Management of Road Freight Transport
By Nick Porée
1/5
()
About this ebook
This book describes the fundamentals of effective road freight management. It is written by the designer, author and lecturer on the RAU Transport Management courses, which, for many years, have been the required evidence of competence for employment in the road transport industry. His insights and experience has made a major contribution to the knowledge base of a great number of the present senior managers in the Southern African road freight industry.
The book is intended to fill the extensive gap in the practical learning material available to transport supervisors, managers and anyone aspiring to progress in the challenging field of road freight logistics management. This “handbook” is deliberately focussed on the principles and the practical functions of transport management without exploring the complicated and sophisticated programmes such as electronic data interchange (EDI), GPS tracking, algorithm-based scheduling, video monitoring and other high-tech tools.
The book is written for the large number of people who aspire to work in the freight transport industry, but need to understand the basics of transport management, firstly as evidence of competence when seeking employment and then to improve the efficiency and quality of the operations that they manage. The practical examples and recommended practices do not require expensive equipment or systems in order to yield effective results. The functions and standards are equally applicable to the one-man trucker and to a manager of a multi-vehicle operation, in any country.
The focus is on standards, effective monitoring and fact-based decision-making, which are the key to the quantity and quality control of the “product” (road transport), the efficiency of which can only be measured (not stacked and counted) and that offers so much potential for inefficiency, waste and loss.
It is trusted that this book will contribute to the groundswell of action in all countries, to improve the quality of road freight operations. It is designed to be usable in the training of competent managers for the future, either for self-study, or as a textbook.
Related to Management of Road Freight Transport
Related ebooks
Intermodal Freight Transportation Rating: 4 out of 5 stars4/5The Road Haulage Manual 2014 Rating: 0 out of 5 stars0 ratingsSustainable Transportation and Smart Logistics: Decision-Making Models and Solutions Rating: 0 out of 5 stars0 ratingsThe Road to the Best Practices in Customs and Logistics Rating: 4 out of 5 stars4/5Logistics Handbook Rating: 5 out of 5 stars5/5Logistics Transportation Systems Rating: 0 out of 5 stars0 ratingsModelling Freight Transport Rating: 5 out of 5 stars5/5Efficient Logistics: A Key to Vietnam's Competitiveness Rating: 0 out of 5 stars0 ratingsMaking Money in Forwarding Rating: 0 out of 5 stars0 ratingsLogistics Operations and Management: Concepts and Models Rating: 4 out of 5 stars4/5Freight Broker Business Startup: Start, Run and Grow Your Own Freight Brokerage Business and Trucking Company Rating: 0 out of 5 stars0 ratingsFreight Transport A Complete Guide - 2020 Edition Rating: 0 out of 5 stars0 ratingsTransportation Engineering: Theory, Practice and Modeling Rating: 5 out of 5 stars5/5The Official Supply Chain Dictionary: 8000 Researched Definitions for Industry Best-Practice Globally Rating: 4 out of 5 stars4/5Optimization Tools for Logistics Rating: 3 out of 5 stars3/5Supply Chain Operations A Complete Guide - 2020 Edition Rating: 0 out of 5 stars0 ratingsA Driver's Guide to Commercial Vehicle Inspection Rating: 0 out of 5 stars0 ratingsHow to Start a Trucking Company: Your Step-By-Step Guide to Starting a Trucking Company Rating: 3 out of 5 stars3/5Transportation Operations Management Rating: 0 out of 5 stars0 ratingsDistribution and Logistics Rating: 0 out of 5 stars0 ratingsCareer in Air Freight Rating: 5 out of 5 stars5/5Transportation and Logistics A Complete Guide - 2019 Edition Rating: 0 out of 5 stars0 ratingsFreight Broker with Care Rating: 4 out of 5 stars4/5Supply Chain Metrics that Matter Rating: 0 out of 5 stars0 ratingsPrinciples of Global Supply Chain Management Rating: 4 out of 5 stars4/5Secrets of Supply Chain Management!: Strategy, Planning and Operations! Rating: 2 out of 5 stars2/5International Logistics Management Rating: 0 out of 5 stars0 ratingsLogistics and Supply Chain Management Complete Self-Assessment Guide Rating: 5 out of 5 stars5/5Technology in Supply Chain Management and Logistics: Current Practice and Future Applications Rating: 5 out of 5 stars5/5Intermodal Transportation: Quintessence, Legal Challenges & Impact on Current Transportation Insurance Schemes Rating: 0 out of 5 stars0 ratings
Management For You
Strategy Skills: Techniques to Sharpen the Mind of the Strategist Rating: 4 out of 5 stars4/5Summary of The Laws of Human Nature: by Robert Greene - A Comprehensive Summary Rating: 4 out of 5 stars4/5Emotional Intelligence Habits Rating: 5 out of 5 stars5/5Company Rules: Or Everything I Know About Business I Learned from the CIA Rating: 4 out of 5 stars4/5The Motive: Why So Many Leaders Abdicate Their Most Important Responsibilities Rating: 5 out of 5 stars5/5The 12 Week Year: Get More Done in 12 Weeks than Others Do in 12 Months Rating: 4 out of 5 stars4/5The 7 Habits of Highly Effective People: 30th Anniversary Edition Rating: 5 out of 5 stars5/5The 5 Languages of Appreciation in the Workplace: Empowering Organizations by Encouraging People Rating: 4 out of 5 stars4/5The New One Minute Manager Rating: 5 out of 5 stars5/52600 Phrases for Effective Performance Reviews: Ready-to-Use Words and Phrases That Really Get Results Rating: 3 out of 5 stars3/5Managing Oneself: The Key to Success Rating: 4 out of 5 stars4/5Boundaries for Leaders: Results, Relationships, and Being Ridiculously in Charge Rating: 4 out of 5 stars4/5Good to Great: Why Some Companies Make the Leap...And Others Don't Rating: 4 out of 5 stars4/5Quiet Leadership: Six Steps to Transforming Performance at Work Rating: 4 out of 5 stars4/5Principles: Life and Work Rating: 4 out of 5 stars4/5Summary of The Five Dysfunctions of a Team: by Patrick Lencioni | Includes Analysis Rating: 4 out of 5 stars4/5Great Ceos Are Lazy: How Exceptional Ceos Do More in Less Time Rating: 4 out of 5 stars4/5The First-Time Manager Rating: 3 out of 5 stars3/5Leadershift: The 11 Essential Changes Every Leader Must Embrace Rating: 5 out of 5 stars5/5The 360 Degree Leader Workbook: Developing Your Influence from Anywhere in the Organization Rating: 4 out of 5 stars4/5The 4 Disciplines of Execution: Revised and Updated: Achieving Your Wildly Important Goals Rating: 4 out of 5 stars4/5How to Get Ideas Rating: 5 out of 5 stars5/5Spark: How to Lead Yourself and Others to Greater Success Rating: 5 out of 5 stars5/5The Ideal Team Player: How to Recognize and Cultivate The Three Essential Virtues Rating: 4 out of 5 stars4/5Extreme Ownership: How U.S. Navy SEALs Lead and Win | Summary & Key Takeaways Rating: 4 out of 5 stars4/5Crucial Conversations: Tools for Talking When Stakes are High, Third Edition Rating: 4 out of 5 stars4/5The 12 Week Year (Review and Analysis of Moran and Lennington's Book) Rating: 5 out of 5 stars5/5
Reviews for Management of Road Freight Transport
1 rating0 reviews
Book preview
Management of Road Freight Transport - Nick Porée
Management of
Road Freight
Transport
Management of
Road Freight
Transport
Nick Porée
Copyright © 2019 Nick Porée
Published by Nick Porée Publishing at Smashwords
First edition 2019
All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage or retrieval system without permission from the copyright holder.
The Author has made every effort to trace and acknowledge sources/resources/individuals. In the event that any images/information have been incorrectly attributed or credited, the Author will be pleased to rectify these omissions at the earliest opportunity.
Published by Nick Porée using Reach Publishers’ services,
P O Box 1384, Wandsbeck, South Africa, 3631
Edited by Vanessa Finaughty for Reach Publishers
Cover designed by Reach Publishers
Website: www.reachpublishers.co.za
E-mail: reach@webstorm.co.za
Nick Porée
nick@npagroup.co.za
To my Jenny, for love, and our lifetime together
…
Acknowledgements
This book reflects experiences and lessons learnt in a variety of business situations from many sources over a 50-year involvement in management and consulting in freight transport and logistics. Grateful acknowledgement is due to the managers, academics, technicians and engineers, friends and colleagues, who have contributed to the journey. With special thanks to Jack Webster, Prof. Wynand Pretorius, Chris Connell and, of course, to Rekha Sookream, for faithfully preparing and checking the manuscript. Errors and omissions are all mine.
Nick Porée
Durban, August 2018
About the author
The author, Nick Porée, a transport economist and consultant, was course designer, author and lecturer for the Certificate and Diploma Courses in Road Transport Management at the Rand Afrikaans University (Now UJ), in the 1980s. He was a member of the consulting team at RTPS tasked with redesign of the SA Road Transport Quality System as recommended in the National Transport Policy Study (NTPS). He has managed road transport undertakings and consulted on the management of transport operations in many industries over the past 35 years.
He has been the Lead Freight Transport consultant to the South African Department of Transport in the NATMAP, NFLS and RFS projects over the last five years as well as Freight consultant to the SADC –Tripartite Road Transport Harmonisation Project which gave rise to the TTTFP project, currently being implemented with EU funding, throughout the Southern African region.
As designer of the Provincial data banks and participation in many regional freight and logistics studies, he has travelled widely in South Africa and the region and is currently involved in several regional freight transport and trade facilitation initiatives in association with FESARTA.
Foreword
Bringing road transport up to speed
In most of the developing world, the mobility of cargo and people is almost entirely dependent on the road transport sector. The benefits of professionalising the sector – while globally applicable – are, therefore, especially relevant in the developing context. A more professional transport service will be more reliable, safer, more profitable, more sustainable and more able to focus resources on innovation and training.
The positive proof-points are clear. For example, the cost of training drivers and promoting eco-driving techniques can be recouped by fewer crashes and fines, lower fuel consumption and less vehicle maintenance. In the last 40 years, new trucks’ average consumption of fuel decreased by 40%, from 50 litres/100km in the 1970s to 30 litres/100km in 2008 – demonstrating the case for fleet renewal and improved technical inspections.
On safety, with 85% to 90% of accidents involving commercial vehicles due to human error, there is an even stronger case for driver training through internationally recognised standards. There is also a strong argument when it comes to maintenance (safer fleets) and loading (safer logistics facilities) – all of which carry a price when things go wrong.
Road transport is a major economic driver. In addition to direct employment, the sector generates many indirect jobs and employment – all of which can be professionalised. A recent study in East Africa found that there were 1.2 additional jobs for each truck on the road and studies also show that transport and transport-related jobs can reach up to 5% of total employment.
Tackling inefficiencies in road transport services requires frameworks to improve productivity, safety, competition, sustainability, transparency and overall professionalism. With strategic and focussed reform, governments can effect far-reaching advances in logistics performance, encouraging trade, improving road safety and boosting economies – often with minimal financial investment.
Professionalism needs to be driven by the regulatory environment. However, it is important that this environment is enabling – generating fair competition and quality of service. Access to the profession should be evaluated by qualitative criteria – so licences and rules should be framed around the quality of service rather than the quantity of, for example, trucks or loading bays. This can only be achieved where there is consistent enforcement and transparency. If not – the playing field is no longer level.
When there are weak regulations, or when they are unevenly enforced, the compliant are required to compete with the non-compliant – and cannot possibly succeed – given the unfair disadvantages
of playing by the rules.
In the context of Southern Africa, it is clear that the regulatory authorities are addressing these issues. The International Road Transport Union (IRU) strongly supports the efforts of the SADC–EAC–COMESA Tripartite Alliance to review the regulatory environment at the regional level. The move towards a quality based, multilateral regulatory framework for road transport is very positive.
With this in mind, a road freight transport management textbook
, which provides the industry with a learning tool for aspirant and existing managers, is entirely complementary to the broader effort to professionalise the industry at the regional level. Furthermore, with trade in East and Southern Africa so reliant on road transport, increased efficiency will yield untold economic growth. A professional road transport sector is the bedrock of a winning economic strategy.
William Petty
Senior Manager, IRU: Geneva
Commendation
It is with great pleasure that I contribute a few words to this informative manual, which provides a practical approach to the basic functions of freight transport management. The need for such information cannot be overstated, given the fact that there is minimal training in road freight transport management in the Sub-Saharan African sub-region and evident problems with the quality of operations. Road transport is the main mode for both goods and passenger transport throughout the region, which has nine landlocked countries heavily dependent on the road freight corridors for their supply chains.
This manual will provide a major boost to the efforts of the COMESA–EAC–SADC Tripartite Transport and Transit Facilitation Programme (TTTFP) initiative to move towards harmonisation of standards for improved managerial competence and transport quality. This is a core activity in our overall efforts to improve transport efficiency in a free trade area. Better corridor efficiencies will assist established transporters and potential investors in the transport sector to improve the planning of their activities and for transport stakeholders to anticipate more predictable standards of performance; an aspect that has been lacking in our transport systems. I believe that this handbook will help to improve the standard of management and the quality of operations in many areas, especially with regard to load control, defective vehicles and unqualified drivers, which have directly contributed to the increased accident rates and the high levels of business failures.
It is hoped that the contents of the handbook will continually be updated and that an online version will also be made available. I commend Nick Porée for his initiative in preparing this handbook and pledge the support of the Federation of East and Southern African Road Transport Associations (FESARTA) in disseminating it to all the national road transport associations (NRTAs) and corporate members in Southern and East Africa.
Mike Fitzmaurice
Executive Director
FESARTA – July 2018
Preface
Road freight transport is the most prevalent and effective transport mode in the Southern African region, both for domestic and interstate movement of goods. The mode serves almost all sectors of the economies of the region and transports a wide range of commodities from primary production to consumer goods distribution. The road freight mode is an essential element of the productive capacity of many industries and the logistical efficiency of road freight transport is a major factor in the competitiveness and profitability of both the primary producers and the distributors of domestic and imported and exported goods.
Management of road freight transport is a dynamic and complex task due to the need for high intensity management of a product
that is not physically visible and is instantly perishable. Transport cannot be stored, and efficient utilisation of resources is only possible with dynamic pre-planning of the time and capacity available. Success or failure can only be measured by efficient monitoring of the physical inputs and the measures of capacity utilisation in terms of tons transported and time utilisation compared to potentials. Hidden and latent costs require effective budgeting and management accounting practices to anticipate cash flow restrictions.
Throughout the Southern African region, road freight transport is almost exclusively performed by private sector undertakings, which include high proportions of own account operators as well as carriers for hire and reward. The industry has grown very rapidly with traffic volumes, which pose problems for supply of road space and funding capacity for maintenance of the road networks. In many areas, roads are deteriorating and aggravating the rapidly increasing costs of the mode.
It is a negative feature of road freight transport in the region that there are no requirements for qualification or competence for admission as a road freight operator. The numbers of operators and the scope of their operations is totally unknown. The failure to regulate the standards of management has led to deterioration of the quality of operations in many areas, as evidenced by 60% of defective vehicles, unqualified drivers, increasing accident rates and high levels of business failures.
Training in the discipline of freight transport management has received minimal attention throughout the region. In South Africa, the Certificate and Diploma Courses in Road Transport Management at RAU (now University of Johannesburg, UJ), were focussed on practical management of road transport undertakings until the 1990s, when they became more generalised and ceased to have relevance to operational management.
This book is intended to provide a practical overview of the functions of freight transport management and to recommend practices that can ensure efficiency, quality of operations and effective delivery of service to customers. It is recognised that the wide range of applications in which road freight is engaged cannot be adequately covered in a single publication, so the focus of the recommended practices is on the principles to be applied. The examples and recommendations are simplified to essentials, and deliberately exclude the extensive, sophisticated, EDI-based systems in use by the more complex forms of road transport operation.
Although most of the examples and regulatory material are South African, it is intended that the recommendations will provide a suitable grounding in the basics of road freight transport management to assist entrants to the industry, in all countries of the region, to improved competence. It is also intended to serve as a checklist for operators and employed managers to review existing operations, to identify specific aspects of systems and practices in need of improvement.
A brief description of the concept of the operator licensing system as well as the requirement for Responsible Competent Persons (RCP) is included. Introduction of these necessary quality controls is planned for the Tripartite region and is also an element of the South African Road Freight Strategy approved by Cabinet in May 2017.
Nick Porée
August 2018
List of Tables
ACKNOWLEDGEMENTS
ABOUT THE AUTHOR
FOREWORD
COMMENDATION
PREFACE
Acronyms and Abbreviations
1. Background
2. Introduction
3. Planning
4. Organising
5. Drivers
6. Operations
7. Monitoring
8. Costing and Reporting
9. Finance and External Relations
10. Compliance with Legislation
11. Specialised Transport
Appendix A – Transport Technical Terms
Appendix B – Legal Mass and Dimensions (South Africa)
Appendix C – Regional Vehicle Dimensions and Weights
Appendix D – Accident Report Form
Appendix E – Typical Employment Contract (sample from Department of Labour manual)
Appendix F – Regional Road Transport Associations
Recommended Reading
Table 1: Vehicle Description 31
Table 2: Vehicle Specification – Comparison Sheet 33
Table 3: Vehicle Comparison 36
Table 4: Pre-trip Check by Driver 75
Table 5: Driver Report 97
Table 6: Payload Achieved 101
Table 7: Monthly Report of Fuel Fill-ups 106
Table 8: Implications of Fleet Age and Increasing Downtime 109
Table 9: Eight-Year Projection of Costs and Expenditures for One Vehicle 112
Table 10: Workshop Job Card 116
Table 11: Individual Vehicle Cost Report 119
Table 12: Vehicle Fleet Monthly Cost Report 120
Table 13: Vehicle Masterfile by Vehicle Group 122
Table 14: Costing for Truck-Tractor-Interlink Combination: Long-Distance Haulage 123
Table 15: Analysis of Profitability in a Multiple Operation Depot 126
List of Figures
Figure 1: Typical Organisation Structure for Small Transport Operation 10
Figure 2: Analysis of Fatal Truck Driver Crashes by Age Group 38
Figure 3: Point to Point Pattern 50
Figure 4: Star Pattern 50
Figure 5: Grid Pattern 51
Figure 6: Cobweb Type Scheduling Pattern 52
Figure 7: The Effect of Changing Delivery Routes 53
Figure 8: Engine Performance Curves 59
Figure 9: Economy Driving Range 78
Figure 10: Additional Fuel Consumption Due to Acceleration 79
Figure 11: Average Journey Speed 81
Figure 12: The Tachograph and Charts 86
Figure 13: Tons Hauled per Shift 102
Figure 14: Cumulative Tons Hauled on Contract A 103
Figure 15: Vehicle Availability % 103
Figure 16: Ton to Kilometre Ratio – Operation B 103
Figure 17: CUSUM Graph 107
Figure 18: Eight-Year Projection of Costs and Expenditures for One Vehicle 113
Figure 19: Integrated Management Information System 114
Acronyms and Abbreviations
BCEA Basic Conditions of Employment Act
CCTV Closed-circuit television
CIPC Companies and Intellectual Property Commission
COF Certificate of fitness
COIDA Compensation for Occupational Injuries and Disease Act
COR Certificate of roadworthiness
CUSUM Cumulative sum of the variance
CW Drag coefficient: wind resistance
EEA Employment Equity Act
EDP Electronic data processing
FCL Full container load
FESARTA Federation of East and Southern African Road Transport Associations
GAAP Generally Accepted Accounting Practice
GCM Gross combination mass
GVM Gross vehicle mass
HGV Heavy goods vehicle
HP Horsepower
FOB Free on Board
IMO International Maritime Organisation
IPO Initial public offering
IRU