Commercial tyre maintenance outsourcing is a creative and innovative service offering to the road freight industry in South Africa. It allows fleet operators to focus on their core business aspects, leaving the management and control of the tyres in their fleet to professional service providers with the necessary technical expertise and experience in this field. Currently tyre maintenance outsourcing service providers are under increasing pressure mainly due to price wars in the marketplace between the major tyre manufacturers fighting to maintain or increase their market share. The road freight industry in South Africa is also unique in that there is a hand full of major players, dominating more than fifty percent of the market, thereby leaving tyre suppliers and service providers doing everything in their power to retain the business they do have, and aiming to increase their share of the market at any cost. The main objective and purpose of this study has therefore been to conduct an investigation into commercial tyre maintenance outsourcing practises in South Africa. The following aspects were covered in this study: ! Defining the concept of outsourcing and more specifically tyre maintenance outsourcing. ! An overview of the tyre maintenance services currently available in the South African market and possible alternatives that may appear in the future. ! The current state of the commercial tyre industry in South Africa, focusing on the main role players and the services and products they offer to the market. ! The current state of the road freight industry in South Africa, focusing on the market shares the main role players hold, and other relevant transport statistics. ! The factors that play a role in the calculation of cost per kilometre rates, as well as the aspects which contribute to the success of a tyre maintenance outsourcing contract. ! An evaluation of the implications of technological advances on tyre maintenance outsourcing. Synopsis - ii Based on the above, a number of recommendations were made firstly (i) for companies that are current or potential users of tyre maintenance outsourcing, and secondly (ii) for companies that are current or potential providers of tyre maintenance outsourcing. (i) Recommendations for tyre maintenance outsourcing users 1. Companies need to identify their core and non-core activities. 2. Potential outsourcing users need to identify the most appropriate service provider not on pricing alone, but should also consider the overall long term business relationship, as well as the total service package on offer. 3. Companies need to realise that outsourcing is not a short-term solution to control costs, but a long-term project where the true benefits will take time to materialize. 4. Companies need to ensure that a clear tyre policy is agreed upon with the service provider at the inception of the contract. 5. Companies need to ensure that a service level agreement with measurable key performance indicators (KPI’s) is agreed upon with the service provider at the inception of the contract. 6. Companies need to understand the full cost of all the different items associated with the contract they are entering into. (ii) Recommendations for tyre maintenance outsourcing service providers 1. Companies need to build excellent relationships with their clients as to increase communication and flow of information. 2. Companies need to analyse the service they currently provide and determine which factors must be improved upon as to increase their service levels and competitiveness in the marketplace. 3. Companies need to carefully verify all the information they receive from fleet operators upon quoting for a new contract. 4. Companies need to understand the needs of the market they operate in, as to adapt their service offerings around these needs. / Prof. J.H. du Plessis
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:8556 |
| Date | 23 April 2008 |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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