Sujan's Dissertation Proposal Final

7/31/2019 Sujan's Dissertation Proposal Final

1/22

1

Contents

1.0 Background of the Study ....................................................................................................... 2

1.1 Role of the Freight forwarder ............................................................................................ 2

1.2 Apparel Industry ................................................................................................................ 4

2.0 Research Problem .................................................................................................................. 6

3.0 Research Questions ............................................................................................................... 9

4.0 Objectives of the Research .................................................................................................... 9

5.0 Scope of the Study............................................................................................................... 10

6.0 Literature review ................................................................................................................. 10

7.0 Conceptual Framework ....................................................................................................... 17

8.0 Hypothesis ........................................................................................................................... 18

9.0 Contribution of the Research............................................................................................... 19

10.0 Research Design ................................................................................................................ 19

11.0 Data Collection Procedure ................................................................................................ 20

12.0 Methods of Data Analysis ................................................................................................. 20

13.0 References ......................................................................................................................... 21


2/22

2

1.0 Background of the Study

The logistics industry is becoming one of the most profitable and required industry in every

corner of the world (Singh, 2009).It is a part of the supply chain in businesses plan process; itimplements and controls the efficient flow and storage of goods and services that are tangible. Itcan be highlighted that the process encompasses the information flow from the point of origin to

the point of consumption in order to meet the customers requirements. Generally the modern

logistic industry continue to evolve as it reduces the transport and distribute cost for importer and

exporters, improved customer service, improved cycle time and free up capital in manufacturers

and marketers non core areas.

Chin et. al (1999) highlights the changing context of the global logistics industry as follows.

They state that the increase in global competition and the rapid progress of IT has led to thebroadening of the scope of the logistics industry from the provision of just transport and

warehousing facilities to purchasing, distribution, inventory management, packing,

manufacturing and customer service. More importantly logistics is increasingly being outsourced

in order to achieve competitive advantage.

When it comes to the Sri Lankan context with the opening up of the new export and import

markets for our products and services such as world renowned brand names in tea, garments,

rubber, fiber and other value added products and services items, through air and sea gateways Sri

Lankan has been able to spread out their products throughout the world. With the rapid

expansion in international trade saw the growing need for efficient supply chain solutions. In this

backdrop, the freight forwarding and logistics industry in Sri Lanka took on a vital and active

role. The speed of its expansion created intense competition as well as haphazard growth.

1.1 Role of the Freight forwarder

Freight forwarder is an intermediary service provider that collects export cargo from the

customer, re-arranges them and forwards them to cargo carriers in a most economical way. When

it comes to imports they break bulk into retail and distribute locally. They also provide tracking

and tracing from origin to destination point in the supply chain. Freight forwarders also

coordinate transshipment cargo that move via the Colombo port or Airport.


3/22

3

A freight forwarder books space with a carrier, who offers a special rate based on the volume of

cargo to be moved. Depending on the size and nature of the cargo the freight forwarder may use

a variety of modes of transport, viz. shipping lines, air, road and rail freight.

When considering the annual export and import container throughput in Sri Lankan shown in

Tables 1.1 and 1.2 below it can be seen that export throughput has been reducing with the empty

ratio going upto 50%, whereas import throughput has been increasing with the empty ratio

coming down to 6% from 14%. This shows that the use of Sri Lanka as an export destination is

reducing in significance, despite the favourable country conditions.

Table 1.1: Annual Export Container Throughput

Year Laden Empty Empty %

2008 229,206 176,816 44%

2009 223,398 154,000 41%

2010 244,268 226,328 48%

2011 125,460 124,624 50%

Source: Sri Lankan Freight Forwarders Association (2011)

Table 1.2: Annual Import Container Throughput


2008 358,994 48,255 12%

2009 317,732 51,200 14%

2010 415,291 46,357 10%

2011 230,260 15,471 6%


However, the use of Sri Lanka as a transshipment destination has been emphasized by the

continuous increase in transshipment volumes. This shows the strategic importance of Sri Lanka

from a global logistics perspective.


4/22

4

Table 1.3: Transshipment via Colombo Port


2008 2,215,777 569,645 20%

2009 2,277,090 355,965 14%

2010 2,767,833 327,756 11%

2011 1,376,906 178,475 11%


Table 1.4 below shows a summary of the performance of the port services as published by the

Central Bank of Sri Lanka.

Table 1.4: Performance of port services

Source: Central Bank Annual Report (2010)

1.2 Apparel Industry

Kelegama (2005) discussed about the history and the prominence of the apparel industry in Sri

Lanka as follows. Sri Lanka was remarkably famous for their agricultural exports before the

Item 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1 Vessels Arrived (No.) 4,014 4,062 4,032 3,883 4,139 4,469 4,710 4,814 4,456 4,067

Colombo 3,570 3,787 3,838 3,688 3,929 4,228 4,326 4,424 4,114 3,910

Galle 117 76 73 88 114 100 87 68 32 48

Trincomalee 327 199 121 107 96 141 297 322 310 109

2

Total Cargo Handled (mt

000) 27,062 28,363 30,500 33,959 37,300 42,661 46,344 50,582 48,778 61,240

Colombo 24,741 26,273 28,198 31,299 34,522 39,428 43,502 47,960 46,373 58,768

Galle 662 526 482 578 655 735 627 459 167 318

Trincomalee 1,659 1,564 1,820 2,082 2,123 2,498 2,215 2,163 2,238 2,154

3

Total Container Traffic

(TEUs 000) (b) 1,727 1,765 1,959 2,221 2,455 3,079 3,381 3,687 3,464 4,137

4

Transshipment Containers

(TEUs 000) (b) 1,195 1,218 1,371 1,531 1,716 2,330 2,578 2,785 2,712 3,205

5 Revenue (SLPA) (Rs. mn) 16,387 15,667 16,356 17,861 20,552 23,004 25,913 25,142 23,331 28,279

6

Operating Expenditure

(SLPA) (Rs. mn) 12,193 12,870 15,134 18,227 13,183 19,385 22,415 22,201 21,390 23,892

7 Employment (No.) (SLPA) 18,561 17,910 13,418 13,233 13,527 13,660 13,667 13,715 13,367 12,828

Colombo 16,744 16,157 12,522 11,888 12,217 12,382 12,470 12,548 12,263 11,747

Galle 737 752 638 634 622 615 577 553 513 480

Trincomalee 1,080 1,001 776 711 688 663 620 614 591 601


5/22

5

liberalized economy took place. When Sri Lanka liberalized their economy in 1977 the industrial

sector accelerated its growth in a significant way. Especially the countrys garment sector took

off large part of this sector. Mainly as a result of quota-hopping East Asian garment exporters

who were attracted by the countrys liberal trade regime and relocated their already well-

established garment businesses to Sri Lanka. Sri Lanka was able to provide the labor at a

considerable lowest price when compared to other countries. Local entrepreneurs starts their

own garment enterprises to exploit the garment quota which was assist by the liberal trade

agreements and subsequently incentives granted by the Board of Investments (BOI) to selected

industries.

Kelegama (2005) explained about the history of the Sri Lankan apparel industry as follows. In

the early 1980s, garment exports were growing rapidly and by 1986 garments accounted for the

largest share of all exports (27 per cent). By the late 1980s, garment industry in Sri Lanka was

referred to as glorified tailor shops because, despite a decade of growth, its links with other

industries remained low and the value added remained low as before. The garment exporters

found it difficult to compete without a devaluation of the Sri Lankan currency, and started to

lobby the Government to this effect. Since the Government did not allow a devaluation of the

currency, the garment industry lobbied for duty-free status for textile imports with the aim of

bringing down their production costs. The Government granted this request without considering

the repercussions on the domestic textile industry. Consequently, the textile industry virtually

collapsed and no effort made by the government, for example, by offering subsidized interest

rates to rescue the textile industry, had any major impact. In fact, three of the privatized textile

factories (Veyangoda, Pugoda and Mattegoda) that were gradually switching to manufacture

textiles to meet the needs of the export-oriented garment producers had to be closed down.

Table 1.5: Textile Sector performance

Textiles and Garments Manufactured 2006 2007 2008 2009 2010

Woven Fabrics 4,956 4,278 3,789 3,835 4,501

Knitted /Crocheted Fabrics 1,244 2,058 2,795 2,045 2,329

Yarn 2,435 3,992 2,959 3,089 3,483

Garments 303,263 347,670 355,995 358,374 374,041

Other Made Up Textile Articles 4,530 8,681 8,181 6,634 8,029

Other 4,401 2,784 2,306 2,169 3,020

Source: Central Bank Annual Report (2010)


6/22

6

According to the Central Bank Annual Report of Sri Lanka (2010), the textile sector grew by

5.2% during 2010 compared to 0.6% in 2009. Currently this sector is facing a number of

problems, high level of competition draw by regional manufacturers, withdrawal of GSP+

concession, high cost of skilled labor and imported raw materials fueled the problems. But

industry remains competitive market due to the high quality state but this has increase the cost.

Though the strategy of the ethical garment promoted the increase of the cost remain as a

problem. The Central Bank of Sri Lanka states that when it comes to logistics cost the following

points can especially be noted.

The number of vessels arrived has increased; but it is noted that this has been decreasingduring last few years.

Total cargo handled has also not that much increased and total Transshipment Containersare also not considerably high.

Though the revenue has not increased in last few year there is a small increase in the lastyear by 20% and the cost has also increased by 11%.

Logistic practices are one of the most important practices in the garment industry. Customer

Service, Transport, Inventory Management, order processing, warehouse and distribution center

and information management are all important elements of the logistics chain (Appelbaum andGereffi, 1994).

2.0 Research Problem

Though Sri Lanka has a remarkable name for their garments worldwide it could be seen to be

faced with some major issues (Dheerasinghe, 2003), especially because of logistic industry

failures which has become a significant constraint. The problems can be simplified as follows:

Due to the limited size of Sri Lankas domestic market, targets set by the government onexport growth cannot be met without a significant improvement in export performance

Lack of focus on Asian supply chains, especially emerging economies such as India andChina


7/22

7

Concerns by foreign buyers over perceived long delivery time and unreliable supply inSri Lanka garments sector

While considerable attention has been focused on the countrys performance in the World

Banks Ease of Doing Business Index, much less has been discussed or done to address an even

worse ranking on the World Banks Logistics Performance Index (LPI). This point was further

stressed in an article published in the Sunday Times (2011) which discussed about the challenge

posed to export growth from poor logistics. In fact the article stated that Sri Lanka was ranked

137th

out of 154 countries in the LPI in 2009. The LPI is composed of indicators relating to

customs, infrastructure, logistics competence, shipments, tracking and tracing and timeliness.

Within the South Asia region, Sri Lankas ranking is even below Bangladesh, which is a least

developed country. According to the LPI, Sri Lankas performance is particularly weak in

clearance by border control agencies (particularly customs), logistical competence and ability to

track and trace consignments. There has been slow progress in implementing customs reform. Sri

Lanka has made less progress than other countries in South Asia, such as Bangladesh and India.

Sri Lankas LPI ranking also reflects logistics related problems with both road and rail

infrastructure. These include congested road access to the Port of Colombo and the poor quality

of trucking and rail services. Both trucking and rail costs exceed those in Bangladesh and India.

The railway sector accounts for only about one percent of freight movements and is

characterized by a large cost structure. In addition the logistics sector has been slow to provide

value added services for transshipment through the Colombo port. The government can

encourage this by providing free zones and customs procedures that will enable services to be

provided efficiently. Failure to do this can make Colombo vulnerable to losing market share to

Indian ports that are being upgraded, particularly as pure transshipment cargo is foot-loose.

Colombos ability to maintain its competitive position vis a vis other regional hubs , and

increasingly efficient Indian ports, will also depend on its ability to replicate the level of

efficiency attained by the South Asian Gateway Terminal (SAGT) in the operations run by theSri Lanka Ports Authority and the new facilities being constructed in the South Harbor.

As well as according to the LBO (2011) Mohandas, chairman of the Sri Lanka Freight

Forwarders' Association also explained that Sri Lankas logistic industry has warned that length

delay in automating cargo clearing procedures were eroding the islands competitiveness. He


8/22

8

further summarized that the critical issues that persist at the port in terms of lack of labour in the

company services, delays in automated customs procedures, port issues and infrastructure issues.

This is further re-iterated by the fact that the island slipped further down the World Bank

logistics performance index.

An article in the Financial Times (2011) about revitalizing the logistics and transport industry in

Sri Lanka saw Prithwijit Maitra, General Manager of Maersk, a global shipping line talk about

the challenges faced by the Sri Lankan logistics industry. He stressed that the lack of reliability

due to the inability to deliver goods on time, lack of cooperation amongst the various

stakeholders and the need to reduce to waste.

Another article published in the Financial Times (2011) discussed about the measures that need

to be taken in order to improve the competitiveness of the logistics industry in Sri Lanka. Sri

Lanka Freight Forwarding Agents Vice Chairman Mr. Mohandas stated that Sri Lanka needs to

look closely at every process if it wanted to be positioned as a logistics hub in South Asia. The

need to improve competency in training and education, the lack of port capacity, rises in freight

prices and the escalating price of oil were other issues that were highlighted. In addition,

operational inefficiencies, direct and non direct taxation and idling (waste and inefficiency) has

plagued the entire industry. Traditional processes and the lack of automation in clearing

processes is clearly a concern affecting the level of port efficiency. In fact the need to inculcate

more IT into the process was stressed as there was no online tracking of cargo. Further, the

heavy congestion on roads was seen as a problem faced by companies when clearing their cargo.

Further, a study on the problems in developing logistics centers for ports in the Economic and

Social Commissions for Asia and the Pacific (ESCAP) region, of which Sri Lanka is a member,

highlighted the following barriers.

Table 2.1: Barriers to building logistics centers in the ESCAP region

Problem areas Major problems

Financial aspect Insufficient infrastructure

Service provider aspect Lack of professionals and skilled workforce

Shortage of land space in port area Conflict between port and city. Expensive land cost.

Regulation aspect Administrative red tape


9/22

9

Poor service level Poor services in many ports

Source: UNESCAP (2002)

A study by the ADB (2007) on the expansion of the Colombo Port stated that the port had only a

depth of 15 meters (m). This meant that it cannot berth the latest generation containerships, i.e.,

9,000 TEU vessels, whilst its competitors in Dubai, Singapore, Salalah, and Tanjung Pelepas can

all berth 9,000 TEU vessels. Shipping economics mean that the trend is toward larger container

vessels. All hub ports therefore need to upgrade their infrastructure to handle these larger vessels

or see their competitive position eroded.

3.0 Research Questions

Further to the literature review that was carried out this study attempts to answer the following

research question.

What are the barriers in the Sri Lankan Logistics industry which prevent the island frombeing internationally competitive?

(A Study based on the Apparel Industry of Sri Lanka)

4.0 Objectives of the Research

The objectives of this research can be outlined as follows.

Understand the present status of the logistics industry in Sri Lanka. Identify the barriers in making Sri Lanka a Global Logistics hub. To make recommendations to improve logistics in the Sri Lankan Apparel Industry.


10/22

10

5.0 Scope of the Study

This study will attempt to identify the logistics problems faced by the apparel industry in Sri

Lanka, and will be limited to cover the Sea Freight operations at the Colombo port. Further, the

study will capture all stakeholders of the logistics supply chain in order to understand theproblems that persist.

6.0 Literature review

What is Logistics?

The Council of Logistics Management has adopted this definition of logistics:

Logistics is that part of the supply chain process that plans, implements, and controls the

efficient, effective forward and reverses flow and storage of goods, services, and related

information between the point of origin and the point of consumption in order to meet customers'

requirements.

Studies on Logistics performance

One of the measures frequently used internationally in identifying the logistics performance

between countries is the Logistics Performance Index (LPI) devised by the World Bank. It is in

effect the weighted average of the country scores on six key dimensions, viz.

Efficiency of the clearance process (i.e. speed, simplicity and predictability of formalities) byborder control agencies, including Customs;

Quality of trade and transport related infrastructure (e.g. ports, railroads, roads,information technology);

Ease of arranging competitively priced shipments; Competence and quality of logistics services (e.g., transport operators, customs brokers); Ability to track and trace consignments; Timeliness of shipments in reaching destination within the scheduled or expected delivery

time


11/22

11

A study on the logistics barriers to international operations by Yu (2011) attempted to identify

the extent of criticalness of identified major logistics problems. The list of problems includes;

Lack of logistics infrastructure facilities Lack of means of transportation Deficiency of road conditions Poor service quality of local 3PL providers Lack of information on traffic laws and regulations Subcontracting with local logistics providers Selection of local logistics providers Reliability of local logistics providers Regulatory restrictions Local protection regulations Maintenance of quality Rise in logistics costs Rise in local labor costsThis study also further studied product related problems that arose due to logistics problems by

classifying them into 03 major types, viz. quality, cost and delayed delivery. Quality related

issues discussed about the lack of container trucks, and product damage due to sub standard

containers, while cost issues pertained to rough treatment of products, instability of ocean freight

and rising labour costs. Finally, the issue of delayed delivery discussed problems of labour

shortages and differences in logistics practices between nations.

Another study on Chinas logistics industry by Zhang and Figliozzi (2010) identified eight major

categories of transport and logistics challenges. These include;

Low efficiency and High logistics costs Congestion Lack of a nationally integrated transport network Regulations and Protectionism Capacity of rail freight Poor IT infrastructure and inability to use advance technology


12/22

12

Underdeveloped warehousing service Efficient port operationA study conducted by Rajkarnikar in 2010 on the Adequacy and Effectiveness of Logistic

Services in Nepal identified 03 key aspects that should be looked into in logistics. These include:

Adequacy of trade logistic services measured in terms of their available quantity or volumein relation to need.

Efficiency of trade logistics. Cost Effectiveness of trade logisticsSingh (2009) discussed about some of the critical aspects pertaining to the sustenance and

growth of the Indian Logistics Industry, which can be outlined as follows.

Increasing trade volumes Reducing logistics costs Improvement in infrastructureThis study about the problems that persist in the Indian logistics industry.

High cost and low margins Lack of economies of scale Non-uniform tax structure Lack of trust and awareness on outsourced logistics amongst shippers Poor physical and communications infrastructure Low IT penetration Lack of skilled manpower Unavailability of total logistics solution providersA survey in the National Capital Region of India (apparelresources.com) attempted to identify

the key areas with respect to apparel logistics, and the most frequent and critical issues that arise

in each of these areas. This is shown in Table 5.1 overleaf.


13/22

13

Table 5.1: Major Issues/Challenges in the Apparel Logistics Process

Issues/Problems/Situations Most Frequent Most Critical

Purchase Order related Delay in issuance Error in order value, delay in issuance

L/C (Letter of Credit) related Delay in issuance LC terms not in line with agreed terms, Error in

quantity and value

Time of final documentation for shipment Final quantity/weight/ volume cannot be

ascertained till shipment is fully packed and

ready to ship

Final quantity/weight/ volume cannot be

ascertained till shipment is fully packed and ready

to ship

Change in final quantity after inspection Approval from buying agency/ buyer, revised

booking/intimation has to be sent to FF

(Freight Forwarder)/ buying house

Approval from buying agency/buyer

Issues which may arise between

forwarder and exporter in terms of

meeting documentation requirements

Delay in issuance of documents by FF, request

of document on urgent basis by exporter

Time taking operating procedures/approvals of FF

Custom clearance of shipment EDI (Electronic Data Interchange) related

issues

Valuation issues and mismatch of merchandise

with what was mentioned in documents

Issues with interstate border

documentation

Non availability of valid papers and license Non availability of valid papers and license

Issues related to post-shipment

documentation

Delay in release of FCR (Forwarders Certificate

of Receipt)/ HBL (House Bill of Landing)/HAWB

(House AirWay Bill) by FF

Timely availability of documents for payment

realization

Operational issues after shipment is No major frequent problem Damage of merchandise due to unexpected rains


14/22

14

ready and moves out of premise

Challenges being faced at the time of

cargo delivery at CFS (Container Freight

Station)

Arrival of cargo after cutoff date, bad

condition of cargo upon arrival

Late arrival of cargo after CFS cutoff date

Situations that may arise if ship date is

missed

Buyer asking for discounts or asking to air at

own cost

Shipper bearing the overcharge of air shipment

and getting an extension

CFS cut off to catch intended vessel is

missed

Requesting FFs to accept the cargo late

through buying agents special approval

Requesting FFs to accept the cargo late through

buying agents special approval

Issues in booking cargo with

FF/consolidator/ carrier

Bookings not placed on time or placed late

due to which cargo is not accepted at CFS

Bookings not placed on time or placed late due to

which cargo is not accepted at CFS

Challenges in release of container from

FF or carrier for stuffing of cargo in

factory

Buyer may not agree to approve factory

stuffing

Buyer may not agree to approve factory stuffing

Challenges which may come up when

shipment is en route to port by rail or

road or by air

Delays when merchandise is en route to port

for loading by all modes of transport

Transit delays en route to port

Issues that may come up when goods are

exported out of India, at trans-shipment

port or at final destination

No major frequent issue Cargo must be tracked and monitored very

closely till merchandise reach final destination

Challenges that may come up at port or

airport

Space issues at CFS during peak season,

embargo by airline

Delay in handing over of merchandise to FF,

shipping line or airline results is cargo not being

shipped on time as per buyers ETA requirement

Source:www.apparelresources.com
http://www.apparelresources.com/http://www.apparelresources.com/http://www.apparelresources.com/http://www.apparelresources.com/


15/22

15

A study on the problems faced by Indian shipping agents carried out by Tiwari and Khandelwal

(2010) identified potential problems that could occur when making an export consignment.

Non-availability of containers Long waiting time for clearance Long waiting time for containers Insufficient pallet providers Poor quality of pallets provided by maker Long time taken for documents clearance Less frequency of container train Shrink-wrapper not being available on time Container truck not being available on time Higher round trip costs Round trip containers not being available on time Inability to make shipment within a short period Congestion on port Preference given on loading and unloading of the containers Price discrimination by pallet providers Many documents for export clearance causing delay in work Dominance of officers Lack of awareness of the overall proceedings to be done in export Poor connectivity Poor government publicity Non-professional attitude of Government officers Less night navigation

Appelbaum and Gereffi (1994) demonstrated the apparel value chain as shown in Figure 5.1

overleaf. This study attempted to identify the key stakeholders and their respective contribution

to the apparel value chain.


16/22

16

Figure 5.1: Apparel Value Chain

Source: Appelbaum and Gereffi (1994)


17/22

17

7.0 Conceptual Framework

The following conceptual framework has been devised based on the Logistics Performance Index

used by the World Bank (see section 3.0).

Figure 7.1: Conceptual framework

The Logistics Performance Index as explained by the World Bank (2007) is based on a

worldwide survey of operators on the ground (global freight forwarders and express carriers),

providing feedback on the logistics friendliness of the countries in which they operate and

those with which they trade. They combine in-depth knowledge of the countries in which they

operate with informed qualitative assessments of other countries with which they trade, and

experience of global logistics environment.

Arvis et. al (2010) explains the formulation behind the logistics performance index. The LPI is

constructed from the six indicators shown in Figure 7.1 using principal component analysis

(PCA). PCA is a standard statistical technique used to reduce the dimensionality of a dataset. In

the LPI, the inputs for PCA are country scores on the six questions above, averaged across all

Efficiency of the clearance process

Quality of infrastructure

Ease of arranging shipments

Competence and quality of logistics services

Ability to track and trace consignments

Timeliness of shipments

Perceived level

of Barriers in

logistics

Independent Variables


18/22

18

respondents providing data on a given overseas market. Scores are normalized by subtracting the

sample mean and dividing by the standard deviation prior to conducting the PCA. The output

from the analysis is a single indicatorthe LPIthat is a weighted average of those scores. The

weights are chosen to maximize the percentage of variation in the original six indicators

accounted for by the LPI.

Each respondent to the survey from which the World Bank developed the LPI was also asked to

also evaluate the logistics performance of the country in which they are based and provide time

and cost data relating to it. The World Bank has also published the data which cover these

aspects of trade (World Bank, 2007):

the percentage rate of physical inspection of containers; the number of days for customs clearance; the time for exports (median) and imports (best and median) between shipper and port.

The best relates to the 10th percentile of shipments and the median to the 50th percentile;

the number of border agencies for exports and imports;

the percentage of respondents who consider there is a simple and inexpensive reviewprocess available; and

the typical charge in US dollars to import and export a 40-foot container or semi-trailer.

8.0 Hypothesis

Tiwari and Khandelwal (2010) in their study on the problems faced by Indian Shipping Agents

developed the following hypotheses, based on the hypothetico Deductive method, which have

been adapted for the purpose of this study.

H1: There is no significant impact of the level of experience in the industry towards the

perception on problems faced.

H2: There is no significant variation of the perception on problems faced while shipping between

the different stakeholder groups.

H3: There is no significant variation or impact of qualification (i.e. the level of education) on the

perception towards problems faced.


19/22

19

Tiwari and Khandelwal (2010) developed 24 attributes across the six performance dimensions of

the logistics performance index which was then presented to participants in the logistics industry

in Indore, India. The participants were required to express their perception on each attribute on a

5-point scale ranging from 5=Strongly Agree to 1=Strongly Disagree. The results showed that

the level of experience did not matter when it came to the perception on problems faced; there

was no significant variation between the perceptions of various stakeholder groups, and that the

level of education did not have any impact on the perception levels.

9.0 Contribution of the Research

This is a pioneering study in a Sri Lankan context which attempts to identify possible

improvements in infrastructure and logistics in order to improve the competitiveness of Sri

Lanka as a global logistics destination with specific application to the apparel industry. In effect,

this study deals with both the private and public sector involvement that is required to boost port

volumes, and position the Colombo port as a Global Logistics Hub.

10.0 Research Design

This study attempts to identify the main types of logistical problems that are faced by the apparelindustry when making a shipment of goods via the Colombo port. In effect, the study is of a

descriptive nature attempting draw specific conclusions about the logistical problems faced by

apparel exporters in Sri Lanka. Thereby this study hopes to understand the reasons for the

reluctance of global apparel players to enter Sri Lanka from a logistical perspective.

As this is a pioneering study conducted in a Sri Lankan context it is necessary to obtain primary

data for the purpose of this study. A Convenience Sample will be selected to cover all

stakeholders in the logistics industry, due to the difficulty in obtaining a proper sampling framefor certain stakeholder groups. A closed-ended questionnaire will be provided to 50 respondents

comprising of Commercial Managers of 10 freight forwarding companies, Shipping &

Documentation heads of 10 buying houses, 10 garment exporters, 10 members of the Sri Lanka

Ports Authority and 10 foreign buyers.


20/22

20

11.0 Data Collection Procedure

It is expected to collect the data using an interviewer administered questionnaire, in order to

bring in clarity and accuracy to the data collection process. This is due to the diverse education

levels of the respondents selected for the sample. The questionnaire will have specific questionsunder each of the six key dimensions identified under the conceptual framework. The

respondents would be asked to provide their opinion on each using a 5-point scale;

5 = Strongly Agree

4 = Agree

3 = Neutral

2 = Disagree

1 = Strongly Disagree

In addition, they would be asked to rank the issues in a priority order in order to understand the

extent of criticalness of the logistical problems at the Colombo port.

12.0 Methods of Data Analysis

The data will be analyzed using SPSS and the following analyses are expected to be carried out;

Determine the specific logistical issues that persist at the Colombo port by obtaining themean response on each of the questions presented to the respondents

Obtain an overall ranking of the issues by calculating an average based on the ranking carriedout by the respondents


21/22

21

13.0 References

World Bank website. Logistics Performance Index.

http://info.worldbank.org/etools/tradesurvey/mode1a.asp

Yu, L. (2011). Logistics Barriers to International Operations: A Case Study of Japanese Firm in

China. IPEDR vol.4. IACSIT Press, Singapore

Zhang, Z. and Figliozzi, M. A. (2010). A Survey of China's Logistics Industry and the Impacts of

Transport Delays on Importers and Exporters. Transport Reviews, vol. 30, no. 2, pp. 179-94.

Rajkarnikar, P.R. (2010). Adequacy and Effectiveness of Logistic Services in Nepal: Implication

for Export Performance. Asia-Pacific Research and Training Network on Trade Working Paper

Series, No. 79, April 2010.

Singh, S. (2009). Indian Logistics Industry. Oriental Institute of Management, Mumbai.

Apparel Resources website. Challenges in Apparel Logistics: Survey in the NCR

http://apparelresources.com/new/next.asp?cod=I&msg=10809

Tiwari, S. and Khandelwal, S. (2010). A Demographic Study of Problems Faced by Indian

Shipping Agents with Special Reference to Indore. The IUP Journal of Management Research,

Vol. 9, No. 4, pp. 61-68, April 2010.

Lanka Business Online. Sri Lanka logistics industry bemoans slow pace of e-commerce effort.

28th June 2011. 09:15:02. http://www.lankabusinessonline.com/fullstory.php?nid=14255922 .

Accessed on 1st December 2011

Chin, F. C., Bae, J. H. and Kim, G. O. (2009). A Survey on the Logistics Service Providers in

Shanghai. International Journal of Physical Distribution & Logistics Management. Volume: 29,

Issue: 9, Pages: 1-25.

Central Bank Annual Report (2010). Statistical Appendices. Table 37: Performance of the Port

Services. Central Bank of Sri Lanka.

Central Bank Annual Report (2010). Statistical Appendices. Table 72: Selected Industrial and

Mineral Exports. Central Bank of Sri Lanka.
http://info.worldbank.org/etools/tradesurvey/mode1a.asphttp://info.worldbank.org/etools/tradesurvey/mode1a.asphttp://apparelresources.com/new/next.asp?cod=I&msg=10809http://apparelresources.com/new/next.asp?cod=I&msg=10809http://www.lankabusinessonline.com/fullstory.php?nid=14255922http://www.lankabusinessonline.com/fullstory.php?nid=14255922http://www.lankabusinessonline.com/fullstory.php?nid=14255922http://apparelresources.com/new/next.asp?cod=I&msg=10809http://info.worldbank.org/etools/tradesurvey/mode1a.asp


22/22

22

Kelegama, S. (2005). Ready-Made Garment Industry in Sri Lanka: Preparing to Face the Global

Challenges. Asia-Pacific Trade and Investment Review Vol. 1, No. 1, April 2005. pp 51-67.

Appelbaum, R. P. and Gereffi, G. (1994). Power and profits in the apparel commodity chain, in

Edna Bonacich et al. (eds), Global Production: the Apparel Industry in the Pacific Rim

(Philadelphia, PA, Temple University Press, 1994), pp. 42-64

Sunday Times. (2011). Export Growth: The challenge of poor logistics. June 05, 2011.

http://sundaytimes.lk/110605/BusinessTimes/bt032.html . Accessed on 15th

December 2011.

Financial Times (2011). Revitalizing the logistics and transport industry in Sri Lanka. 01st

November 2011. http://www.ft.lk/2011/11/01/revitalising-logistics-and-transport-in-sri-lanka/ .

Accessed on 18th

December 2011.

Financial Times (2011). Revitalizing the logistics and transport industry in Sri Lanka. 23rd

June

2011.http://www.ft.lk/2011/06/23/gaining-a-competitive-advantage-through-logistics-

development/. Accessed on 18th

December 2011.

UNESCAP. (2002). Problems in developing logistics centers for ports in the ESCAP region cited

in Commercial Development of Regional Ports as Logistics Centres. pp 53-64.

ADB. (2007). Proposed Loan Democratic Socialist Republic of Sri Lanka: Colombo Port

Expansion Project. Report and Recommendation of the President to the Board of Directors.

Project Number: 39431

World Bank. (2007). Connecting to Compete: Trade Logistics in the Global Economy,

Washington D.C.: World Bank.

http://siteresources.worldbank.org/INTTLF/Resources/lpireport.pdf. Accessed on 14th

December

2011.

Dheerasinghe, R. (2003) Garment Industry in Sri Lanka Challenges, Prospects and Strategies.

Staff Studies: Central Bank of Sri Lanka. Vol. 33, 1 & 2. pp 33-72.

Arvis, J. et al. (2010). Connecting to Compete 2010: Trade Logistics in the Global Economy.

The Logistics Performance Index and its Indicators. World Bank publications.
http://sundaytimes.lk/110605/BusinessTimes/bt032.htmlhttp://sundaytimes.lk/110605/BusinessTimes/bt032.htmlhttp://www.ft.lk/2011/11/01/revitalising-logistics-and-transport-in-sri-lanka/http://www.ft.lk/2011/11/01/revitalising-logistics-and-transport-in-sri-lanka/http://www.ft.lk/2011/06/23/gaining-a-competitive-advantage-through-logistics-development/http://www.ft.lk/2011/06/23/gaining-a-competitive-advantage-through-logistics-development/http://www.ft.lk/2011/06/23/gaining-a-competitive-advantage-through-logistics-development/http://www.ft.lk/2011/06/23/gaining-a-competitive-advantage-through-logistics-development/http://siteresources.worldbank.org/INTTLF/Resources/lpireport.pdfhttp://siteresources.worldbank.org/INTTLF/Resources/lpireport.pdfhttp://siteresources.worldbank.org/INTTLF/Resources/lpireport.pdfhttp://www.ft.lk/2011/06/23/gaining-a-competitive-advantage-through-logistics-development/http://www.ft.lk/2011/06/23/gaining-a-competitive-advantage-through-logistics-development/http://www.ft.lk/2011/11/01/revitalising-logistics-and-transport-in-sri-lanka/http://sundaytimes.lk/110605/BusinessTimes/bt032.html

Documents

Sujan's Dissertation Proposal Final