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INITIALS AND SURNAME: P.MOLOI

STUDENT NUMBER: 224127414

MANAGING A ROAD A ROAD TRANSPORT OPERATION [240MRO1RY1]

ASSIGNMENT 2 – PART B
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QUESTION 1

1. FIRST CHARACTERISTIC

Intangible/Intangibility – Services are often intangible because a service cannot be

seen or heard until a customer purchases the service or until the customer receives
the service. The customer cannot anticipate the result of that service until after they
have been provided with the service. [E.g. A lawyer’s client does not know the
outcome of a court case before the lawyer appears in court]

2. SECOND CHARACTERISTIC

A service cannot be Inventoried – Service providers cannot manufacture a service

beforehand or place services at a store for customers to buy or decide whether they
want it or not and service providers cannot anticipate the supply or demand of a
service therefore services cannot be held inventory until the arrival of a customer.

3. THIRD CHARACTERISTIC

The customer is part of the service system – Most service suppliers use consumers
as a resource to monitor the process because in most service organisations, the
client is present when the service is rendered. This is considered as both an
advantage and disadvantage because not all consumers receive the service being
rendered in the same way.

4. FOURTH CHARACTERISTIC

The rendering of services in small facilities – The demand of the service company
usually determines the size of the service facility. Unlike a service, physical goods
can be manufactured in large quantities and in large facilities. A service cannot be
shipped to the points where demand exists therefore limiting the size of facilities
being used where services are rendered.

5. FIFTH CHARACTERISTIC

Labour Intensive – Service companies usually need a larger workforce or a large

amount of employees because usually a lot of work is done in order for the service to
be provided according to the client’s standards.

6. SIXTH CHARACTERISTIC

Quality of service is measured with difficulty – It is often easy to specify and measure
the quality characteristics with the production of physical goods. However with
services that’s not the case, the quality of a service is measured with difficulty
because every client has their own preference regarding excellent service.

7. SEVENTH CHARACTERISTIC
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Proximity to the client – Service suppliers prefer that their service facilities are
located closer to the target audience or the client because of the direct involvement
of the client in the service process and the fact that services cannot be kept
inventory, which is not the case when physical goods are being manufactured.

8. EIGHTH CHARACTERISTIC

Services cannot be resold – Since most services are intangible, clients are a
resource in the service process but the customisation according to the personal
preference of the client complicates the resale of a service. Physical goods can be
resold as many times because the product may still be of value to the next person
which might not be the case with a service.

9. NINTH CHARACTERISTIC

Timing of the service – The demand for a service varies by hour during the course of
the day because a service is rendered moments after the arrival of a client in the
service system so as soon as the response time is delayed, the client leaves. A
physical good on the other hand, lead time elapses between placing the order and
the delivery of the product.

10. TENTH CHARACTERISTIC

Patenting of services - It is much easier to exercise a patent on a physical product

than it is on a service. The intangible component of a service makes it difficult to
patent. There’s a lot required because to facilitate patenting the service, the service’s
specifications should be as clear as possible. [Example; Putting standards to the
design of the service facility]

QUESTION 2

1. Transport legislation, regulation and standards

There are a number of rules and regulations that exist that affects the operation of
transport services and these are usually determined and executed at various
governmental levels. In most cases the legislation of transport affects the supply and
demand of road services which in turn affects the revenue and profitability of the
business. From the consumer’s perspective, government may have a positive impact
on the quality and safety of transport services however these regulations can also
lead to higher prices, limited availability and reduction in innovation.

2. The micro and macro environment

The micro environment is linked to producer, consumer and distribution costs. The
macro environment is linked to employment and income in the national economy.
Bothe of these have a huge impact on the road transport services because they
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include factors that contribute a lot in transport services being offered such as start-
up capital, availability of employees, competitors, consumers, distribution channels
and suppliers. If all these factors are not given the right amount of attention, the
supply and demand of transport services will be affected.

QUESTION 3

1. Load Compilation

Specific and clear instructions are usually given required to compile loads, off-load
and match the carrying capacity of vehicles that will be on the road. These
instructions are required for the execution of the transport task so that the client is
satisfied with how their things are handled.

2. Routing

It is important to minimise the distance travelled when delivering a load because

routing directly affects operation cost through the use of fuel and maintenance. The
less the distance travelled, the less it costs for fuel and maintenance and that means
revenue is maximised and expenses are minimised.

3. Loading

Loading of goods or packages has to be done accordingly and neatly to avoid

wasting time looking for packages when they have to be off-loaded especially if the
pick-up points or delivery points are experienced on the same route. The quicker the
off-loading, the happier the customer and this also brings a good review for the
company.

4. Driver and vehicle matching

Drivers have to be given vehicles that match their skills and licenses to avoid
complications on the road. A driver being familiar with a particular geographical area
should be considered when the allocation of a vehicle takes place or when routes
are being allocated.

5. Dispatching

Before sending off a vehicle to a certain destination, the vehicle must be thoroughly
checked to ensure that there will not be any complications on the road. The checking
of the vehicle, documents, operational charts and appearance of both the driver and
on-vehicle staff should be done. If dangerous goods are being transported, the right
amount of time should be given to the legal requirements of such trips.

6. Monitoring and control

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Operations managers and supervisors should randomly and constantly visit transport
activities to ensure that drivers and other employees are following operating policies
and procedures and if these are executed correctly. If operators utilise “driver cams’’,
these should be regularly maintained and inspected.

7. Debriefing

Upon the return of drivers and vehicles, drivers and vehicles should be properly
inspected. This included the inspection of driver reports, loading documents, vehicle
condition and special reports made by drivers. By doing so, companies are more
likely to pick up on little things that need to be attended to before it is too late.

8. General operating policies and procedures

Generally a number of strict policies and procedures exist because companies want
to avoid little mistakes being done by employees and so that freight transport
services companies do not get affected. Also so that revenue is maximised and
expenses are minimised.

QUESTION 4

Specialisation – This process is made up of identifying particular tasks and assigning

them to individuals or teams who have been trained to do them. This job is not
entirely done by one particular person but rather is done by different people who are
assigned to do those tasks. This element focuses on the behaviour, performance
and management of transport systems. Example; Fleet managers are responsible for
maintenance, repair and disposal of fleet vehicles.

Standardisation – These are the procedures that employees are to follow in doing
their jobs. Written procedures, rules and regulations are used to standardise the
routine aspects of jobs and standards permit managers to measure on employee’s
performance against what is expected of them. Example; A driver should be reliable,
careful and responsible in order for them to meet the standard set by their manager.

Coordination – Consists of formal and informal procedures that integrate the

activities that separate individuals, teams and departments in an organisation.
Multiple entities work together to deliver components of transportation services so
profitability is increased. Coordination requires the willingness to share responsibility
and effective interpersonal communication. Example; The sharing of passenger trips,
vehicles and collaborating on costs.

Authority – This element is about who has right to decide or act in a organisation.
Usually top managers are the ones that do bigger decision-making and then the
middle and low management have to decide on matters that were initially decided by
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the top management. Example; Matters such as transportation infrastructure,

operations of public transport and freight.

QUESTION 5

1. Ability to communicate

Managers serve as a balance between the company and the employees so

managers should be able to clearly communicate the needs of the company to their
team or employees but this should be done respectfully and specifically to avoid
misunderstandings with managers and employees.

2. Leadership

A manager is usually responsible for leading employees through innovations and

challenges. Effective managers are able to do what is expected of them, they are
decisive, assertive and are able to lead their employees to better performance.

3. Reliability

A manger should be reliable as a lot of decisions regarding the company should be

taken by them. They should be reliable to their employees and available when
employees need clarification or when they need their leader.

4. Confidence

Effective managers should lead with confidence, they must not doubt themselves
and they should know their work to avoid self-doubt or doubt from their employees. If
a manager is confident, their team tend to be confident as well.

5. Authenticity

Effective managers stick to their values, their characteristics and their personality
regardless of the pressure they may encounter at work which may force them to act
otherwise. Managers should be real and honest to themselves. Their team and the
employees.