THE EFFECT OF DISTRIBUTION INTEGRATION
AND SUPPORT SERVICE OF
EXPORT DOCUMENT ON OVERALL PERCEPTION OF
SERVICE EXCELLENCE
AT PT MITRA KARGO INDONESIA
Natalia
Dessy Permatasari, Lusia M. Silitonga, Andi Setiawan
Jurusan Administrasi Bisnis, Politeknik Negeri Semarang
Jl. Prof.H. Sudarto, SH, Tembalang, Semarang 50275, PO Box
6199/SMS
ABSTRACT
The competition among freight forwarding
is strict. This research analyzes the effect of Distribution Integration and
Support Service of Export Document on Overall Perception of Service Excellence
at PT Mitra Kargo Indonesia, Semarang as freight forwarding company. This
research used a multiple linear regression. The primary data used in this
research is collected from questionnaire. The amounts of the respondents are 45
who are exporters of PT Mitra Kargo Indonesia. The result shows that analysis
which is carried out by SPSS 16, from coefficient of adjusted R-squared (R2)
reveals that the independent variable (Integration of Distribution – X1
and Support Service of Export Document – X2) affected on dependent
variable (Perception of Service Excellence – Y) amount of 63,5%. Whereas other
factors are amount of 36,5% which is out of this research.
Keywords: freight
forwarding, integration distribution, service excellence, export document, transportation,
trucking.
INTRODUCTION
International trade or known as export import is important economic
sector in every country. In the other side, the improvement in transportation
makes the mobility of goods and assets rapidly high so the trade flows more
accelerate (Sasono, 2012). The acceleration of trade flows, especially on export
import activity is the main part of freight forwarding company. The competition
among freight forwarding companies is strict, taking customer’s attention is
required due to maximize company’s purpose. Therefore, they should concern on
both of the quality of service and customers satisfaction who especially are shipper
as their end user of their services.
PT. Mitra Kargo Indonesia or as known as MKI is one of freight
forwarding company located in Semarang that being a member of Indonesian
Logistics and Forwarder Association (ILFA) in 2010. This company provides a
export import services which full container load (FCL) or less than container (LCL)
via sea freight, inland, or air freight and trucking service. Started with 3
armadas, until now PT. Mitra Kargo Indonesia has 48 armadas, it is such a
succeed for a businessman who was entered in freight forwarding industrial.
According to the information from PT. Mitra Kargo Indonesia, the amount of
trucking volume shown on the amount of shipper’s container period of Mei 2011 until
December 2014 was increased year by year. As seen on Table 1, explained about
trucking volume of PT. Mitra Kargo Indonesia period of Mei 2011 – December 2014.
The explanations of Table 1 of trucking volume of PT. Mitra
Kargo Indonesia are:
1)
The volume of trucking was increased year
by year. It shown on 2014 was the highest amount which is 11.785 twenty-foot
equivalent units (TEUs) and the lowest amount was in 2011 which is 2.030 TEUs.
2)
The percentage of trucking was unstable
on every month. The highest decrease was -26% in January 2014 and biggest
amount of increasing was 72% in October 2012.
Table 1
Trucking Volume of PT Mitra Kargo Indonesia
Central Java and Yogyakarta Area
Year of 2011 – 2014
For the information, trailer truck of PT. Mitra Kargo Indonesia
was increased in the end of 2013. But, there were problems for PT Mitra Kargo
Indonesia:
1)
The first problem is from that explanation
in October 2012 the percentage of trucking volume was 76% as the biggest amount
at all.
2)
Then, after 2012 none of those year reach
amount of percentage volume trucking on 50%.
Handling process of trucking is a not easy thing, the
distribution of trucking has a huge risks. Same things happened to overall
export document handling process, because resulted in release the goods out
from customs area. Fan (2014) revealed that logistics, identified an
elements to keep forwarder’s existence and sustainable development which are combination
of shipping resources with supply chain management, coordinating all respects,
high-quality service for customers, reinforced competitiveness. One of the element
according to Fan (2014) is rational relocate logistics resource (service first satisfying,
high-quality solution). Zeimpekis (2011) also revealed that the routing plan of
a delivery fleet is usually developed a prior and provides an optimal (or near
optimal) way of serving customers by taking into account certain constraints,
such as vehicle capacity and delivery time windows.
THEORY FRAMEWORK
Export
Definition of export is an activity that releases the goods our
from customs area Sasono (2012) that there is a management export, how the
management of the firm increases their management skills especially in export
activities. So they are familiar with the peculiarities and the mechanics of
the export process (Adu-Gyamfi et al, 2013).
Freight Forwarding
According to Samekto et al (2014), freight forwarding is
business that aimed to handling overall activity which is needed to the implementation
of goods delivery and receipt through inland, ocean and air mode of transport.
. Service of freight forwarding, based on Samekto et al (2014), is considered as
a physical distribution which covers several things about logistic activities,
they are: transportation, cargo handling operations, shipment, warehouse,
marking, quality control, customs clearance and management.
International Marketing
By far the most popular way for firms to engage with international
markets is exporting. Strategy of International Marketing is defined as to do a
standard activity of marketing without considering any differences on every
country as market target (Studied Material, International Marketing 2014). The
definition of marketing capabilities quoted by Morgan et al (2011) are the
processes by which firms select intended value proportions for target customers
and deploy resources to deliver these value offering in pursuit of desired goals.
Perception of Service Excellence
Perception is a process where a person selects, organizes,
identifies, and interprets the sensory information he receives in order to
understand his environment (Kenyon et al, 2015). The service of freight
forwarding will be perceived by shipper. It is based on what the shipper
received was in order to create a service quality. Service excellence is the
best services which are given by company to fulfill their customer’s need, both
internal and external customer (Daryanto et al, 2014). The purposes of the service
excellence are (Daryanto et al, 2014): a) to give a high quality service for
customer, b) to create a trust and satisfaction to customer, c) to avoid an
unnecessary demand in the next day to producer, d) to lead to a decision making
of offering goods/spotted service, e) to keep the customer’s feeling of what
they need is fulfilling. References on above statement, both leader and
employees of the company must be have a spirit of service. They have to concern
with a whole factor, element, and aspects of service excellence. Not only based
on the meaning of service excellence. In reference to above descriptions, the
features of service excellence are based on customer’s point of view or
perception. The customer perception of the service quality is overall judgment
towards excellence of service.
Integration of Transportation
Distribution
By considering to Jovanovic (2006) about international economic
integration, the definition of distribution of transport integration is a
process and a means by which of group of transportation strives to increase its
level of welfare. We need concerned to the an attributes before we designing a
distribution network (Brandimarte et al, 2007) such as:
1) Competition Factors
a) Quality,
quality of goods is key factor influencing consumer’s choice, but it is itself
a complex concept encompassing multiple dimensions (Brandimarte et al, 2007).
b) Assortment
is the variety of products offered. For trucking Services Company, this means offering
the possibility of customizing an end item according to customer’s products.
c) Flexibility,
which is the ability to adapt to changes and exceptional conditions. We can
have different kinds of flexibility according to the variable that raises the
need for a change (Brandimarte et al, 2007).
2) Cost Driver
We have seen that supply chain based on physical point of view,
a network of facilities on which goods are stocked and transported (Brandimarte
et al, 2007). Transportation cost presents a resulting from a mix of fixed and
variable costs. When, we shipping a standard container from a certain point of
the supply chain to another one, part of the costs are fixed and independent of
the content. Costs are main role to choose a distribution channel (Sudaryono, 2014).
3) Strategy
In fact, firms adopt quite different strategies. PT Mitra Kargo
Indonesia has a strategy to manage their trucking schedule. The differential location
of their shipper, shipper’s stuffing quantities, and their VIP client are few
of things need to be concerned. Based on Sudaryono (2014), in every industry,
key success to manage the competitive physical distribution is getting a lowest
cost of overall.
Service of Export Document
Document for international trade fall into several
overlapping categories (Hinkelman, 2008):
1) Transaction Document(s), the key transaction document is the
invoice or commercial invoice. This document is used by all parties to the
transaction for accounting and bookkeeping purposes.
2) Export Document, these are documents required by the customs or national
export authority of the country of export and vary greatly from country to
country. Included are licenses, permits, export declaration, inspection
certificate, commercial invoices and sometimes transport document.
3) Transport Document, these are documents issued by shipping line, air
cargo carrier, trucking company or freight forwarder that detail the terms of
transport for cargo. Shipping instruction is a document sent by a shipper
giving details of how goods are to be shipped and delivered (Study Material of
Export and Import). Those document modified by PT. Mitra Kargo Indonesia as
their freight forwarding. Among freight forwarding has a different design of shipping
instructions.
4)
Inspection Document, these documents generally issued by third party inspections
firms at the request of the buyer to certify the quality and the quantities of
a shipment. Inspection documents are also issued to satisfy country export and
import requirements.
5)
Insurance Document, these documents evidence insurance coverage of a shipment and
can be in the form of a policy or a certificate.
6)
Banking/Payment Document, banking and payment documents include letters of credit,
amendments to letter of credit, various advices, plus virtually all the other
documents used in trade (B/L, commercial invoice, insurance documents,
inspection certificate, etc).
International Freight
Transport
Lowe (2005) stated that intermodal freight transport
is the concept of utilizing two or more ‘suitable’ modes, in combination, to form
an integrated transport chain aimed at achieving operationally efficient and
cost effective delivery goods in an environmentally sustainable manner from their
point of origin to their final destination.
The essence
of efficient intermodal transport lies in the use of a unit-load system
capable of transfer between road, rail, and other transport modes, and which
allows for the collection of consignments by. . Such systems provide greater
flexibility for the customer, who may be either the shipper or the consignee,
by allowing goods to be loaded or unloaded at his premises in the conventional
manner without changing the current practices applied to his domestic or local
traffic.
Trucking
One of the part intermodal freight transport which goods are
loading by truck. This intermodal transportation is very flexible, fast, and
reliable than others. Loaded goods by truck need a less packaging which decreases
costs (Sudaryono 2014). To manage the stuffing schedule is not an ease at all
and PT Mitra Kargo Indonesia has their strategy of it. There are several things
need to be considered for trucking strategy according to observation:
a) Stuffing
schedule, the shipper decides the stuffing schedule then Operational Division
is considering the trucking distribution according to most quantity first.
After that, they need to check the driver location Global Positioning System
(GPS).
b) Time
of loading container, the type and brand of container depend on the shipper’s
choice. The Document Division which booked the container is based on the
schedule and the availability of the Shipping Company.
c) Truck
availability, the armadas parked in the Garage 4 of Tanjung Emas Port which PT
Mitra Kargo Indonesia has to pay the cost. PT Mitra Kargo Indonesia Indonesia does
not allow the idle time so that the trucking availability is based on the first
armada that will arrive in Tanjung Emas Port. The first arrival will be given
to the farthest shipper (based on the schedule).
d) Warehouse
location, The shipper has the different location and obstacle on the road. For
example, there is a warehouse location that trailer truck didn’t allowed before
7 p.m even the armada arrived at 7 p.m the employee need to stuffing as fast as
they can so the truck will leaving the warehouse before 6 a.m in the next
morning. So Operational Division need to considered this a lot and plan B are prepared.
Main Carriage/Shipment
Shipment are the intermodal transport which has a lowest freight
cost but the slowest one (Sudaryono, 2014). The principal contributors for
hiring ships include exporters and importers, shippers and receivers, and
consignors and consignee.
RESEARCH METHODS
Data Collecting Methods
Research data describes about data collecting methods and data
sources that used in this research. Here is the description:
a)
Questionnaire
The questionnaire form will be given to the respondents who’s
the customer of PT. Mitra Kargo Indonesia especially in the Central Java and
Yogyakarta, also required with references to the result of the Slovin formula,
amount of the sample are 45 respondents. Those respondents are aimed to ease
the research calculation.
b)
Literature Review
This literature review aims to add, expand the knowledge, and
complete the data according it’s the problem of the research.
c)
Interview
There is an direct interview to the respondents who answered the
questionnaire form.
Data Sources
a)
Primary Data
In accordance with this research, interview and observation are
include as the primary data.
b)
Secondary Data
The secondary data which are collected to this research are
company profile, organizational structure, job description and another
supporting data.
Feature Data
a)
Quantitative Data
In this research, the quantitative data resulted in the data
from questionnaire that distributed to respondents.
b)
Qualitative Data
In this qualitative data, organization structural, company
profile and vision mission of the company are used.
Theoretical Framework
Theoretical framework of this research project is described as Picture
1.
Picture 1
Theoretical Framework
Based on the Picture 1, integration of distribution effect and
support service of export document is the independent variable which effected
on overall perception of service excellence (dependent variable).
Research Variable and Operational
Definition of Variable
Independent Variable
According to this study, there are two independent variables
which are integration of distribution (X1) and support service of export
document (X2). Here is the explanation of indicator on each
independent variable:
a. Integration of Distribution (X1),
it describes about the distribution channel of transportation are brought under
the management of single entity.
There are indicators of X1: 1) Mode of
transportation, it measured by the respondent perception on how PT MKI
oriented to the customer’s choice of departure schedule for their vessel; 2) Transportation
coverage, it describes of the coverage transportation from trucking to main
shipment which measured by the respondent perception on time delivery schedule;
3) Safety delivery, it measured by the respondent perception on overall
delivery process, no physical damage.
b. Support Service of Export Document (X2),
it describes about support service of export documents based on the service
quality.
There are indicators of X2: 1) Easy access to contact
the company, it describes of the export document service which measured by
respondent perception on how easy they find PT MKI’s website out on search
engine is; 2) The company will be dependable to finish the overall export
documents, it measured by respondent perception on company ability to
perform the promised service; 3) The employee will never too busy to
responds to shipper’s request, it measured by respondent perception on the willingness
to help shipper and provide prompt services; 4) The clarity of problem
solving of export document service, it measured by respondent perception on
the knowledge and courtesy of employees and their ability to inspire trust and
confidence; 5) The company will keep their shipper informed and listen to
them about their goods information, it measured by respondents perception
on how PT MKI always listen to their customer about customer’s goods, document clearance,
etc.
Dependent Variable
The dependent variable that used in this study is perception of
service excellence (Y). Here is the explanation of definition and indicator of
dependent variable. Perception of service excellent (Y), it describes a process
where a customer select, organizes, identifies, and interprets the sensory
information he receives in order to understand his environment (Kenyon et al
2015).
The indicator of Y are:
1)
Sustainable service, it describes a shipper perception of the
service excellent measured by how PT MKI always fulfilled the customer’s
quantity of container.
2)
Believability, it measured by how PT MKI always clearance the
document of their customer until main shipment.
3) Serve with commitment to customer, it
measured by how PT MKI always committed to finish on overall service.
4) Give the service more than what
customer expected, it measured by how company can handling a
sudden problem about overall distribution and export document service.
Analyzing Method
There is a testing technique which was used in this research.
Before distribute a huge number of questionnaires, some of them will be tested
by using validity and reliability testing. The other questionnaires will be distributed
to respondents if the testing results are valid and reliable. The result of the
questionnaire is the data. It will be processed using analysis of multiple regressions,
F Testing, t Testing, and Adjusted R Square. SPSS (Statistical Product and
Service Solutions) software will be helped to fasten the data processing, both questionnaire
experiments and processing a result of questionnaire distribution.
Table 5
The Result of Validity and Reliability
Test
RESULT AND DISCUSSION
Validity and Reliability Test
Then validity test is used to determine the propriety of the
question. Otherwise, it is used to measure the authentic and validity of an
each question. The decided criteria are:
-
Item is valid if r count (Corrected Item
– Total Correlation) > r table (0,294)
-
Item is invalid if r count (Corrected
Item – Total Correlation) < r table (0,294)
Based on the Table 5, that the entire indicator (observed) are
valid and worth to use as indicator of construct (latent variable). Alpha coefficient
(cronbach alpha) has a value at 0,70. Therefore, the research variables (construct)
which integration of distribution and support service of export document are reliable
or high reliable. In the other word, those are appropriate to used as variable (construct)
for the research.
Normality Test
Normality test is represent the data of the research were
distributed in normal (prevalent) or not. Kolmogorov Smirnov test is more
accurate method to test the. The test is based on the significant probability number
of Kolmogorov Smirnov. The data interpreted as a normal distribution while the number
of significant more than 0,05. Here is, Table 6, the result of SPSS.
Table 6
Result of Normality Test (Kolmogorov – Smirnov
Test)
Multicollienearity Test
Multicollinearity test is aimed to testing a correlation between
independent variable in the regression model. In this research, multicollinearity
test is used to find out the relation of between independent variable (integration
of distribution and support service of export document) either effected or
significant.
As a result, the regression model is out of multicollienarity
issue and independent variable is affected on the dependent variable whether
simultaneously or partially.
Table 7
VIF and Tolerance
Multiple Regression Test
Multiple regression analysis allows us to determine the effect
of more than one independent variable on dependent variable (Gaurav, 2010).
This multiple regression analysis used for determine the functional relation or
causal relation between an independent variable (integration of distribution
and support service of export document) to a dependent variable (overall perception
of excellence service).
Table 8
Summary of SPSS Calculation
The equation of multiple regressions based on the outcome of
SPSS:
Y( Service Excellence) = 14,897 +0,308 X1
(Integration of Distribution) + 0,271 X2
(Support Service of Export Document)
Hypothesis Test
This test was conducted whether to determine or prove a
significant influence between independent variable in integration of
distribution (X1) and support service of export document (X2)
on the overall perception of service excellence (Y) both in partial and
simultaneous.
Partial Test (t – Test)
The criteria that used is level of significant (α) on 5% (0,05).
Table 9
Result
of t - Test
Based on the SPSS calculation on X1 effected positively Y. It
proved on t-test > t table (4,474 > 2,01) or probability (0,000) < α (0,05).
Besides, X2 effected positively towards Y. It proved on t-test > t table (6,794>
2,01) or probability (0,000) < α (0,05). As a result, both of X1 and X2 had good
improved so had the overall perception of excellence service at PT Mitra Kargo Indonesia.
Simultan Test (F – Test)
This test was conducted whether to determine or prove a
significant influence between independent variable towards dependent variable
in simultaneous.
Table 10
Result
of F – Test
0,000. The comparison statement is FCal > FTab
which 39,318 > 3,22 or 0,000 < 0,05. It is concluded that significant
effect of independent variable which are X1 and X2 towards
Y.
Adjusted R – Squared Test
Coefficient of adjusted R squared is used to find out the amount
of integration of distribution and support service of export document to
represent an overall perception of excellence service at PT Mitra Kargo Indonesia.
According to the amount of Adjusted R2 by 0,635, it
means that number of variance overall perception of excellence service variable
is 63,5% which explained by variance of integration of distribution variable
and support service of export document. Whereas, the amount of another factors
by 36,5%.
Table 11
Result
of Adjusted R – Squared
CONCLUSION
The result and discussion of this research was clearly achieved
the research objectives and contribute to the following conclusion:
1. The
integration of transportation distribution which felt by the customer is
effected positively. It was proved by the hypothesis test even in partial or
simultaneous.
2. The
support service of export document which felt by the customer is affected
positive. It was proved by the hypothesis test even in partial or simultaneous.
RESEARCH LIMITATION
Based on this observation of this research, there are a limitations.
First, the contribution of two independent variables towards perception of
service excellence (dependent variable) in amount of 63,5%. It shows that there
are another variable hasn’t include yet in this research. Then, the scope of respondent’s
area were only in Central Java and Yogyakarta. Third, the indicator of each variable
could be unsuitable to every freight forwarding, it depends on the observation and
the company.
FUTURE RESEARCH
Hopefully, the future research could held with more variable and
specific indicator accordance with PT Mitra Kargo Indonesia and widden the
scope of respondent’s area and increase the number of sample. Then, another
variable could adjusted with basic of observation and company’s agreement.
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