Major factors why Kuehne + Nagel Bangladesh LTD. loses local customers despite being the leading freight forwarder in the world?

Abstract

B. Business Administration

In order to complete my graduation, I joined as intern in Kuehne + Nagel Ltd. which is one of the finest multinational freight forwarding company in the word. I have learned the basic operating procedure, the software they use and behavior of Kuehne + Nagel by working with every department of Kuehne + Nagel Ltd.’s Chittagong brunch within last three months. In this three months, I find out that Kuehne + Nagel Bangladesh is basically depending on their nominated customers not local customer. So, this report is about finding out the seasons behind why KN loses local customers. After discussing this matter with KN Chittagong brunch sales team, I have found that Price, Service Reliability, Contingency plan, Flexibility and Customer relationship could be the main reason behind it. To find out the factors I did a survey in google form by the help of KN Chittagong brunch sales team based on the customers who are already left KN. Based on the survey result I did a multiple linear regression analysis on IBM SPSS and find out that higher price rate then local forwarder, low service reliability because of failing to maintain promised schedule, inefficient contingency plan as carrier and port sometimes could not maintain schedule , and low flexibility of Kuehne + Nagel Bangladesh Ltd. like not giving credit facility to SME and complicated booking system are the main reasons of losing local customers.