Quality Management Group Project with Reflections
3244IBA – Quality Management
Customer Service Improvement in a Third Party Logistics Provider
Convener: Rodd Gapp
Tutor: Heather Stewart
Consultants (Group members)
Stephanie Natividad s2692292
Garry Brittain s2684913
Adam Burns s1620797
Panny Wu s2683009
Rachelle Hawken s2556713
Contents
Executive Summary................................................................................................................................. 4
Background ............................................................................................................................................. 5
Introduction to Griffith Shipping............................................................................................................. 5
Identified Stakeholders ........................................................................................................................... 6
Problem Definition .................................................................................................................................. 7
Measurables and Difficulties................................................................................................................... 7
Recommendations .................................................................................................................................. 8
Conclusion ............................................................................................................................................... 8
APPENDIX A ............................................................................................................................................. 9
APPENDIX B ........................................................................................................................................... 10
APPENDIX C ........................................................................................................................................... 11
APPENDIX D........................................................................................................................................... 12
APPENDIX E ........................................................................................................................................... 13
References ............................................................................................................................................ 14
Topic - Slow customer response times from the customer care function (Adam will upload
the interviews he conducted which will form the basis of our report)
Solution - implementing new processes using technology to make vital info available to the
customer care team which would also involve ongoing training in both the technology and
processes.
Report headings
Executive Summary
- to do together
Introduction to Griffith Shipping
Griffith Shipping (GS) is global shipping company which owns and operates 120 vessels. The
vessels carry all types of large non-containerised cargo in numerous trade lanes. Examples of
cargo carried would be mining dump trucks, excavators, agricultural harvesters and electrical
transformers. Essentially the company is divided into 4 regions - Americas, Asia, Europe and
Oceania. Each region has a single customer care division which is responsible for fielding
and solving all client queries. The GS customer care department is based in Melbourne and
caters for all Australia based clients. The number of client queries fielded by the GS customer
care department in Melbourne is in the vicinity of 500 queries per week. With seven staff
manning the Melbourne customer care department the volume of client queries could be
considered high, however, the nature of the queries is often repeated. Examples of queries
could be vessel arrival or departure dates, availability of cargo, availability of cargo delivery
orders and lodgement of damage cargo claims.
Within Australia, GS has a single Commercial Manager based in each state. The GS
commercial managers are expensive resources who have high levels of shipping experience.
Their role is to increase revenue generated by existing clients or potential clients. Examples
of activities carried out by GS commercial managers could be creating cargo commodity
strategies, negotiations of high level customer contracts or researching new opportunities that
could generate new revenue streams.
Background to problem
As a third-party logistics provider, customer service should be recognised as a core
competency for Griffith Shipping Company. The company is currently not performing well in
this area and the customer care centre is having problems with providing efficient customer
service responses. This report will look at the problem of slow customer service responses in
a time-focused logistics environment and what initiatives can be undertaken within the
constraints of the business. These include the limited financial resources available, the
implementation time frame and the level of management commitment.
Identified Stakeholders
The traditional management model of the firm only provides for majority one way relations
between the business and those affected by it REF (See Appendix XXXX). The stakeholder
theory of the firm which has today swamped much business ethics literature, (Stieb, 2009)
was first developed and published in Strategic Management: A Stakeholder Approach (1984)
by Edward Freeman. In his publication Freeman describes stakeholders as any group or
individual who can affect, or is affected by, the achievement of the organization’s objectives
(Freeman, 1984). Beauchamp & Bowie (1993) discuss Evan and Freeman’s later approaches
where it is stated that organisation have obligations not to violate rights of others and
companies are responsible for the effects of their actions upon others. These definitions pave
the way for frequent ethical relations between the firm and all those in direct, or indirect,
contact with the business.
The Griffith Shipping Co. includes the following direct stakeholders; Telephone operators;
Logistics co-ordinators; Controllers; Internal Customers; External customers; Vessel
operators; Dock controllers; etc… Has anyone got the interview sheet form Adam, left mine
at work 
Problem Definition
We conducted interviews (appendix xyz) with several staff and key customers and from these
interviews we deduced that customers are unhappy and expectations are not being met.
Customers require service representatives to know answers to basic operational questions,
provide fast turnaround, have standard procedures and formats and respond with quick callbacks if needed. Service representatives cite that they can’t perform to these expectations due
to the structure of the business. The various functions of the business do not have procedures
for effectively sharing information that would assist service representatives, there is a lack of
training and integration across the business and there are no procedures in place for handling
standard enquiries. In some instances the information is simply not available or not easily
accessed from external sources.
Causes of the Problem
This will include an appendix of the fishbone we did and should mention each problem and
why or why not (Garry)
(See Appendix XXXX Fishbone)
(See Appendix XXXX Pareto Chart / Pareto Analysis) / Discuss Occam's Razor
Changes & Solutions
- indicate some possible solutions and then determine the best one as above (Adam)
Measurables and Difficulties
The design of an information system (IS) plays an important role in its effectiveness. The day
to day operation of the company is guided by the system from its data entry towards the
delivery of goods and services. Inputs entered into the database are crucial to the quality and
efficiency of the process. However, the new system is associated with various challenges. To
start with, the implementation will increase employees’ workload and responsibilities (Au &
Choi, 1999). It will require workers to provide more and accurate information to their
customers. This can lead them to be displeased and not to support the new system. The
company can solve this problem by listening to employee’s feedback and take some actions
to make a useful change. In addition, errors and delay on input entry could cause a halt on the
entire system (Au & Choi, 1999). Speed and accuracy of data entry is needed. Due to the
continual occurrence of human input error, the company will need to increase its training
program. A lot of time is required especially for the new employees to gain the essential
experience to perform their job well. Quality inspections are performed by management to
ensure accuracy. Although the additional activities involve in the process significantly
increase the expenses, the benefits and cost save from improving the company’s customer
service outweigh the cost of its implementation.
Recommendations
Other companies have had success with implementing new customer service processes using
improved Information Systems. Volvo recognized that customer satisfaction leads to loyalty
and profits (Edvardsson, Gustafsson, & Roos, 2010). Accenture (ThomsonReuters, n.d.)
found that their overall costs were reduced, operational efficiencies were achieved and most
importantly, service delivery was enhanced.
Conclusion
- (to do together)
APPENDIX A
Ishikawa Diagram
APPENDIX B
Traditional Management Model
APPENDIX C
Stakeholder Theory of the Firm
APPENDIX D
Ishikawa Diagram
APPENDIX E
References
Au, G., & Choi, I. (1999). Facilitating implementation of total quality management through
information technology. Information & Management, 36(6), 287-299.
Beauchamp, T., & Bowie, N. (1993). Ethical Theory and Business (4th ed.). Englewood
Cliffs, N.J.: Prentice Hall.
Edvardsson, B., Gustafsson, A., & Roos, L. U. (2010). Improving the prerequisites for
customer satisfaction and performance: A study of policy deployment in a global
truck company. International Journal of Quality and Service Sciences, 2(2), 239-258.
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Marshfield, MA:
Pittman.
Stieb, J. (2009). Assessing Freeman’s Stakeholder Theory. Journal of Business Ethics, 87(3),
401-414.
ThomsonReuters. (n.d.). Profile: Accenture Public Ltd Co (ACN.N). Retrieved 11 May,
2011, from http://www.reuters.com/finance/stocks/companyProfile?symbol=ACN.N