How do you rate industry service levels?

Service levels in the freight industry appear to have improved marginally yearon- year based on the results of our latest survey run in conjunction with sister publication FTW Online. But it’s very marginal – although the good news is that more respondents have seen an improvement while fewer have seen a deterioration (graph1). A year is possibly too short a time span for any noticeable improvement in skills levels which are once again pegged as average (graph 2). The bad news is that far more respondents (20% compared to 11% in 2013) rated skills levels as poor. But there’s slight comfort in the fact that slightly more respondents found their service providers to be extremely knowledgeable. Warehousing operators and airlines are providing the best service to their customers, according to our respondents, while others sectors get an average rating. This is often higher than last year which points to an increase in satisfaction with service levels by sector. One area where there is universal consensus, however, is the need for improvement in the likes of operations and documentation, with problem solving and overall knowledge the most critical areas of concern. A major shipper – discouraged by the service levels he was receiving from his service providers – planted the idea of the survey last year. FTW welcomes your comments and suggestions. A more detailed analysis of the results is provided below each graph by FTW’s market researcher, Carryn du Plessis. Over the past year, have service levels improved or deteriorated? This graph indicates that respondents are slightly happier than they were last year in terms of service levels (higher proportion of respondents this year believe service levels have improved compared to last year, and a lower proportion believe that levels have deteriorated compared to last year). The majority however believe that service levels have either stayed the same or deteriorated. Most respondents this year believe that levels have stayed the same (43%) but fewer believe that they have deteriorated (39% in 2014 compared to 54% in 2013). How would you rate the skills levels of the service providers with whom you deal? Ratings given in 2013 are similar to those given this year (2014). In both years (46% in 2013 and 42% in 2014) the largest proportion of respondents rated the skills levels of service providers as average (rating of 3). Interestingly, though, slightly more respondents in 2014 gave ratings of 4 and 5 (extremely knowledgeable) than in 2013. However, significantly more respondents in 2014 (20% compared to 11% in 2013) rated their service providers' skills levels as poor (1 rating). What respondents said Transnet Freight Rail and Transnet National Ports Authority are not customer-focused. Their service levels, compared to European ports, are below standard. There is no accountability for poor service delivery. Knowledge and skills are being lost as people retire – and these are not being replaced. I speak as a small forwarder. Most shipping lines in particular show no interest whatsoever in proper communication and in many cases it is impossible to speak to anyone. Ditto with airlines and ditto with large forwarding companies. Shipping lines and service providers are tending to reduce staff and cut costs. Lots of companies are trying to interact via EDI. The problem is EDI works in a perfect environment but not if a shipment deviates from the normal parameters. Then personal interaction is required and more often than not the junior staff are not sufficiently trained. Too many unskilled people in high positions making decisions that negatively impact business. Knowledge of the industry is totally lacking. Instead of varsity degrees we should be starting at the bottom and working our way up – experience is much more important, especially someone who is interested and passionate about the industry as they are more inclined to take responsibility.