DHL have contacted me by email as well. But the
only way TNT contact me is the first time they visit my home.
S: Have you ever cooperated with the domestic enterprise?
B: Yes, I have once.
S: why it is just once?
B: I think that it is a nightmare. Because this is a very important document which I
want to send from Beijing to Shanghai. When I call the company, where is my
document now, the staff said that the client who responsible to your document is not
here today, please call tomorrow. When I ask if someone here could help me, the
clients said, they cannot check the information which responsible by another client. I
think it is inconvenience to me.
S: OK, thanks. I think I have known the most of thing I wan to know. Thank you
very much!
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B: you are welcome.
S: all right, thanks again. See you later.
B: See you then.
Appendix 2- Interview the client:
Interviewer: Sherry client: Wang Wei
S: Good morning, I am a postgraduate student undertaking an MSc in Information
Management in the University of Sheffield. My dissertation is specializes in CRM in
the TPL enterprise. I want to know something about your work.
W: OK, I am pleased to answer your questions which I know.
S: first could you introduce your work department for me?
W: OK. I am working in the customer service department. Our work can be divided
into four parts. The first one is that help customers, agents, colleagues within the
company to resolve the enquiries and complaints. The second thing we should do is
that help customers provide remedial services and claims solutions. The third thing
we should do is that customers will reflect the problems in the course of enquiries and
we found the problem back to the network and local branches together to improve our
processes and service levels. The last thing is that every day we would also like to
assist the network in other countries, respond to their request.
S: So could you tell me if the CRM system have some effects on your work?
W: yes, it could be. Our wages are divided into normal wages and job performance
wage. Performance wages is determined by a lot of work standards. These standards is
a score which based on your usually work play.
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S: I do not very understand the process which you have been scored, could you
explain it for me?
W: OK. I will say something about our different catalogue requests, I think it may be
some help. The first kind request which we called 1 request means the customer call
in to request the shipment information. We will set call back time depending on
when the customers call in. We will check five or seven queries monthly and make a
score for every client. Because our system is recording in English, the score will be
made depending on how many misspelling do you have and the effectiveness you
solve the problem. Further more, because we will record every calling by the
customers and we have the process what you must to say. Depending on the different
situation we will provide foreign colleagues the shipment information.
The second request we called undelivery. Many shipments which import to China the
sender provide the wrong recipient's information. So we can not be distributed through
all kinds of methods. At that time we will re-link the sender to provide new links Way.
The performance and the effectiveness of resolve should be checked by managers.
The third category request which we called nine is called by foreign colleagues to
check. Generally the manager will check the two of the nine requests for our
performance.
The fourth category is called initiative request. We have specialized colleagues to
track every express every day. If there are some problems we will request customers
initiatively and to tell customers what are the problems also set the call back. So the
score standard will just like 1 request.
In addition to check the case, we also have a lot of performance. Our company
regulate that our requirements need to be resolved. This part will also be scored and
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put into the whole performance evaluation.
S: OK. I think I have a general image of how your performance should be involved.
And the last question, I think your work will get more customer information. How
your company keep this information not explosion to outsides.
W: in fact customer information May disclose by sale every usually. Every time we
will contact with different customers. And our company signed contract with the
customer. The content involved that how many times you will have business with us
every month and how long it will be take. So if we want to leave a customer it can be
through more exchanges with customers and provide a good service. We can get
competitors‘ customer information. Moreover, many companies are also having
business with many companies because each company has advantages.
S: OK, thanks. Thank you for your explanation of your work. I think I have got
enough information which I do want to get.
W: you are welcome. Please contact me if you find any problems.
S: all right, thanks again. See you later.
W: good luck. Bye.
Appendix 3- Interview the manager:
Interviewer: Sherry Marketing Director: Wang
S: Good morning, I am a postgraduate student undertaking an MSc in Information
Management in the University of Sheffield. My dissertation is specializes in CRM in
the TPL enterprise. I want to get some details of the implementation of CRM in your
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company.
W: OK, I am pleased to answer your questions which I know.
S: my first question is could you describe the details of the process of CRM in your
company?
W: well, first of all, our company‘s customer relationship management system
consists of two parts, the front desk and the back desk. The front desk is mainly the
enterprises‘ website and has been built and put into operation in 1995. Besides the
front desk of FedEx‘s CRM system, there is a strong information management
system operating in the background.
S: could you tell us something about how the website of the front desk and how
customers can operate it in details?
W: OK, I will explain it to you in details. FedEx site is also an operational window
face to the practical operation. Every page has the feature of that, business publicity,
practical operations and Establishment Company‘s image. In the homepage of our
website has a drop-down menu, which lists all the Countries FedEx has business with.
There are several selected buttons on the left side of the page which are "sign in",
"transport Goods ", ―Search", ―service‖ and ―contact us‖; on the right hand, it
introduce the ―FedEx Internet-Ship‖ business system to users. The website also has
"welcome new users centre" and "online service center.‖ I will explain both of them
respectively. The The main features of The Welcome center are to guide the new
users. there are several services items which includes domestic and oversea parcel
shipping and land transport, to verify and receive shipping goods, paper, packaging,
processing and service, transport and management tools such as Internet, dedicated
software, hardware, solutions, The cost and time optimization transport process, and
some transport samples, such as introduce The simple steps of FedEx system, how to
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apply and submit a filling business table by demos. Online service center functions
are carried out practical operation. Customers can carry on the actual business
operations in online service centre.
S: so what are the advantages of the FedEx Internet-Ship?
W: well, it really helps. FedEx Internet-Ship business system is a set of intelligent
delivery system based on the Internet. This system can improve the speed of delivery,
and can search the transport 25 items information at one time.
S: could you explain to me how the back desk works?
W: OK, I will explain that FedEx's intelligent transport management system the most
important system builds on the Internet to you. For customers, FedEx‘s intelligent
transport management system can provide a seamless connection between customers
and enterprise or straight intervene to the user‘s transportation through the Web
pages. In this way, in logic any companies can directly put FedEx massive air and
land team as their transport resources. FedEx launched the ―the whole is greater than
the parts‖ collaboration, intelligence solutions welcome by all types of enterprises.
S: what value the customer relationship management system creates to the FedEx?
W: For individual users, the standardization work flow of FedEx website enable
them carry out self-service easily. They can access the orders, submit transport
business, tracking parcels, and collect information. Each month there are more than
300 million visitors on the website. All the data store into the company‘s internal
network at the same time. becouse about 2 / 3 of the transport process through the
system automatically, it greatly reduced the huge costs which the user call the FedEx
response centre. Thus save a large number of funds for users. Federal Express helps
users to reduce logistics costs. It also means that it enhances the user's
91
competitiveness in the market. This is the value that Federal Express‘s
Customer relationship management system to create. And this, also creates many
loyal customers for our company and enable our company own a dominant position
in the competition market.
S: OK, thanks. I think I have known the most of CRM in your company and I think
they are useful for me to do my dissertation. Thank you very much!
W: you are welcome. Please contact me if you find any problems.
S: all right, thanks again. See you later.
W: good luck. Bye.
Appendix 4- Questionnaire for customer
Section A about CRM
1. Have you heart about Customer Relationship Management (CRM)?
A. Yes
B. No
2. Will it implement your business choice if the company has CRM system?
A. Yes
B. No
Section B about TPL
3. Have you heart about third party logistics (TPL)?
92
A. Yes
B. No
4. How often do you have business with TPL enterprises?
A. never
B. about once a month
C. about once a week
D. nearly every day
5. How long have you had business with TPL enterprises?
A. about 1 year
B. about 2-5 years
C. more than 5 years
D. more than ten years
6. What kinds of companies do you like?
A. the big companies of developed countries (such as UPS, Federal Express, DHL)
B. the native enterprises of China
C. both of them
7. What are the key points to implication you to choose this company? (Multiple
choice)
A. the good reputation of the company
B. cheap price
C. good service attitude
D. has the online trading system
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E. others (please write down)
8. How often do you change the logistics company?
A. never
B. almost never
C. often
D. not easy to say
9. What is the main reason that makes you changed the logistics company?
(multiple choice)
A. Because of the unsatisfied service
B. High cost
C. The product damaged or lost
D. without online trading system
E. the project does not fit me
F. Others (please specify): _____________
Appendix 5- Questionnaire of CRM for
company client
1. When did your company implement CRM? _____________________
2. How is the implementation of CRM to your company?
A. excellent
B. good
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C. fairly good
D. poor
E. very poor
3. Do you think your company gets benefits from CRM?
A. Yes
B. No
C. Don‘t know
4. How does your company contact to your customers? (multiple choice)
A. by Internet
B. by telephone
C. by mail
D. Text message
E. Others: _______
5. How many phones do you receive one day?
A. less than ten
B. ten to twenty
C. twenty to thirty
D more than thirty
6. What is the most often content in the phone?
A. to ask where is their package now
B. to complain the lost package
C. to ask the price of different service
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D. others:
7. How long will be a phone call?
A. one minute B. three minutes C. five minutes D. ten minutes E. more than ten
minutes
8. How long does your company keep the records of customers‘ consumer
behaviors?
A. <1 year
B. 1 – 2 years
C. 3 – 5 years
D. >5 years
9. What degree do you think the CRM system will influence your work
performance?
A. never
B. a little
C. very much
10. What degree do you think the CRM system will influence your improve,
comment and salary?
A. never
B. a little
C .very much
Finally, we are sincerely inviting you to fill in the details as below:
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1. Can I have your age?
A less than 18
B 18-21
C 22-25
D 26-29
E 30-33
F34-37
G more than 37
2. Are you female or male?
A male
B female
3. what is your highest degree
A high school or less
B the junior college
C bachelor degree
D more than bachelor (such as master, phD)
E others
4. how much is your salary
A less then 1000RMB
B 1000-2000RMB
C 2000-5000RMB
D 5000-10000RMB
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E more than 10000RMB
Appendix 6-Figures and Tables
FIGURE 2.4-1 THE THIRD REPORT OF CHINESE LOGISTICS INDUSTRY (2001:29) ............... 26
FIGURE 2.4-2- THE THIRD REPORT OF CHINESE LOGISTICS INDUSTRY (2001:29) .............. 26
FIGURE 4.1-1 THE RESULT OF PERSONAL INFORMATION Q1 .................................................. 46
FIGURE 4.1-2 THE RESULT OF PERSONAL INFORMATION Q3 .................................................. 46
FIGURE 4.1-3 THE RESULT OF PERSONAL INFORMATION Q4 .................................................. 47
FIGURE 4.1-4 THE RESULT OF CUSTOMER QUESTIONNAIRE Q4 ............................................ 48
FIGURE 4.1-5 THE RESULT OF CUSTOMER QUESTIONNAIRE Q5 ............................................ 49
FIGURE 4.1-6 THE RESULT OF CUSTOMER QUESTIONNAIRE Q6 ............................................ 50
FIGURE 4.1-7 THE RESULT OF CUSTOMER QUESTIONNAIRE Q7 ............................................ 50
FIGURE 4.1-8 THE RESULT OF CUSTOMER QUESTIONNAIRE Q8 ............................................ 51
FIGURE 4.1-9 THE RESULT OF CUSTOMER QUESTIONNAIRE Q9 ............................................ 52
FIGURE 4.1-11 THE RESULT OF INTERNAL CLIENTS QUESTIONNAIRE Q4 ........................... 54
FIGURE 4.1-12 THE RESULT OF INTERNAL CLIENTS QUESTIONNAIRE Q5 ........................... 54
FIGURE 4.1-13 THE RESULT OF INTERNAL CLIENTS QUESTIONNAIRE Q6 ........................... 55
FIGURE 4.1-14 THE RESULT OF INTERNAL CLIENTS QUESTIONNAIRE Q7 ........................... 56
FIGURE 4.1-15 THE RESULT OF INTERNAL CLIENTS QUESTIONNAIRE Q8 ........................... 56
FIGURE 4.1-16 THE RESULT OF INTERNAL CLIENTS QUESTIONNAIRE Q9 ........................... 57
TABLE 2.1-1- ADOPTING CUSTOMER RELATIONSHIP MANAGEMENT TECHNOLOGY (2002)
...................................................................................................................................................... 12
TABLE 2.3-1-CRM MARKET- GEOGRAPHIC ANALYSIS (MILLIONS OF
DOLLARS)-INTERNATIONAL DATA CORPORATION, 1999 AGR: AVERAGE GROWTH
RATE ............................................................................................................................................ 21
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TABLE 2.4-1- REASONS FOR DISSATISFACTION WITH TPL -THE THIRD REPORT OF
CHINESE LOGISTICS INDUSTRY (2001:29) .......................................................................... 27
TABLE 2.4-2- REASONS FOR DISSATISFACTION WITH INHOUSE LOGISTICS- THE THIRD
REPORT OF CHINESE LOGISTICS INDUSTRY (2001:29) .................................................... 28