Abstract
Global economy tends to focus on more imports and exports, where businesses needs more and more support from 3PL providers to smooth their complicated business processes. When it comes to international business, there are a lot of regulations and steps to be followed. Starting from making a booking with the carrier, reserving space, negotiating better rates, equipment reservations, fumigation, obtaining certificates, clearing, and border regulations are few events involved. As a solution to the complicated processes freight forwarders came in to industry so that the business can focus on their core activities while forwarders involve in the transport and logistics processes. Hence the purpose of this study is to explore the relationship between freight forwarder selection and size of the organization and help to improve the service quality of the freight forwarding industry and identify whether there is a relationship between the frequencies of using forwarders with the size of organization. In order to carry out the research a questionnaire survey was developed using prior research, articles and distributed among the sample of 250 shippers which was selected out of the 1557 exporting companies in 23 industries in Sri Lanka. Multinomial Regression analysis was used to analyse data and Pseudo R-Square method was use to further confirm the relationship in between the dependent and independent variables. Findings identified a relationship between factors with organization size and the frequency of using freight forwarders. It is recommended to the policy makers of freight forwarding companies to consider the relationship and focus more on large scale organizations to enhance their profit and build relationships with the flourishing companies.
Highlights
With Globalisation imports and exports play a vital role in every economy
In addition this study helps to identify the frequency of using a freight forwarder with the size of organization with considered factors by shippers when selecting a freight forwarder
Multiple regression model was developed to identify the relationship between the frequency of freight forwarders being used and the size of the organisation
Summary
With Globalisation imports and exports play a vital role in every economy. When considering the Sri Lankan economy, revenue of $10.5 billion was indicated from exports in 2015 with a 5% of industrial production growth rate. Processing of rubber, tea, coconuts, tobacco and other agricultural commodities, clothing, textiles; cement, petroleum refining, information technology services and construction can be considered the industries in the country. From these textiles and apparel, tea and spices; rubber manufactures; precious stones; coconut products, fish play a major role in the export industry. Figure 1.1; Trading Partners Based On Dollar Value Source: World Fact Book 2015 [1] Though it creates lot of opportunities for the business owners, the process they have to handle is a bit complicated since they have to deal with different parties like shipping lines, container yards, cross border regulations, customs, local transporters and especially with documentation. In addition this study helps to identify the frequency of using a freight forwarder with the size of organization with considered factors by shippers when selecting a freight forwarder
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