431 Final

To Study the Impact of Strategical Cargo Management and
Customer-Centricity Effect on Freight Forwarding Industry

A Case Study of ABC Group in Sri Lanka
Table of Contents
1. Introduction..................................................................................................................................3
1.1 Background of the Study.......................................................................................................3
1.2 Research Problem..................................................................................................................4
1.3 Research Questions................................................................................................................5
1.4 Research Objectives...............................................................................................................5
1.5 Significance of the Study.......................................................................................................6
1.6 Limitations of the Study........................................................................................................7
2. Literature Review........................................................................................................................8
2.1 Freight Forwarding Industry..................................................................................................8
2.2 Freight Forwarding Industry in Sri Lanka...........................................................................10
2.3 Impact of Strategic Cargo Management to Freight Forwarding Industry...........................12
2.4 Impact of Customer Centricity Effect to Freight Forwarding Industry...............................14
3. Methodology..............................................................................................................................18
3.1 Introduction to Research Methodology...............................................................................18
3.2 Introduction to Research Design.........................................................................................20
3.3 Conceptual Framework........................................................................................................20
3.3.1 Independent Variables..................................................................................................21
3.3.2 Dependent Variable......................................................................................................22
3.4 Research Type.....................................................................................................................22
3.5 Development of Hypothesis................................................................................................23
3.6 Research Approach..............................................................................................................23
3.6.1 Population and Sampling..............................................................................................23
3.6.2 Data collection and Analysis........................................................................................23
4. Analysis & Discussion...............................................................................................................24
4.1 Introduction..........................................................................................................................24
4.2 Demographic Analysis.........................................................................................................24
4.2.1 Educational Level.........................................................................................................24
4.2.2 Position held.................................................................................................................25
4.2.3 Job Experience..............................................................................................................26
4.3 Interpretation of Correlation Coefficient.............................................................................27
4.4 Regression analysis..............................................................................................................30
4.4.1 Internal Controls and Effectiveness of Freight Forwarding Industry...........................30
4.4.2 External Factors regarding Strategical Cargo Management and Effectiveness of
Freight Forwarding Industry..................................................................................................31
4.4.3 Customer Service Quality and Effectiveness of Freight Forwarding Industry.............33
4.4.4 Customer Service Cost and Effectiveness of Freight Forwarding Industry.................34
4.5 Discussion............................................................................................................................36
5. Conclusion and Recommendations 1695...................................................................................37
5.1 Summary and Conclusion....................................................................................................37
5.2 Recommendations................................................................................................................39
5.3 Way for Further Research....................................................................................................40
References......................................................................................................................................41
1. Introduction
1.1 Background of the Study
Freight forwarding is the process of organizing and managing the transfer of goods across
international boundaries on behalf of shippers and receivers. Warehouse planning, providing
cargo insurance, and customs brokerage are just a few of the other responsibilities that must be
completed (Tavasszy, et al., 2020) For shippers, freight forwarding is the strategic planning and
execution of logistics for the worldwide transportation of products on their behalf. Specifically, a
freight forwarder will be responsible for a variety of activities such as freight rate negotiations,
container tracking, customs paperwork, and freight consolidation, among others.
There are no cargo carriers that compete with freight forwarders since a significant component of
a freight forwarder's business is to discover and negotiate the best possible price on their
customers' behalf. If freight forwarders were removed from the logistical equation, the supply
chain would come to a grinding halt. It is possible that the services of a freight forwarder will be
an unnecessary shipping expenditure. In contrast, by strategic cargo management and customer-
centricity, a smart freight forwarder can offer great value, not just for its customers but also for
everyone else involved in the global supply chain.
When it comes to strategic cargo management, a freight forwarding business should not only pay
attention to the normal processes, but also to a number of other strategic considerations. Most
significant among them are insourcing and outsourcing choices, strategic supplier management,
mode management, visibility from beginning to finish, customers' expectations, real-time
industry dynamics, transportation management systems, and the influence on the environment
(Subhashini, 2018).
Companies in the transportation and logistics industry understand the necessity of taking a
customer-centric strategy. The majority of the most important business drivers are focused on the
customer's experience, preferences, and level of involvement. It should come as no surprise that
the industry is experiencing more investment in technology that promotes better client centricity.
According to reports, several freight forwarders in Sweden have developed an innovative
augmented reality application that allows travelers to find their way around the country's biggest
train station using their cellphones (Szander & Albert, 2021). Searoutes.com is yet another
relevant, technology-enabled solution to new maritime rules, which demand ships to use more
costly fuel that is less harmful to the environment in order to comply with the requirements. The
program determines the most fuel-efficient route with pinpoint accuracy and continuously checks
fuel use during the drive.
Companies who are devoted to customer experience excellence see consumers as assets that
must be fostered and invested in, which implies that they must provide more than simply
excellent goods and services. Personalization, resolve, honesty, time and effort, expectations, and
empathy are some of the characteristics that make up this trait. Aside from that, emerging
technologies such as data and analytical tools, automation, the Internet of Things (IoT), and
blockchain hold tremendous promise for improving customer relationships and improving the
overall customer experience. To yet, these improvements have only been partially implemented
in a small number of transportation and logistics companies. When properly exploited,
digitalization, on the other hand, may be the key to building stronger client connections (Shpak,
et al., 2018).
1.2 Research Problem

The freight forwarding industry has been under great strain over the past several years. This may
be ascribed to a variety of reasons that have had and continue to have an influence on the freight
forwarding industry. Capacity issues across all modes of transportation, rapid changes in
consumer behavior that have given rise to e-commerce, the evolving "Amazon effect" that
demands fast deliveries, commodity shortages that have resulted in warehouse restocking issues,
and growing concerns about climate change and sustainability are just a few examples. The trend
toward digital forwarding, as well as the fact that huge organizations who were formerly
categorized as conventional freight forwarders are now operating as integrated, third-party
logistics (3PL) service providers, are noteworthy developments (Subhashini, 2018).
However, despite signs that the forwarding business is reviving, industry experts think that
market dynamics remain skewed due to a lack of available capacity and sky-high freight prices,
according to industry players. Keep up with the needs of the business takes a great deal of
flexibility and foresight, which is particularly difficult in the present turbulent market, where it is
very difficult to precisely budget for record-high transportation rates. When providers are tied
into contractual prices without a method to spread those expenses, it may be difficult for
forwarders to conduct their business effectively.
As a result, it is essential that freight forwarding businesses pay close attention to the factors of
strategic cargo management and client centricity in order to overcome these obstacles, if only to
a limited amount. A deliberate investment in digital technology across their operations is being
made by the majority of big and mid-sized freight forwarders in order to improve the customer
and carrier experience while also increasing customer loyalty (Tavasszy, et al., 2020).
1.3 Research Questions

Main research question would be,
“What is the Impact of Strategical Cargo Management and Customer-Centricity Effect on

Freight Forwarding Industry?”
Sub-research questions will be as follows.
1. What is the impact that the internal controls regarding strategical cargo management have on
the effectiveness of freight forwarding industry?
2. What is the impact that external factors regarding strategical cargo management have on the
effectiveness of freight forwarding industry?
3. What is the impact of customer service quality on the effectiveness of freight forwarding
industry?
4. What is the impact of customer service cost on the effectiveness of freight forwarding
industry?
1.4 Research Objectives

In order to find solutions for the above research questions, the following research objectives can
be established.
1. To find out the impact that the internal controls regarding strategical cargo management have
on the effectiveness of freight forwarding industry
2. To find out the impact that external factors regarding strategical cargo management have on
the effectiveness of freight forwarding industry
3. To find out the impact of customer service quality on the effectiveness of freight forwarding
industry
4. To find out the impact of customer service cost on the effectiveness of freight forwarding
industry
1.5 Significance of the Study

Among the most extensively utilized modes of international transportation, freight forwarding is
one that is used by both businesses and individuals. Air freight, ocean freight, road freight, and,
in certain situations, railway freight are all modes of transportation that freight forwarding
businesses use to organize the movement of products from one location to another. In this highly
competitive business climate, most businesses try to increase their market share in order to make
more profit. Several firms have expanded their operations beyond national boundaries and have
gone global. The import and export of commodities and raw materials are crucial for the success
of a company's business operations (Baxter, 2019). Freight forwarding businesses assist in the
transportation of products from the producer to the client or the retailer in order to make things
easier for the company owner. They act as an agent for the corporation and provide a cost-
effective, but secure, means of transporting merchandise.
Shippers would be compelled to shoulder the huge logistical load of supply chain management if
they did not have access to international freight forwarders. If that were to happen, shippers'
ability to execute their critical function in the global economy, which is the sale of commodities,
would be significantly diminished. Customs trading involves a great deal of intricacy. It takes
painstaking attention to detail and a lot of information about international rules to produce
customs paperwork that is up to par with standards. Many forwarders these days are also customs
brokers, allowing them to serve as your one-stop shop for all of your logistical requirements.
Furthermore, a forwarder will give strategic guidance to exporters on topics like as compliance
requirements, labeling and packaging, possible shipping impediments, and other issues of
importance to the industry (Semenova & Kovova , 2020). Forwarders are responsible for
reserving cargo space for shipments, which are often transported via more than one method of
transportation. In order to do this, precise coordination is required between all parties engaged in
a supply chain, including suppliers, manufacturers, transporters, and warehouse providers,
among others. A significant portion of the administrative load is borne by freight forwarders on
behalf of their customers. Forwarders are entrusted with piles upon stacks of vital paperwork at
different stages in the flow of a supply chain, including, but not limited to: letters of credit, bills
of lading, receipt reports, inventory reports, and any and all customs documents.
As a result, it is very vital to do research on the elements that influence the efficiency of the
freight forwarding sector. A significant position is taken by strategic cargo management and
customer centricity, both of which will be discussed in further depth in the next report.
There are a variety of reasons why doing strategic cargo management analysis is crucial.
Transporting things from one location to another is a difficult undertaking, and moving
commodities internationally is much more difficult. For all sorts of consumers, from first-time
importers to multinational corporations, a professional with knowledge of freight forwarding will
make the procedure significantly more straightforward. The years of expertise that a freight
forwarder has is something that should be considered. Freight forwarders are in a strong
purchasing position to drive down rates because of the volume of business they can funnel a
carrier's way via a variety of different customers and channels. Unless they are represented by an
agent, very few shippers would have the same bargaining power as an agent, and they would
wind up paying greater prices than they would if they were negotiating rates on their own.
Foremen and freight forwarders have a worldwide network of partners that provide the whole
spectrum of services necessary in the transportation and distribution of products (Baxter, 2019).
Partnerships with others in the industry, carriers, ground handlers and warehouse operators, as
well as customs and financial brokers and local logistics services are all integral parts of what
freight forwarders provide their clients. Because of the volatility of the logistics market, the
introduction of new regulatory guidelines, and the constant evolution of customer requirements,
it is critical for forwarding agents and customers, in general, to communicate their concerns
about risks in order to avoid being penalized or forced out of business. Great freight forwarders
offer single points of data input, which allows information to flow seamlessly across the supply
chain without the need for re-entry on the part of the shipper (Semenova & Kovova , 2020).
When it comes to client centricity, there are a number of compelling arguments that should be
investigated. Consumers now have more options than ever before when it comes to the sorts of
items and services they wish to purchase with their hard-earned money. In order to be
competitive in this customer-centric industry, merchants must have a customer-centric logistics
system in order to be successful (Fader, 2020). With the proper logistics optimization, a
company may optimize the system to better fulfill the requirements and desires of its customers.
The development of a customer-centric supply chain is essential, but the process is not
straightforward. A company's whole organization, including its partners and people within its
supply chain, must be on board with the initiative. The organization must develop new ways of
thinking as well as new methods to each of its business processes. Using a third-party logistics
provider (3PL), on the other hand, the company can get the whole team on board in a smooth and
time-sensitive way. Once a modern logistics management system is in place, a company
organization may gain a competitive advantage while also improving its customer reputation and
reputation (Miranda & Tavares, 2018).
1.6 Limitations of the Study
Several limitations can be highlighted in conducting the research in the practical scenario.
1. Sampling errors can take place when probability sampling technique is utilized to select the
research sample, because that sample would not reflect the general population concerned
2. The number of participants that can be selected for the data collection is lower owing to the
difficulty of communicating with freight forwarding companies to get the consent for the
research data collection
3. Depending on the scope of the research topic, prior research studies that are relevant to the
thesis is very much limited. Therefore, an almost novel research typology should have to be
developed
4. Time constraints faced in collecting and analysing data in the practical scenario
5. Difficulty in fulfilling the financial budget in fulfilling the research requirements
2. Literature Review
2.1 Freight Forwarding Industry
It is the coordination and movement of goods from one site to another utilizing a single or many
modes of transportation, such as air, sea, rail, or highway transportation, to achieve the desired
result. Provision of cargo insurance, warehouse planning, and customs brokerage are just a few
of the additional obligations that must be fulfilled. In order to carry commodities efficiently and
cost-effectively, it is necessary to ensure that they stay in outstanding condition during their
voyage. In order to do this, freight forwarders must train to become experts in the management
of the logistics necessary to ensure that things arrive on time (Bartle, et al., 2021). It is vital to
equip customers with the required tools in order to conduct effective commerce and
transportation in increasing international markets. Forwarders engage into a contract with a
shipping line, or more often, with a group of shipping firms, in order to deliver their items from
point A to point B. A forwarder is not responsible for the transfer of items, but rather acts as an
expert in the supply chain link that the products are being transported through. Intermodal travel
refers to the movement of a single item between various modes of transportation. Alternatively,
the items might be sent by ship to the destination city and then delivered to the consumer by
truck from the discharge port. Rather than attempting to optimize the whole supply chain, the
majority of freight forwarders choose to concentrate on particular logistical responsibilities. So,
freight forwarders concentrate in the transportation aspect of supply chain management, while
third-party logistics companies provide a more comprehensive range of services. Freight
forwarders are experts in negotiating tariffs and customs rules, as well as understanding the
requirements for transit by land, sea, rail, and air. They achieve this by utilizing cutting-edge
information technology to manage the risks and rewards associated with both domestic and
international shipping operations.
Third-party logistics (3PL) organizations are basically outsourced service providers that take
care of all or a portion of a company's logistical operations in areas such as logistics and supply
chain management. Services like warehousing and transportation are commonly offered by these
companies, which may be customized to match the needs of their customers. Third-party
logistics companies help in product shipping but do not specialize in it. The organization also
offers other services such as holding products between transportation locations, processing
shipments, recovering things from vehicles, and packing them with an invoice for delivery to
customers. While choosing between third-party logistics and freight forwarding companies might
be tough, customers should be aware of their needs and expectations in terms of service and
performance. For the best selection, shippers should examine all of the benefits outlined above
after assessing the current circumstances, cost, flexibility, and service quality (Gutiérrez &
Durán, 1997).
To guarantee efficient transportation and delivery of goods, it is essential to understand and

negotiate the constraints of freight forwarding (Bowersox & Daugherty, 1995). While knowledge
of customs processes is crucial, the success of freight forwarding depends on the service sector
that delivers it. As a result, freight forwarding need the right people on board who are committed
to quality and customer satisfaction in order to deliver items on time and effectively to their final
destination.
Freight forwarding is the strategic planning and execution of logistics for shippers' global
product transit. Specifically, a freight forwarder is in charge of negotiating freight rates,
container tracking, customs documentation, and freight consolidation. Importing and exporting
may be beneficial for businesses who have the capacity to do so. However, international shipping
logistics are challenging to handle (Szander & Albert, 2021).
A supply chain requires expert knowledge of customs standards and protocols that vary by
country and even shipping point; quick problem-solving skills when weather, technology, or
human nature prevent timely travel; and an instinct for network building because a supply chain
is only as strong as its drivers. Global supply networks are inescapable in today's global
economy. In actuality, they define. Freight forwarders may be found wherever where customers
need customs brokerage, warehouse planning, cargo scheduling, and cargo insurance (Tavasszy,
et al., 2020).
To keep track of goods at every step of their journey, freight forwarders use a Transportation
Management System (TMS) (TMS). This critical part of forwarding necessitates the acquisition
of a specialized license: a customs brokerage license. Only licensed brokers are capable of
managing and submitting the voluminous documentation required to complete the importing and
exporting processes in their jurisdictions. At addition to having their own warehouses to keep
shippers' items (or portions of commodities), most forwarders will arrange for storage in a
warehouse owned and managed by an associate that is in a convenient location for shippers
(Baxter, 2019). Negotiating with carriers in order to get the best shipping prices is a difficult
task. Your cargo type, time flexibility, credit status, space/tonnage requirements, and other
criteria all play a role in the decision to close a contract. The ability to correctly organize and
plan cargo space is the most crucial skill a forwarder has. In the event that you employ a freight
forwarder to handle your operations, they may demonstrate their expertise. To properly mix
commodities, schedule timely sailings, and analyze multimodal transportation choices, you must
be an astute logistics manager. The term "logistics" refers to the process of coordinating
shipments. Forwarders may have a number of clients who all want things to be carried but do not
require the use of a whole shipping container. LCL shipping refers to the consolidation of a
number of smaller shipments into a single container, as opposed to full container load shipping.
Transportation charges are split amongst all customers in proportion to the quantity of the
package in this situation. A forwarder may be able to arrange for you to get cargo insurance, also
known as freight insurance, arranged on your behalf. Loss payee insurance is intended to
reimburse the loss payee in the event of a loss or theft of cargo (Subhashini, 2018).
2.2 Freight Forwarding Industry in Sri Lanka

Located along important air and sea routes in Southern Asia, Sri Lanka has been a popular
destination for companies looking to expand their operations in the logistics sector. For the
previous five years, the World Shipping Council has classified Colombo Port among the Top 50
World Cargo Ports, placing it ahead of other South Asian ports in terms of container handling
volume. The logistics business in Sri Lanka generates more than 2.5 percent of the country's
GDP, or over USD 2 billion. Approximately 40,000 full-time employees are directly employed
by the corporation (Subhashini, 2018). In addition, the nation boasts the greatest road density in
South Asia, with 174 kilometers of highways per 100 square kilometers of land area, linking all
of the region's main seaports and airports. As part of the nation's developing status as a marine
engineering powerhouse in South Asia, it is also being more recognized as an emerging logistics
center, capable of providing a comprehensive range of logistic services to customers. Physical,
telecommunications, and information technology infrastructure are being developed to integrate
the country's airport and seaport assets, with the goal of becoming a multimodal logistics center
in the future (Bartle, et al., 2021).
COVID-19's inefficiencies, together with a new market environment, according to the Sri Lanka
Logistics and Freight Forwarders Association (SLFFA), would result in casualties across the
country's freight forwarding business, the organization says. This is true for every firm that has
to alter its logistical efficiency in order to comply with the new pandemic rules. For many
enterprises, the years 2021 and beyond represent a fresh start in terms of survival, development,
and expansion. A new generation of supply chain management students is being educated
throughout the world. The foundations of a new global economic system are being laid. Market
disruptions are expected, and new supply chains will arise to fill the void left by the previous
ones (Szander & Albert, 2021).
Customers will want more inventive and leaner supply chain solutions as the industry transitions
into a new age of growth (Fader, 2020). The logistics and freight forwarding industries are
expected to play a significant role in the implementation of these new business models in the
near future. Innovation will be able to reach the market when smaller but highly professional
enterprises replace massive workforces with physical offices, allowing innovators to supply
creative solutions. As a result, if the sector wants to compete on a worldwide scale, it must hire
competent individuals.
According to the organisation, COVID-19 has hastened the adoption of current digital solutions
while simultaneously reducing layers of process and bureaucracy, enabling supply chains to
operate in a new restricted environment with government-enforced lockdowns. Therefore,
nations who were previously reticent to adopt and absorb technology as a competitive weapon
have suddenly realized that they must enhance productivity in order to remain competitive
(Semenova & Kovova , 2020). Accepting the technology or ceasing business operations were the
two options available. Companies in the freight forwarding and logistics industry must
concentrate on increasing their newly discovered efficiency as well as growing their emphasis on
digital automated solutions in order to remain competitive in the future. The management of
human resources has the potential to make or ruin a company.
Organizational structures in the logistics industry will be re-engineered in terms of employment

and physical presence, among other things. As expected, the sector will consolidate and simplify
operations in order to better serve the needs of the global business community. While physical
offices and conventional workplaces will continue to exist in some form, infrastructure will be
the instruments of the Fourth Industrial Revolution as the marketplace attempts to communicate
with customers online. The importance of supply chains for e-commerce will grow in the
function of the freight forwarder in the future (Gutiérrez & Durán, 1997).
In order to compete inside a country, regionally, and globally, the freight and logistics industry
will need to increase cooperation, agility, and flexibility among its human resource skills, among
other things. Consumer preferences, sourcing patterns, and substantial network advancements in
the shipping and aviation industries are all shifting. The new standard for post-COVID-19
environments that provide better logistical solutions will include rapid and agile solutions,
communication speed, and customer interactions, among other things (Soffin & Leloudas, 2020).
Sri Lanka's freight and logistics business is still in its infancy, with just a few companies
operating. If it wants to compete on an equal footing with mid-sized global companies that can
provide effective and efficient solutions for international clients looking for new inventory
control and delivery solutions, it must look beyond its current working environment, embrace
markets and customers outside of Sri Lanka, grow in size and critical mass, and broaden its
product offering. It is necessary for Sri Lankan freight forwarders to adopt a fresh strategy in
order to embrace new chances and challenges under COVID-19 (Bartle, et al., 2021).
Competition must be built on the foundation of innovative ideas and platforms in order to thrive.
To attract global logistics enterprises, the SLFFA urges its members to assess their own
organizational structures and operational procedures. Using the country's advantageous port
positions on the Indian Ocean, this would help build a true hub that would assist the national
economy by enhancing foreign currency flow and employment creation. The government is
responsible for resolving the concerns indicated by the Global Logistics Performance Index
(LPI). The government must also address operational issues at border control institutions,
whether they are connected to infrastructure, procedures, or the legislative environment.
Increasing efficiency in Sri Lankan logistics requires expanding public-private partnerships. To
compete with global centers, this article's standards and COVID-19's new norms must be
equalized. As a consequence, the state's involvement is critical to Sri Lanka's success
(Subhashini, 2018).
2.3 Impact of Strategic Cargo Management to Freight Forwarding Industry

In today's business world, strategy is the most often used phrase. Even in a highly volatile
business like as shipping, it may be found on a more regular basis. Furthermore, businesses have
discovered that "strategic planning" and "performance" have a good relationship (Klumpp, et al.,
2009). In addition, increased difficulties were always encountered in the shipping industry when
it came to designing and implementing a strategy, because the maritime industry is, aside from
being volatile, also cyclical, and this is primarily due to the cyclical nature of "World GDP," but
not exclusively.
As a result of the present economic downturn in the dry cargo industry, shipowners have taken
two strategies: to survive and to seek for business possibilities. Shipowners are mostly reactive
managers who use Porter's "cost leadership" approach, which is primarily achieved via
economies of scale, a reduction in the average age of the fleet, and a reduction in overall cost.
During the 1986 slump and the 2016 downturn as well as the worldwide economic depression
during the pandemic, this approach was used. This required three actions: strategic planning,
enhanced decision-making, and financial awareness (Shpak, et al., 2018).
The fact that an organization has a solid Freight Management plan is a very crucial factor to
consider. A substantial amount of money might be spent on incoming logistics, outbound
logistics, poor delivery performance, and the expenditures of your supporting organization (Coye
, et al., 2003). Another important factor to consider is service levels. If you are involved in the E-
Commerce channel, you should be aware of what your consumers desire. Not only do they
demand free shipping, but they may also want it the same day or the following day if possible. It
is possible that you may be liable to performance fines if you are in the business of assisting
certain industrial or retail businesses, if your deliveries are delayed.
The visibility of the supply chain is also quite vital these days. It is essential to know when
things are entering your firm, moving through your company and exiting your company if you
manage or want to manage a relatively successful supply chain. You will not be able to achieve
this level of exposure without a strategy. You'll be in charge of Freight & Logistics. Taking
everything into consideration, freight management may be a source of competitive difference
and a facilitator of superior financial success (Bartle, et al., 2021).
A successful freight forwarder understands the need of using cargo management strategies
strategically. For this reason, a freight forwarding company may concentrate their efforts on a
variety of cargo management tactics in order to maximize the efficiency of their operations
(Gallop, 2005).
Transporting stuff around is challenging, but moving goods globally is much more complicated.
A professional freight forwarder will help everyone from first-time importers to major
multinational enterprises. In this case, using a freight forwarder's years of experience makes
sense. It makes sense to outsource this task to a freight forwarding service rather of recruiting an
internal employee, much as many organizations are increasingly outsourcing IT and marketing.
Freight forwarders are independent of airlines. Finding and negotiating the best freight prices for
their clients is part of their job description. As a result, freight forwarders are specialists that can
negotiate the best pricing for their clients (Coye , et al., 2003). Because of the amount of
business, they may send a carrier's way via various clients and channels, freight forwarders can
negotiate lower prices. Few shippers have the same bargaining strength as an agency, so they end
up paying more than they would if they negotiated rates on their own. A freight forwarder may
advise customers on the most cost-effective shipping options while balancing cost and value.
Regardless of the mode of transit, it's likely that you'll benefit from the freight forwarder's strong
relationships and contacts (Nahgaraj & Raghuram , 2001).
Foremen and freight forwarders have a global network of partners that supply all services
required for product transportation and distribution. Carriers, ground handlers, and warehouse
operators are all part of the services that freight forwarders give their customers. As a result, a
complete end-to-end service is offered, with accountability for flawless item movement (Soffin
& Leloudas, 2020).
It is advised that only trustworthy third-party logistics and freight management organizations be
used. Maintaining strong, communicative, and collaborative relationships with the most reliable,
service-oriented 3PL businesses is critical to success. Your success will be supported by business
partners who are reliable, safe, and always willing to collaborate. An in-house freight or supply
chain manager must have digital tools that track and monitor every step of the supply chain in
real time. Knowing where shipments are and when they will arrive is crucial to forecasting and
addressing difficulties (Gutiérrez & Durán, 1997). Also, technology may help create a number of
"what if" scenarios. Working with third-party logistics (3PL) companies to cope with unexpected
demand spikes. Because every company's objective is to grow profitably, you must plan ahead of
time to expand your freight management system to accommodate expansion. Any big expansion
may quickly strain existing warehouse, transportation, and labor resources, particularly for small
enterprises. Attend a meeting with 3PL partners to discuss volume increases of 10%, 20%, 30%,
etc. Improved route design, driver training, fuel-efficient equipment purchases, and other
environmentally friendly measures may reduce fuel use and costs. This might be a huge
marketing benefit for your business. Packaging changes may improve load ability while
minimizing carbon impact per unit shipped.
In business, time is money, and using the services of a freight forwarder may save a company
both of these valuable commodities. Being responsible for the full logistics of transporting
products is time-consuming, resulting in extra labor hours that a company must spend to be
reimbursed. A freight forwarder relieves their customers of the time, worry, and inconvenience
that comes with the procedure, and outsourcing to an expert may often be more cost efficient
than attempting to navigate the process on your own in the first place. Freight forwarders gain
from the technology and streamlined methods that they use, which means that the shipping
companies, ports, and other service providers with whom they do business also benefit from
swift and efficient transactions (Herold & Ćwiklicki, 2021).
Because of the volatility of the logistics market, the introduction of new regulatory guidelines,
and the constant evolution of customer requirements, it is critical for forwarding agents and
customers, in general, to communicate their concerns about risks in order to avoid being
penalized or forced out of business. A common example is the submission of erroneous data,
which might result in severe consequences. Great freight forwarders offer single points of data
input, which allows information to flow seamlessly across the supply chain without the need for
re-entry on the part of the shipper (Tavasszy, et al., 2020). The risk exposure of each cargo may
also be assessed by forwarders, who can then implement the appropriate security precautions in
good time. A chaotic corporate environment, where last-minute changes may occur in anything
from carton dimensions to the predicted rate at which in-stock items will sell. Businesses will
save money if they work with a forwarder that communicates simply and effectively. One good
example is to make certain that the same firm collaborates with you across different time zone
differences. When choosing a freight forwarder, be sure to inquire about the company's physical
presence and/or capabilities in both the country of origin and the country of delivery.
Communication may not have a monetary value, but it provides tremendous value (as well as
peace of mind) as you concentrate on expanding your company. Examine the manner in which
your forwarder interacts with you before confirming an anticipated shipment. This will disclose a
great deal about their quality of customer service as well as any communication difficulties they
may be experiencing (Herold & Ćwiklicki, 2021).
Finally, it is important not to underestimate the difficulty of international shipping transactions.

Documentation and administration are essential components of the process, given the necessity
to comply with legal and regulatory standards in a variety of different countries. Detailed
shipping and export documentation, including bills of lading and document delivery, letters of
credit, and customs statements, is essential. If you make a mistake on your documentation, it
might result in hefty extra fees or even a criminal conviction. In order to have complete peace of
mind, it is advisable to use skilled and experienced specialists who are familiar with the specific
needs of each individual jurisdiction. It saves a great deal of time and money in the long run to
do things correctly the first time (Soffin & Leloudas, 2020).
Good connections and teamwork between exporters, importers, carriers, agencies, the forwarders
themselves, and clients have long been a hallmark of the freight forwarding industry (Baxter,
2019). This is accomplished via the use of logistics community networks and the interchange of
information at any time and from any location. When all of the parties involved are on the same
page, you can expect the task to be completed more quickly and with more efficiency.
2.4 Impact of Customer Centricity Effect to Freight Forwarding Industry

When it comes to conducting business, customer centricity is a philosophy and a style of
thinking that is focused on delivering great experiences to customers throughout the whole
spectrum of products and services that the firm provides. Businesses that focus on their
customers create more revenues, improved staff engagement, and more happy consumers in the
long run. It will be critical to deliver on consumer aspirations for a quicker and more comfortable
logistical experience if we are to meet their expectations. The need for B2B Omni-channel
Logistics solutions is expanding as the volume of items that may be bought online continues to
grow, particularly in the B2B sector. Customer demand for time- and temperature-sensitive items
is also driving increase in direct-to-consumer delivery of these commodities (Fader, 2020). New
improvements in the packaging, storage, and transportation of commodities, such as food and
medications, will be required to achieve the Fresh Chain's goals. An organization's front, middle,
and back office processes must be seamlessly integrated in order for the supply chain to be
customer centric, and all divisions must be working toward the same goal. This cannot be
accomplished only via the use of technological transformation; rather, it requires a
transformation that takes into account processes, people, culture, and, most importantly, the
demands of consumers. Customers come from a variety of different categories, each with its own
set of requirements. When it comes to the transition, some customers want a quick response,
making the supply chain crucial. Others are concerned with providing extra value and services,
and as a result, they may place less emphasis on logistics and more emphasis on value-added
relationships. It is vital to refer to your client base in order to properly define the levers that
matter to them, and then to have your transformation plan circle around those levers. Inventory
complexity is being reduced across whole retail networks and digital platforms, which is helping
to achieve greater efficiency (Subhashini, 2018).
It is not the end of the road when the supply chain is modified to be more customer focused. It
must be reviewed on a regular basis in order to keep up with changing trends in client
expectations. Customers are increasingly requesting 'hyper-localization' (the ability to 'purchase
local,') which necessitates supply chains that are both flexible and have access to a larger
network of vendors. Another trend is the need for 'immediacy,' such as same-day delivery or
next-day delivery. When combined with very liberal return policies, this has the potential to have
a substantial influence on supply chain operations while also increasing cost complexity
(Tavasszy, et al., 2020). Other emerging trends include retail customers who purchase on
consignment, as well as end-consumers who subscribe to or rent products on a regular basis. As a
result of these dynamics, operational business models will be drastically altered in the future, and
the only way to properly react is to have a smart supply chain that is aligned with all of the trends
mentioned above. In theory, a customer-centric supply chain should assist to increase customer
loyalty while also, ideally, increasing profitability.
Therefore, having a customer centric approach in freight forwarding businesses is essential.

There are many reasons to prove that.
The most important step in creating a customer-centric supply chain is to start with the end user,
not the provider. This is the method "from the outside in." Your products' and services' cost,
availability, quality, purpose, features, and other factors are all considered "outside." On the
"inside," your goods and services engage with your customers. For your supply chain to deliver
on that promise and create strong, positive client experiences, there are various regulations and
processes that must be in place (Fader, 2020). It's not easy to build a customer-centric supply
chain. For the supply chain to operate properly, all parties involved, from suppliers and
manufacturers to logistics service providers, must be on board. Remind your team and others to
think differently. Everything must be re-engineered to meet and exceed client expectations. If
done correctly, it will provide you a competitive advantage and strong consumer advocacy.
Retaining a client increases the company's profitability. As a consequence, recurring customers
spend more money on the company's products and services than first-time customers. The
Customer Acquisition Cost is the cost of acquiring a new customer (CAC). And the cost isn't
trivial. It costs a much more to get new clients than to keep old ones. Client acquisition may be
costly for a company that does not prioritize customer service. Excellent customer service leads
to recurring business and reduced CAC. Investing in customer service may reduce turnover,
lowering the cost of acquiring new customers (CAC). The best incentive for a company is client
loyalty. That means a good profit margin. Positive customer service experiences lead to more
regular use of the company's services and merchandise. Even when it comes to auxiliary
services, clients prefer working with a firm they know and trust than interacting with a new
company or brand for the first time (Erera & Kwek, 2003).
The outcome of a comparison between customers' expectations and customers' impression of

service quality is the logistics service quality. Clients already have expectations of what the
service provider should be able to supply them prior to placing an order for the service. As a
result, the perceived quality of logistical service by the customer is defined as the difference
between the perceived service and the expected service (Shpak, et al., 2018). The level of service
provided is intimately tied to the expectations of the consumer. Increasingly, in today's
competitive market, achieving customer satisfaction is strongly dependent on the total service
quality provided by the firm. It has an impact on corporate profitability and increases customer
loyalty when consumers' expectations of service quality are met.
It is critical for performance to work with a logistics supplier that places a high importance on
customer care. Quality customer service in logistics may result in long-term transportation
savings, on-time delivery, peace of mind, satisfied customers, and more time to devote to other
aspects of your company's operations (Gallop, 2005). Poor communication and customer service
in logistics, on the other hand, might result in expensive costs or ruined relationships with
consumers as a result. Every delivery should be planned and communicated by a company that is
focused on providing excellent customer service. They should also offer timely updates during
the process.
Service quality and customer pleasure are two ideas that are extremely closely connected, and in
some cases, are even the same. When evaluating the overall quality of a service, customer
contentment is a critical component to consider. As difficult as it is to quantify the quality of
service, determining the degree of client satisfaction is much more difficult to determine (Coye ,
et al., 2003). It might be claimed that the quality of service is the precursor to customer
happiness in most cases. Thus, it is reasonable to believe that customer happiness is a result of
the high quality of service provided. However, there is no question that both of these
characteristics – service quality and customer happiness – are widely acknowledged as being the
most important determinants in the maintenance of long-term and successful commercial
connections. As a result, both the quality of logistics services and the level of customer
satisfaction are particularly significant in the modern business climate, since the connection
between the service provider and the client is often one of lengthy duration (or at least it is
attempted to keep them as such). When it comes to service markets, one of the most important
factors is the support and growth of the customer's connection. In order for a long-term
relationship to be established, a logistics service provider must deliver a service that meets or
exceeds the expectations of the clients, resulting in a sufficient degree of customer satisfaction
(Bartle, et al., 2021).
It is critical for logistics organizations to demonstrate to their clients that their actions and deeds
are focused on their needs while carrying out their operations. Customers are the primary focus
of the business's activities, which means that he emphasizes the fact that not only do service
users and customers rely on the firm, but that the company's profitability is also dependent on its
current customers' performance. In order to encourage recurring business connections and boost
long-term profitability, firms must prioritize customer happiness as a crucial aspect of their
overall strategy (Subhashini, 2018). It is risky to operate a business that is not focused on the
needs of its customers in the present competitive market. The majority of businesses are very
competitive, and in order to remain competitive, they must deliver high-quality services that
leave consumers pleased and loyal to them. Aspects to consider include the fact that logistics
service companies should be familiar with their customers because a company that has sufficient
information and knowledge about its customers has more opportunities to make correct decisions
about its clients' needs, which allows companies to develop new services that provide real value
to customers while also assessing quantitatively the values desired by those customers (Fader,
2020). A customer-focused approach is one that is more responsive to the demands of the
consumer. In order to develop new services and better understand how customers evaluate them,
customer-oriented businesses use market data and information. They are more focused on their
customers than their competitors, believing that their businesses exist primarily to serve their
customers and that their customers' needs should always take precedence over all other
considerations. Other writers claim that a customer-oriented business purpose is preferable to a
product-oriented business mission because it offers a firm platform for value generation and
hence is more effective. In terms of whether or not the service satisfies the wants and
expectations of the client, it is referred to as customer satisfaction (Szander & Albert, 2021). It's
crucial to remember that each client's expectations are (or may be) different from one another.
The nature of such expectations may be influenced not only by personal preferences, but also by
the environment, the geographical location, and the nature of the company in which they are
established. As a result, the capacity of businesses to be adaptable and flexible may aid them in
gaining an edge over their competitors. When it comes to logistics services, flexibility is an
extremely crucial factor to consider. Flexibility in logistics refers to a company's ability to adjust
swiftly and efficiently to the changing demands of its customers.
Customer satisfaction is influenced by a variety of elements, including perceived quality of

service, customer mood and emotion, social contact, the experience of customers' associates, and
other unique subjective aspects, among others (Shpak, et al., 2018). Furthermore, it is important
to remember that customer satisfaction with the quality of service is not an objective appraisal of
the actual situation, but rather an emotional response to a particular event or scenario. Customer
expectations satisfaction is commonly defined as a good view expressed by the customer about
the service after the service has been provided by the company. In other words, this is the
process of evaluating the outcomes of the process.
3. Methodology
3.1 Introduction to Research Methodology
Research may be described as the systematic collecting of data and information, as well as its
analysis, with the purpose of furthering knowledge in any subject area, in a very wide sense.
Through the use of systematic procedures, researchers strive to discover answers to both
intellectual and practical concerns in their field. Research methodology refers to the precise
methods or strategies that are used to find, select, process, and evaluate material regarding a
certain subject. The methodology portion of a research article enables the reader to objectively
examine the overall validity and reliability of the study being discussed (Rahi , 2017).
In addition to general assumptions and precise techniques of data collection, analysis, and
interpretation, among other things, research methodology consists of a plan and study processes
that cover the phases from general assumptions to specific techniques of data collection,
analysis, and interpretation. In order to implement this plan, a number of decisions must be
taken, and they do not necessarily have to be made in the order in which they seem the most
logical to me or the order in which they are given here (Bloomfield & Fisher, 2019). To make the
final decision, it is necessary to choose which approach should be used to analyze a certain topic.
When making this decision, it is important to evaluate the philosophical assumptions that the
researcher brings to the study, the procedures of inquiry (referred to as research designs), and the
specific research techniques of data collection, analysis, and interpretation. The researchers' own
personal experiences, the nature of the research subject or problem being addressed, and the
target audiences for the study all play a part in determining which research approach to use.
Researchers use the terms "research approaches" and "research designs" interchangeably
throughout this book to refer to three important concepts in research that represent a sequential
presentation of information, starting with broad constructions of research and progressing to
more specific procedures of methods.
Because it is founded on hypotheses that were developed on the basis of a particular empirical
and theoretical foundation, this research was carried out using the deductive methodological
approach (Saunders, et al., 2012).
To construct this study, the Onion model, developed by Saunders, Lewis, and Thornhill (2019),
was selected.
Figure 1: Onion Model
Source: (Saunders, et al., 2012)
When describing this paradigm, an onion that has been peeled one layer at a time is used to
illustrate how it is better to save the layers for later use rather than toss them away completely.
When a researcher delves deeply into the subject matter of his or her research, he or she may
discover that their viewpoints and perceptions have changed. This technique allows for a higher
degree of adaptability to changing contextual situations that may arise over the course of the
research and into the project's later stages. In order to fine tune the kind of research approach that
is being used to conduct the research, the regions that were opened up in the early stages of the
study must be linked to the areas that were opened up in the later stages of the study. In this case,
the application of the Onion model to this research is critical to the outcome (Saunders, et al.,
2012). When doing the research, the researcher may use techniques such as ontology (the way
reality exists), epistemology (what we know and how we know it), and axiology (the researcher's
own views) to aid in the investigation. The epistemology of knowledge is the research
philosophy that has been used in this study. In light of the fact that technology in logistics has
evolved into a critical component of effective logistics management, the researcher outlines the
various sources of information that are available on the subject matter, as well as how those
resources can be used to prove the hypothesis that the researcher has developed effectively.
Because of this, the epistemological research philosophy was used throughout the duration of
this investigation.
3.2 Introduction to Research Design
It is the framework within which an investigator organizes and plans the strategies and processes
to be employed in the inquiry that is referred to as his or her research design. Researchers are
able to focus down on research procedures that are suited for the subject matter as a result of the
design, which allows them to get their investigations off on the right foot. The experimental
research design used in this study was chosen for a number of reasons (Rahi , 2017). It makes
use of the scientific method to establish whether or not there is a cause-and-effect relationship
between a collection of components that make up the study project. Truly experimental research
is defined as any study in which an effort is made to discover and exercise control over all other
parameters save one in which the experiment is conducted. It is necessary to alter the
independent variable in order to determine the impact of the independent variable on the
dependent variables. When compared to natural selection, subjects are allocated to experimental
treatments at random rather than being assigned to naturally occurring groups as is the case with
natural selection.
3.3 Conceptual Framework
Internal Controls
External Factors regarding

Strategical Cargo Management Effectiveness of Freight Forwarding
Industry
Customer Service Quality
Customer Service Cost
Figure 2: Conceptual Framework
Source: Developed by Author
3.3.1 Independent Variables

Internal Controls
An organization's internal controls are critical to the proper operation of its freight forwarding
process. An efficient warehouse management system is one of the most important controls to
implement (Yang & Wei , 2013). A warehouse management system (WMS) maintains track of
where inventory is kept, how many units are available, and which goods need to be sent. When
all of the specifics of an order are understood, the order's lifespan is greatly reduced. The use of a
warehouse management system (WMS) decreases the possibility of human mistake and enables
distributors to manage their inventories more proactively and accurately. Transport management
systems (TMS) are yet another crucial internal control. A transportation management system
(TMS) is a logistics platform that makes use of technology to assist businesses in planning,
executing, and optimizing the physical movement of goods, both incoming and outgoing, and
ensuring that the shipment is compliant and that all necessary documentation is readily available.
This kind of technology is often included as a component of a larger supply chain management
(SCM) system (Bowersox & Daugherty, 1995). TMS software, which stands for transportation
management system, enables freight forwarders to manage their entire network from a single,
centralized system. Users may effortlessly manage the complete transportation chain, from
clients to drivers to customs officials to delivery, with the use of easy visual displays. Integration
with old freight forwarder systems and client systems is a simple thanks to TMS software, which
makes providing excellent customer service a breeze. As the freight sector becomes increasingly
competitive, freight forwarders are looking for methods to expedite delivery while
simultaneously reducing costs.
External Factors regarding Strategical Cargo Management
External elements that have an impact on freight forwarding's strategic cargo management are as
follows: The cost of marine and land transportation is, without a doubt, influenced by the price of
gasoline. As the price of gasoline declines, container ships and cargo vehicles become less
expensive to run, lowering the cost of transportation overall. Both the amount of goods
transported by operators and the real underlying expenses are taken into consideration when
setting pricing. If a facility's capacity is restricted, operators may be tempted to charge a
premium for the limited space available (Dachkovskyi , 2021). A carrier, on the other hand, may
be persuaded to give a more competitive rate, at least in the near term, if business has been
sluggish. A carrier's preferred rate is more likely to be offered to merchants that can provide
them with regular, steady business, which is particularly true when demand throughout the sector
is low.
Customer Service Quality
Pre-transaction, transaction, and post-transaction customer care are the three primary
components of customer service in logistics. The first of them indicates that the components of
customer service are there before the actual purchase is completed. These aspects must be given
by the provider; for example, the supplier must ensure that the stock is still available and that the
order cycle time is adequate and consistent (Freeland, 2007). Second, transaction components are
those that are directly associated with the transaction and are most often concerned with
logistical issues. Customers often judge the quality of customer service based on variables such
as the accuracy of invoices and orders, on-time delivery, consistent product quality, and so on,
among other things. Last but not least, post-transaction aspects refer to things that occur after a
transaction has been completed, such as relationship service and relationship quality, which are
important considerations.
Customer Service Cost
Consumers are becoming more dissatisfied with shipping and handling rates, according to
several freight forwarding companies. Several studies have shown that customers would not
make an order if they believe the shipping and handling prices are excessive compared to the
competitors (Pathmaperuma, 2017) Although it is not always desirable, shipping and handling
costs are frequently 8 percent to 10 percent of a direct business's average order and net sales in
order to cover some of the costs of pick and pack labor, outbound freight rates, and packaging
materials. In terms of direct company expenditures, shipping and handling are in the top five.
3.3.2 Dependent Variable

Effectiveness of Freight Forwarding Industry
In the transportation industry, freight forwarding refers to the organization and movement of
commodities from one location to another utilizing a single or several carriers. The items are
transported either by air, land, or marine transport. Furthermore, the individual or firm in charge
of scheduling the cargo is referred to as a "freight forwarder." The achievement of success in
freight forwarding is dependent on a large number of key performance indicators (KPIs) (Bartle,
et al., 2021). A freight forwarder must demonstrate his ability to find the most efficient routes,
select the most cost-effective modes of transportation (while still meeting deadlines), handle
customs, maintain high standards of customer service, respond accurately and quickly to a
diverse group of stakeholders, and so on.. A complex sector such as freight forwarding may
make it tough to find out how to reduce procedures while maintaining quality, budget, and
deadlines in order to remain competitive.
3.4 Research Type

This research uses a quantitative research approach. Objective measurements and statistical,
mathematical, or numerical analysis of data acquired via polls, questionnaires, and surveys, as
well as modifying pre-existing statistical data using computing tools, are the hallmarks of
quantitative research methodologies (Bloomfield & Fisher, 2019).
3.5 Development of Hypothesis

H01: There is no significant relationship between internal controls regarding strategical cargo
management and the effectiveness of freight forwarding industry
H1: There is a significant relationship between internal controls regarding strategical cargo
H02: There is no significant relationship between external factors regarding strategical cargo
H2: There is a significant relationship between external factors regarding strategical cargo
H03: There is no significant relationship between customer service quality and the effectiveness
of freight forwarding industry
h3: There is a significant relationship between customer service quality and the effectiveness of
freight forwarding industry
H04: There is no significant relationship between customer service cost and the effectiveness of
H4: There is a significant relationship between customer service cost and the effectiveness of
3.6 Research Approach

3.6.1 Population and Sampling
The participants or population in this research were workers of freight forwarding companies,
who were selected for a variety of reasons. For data collection, the researcher used convenience
sampling as a non-probability sample approach, which was designed to obtain information.
Convenient sampling is the process of recruiting respondents who are convenient for the
researcher and is distinguished from random sample (Taherdoost, 2016). No clear pattern can be
seen in the method in which these respondents were collected. According to the report, the
sample selected is made up of 100 employees from Sri Lankan freight forwarding firms.
3.6.2 Data collection and Analysis

For the purposes of research, data collection may be described as the process of getting and
measuring information on variables of interest in a systematic way, which enables one to answer
specific research questions, test hypotheses, and evaluate the results (Brandt, 1998). The
information for this research was acquired by the distribution of questionnaires to the
participants in the study. As a result, primary data is utilized in the research, which is data that
has been gathered by a researcher from first-hand sources and has been used in the research. It is
necessary to conduct an analysis of the information acquired via the questionnaire with the aid of
the SPSS software in order to make conclusions.
4. Analysis & Discussion
4.1 Introduction
This chapter uses SPSS to examine the fundamental data from the questionnaire’s surveys. In
this study, the researcher mostly used correlation and regression analysis. Then after, carefully
review every of the data to get a sense of the connection among the independent and dependent
variables. The end of this section was compared with previous findings.
4.2 Demographic Analysis

4.2.1 Educational Level
Educational Level
Frequency Percent Valid Percent Cumulative Percent

Valid Ordinary
level 1 2.0 2.0 2.0
education
Advanced
level 9 17.6 17.6 19.6
education
Diploma
18 35.3 35.3 54.9
level
Undergradu
ate degree 23 45.1 45.1 100.0
and above
Total 51 100.0 100.0
Table 1: Educational Level
The respondents' educational levels are examined in table 1 above. According to the table, the
majority of respondents had an Undergraduate degree and above as their educational credentials,
accounting for 45.1% of the total. According to the data, only 2 percent of respondents have an
Ordinary level education, which is the lowest degree of education.
Figure 3: Educationa lLevel
4.2.2 Position held

Position

Valid Senior
19 37.3 37.3 37.3
Management
Middle
Management 7 13.7 13.7 51.0
First-line
Management 17 33.3 33.3 84.3
Staff 8 15.7 15.7 100.0
Total 51 100.0 100.0

Table 2: Position held
The respondents' positions are shown in the above table 2. According to the table, the majority of
respondents are Senior Management as their position, accounting for 37.3% of the total. Middle
Management makes up just 13.7 percent of the responses, which is the lowest percentage.
Figure 4:Position held
4.2.3 Job Experience

Experience

Valid Below 2
years 3 5.9 5.9 5.9
2-5 years 13 25.5 25.5 31.4
6-10 years 8 15.7 15.7 47.1

10 years and
above
27 52.9 52.9 100.0
Total 51 100.0 100.0

Table 3: Job Experience
The respondents' employment experience is examined in Table 3. The majority of the responses
had 10 years and above of experience. This represents 52.9 percent of the total number of people
that responded. Only 5.9 percent of responders had below 2 years of experience, which is the
lowest.
Figure 5: Job Experience
4.3 Interpretation of Correlation Coefficient

Correlations
External
Factors
Effectiven regarding
ess of Strategical
Freight Cargo Customer Customer
Forwardin Internal Manageme Service Service
g Industry Controls nt Quality Cost
Effecti Pearson Correlation 1 .321* .046 .346* .470**
veness Sig. (2-tailed) .022 .746 .013 .001
of N
Freight
Forwar
51 51 51 51 51
ding
Industr
y
Interna Pearson Correlation .321* 1 .068 .263 .292*
l Sig. (2-tailed) .022 .635 .063 .038
Contro N
51 51 51 51 51
ls
Extern Pearson Correlation .046 .068 1 -.098 .224
al Sig. (2-tailed) .746 .635 .493 .114
Factors N
regardi
ng
Strateg
51 51 51 51 51
ical
Cargo
Manag
ement
Custo Pearson Correlation .346* .263 -.098 1 .458**
mer Sig. (2-tailed) .013 .063 .493 .001
Service N
51 51 51 51 51
Quality
Custo Pearson Correlation .470** .292* .224 .458** 1
mer Sig. (2-tailed) .001 .038 .114 .001
Service N
51 51 51 51 51
Cost
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Table 4: Interpretation of Correlation Coefficient
The correlation between the Internal Controls and Effectiveness of Freight Forwarding Industry
was statistically significance at the 0.01 level with Pearson correlation coefficient of + 0.321. It
shows that there is a positive relationship between the Internal Controls and Effectiveness of
Freight Forwarding Industry.
The correlation between the External Factors regarding Strategical Cargo Management and
Effectiveness of Freight Forwarding Industry was statistically significance at the 0.01 level with
Pearson correlation coefficient of + 0.046. It shows that there is a positive relationship between
the External Factors regarding Strategical Cargo Management and Effectiveness of Freight
Forwarding Industry.
The correlation between the Customer Service Quality and Effectiveness of Freight Forwarding
Industry was statistically significance at the 0.01 level with Pearson correlation coefficient of +
0.346. It shows that there is a positive relationship between the Customer Service Quality and
Effectiveness of Freight Forwarding Industry.
The correlation between the Customer Service Cost and Effectiveness of Freight Forwarding
Industry was statistically significance at the 0.01 level with Pearson correlation coefficient of +
0.470. It shows that there is a positive relationship between the Customer Service Cost and
Effectiveness of Freight Forwarding Industry.
4.4 Regression analysis
4.4.1 Internal Controls and Effectiveness of Freight Forwarding Industry
Model Summaryb
Adjusted R Std. Error of the
Model R R Square Square Estimate Durbin-Watson
1 .321a .103 .085 .38259 1.317
a. Predictors: (Constant), Internal Controls
b. Dependent Variable: Effectiveness of Freight Forwarding Industry
Table 5: Model Summary
Above table present a summary of the model in which the item of interest is the R square
statistics, which is .103. This suggests that, 10.3% of the variants in the Internal Controls was
predicted from Effectiveness of Freight Forwarding Industry. The Durbin-Watson statistic was
1.317 and which means that, the independence of the observations has been met.
ANOVAa
Model Sum of Squares df Mean Square F Sig.

1 Regression .823 1 .823 5.620 .022b
Residual 7.172 49 .146
Total 7.995 50
a. Dependent Variable: Effectiveness of Freight Forwarding Industry
b. Predictors: (Constant), Internal Controls
Table 6: ANOVA
The F-ratio in the ANOVA table test whether the overall regression model is a good fit for the
data. The table shows that the independent variables (Internal Controls) statistically significantly
predict the dependent variable (Effectiveness of Freight Forwarding Industry), F (1,49) = 5.620,
P˂ .0005. That is the regression models is a good fit of the data.
Coefficientsa
Standardized
Model Unstandardized Coefficients Coefficients t Sig.
B Std. Error Beta
1 (Constant) 1.474 .267 5.528 .000
Internal
.294 .124 .321 2.371 .022
Controls
Table 7: Coefficients
Considering the above table, its unstandardized coefficient. B for Internal Controls is equal
to .294. This means that for each one unit increase in Internal Controls, there is an increase in
Effectiveness of Freight Forwarding Industry of .294 times units.
Y = 1.474+ .294X
Where,
Y = Effectiveness of Freight Forwarding Industry
X = Internal Controls
4.4.2 External Factors regarding Strategical Cargo Management and Effectiveness of Freight
Forwarding Industry
Model Summaryb
1 .046a .002 -.018 .40350 1.440
a. Predictors: (Constant), External Factors regarding Strategical Cargo Management
statistics, which is .002. This suggests that, 0.2% of the variants in the External Factors regarding
Strategical Cargo Management was predicted from Effectiveness of Freight Forwarding
Industry. The Durbin-Watson statistic was 1.440 and which means that, the independence of the
observations has been met.
ANOVAa
1 Regression .017 1 .017 .106 .746b
Residual 7.978 49 .163
Total 7.995 50
b. Predictors: (Constant), External Factors regarding Strategical Cargo Management
Table 9: ANOVA
data. The table shows that the independent variables (External Factors regarding Strategical
Cargo Management) statistically significantly predict the dependent variable (Effectiveness of
Freight Forwarding Industry), F (1,49) = 0.106, P˂ .0005. That is the regression models is a good
fit of the data.
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.005 .277 7.250 .000
External
Factors
regarding
Strategical .045 .139 .046 .326 .746
Cargo
Managemen
t
Considering the above table, its unstandardized coefficient. B for External Factors regarding
Strategical Cargo Management is equal to .045. This means that for each one unit increase in
External Factors regarding Strategical Cargo Management, there is an increase in Effectiveness
of Freight Forwarding Industry of .045 times units.
Y = 2.005+ .045X
Where,
X = External Factors regarding Strategical Cargo Management
4.4.3 Customer Service Quality and Effectiveness of Freight Forwarding Industry
Model Summaryb
1 .346a .120 .102 .37893 1.538
a. Predictors: (Constant), Customer Service Quality
Table 11:Model Summary
statistics, which is .120. This suggests that, 12% of the variants in the Customer Service Quality
was predicted from Effectiveness of Freight Forwarding Industry. The Durbin-Watson statistic
was 1.538 and which means that, the independence of the observations has been met.
ANOVAa
1 Regression .959 1 .959 6.682 .013b
Residual 7.036 49 .144
Total 7.995 50
b. Predictors: (Constant), Customer Service Quality
Table 12 : ANOVA
data. The table shows that the independent variables (Customer Service Quality) statistically
significantly predict the dependent variable (Effectiveness of Freight Forwarding Industry), F
(1,49) = 6.682, P˂ .0005. That is the regression models is a good fit of the data.
Coefficientsa
Standardized
Model B Std. Error Beta t Sig.
1 (Constant) 1.513 .231 6.563 .000
Customer
Service .270 .105 .346 2.585 .013
Quality
Table 13:Coefficients
Considering the above table, its unstandardized coefficient. B for Customer Service Quality is
equal to .270. This means that for each one unit increase in Customer Service Quality, there is an
increase in Effectiveness of Freight Forwarding Industry of .270 times units.
Y = 1.513+ .270X
Where,
X = Customer Service Quality
4.4.4 Customer Service Cost and Effectiveness of Freight Forwarding Industry

Model Summaryb

1 .470a .221 .205 .35656 1.562
a. Predictors: (Constant), Customer Service Cost
statistics, which is .221. This suggests that, 22.1% of the variants in the Customer Service Cost
was predicted from Effectiveness of Freight Forwarding Industry. The Durbin-Watson statistic
was 1.562 and which means that, the independence of the observations has been met.
ANOVAa
1 Regression 1.766 1 1.766 13.887 .001b
Residual 6.230 49 .127
Total 7.995 50
b. Predictors: (Constant), Customer Service Cost
Table 15: ANOVA
data. The table shows that the independent variables (Customer Service Cost) statistically
significantly predict the dependent variable (Effectiveness of Freight Forwarding Industry), F
(1,49) = 13.887, P˂ .0005. That is the regression models is a good fit of the data.
Coefficientsa
Standardized
Model B Std. Error Beta T Sig.
1 (Constant) 1.208 .243 4.972 .000
Customer
.387 .104 .470 3.727 .001
Service Cost
Considering the above table, its unstandardized coefficient. B for Customer Service Cost is equal
to .387. This means that for each one unit increase in Customer Service Cost, there is an increase
in Effectiveness of Freight Forwarding Industry of .387 times units.
Y = 1.208+ .387X
Where,
X = Customer Service Cost
4.5 Discussion
These results were supported by the report's regression analysis, which revealed a substantial
association among internal controls regarding strategical cargo management and the
effectiveness of freight forwarding industry. As a result, the H1 is clearly acknowledged.
H01: There is no significant relationship between internal controls regarding strategical cargo
management and the effectiveness of freight forwarding industry - Rejected
H1: There is a significant relationship between internal controls regarding strategical cargo
management and the effectiveness of freight forwarding industry – Accepted
association among external factors regarding strategical cargo management and the effectiveness
of freight forwarding industry. As a result, the H2 is clearly acknowledged.
H02: There is no significant relationship between external factors regarding strategical cargo
management and the effectiveness of freight forwarding industry – Accepted
H2: There is a significant relationship between external factors regarding strategical cargo
management and the effectiveness of freight forwarding industry – Rejected
association among customer service quality and the effectiveness of freight forwarding industry.
As a result, the H3 is clearly acknowledged.
H03: There is no significant relationship between customer service quality and the effectiveness
of freight forwarding industry - Rejected
H3: There is a significant relationship between customer service quality and the effectiveness of
freight forwarding industry – Accepted
association among customer service cost and the effectiveness of freight forwarding industry. As
a result, the H4 is clearly acknowledged.
H04: There is no significant relationship between customer service cost and the effectiveness of
freight forwarding industry - Rejected
H4: There is a significant relationship between customer service cost and the effectiveness of
freight forwarding industry - Accepted
5. Conclusion and Recommendations

5.1 Summary and Conclusion
The primary goal of this study, according to the researcher, is to investigate the influence of
strategic cargo management and the customer-centricity effect on the freight forwarding sector.
In order to determine the magnitude of this influence, the researcher has gathered secondary data
via a thorough assessment of the literature. Previous research papers, books, studies, and
publications as well as other credible sources of data are included in this review, as are the
conclusions drawn from them. According to the findings of the literature review, strategical
cargo management and customer-centricity have an impact on the freight forwarding industry's
ability to be effective and efficient in four areas: the internal controls implemented by freight
forwarding firms in terms of strategical cargo management, the external factors that influence
strategical cargo management, the quality of service provided to customers as a result of
strategical cargo management, and the effectiveness and efficiency of the freight forwarding
industry as a result of customer-centricity. It was necessary to obtain primary data in order to
back up these conclusions. To collect primary data, a questionnaire was developed using Likert
scale questions and focused on the above-mentioned areas. The questionnaire was distributed to
100 employees in freight forwarding firms throughout Sri Lanka who were selected through
convenient sampling, which is a non-probability sampling method in which the population was
assumed to be all employees working in the freight forwarding industries throughout Sri Lanka.
The independent variables for the primary data analysis were the internal controls of freight
forwarding firms regarding strategic cargo management, the external factors that influence
strategic cargo management in freight forwarding companies, the quality of service provided to
customers, and the cost of the service provided. The dependent variables were the internal
controls of freight forwarding firms regarding strategic cargo management, the external factors
that influence strategic cargo management in freight forwarding companies, and the cost of the
service provided. The efficacy of the freight forwarding business served as the dependent
variable in this study. The reliability of the variables listed above has been established, and they
are qualified for future investigation using the SPSS program.
The researcher conducted demographic analysis, correlation analysis, and regression analysis as
part of the main data analysis, which was carried out using the SPSS program. According to the
findings of the study, there is a statistically significant association between strategic cargo
management as well as customer centricity and the performance of the freight forwarding sector.
As a result, it is clear that all of the hypotheses that were developed via the use of independent
and dependent variables are valid.
Following an examination of whether the study goals have been achieved, the following
conclusions may be drawn: One of the goals is to determine the influence that internal controls
pertaining to strategic cargo management have on the overall effectiveness of the freight
forwarding industry, which is one of the objectives. In this case, the significance threshold is set
at 0.01, and the correlation value indicates that there exists a substantial positive relationship
between the two variables. As a result, the researcher was successful in accomplishing his or her
goal. Identifying the influence of external variables on the efficacy of the freight forwarding
business is another goal. This includes determining the impact of external factors on strategic
cargo management on the effectiveness of the freight forwarding industry. The results of the
correlation and regression analyses reveal that these variables, like the first, have a positive and
statistically significant association, which allows the researcher to accomplish the second aim.
The third and fourth objectives, which are related to customer-centricity and include determining
the impact of customer service quality on the effectiveness of the freight forwarding industry and
determining the impact of customer service cost on the effectiveness of the freight forwarding
industry, have also been met, as demonstrated by the correlation and regression analyses.
5.2 Recommendations
Based on the analysis and conclusions, the recommendations mentioned below can be presented.
1. Embrace the concept of automation.
Employees will save hundreds of hours of work time by automating typical administrative
operations, which include anything from delivering paychecks to sending purchase receipts to
vendors. In today's highly competitive market, business automation is a must-have tool. Truly
game-changing firms thrive in this environment of restricted working hours because they utilize
their time wisely, inventing and producing rather than administrating. While the initial costs of
automating operations may seem to be prohibitive, in the long run, the company will benefit
from decreased operating costs and better business efficiency.
2. Increase the level of transparency
Customers must be able to put their faith in the firm if it is transparent. The ability to follow their
goods throughout its route, the ability to pick the kind of delivery based on real-time
information, and the assurance that they are obtaining the best available pricing all appeal to
customers. Shipping systems need automation that is connected to real-time data in order to offer
visibility. Having a personalized website exposes clients to data from ports and terminals all
around the globe, allowing them to identify the most efficient routes for their particular needs
and circumstances. In such a competitive environment, a straightforward product such as this is
quite beneficial.
3. Be adaptive to changing circumstances.
The marketplaces in which the corporations operate may be an unpredictable and unexpected
environment to be a participant in. Economic uncertainty does not necessarily manifest itself in a
climax; in other cases, it may develop in such a slow manner that people are only made aware of
what is occurring when the effect is seen in the financial results. The digitalization of business
operations enables a company to adapt and stay ahead of the competition when the time comes.
Rising costs, reduced profitability, customer drop-off, decreased sales, declining team morale,
and declining productivity are all factors that can devastate a business with little warning.
4. Maintaining effective connection with consumers
Customers have two fundamental criteria, which are that their items be delivered on time and
within their budget. If the firms meet such standards, customers will promote the company to
their friends and business colleagues, or they will approach the company with new ideas,
resulting in increased business. Keeping abreast of the demands of its clients and anticipating
their desires, sometimes before they are aware of them, allows the firm to secure new and repeat
business. As a result, contact with consumers is essential to achieving this aim.
5. Efficient networking
Agents must maintain continual communication with other agents across the globe in order to
ensure that freight is moved effectively and that international expectations are met. The notion of
networking, introduced by technology, has made it simpler to establish these kinds of
relationships. Interaction between agents all over the globe is made possible via these internet
platforms, which also promote freight forwarding on a worldwide scale. Those who run the most
successful freight forwarding companies are often members of logistics networks.
6. Training of staff
Staff members must be well-versed in the management of all orders and information, and they
must be taught in the use of contemporary technologies. This may be accomplished via the
proactive and constructive involvement of human resources. Employees are trained and prepared
for their jobs by this department, which is responsible for providing the necessary training and
preparation. Additional tools such as pamphlets, paper notices displayed on various walls
throughout the office, and periodic training sessions for employees may all be advantageous to
their overall performance and efficiency in their job duties. It is essential that all employees and
officials be made aware of the new rules throughout the course of the project's execution. It is
necessary to enhance their comprehension to a level that is simple for them to comprehend in
order to prevent any product-related losses. Handling food things, fragile materials, and
chemicals is a very delicate profession that requires great care. While the unique objects are
being packaged and tagged, the handler must maintain complete concentration. All of these tasks
must be completed in a current and efficient manner.
7. Proper Warehouse and Inventory Management
It is advised that the logistics management maintain an inventory that is appropriate for the kind
and number of items that the firm is responsible for delivering to customers. Every warehouse
should be constructed in a manner that is appropriate for the sort of items that it will be needed to
store. For example, dairy goods, pharmaceuticals, and various food items often need a
refrigerated atmosphere, while wheat products such as grains must be maintained in a dry
environment to prevent mold growth. The storage facilities should always be appropriate for the
sort of goods being stored. A well-organized product storage system is essential for making the
most of the warehouse's full capacity. Storage in vertical columns is advised for optimal use of
available space in warehouse environments. If the inventory is less in size, it might result in a
scarcity of supplies as well as a delay in the delivery of orders. Furthermore, if it is very huge, it
will result in significant additional expenses for the organization. To ensure that the inventory is
manageable and correct, it is advised that the inventory be kept at a reasonable and accurate size.
Furthermore, a strong inventory management system may improve efficiency in maintaining
stock levels and in anticipating client wants, resulting in time savings, cost savings, and
increased customer loyalty.
5.3 Way for Further Research

The purpose of this research study is to examine the influence of strategic cargo management
and the customer-centricity effect on the freight forwarding sector in the United States. Other
than the criteria identified in this study, there may be more aspects that might have an influence
on the success of the freight forwarding sector. These elements include strategic cargo
management and customer centricity, among others. As a result, in future studies, the researcher
may look at other aspects of the freight forwarding sector that may have an influence on its
overall efficacy. Furthermore, while this study relied on original data from just 100 participants,
researchers may gather primary data through a wider group of subjects in the future.
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To Study the Impact of Strategical Cargo Management and

Customer-Centricity Effect on Freight Forwarding Industry

1.2 Research Problem

1.3 Research Questions

“What is the Impact of Strategical Cargo Management and Customer-Centricity Effect on

Sub-research questions will be as follows.

1.4 Research Objectives

1.5 Significance of the Study

5. Difficulty in fulfilling the financial budget in fulfilling the research requirements

To guarantee efficient transportation and delivery of goods, it is essential to understand and

2.2 Freight Forwarding Industry in Sri Lanka

Organizational structures in the logistics industry will be re-engineered in terms of employment

2.3 Impact of Strategic Cargo Management to Freight Forwarding Industry

Finally, it is important not to underestimate the difficulty of international shipping transactions.

2.4 Impact of Customer Centricity Effect to Freight Forwarding Industry

Therefore, having a customer centric approach in freight forwarding businesses is essential.

The outcome of a comparison between customers' expectations and customers' impression of

Customer satisfaction is influenced by a variety of elements, including perceived quality of

Source: (Saunders, et al., 2012)

3.3 Conceptual Framework

External Factors regarding

Customer Service Cost

Figure 2: Conceptual Framework

Source: Developed by Author

3.3.1 Independent Variables

External Factors regarding Strategical Cargo Management

Customer Service Quality

Customer Service Cost

3.3.2 Dependent Variable

3.4 Research Type

3.5 Development of Hypothesis

3.6 Research Approach

3.6.2 Data collection and Analysis

4.2 Demographic Analysis

Frequency Percent Valid Percent Cumulative Percent

4.2.2 Position held

Frequency Percent Valid Percent Cumulative Percent

Staff 8 15.7 15.7 100.0

Total 51 100.0 100.0

Figure 4:Position held

4.2.3 Job Experience

Frequency Percent Valid Percent Cumulative Percent

2-5 years 13 25.5 25.5 31.4

6-10 years 8 15.7 15.7 47.1

Total 51 100.0 100.0

Figure 5: Job Experience

4.3 Interpretation of Correlation Coefficient

Model Sum of Squares df Mean Square F Sig.

Y = Effectiveness of Freight Forwarding Industry

X = External Factors regarding Strategical Cargo Management

4.4.3 Customer Service Quality and Effectiveness of Freight Forwarding Industry

Y = Effectiveness of Freight Forwarding Industry

X = Customer Service Quality

4.4.4 Customer Service Cost and Effectiveness of Freight Forwarding Industry

Adjusted R Std. Error of the

Y = Effectiveness of Freight Forwarding Industry

X = Customer Service Cost

5. Conclusion and Recommendations

1. Embrace the concept of automation.