Service, not rates, still king in transport sector

While transporters operate
on low profit margins –
driven by what the Road
Freight Association’s
Gavin Kelly calls “highway
cowboys” who continue
to push the envelope on
low rates
– service is
still king
and will
win out in
the longrun.
This is
the view
of Michael
Henning,
general
manager
of software
solutions
company
Easyclear,
who told
FTW that
rates were continually
being squeezed – on all
levels of the supply chain –
as South Africa’s economy
continued to limp along.
“But service plays a
big part in customer
retention,” he said,
commenting that while
customers were aware
of cheaper rates – and
would,
in some
cases, use
this as an
opportunity
to
re-negotiate
rates
with their
existing
service
providers –
the industry
did not
move on
rates alone.
“Service
remains the
single factor
that decides whether a
customer stays or moves
on to a competitor,” said
Henning.
INSERT AND CAPTION
Rates are continually
being squeezed
— on all levels of
the supply chain —
as South Africa’s
economy continues to
limp along.
– Michael Henning