Introduction: During the past decade, companies have examined their core business, and anything that was not related to this, or did not add value to their product, was outsourced. One of the functions which fell into this category was the distribution operation, or more commonly known as transportation (in and out bound). In many instances, the distribution function was given up for tender, and specialised transport businesses, called third party logistic providers, whose core business was transport, were given the opportunity of taking over the distribution function. Some progressive companies went a little beyond the traditional approach and created opportunities for their own employees to be involved in the newly created, outsourced distribution network. This was largely an empowerment opportunity, with the aim of creating SME’s (Small-Medium-Enterprises), and providing people from a previously disadvantaged background (black people and other ethnic minorities) the opportunity to go into a business enterprise for themselves. The latter, although, politically the correct thing to do, simultaneously created opportunities and problems. Many of the companies that empowered their own employees, through Owner-Driver schemes, used the driving competency levels as the main criteria for the transition process. The other required skills were often overlooked or ignored. This empowerment process was driven to promote “Black Economic Empowerment”, an important national imperative. Although this process was an honorable gesture on the part of many companies, the process often took place without much foresight The viability and long-term continuity of the business were not taken into account. It is the researchers personal view, based on interviews with O-D’s and companies operating O-D schemes that the O-D’s which were empowered to operate their own business ventures, had limited or insufficient business skills and the very businesses that were given to them to improve their lifestyle were at risk of becoming unviable enterprises. This is clearly evident in some of the schemes being operated by companies such as Autonet and South African Breweries (hereinafter referred to as SAB). Other Eastern Cape companies that operate Owner-Driver schemes include Italtile, Shatterprufe and Ready Mix Materials (hereinafter referred to as RMM), and according to Management consultants spoken to, have obtained mixed levels of success with their schemes. The above schemes were confirmed with the various companies mentioned.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:10891 |
| Date | January 2001 |
| Creators | Ranchod, Sanjiv |
| Publisher | Port Elizabeth Technikon, Faculty of Management, Business Administration |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | 138 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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