MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: TRAN THI DUC HANH

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE SERVICE QUALITY
FOR IMPORTED CARGO AT CFS WAREHOUSE
AT GREENPORT - VICONSHIP

HAI PHONG – 2015


MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: TRAN THI DUC HANH
CLASS: GMA02

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE SERVICE QUALITY


Tran ThiDucHanh – GMA02

Page i


Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

ACKNOWLEGEMENT
Firstly, I would like to express my sincere gratitude to my supervisor Ms. Vu Thi Thu
Hang for her continuous support, patience, motivation, and immense knowledge. Her
guidance was very helpful for me during the time of research and writing of this
thesis.
My sincere thanks also go to Ms. Tran Phuong Anh, Manager of Warehouse
Department at Greenport – VICONSHIP, who provided me an opportunity to join
their team as intern, and Ms. Nguyen Thi Ngoc Thuy, my instructor at the company,
who thoroughly guided me during my internship. Without they precious support it
would not be possible for me to conduct this research.

Tran ThiDucHanh – GMA02

Page ii


Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

TABLE OF CONTENTS
Preface......................................................................................................................... i
Acknowledgement ...................................................................................................... ii
Table of Contents ...................................................................................................... iii

Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

2.1.

Introduction about the company ....................................................................... 9
2.1.1. Introduction about VICONSHIP ............................................................... 9
2.1.2. Introduction about the subsidiary of the field trip .................................... 13
2.1.3. Business fields of CFS warehouse at GREENPORT ................................ 16
2.1.4. Detailed process of unstuffing imported cargo at CFS warehouse ............ 16

2.2.

Result of evaluation ....................................................................................... 22
2.2.1. Overall information about sample ............................................................ 22
2.2.2. Analyzing mean expectation score ........................................................... 22
2.2.3. Analyzing mean perception score ............................................................ 26
2.2.4. Analyzing gap score between expectation and perception ........................ 29

CHAPTER 3: RECOMMENDATIONS TO IMPROVE CFS WAREHOUSE
SERVICE QUALITY ............................................................................................. 32
3.1.

Identifying factors that need to be improved .................................................. 32

3.2.

Recommendations to improve service quality at Greenport CFS warehouse .. 33
3.2.1. Important factors that need to be improved instantly ................................ 33
3.2.2. Other factors that should be improved in the long-term............................ 36



LIST OF TABLES
TABLE 1: List of variables......................................................................................... 6
TABLE 2: Greenport Facilities ................................................................................. 13
TABLE 3: Distribution of respondent ....................................................................... 22
TABLE 4: Summary of the customers‟ expectation score ......................................... 22
TABLE 5: Summary of the customers‟ perception score .......................................... 26
TABLE 6: Summary of gap score between expectation and perception .................... 29

Tran ThiDucHanh – GMA02

Page vi


Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

LIST OF FIGURES
FIGURE 1: Important – Performance Matrix .............................................................. 6
FIGURE 2: Organization chart of VICONSHIP........................................................ 10
FIGURE 3: Growth of revenue of VICONSHIP from 2009 to 2014 ......................... 12
FIGURE 4: Profit after tax of VICONSHIP from 2009 to 2014 ................................ 12
FIGURE 5: GREENPORT general terminal layout .................................................. 13
FIGURE 6: Racking system at Greenport CFS warehouse ........................................ 15
FIGURE 7: General unstuffing process at GREENPORT CFS warehouse ................ 16
FIGURE 9: Distribution of the expectation scores .................................................... 25
FIGURE 10: Distribution of the perception scores .................................................... 28
FIGURE 11: Distribution of variables in the I-P matrix ........................................... .32

Tran ThiDucHanh – GMA02


expectation of the customers, since the overall perception score is lower than the
overall expectation score. Through evaluation process, five factors that need to be
improved have been determined. At the end of the research, several
recommendations for each of the abovementioned five factors were given.
Tran Thi Duc Hanh – GMA02

Page 1


Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

CHAPTER 1: LITERATURE REVIEW
1.1.

CFS warehouse

1.1.1. Definition of CFS warehouse
In general, CFS (Container Freight Station) warehouse is the location
designated to handle consolidated shipments for both export and import cargo. As
the global trading and transportation are becoming more convenient, nowadays,
small-scale merchants can also easily take part in export and import activities.
Because of the growing demand for consolidated shipments, CFS services were
born to facilitate the process and also help those small shippers save transportation
costs.
1.1.2. Services at CFS warehouse
For export cargo, CFS warehouse is the place where loose cargoes from
various shippers are collected, sorted, and then packed into shipping container.
Regarding import cargo, CFS warehouse takes responsibility for unloading
and dividing containerized cargoes into smaller shipments for different consignees
at discharge place. (Flexport, 2014)


core

Understanding the concept of service quality is essential for companies;
because it enables them to improve their service and therefore become more
competitive. However, most services are intangible as they are performance, not
physical objects, so it is difficult to measure the service quality precisely. Due to the
lack of tangible cues on which to evaluate quality, it is necessary to apply a new
Tran Thi Duc Hanh – GMA02

Page 2


Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

concept of “customers‟ satisfaction”. Customer satisfaction is a measure of how
well a product or service provided by a company can satisfy their customers‟
expectation (Nigel Hill, 2003). In order to satisfy the customers, companies need to
figure out what requirements their customers are looking for, and find the way to
meet those requirements. Therefore, it can be said that customer satisfaction is a
relative concept, not a fixed one. To measure the level of satisfaction, it is necessary
to calculate both sides of the equation. It is necessary to determine customers‟
expectation through a set of specific criteria, together with evaluating companies‟
performance, and then compare these two factors to see how well they match.
There are several models used to measure service quality, in which the most
common one is SERVQUAL (Parasuraman et al, 1985, 1988). Theoretically,
SERVQUAL is based on analyzing the gap between customers‟ expectations and
their perceptions of provided service. In other words, this model is a tool to measure
satisfaction level of customers towards a specific service.
1.2.2. Tools to evaluate service quality

 Reliability: Reliability refers to the ability to perform the promised service
dependably and accurately, including
-

Timeliness
Consistency/Regularity

-

Accuracy

 Assurance: relates to the knowledge and courtesy of staff; their ability to
inspire trust and confidence. Assurance refers to:
-

Staff competence

-

Respect for stakeholders

-

Credibility
Probity and confidentiality
Safety and security

 Tangibles: involves the physical representations or images of your service,
including:
-

service. Responsiveness refers to:
-

Willingness to help

Tran Thi Duc Hanh – GMA02

Page 4


Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

-

Prompt attention to requests, questions

-

Problem resolution

-

Complaint handling
Flexibility
In this research, RATER model was adopted for evaluating service quality at

Greenport CFS warehouse.
b) Important – Performance matrix
Important – Performance Analysis (IPA), introduced by Martilla and James
(1977) is a well-known tool which has been applied widely to measure client

Figure 1: Important – Performance Matrix
(Source: J. Martilla and J. James, Importance-performance analysis,
Journal of Marketing, vol. 41, no. 1, pp. 77-79, 1977)
With this matrix, warehouse managers are able to determine which factors
need to be concentrated on the most, and therefore can re-allocate the resources
more effectively.
1.2.3. Evaluation methodology
a) Method of data collection
This research used quantitative method for data collection. Two
questionnaire surveys were conducted for the customers to evaluate the quality of
the service they received at CFS warehouse of Greenport. The first questionnaire
involves the expectation of customers towards the services offered by Greenport
CFS warehouse, while the other questionnaire aims to assess their perception
toward performance of the warehouse. The questionnaires were pre-tested within a
small group of respondents to ensure clarity before officially sent out to
warehouse‟s customers.
All the variables of the questionnaire are coded for later analysis, and are
shown in the following table:
Table 1. List of variables
No.

Research
variables

1
2

Reliabilities

Tran Thi Duc Hanh – GMA02

13

Tangibles

14
15
16

17

The warehouse always provide service in a
consistent manner
The warehouse always ensure safety and security
to our ships/shipments
The warehouse always produces error-free
invoice and related documents
The warehouse always offers competitive price
of service
The staffs in the warehouse always demonstrate
good knowledge of our needs and requirements
Warehouse staffs have the ability to solve
unexpected problem
The staffs have courtesy while working with
customers
Information of customers is always kept
confidential by Greenport CFS warehouse

Empathy

The warehouse has sufficient equipments and

REL3
REL4
REL5
REL6
A1
A2
A3
A4

A5

T1
T2
T3
T4
E1

E2

E3
RES1
RES2
RES3
RES4

(Source: author)
Tran Thi Duc Hanh – GMA02

Page 7


Page 8


Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

CHAPTER 2: EVALUATION OF SERVICE QUALITY OF
CFS WAREHOUSE AT GREENPORT
2.1.

Introduction about the company

2.1.1. Introduction about VICONSHIP
a) General information:
VIETNAM CONTAINER SHIPPING CORPORATION (VICONSHIP) is one
of leading Freight Forwarders and Shipping Agency Companies in Vietnam and has
been actively providing its services since 1985.
VICONSHIP has its own container terminal, warehouse, trucking lines for
container and conventional cargo moving services in the North, in the Central and
in the South of Vietnam. It provides complete facilities for all modes of cargo
service. Linking Shippers and Consignees with Owners is what they do best.
With well trained and experienced Management at Staff in shipping and
logistics, VICONSHIP has successfully applied Quality Management Systems
under International Standard ISO 9001-2000 and certified by SGS-UKAS since
May 2001.
With experience and good reputation in warehousing and terminal management,
VICONSHIP‟S Container Terminal has been licensed as Custom Clearance Depot
by Vietnamese Government. Since September 10th, 1999 Customs House has been
located and operating in VICONSHIP‟S terminal. This Customs House controls
customs clearance for all kind of export and import goods via Haiphong.


Chairman of Board

Mr. Nguyen Viet Hoa

Member of Board

Mr. Nguyen Van Tien

Ms. Hoang Thi Ha

Mr. Tran XuanBao

Mr. Nguyen The Trong

Mr. Nguyen Viet Trung

Mr. Nghiem Tuan Anh

Mr. Hoang TrongGiang

Mr. Hoang Tien Luc

 Board of Director:
General Director

Mr. Nguyen Van Tien

Finance Director

Mr. Tran XuanBao



Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

still increased by more than three percent, while the figure for revenue was more
than 14 percent.
Given the fierce competition of other companies working in the same field
and the difficulties of not only national but also international economies in the
recent years, these improvements are considered remarkable achievements of the
company.
2.1.2. Introduction about the subsidiary of the field trip
a) VICONSHIP Port Enterprise – GREENPORT

Figure 5: GREENPORT general terminal layout
(Source: viconship.com)
GREENPORT is a subsidiary of Vietnam Container Shipping Corporation
(VICONSHIP). It is located at 20º51‟ lat N, 106º43‟ long E, 20 nautical miles
distance to zero buoy (next to Chua Ve Terminal at lower section of Cam river).
GREEN PORT was established on 24/09/2014.
Table 2.GREENPORT facilities
Units

Berth No 1

Berth No 2

Length

m



m

-8.0

-8.0

Cargo
Capacity of Port
Load and
Discharge
norm

Container
Other
cargoes

Container and Others

Container and Others

Cargoes

Cargoes

Tons per
year
Tons per
hour
Tons per

1 (With capacity 70 T )

Straddle Carriers

Units

3( With capacity 40 T ) 4( With capacity 40 T )

Terminal Area

m2

23,650

23,650

Stacking capacity

teu

942

942

(Source: viconship.com)
b) CFS warehouse at GREENPORT
 General introduction:
Initially, CFS warehouse at Greenport had the total area or 5,000sqm.
However, since the Green Logistics Center came into operation in 2012, the
warehouse was restructured and the total area reduced to 3,500sqm. The profits


3 Procedure Personnel for import cargo

-

1 Warehouse Operation Manager

-

8 Warehouse Keepers

-

Workers and forklift drivers

Tran Thi Duc Hanh – GMA02

Page 15


Recommendations to improve service quality for imported cargo at CFS warehouse at GREENPORT VICONSHIP

2.1.3. Business fields of CFS warehouse at GREENPORT
At Greenport, the CFS warehouse provides two services, namely stuffing
service for exported cargo and unstuffing service for imported cargo. Between these
two, unstuffing is the main service of the warehouse as the majority of cargoes
handled here is imported cargo. Therefore, during the internship, the author chose
unstuffing service as the subject of the research.
2.1.4. Detailed process of unstuffing imported cargo at CFS warehouse
Basically, the process is divided into 4 main stages which are illustrated in