an analysis of the impact of factors which affect the performance of third pard logistics party in zimbabwe

SHEPHERD MAGANGA (C108762Y). An investigation into factors that influenced the performance of Zimbabwean third party logistics firms specialising in transnational road cargo haulage services during the period 2000 to 2013. Page 1

CHAPTER ONE

INTRODUCTION

1.0 Background to the study

The worldwide trend in globalisation has led many companies to outsource the logistical

activities from the third party logistics firms so that they focus themselves on core

competencies. The recent study conducted by Germin Ernst involving 400 representatives

from North America, Western Europe and Asia Pacific concluded that the Third Part logistics

firms (3PL) remain a growing business globally. The trend of logistics outsourcing is moving

in two directions, namely (a) the increase in number of buyers of the logistics services and (b)

the increase in the extent of the logistics services globally. The extent of outsourcing includes

a number of business processes outsourced, the percentage of total logistics budget to 3PL

companies and the geographical coverage.

In the 1950‟s and 1960‟s, the outsourcing of transportation and warehousing was common in

the USA 3PL market. The outsourcing was a pure commodity purchase and the other

logistical activities were part of company‟s business strategy. In 1970, there was the increase

in search for multi-competency of 3PL services as companies began to emphasise on cost

reduction and the improved productivity. In the 1980‟s most companies began to lay

emphasis on the supply chain management optimisation. They focused on co-ordinating the

movement of products within their facilities, integrating their financial systems, ordering

systems and the inventory management which increased the business of the 3PL in the world.

Besides the traditional logistics activities like transportation and warehousing the logistics

service providers offered inventory management, packaging and other added value services

which contributed to the growing of logistics service providers (3PL‟s). Gordon (2003)

indicated that the low growth market for parcel carriage is growing at 4% per annum which

was dominated by the few players but were no significant shareholders in high growth (15 to

25% per annum) transportation, warehousing management and ocean freight forwarding.


Table 1: Segments of 3PL and their approximated gross revenue in billions for 2003

market

3PL segment 2003 Gross

Revenue

$(Billions)

Domestic transportation management -Asset Based 9.2

Domestic transportation management -Non Asset Based 21.4

International transportation management(Air, ocean freight

forwarding)

23.5

Value Added warehouse/distribution 19.8

Software 3.0

Total 76.9

Source: Amstrong and Associates, Inc (2003)

According to Germin 9th

(2004) and 12th

(2007) Annual Report on the 3PL firms‟ trend, there

is a continuous increase from 1996 to 2007 in the percentage usage of 3PL Companies all

over the world. During the first six years (1996-2001), about 72% companies in the world

were users of 3PL services and the increases to 82% in 2007. Lieb and Bentx (2005) pointed

out that about 80% of every 500 companies used the 3PL services and there is the increased

world trend of their logistics operating budget. Transport intelligence (2006) noted a growing

rate of over 20% per annum from 1990‟s globally.

The usage of 3PL services was over 60% in different countries in different parts of the world

in accordance to the following studies by different people:

U.S.A 79% (Lieb and Bentz, 2005);

Mexico 78.7% (Arroyo et al, 2006);

Saudi Arabia 63.5% (Sohail and Al-Abdalili, 2005);

Malaysia 63% (Sohail and Sohal, 2003);

Singapore 60.3% (Sohail et al, 2003);

Europe 52% (Millen Sohal, 1997);


India 55.4% (Sony and Mohany, 2006) and

Turkey 47% (Aktus and Ulengin, 2005).

From the above statistics, companies outsourced logistics services from 3PL mostly indicated

that their firms employed more services of more than one 3PL provider in all the countries.

Table 2: Third party logistics services in some parts of the world.

Outsourced logistics service All regions North

America

Europe Asia Latin

America

Domestic transportation 83% 77% 91% 85% 79%

International transportation 79 71 87 89 71

Warehousing 69 65 68 73 60

Customs clearing and brokerage 67 51 58 78 64

Forwarding 51 44 51 60 38

Shipment consolidations 43 31 44 45 37

Labeling and packaging 34 33 33 34 41

Transportation management 32 32 41 27 24

Reverse logistics 31 36 33 29 29

Cross docking 31 51 35 26 25

Freight bill auditing 35 11 18 14 10

Fleet management 15 18 21 12 13

Supply chain consultancy 14 10 11 11 17

Order entry, processing, fulfillment 13 10 10 17 18

Customer service 13 13 10 17 18

Source: Cap Germini (2007)

In India, the Indian logistics service providers constitute 13 to 14% of the GDP of India

which is relatively higher as compared to developed countries where they constitute 7 to 8%

and the 9 to 10 % (BRIC nations, 2012). This high cost of the logistics is impacting the

India‟s future manufacturing hub. Poor infrastructure, congested container deports uneven tax

systems and talent shortage in terms of skilled, professional and trained personnel (Editor,

2012). 3PL operators hindered with lack of skilled professionals, cumbersome documentation

procedures, poor infrastructure and pricing pressures.


According to the World Bank (2010) the transit times on African transport corridors are

unduly long due to factors such as unclear or sometimes conflicting rules and regulations,

road blocks as well as cumbersome administrative and customs procedures. There have

created a serious challenge to transport performance and trade on the continent as a whole. It

leads to excessive traffic delays which increases the transport cost. Lack of transparency and

predictability became a major source of uncertainty as regards costs and time involved for

international trade transactions. When information on applicable regulations was not

available, transporters had to spend money to obtain information. This increased the

operational costs of the haulage companies as they frequently add expenses for bribes,

penalties and administration or judicial appeals thus left companies in weaker positions. On

average Africa transport costs represent 30 per cent on total value of exports which compares

unfavourably against 8.6 per cent of all developing countries.

In Zimbabwe, transportation companies specialising on road cargo transnational services are

underperforming due to different reasons. According to Annual Report on the Effects of

Infrastructure Conditions (2009), it has been observed that poor infrastructure conditions

increase the production costs and economic distance (time and cost). In the past decade, there

has been a stagnant improvement on the Zimbabwe transport infrastructure resulting in the

deterioration of transport systems (World Bank, 2010). Poor infrastructure entails high

transport costs, estimated to account for 60-70% of the total revenue earned by these

transnational companies. Poor roads and truck break down results in slow movement of

goods and considerable damage to goods in transit. United Nations conference on trade and

development (2000) reveals that Zimbabwe has excellent road networks of over 17000 Km 0f

surfaced roads 19000 Km of unsurfaced roads. However the road networks are in serious

deterioration which provides a negative blow to players in transport industry as this cause

accidents and apparent delays in the distribution of goods between and among regions or

countries. Infrastructure constrains which include excessive check points, longer delays due

to poor roads, inefficient processing at border posts lead to increased turnaround time of

haulage trucks which is a signal of underperformance.

In 2009, in Zimbabwe, the use of multi-currency was introduced and was meant to curb the

hyperinflation which was traumatising the country. Most of the companies in the country

were finding it difficult to adapt the usage of the US dollar as a legal tender here in

Zimbabwe. Annual revenue of haulage companies was decreasing and their financial


performances on the Zimbabwe Stock Exchange were dwindling. Managers were failing to

propose effective and efficient budgets for their operations. Adverse variances were

experienced as a result of fluctuating currency rates. This challenge of fluctuating Foreign

Exchange rates, especially in 2008 made it difficult for haulage companies to purchase

vehicle spare parts and hire external labour force to provide expertise in these companies.

Local businesses recorded loss due to slow performance of the local industries. Most of the

transport businesses in Zimbabwe were remodelled during 2009 in order to improve the

performance going forward. Consolidations and freight forwarding businesses operated at

less than 50% capacity in direct relation to the prevailing industry conditions. Subdued

performance in the local economy resulted in local businesses units not performing to

expectation (Corporation of Africa 2009 Annual Report, the group of chairman, Mr P.C

Chingoka).

1.1 Statement of the problem

The Zimbabwean third party firms specialising in road transnational cargo haulage services

appear to be underperforming in terms of adequacy quality of logistical services and on time

delivery. There are low profit margins, high rate of delays leading to lengthy turn-around

time and inefficient customer response in haulage companies in Zimbabwe. According to

Labour Performance Management (2008), most 3PLcompanies in Zimbabwe lack business

relationships with their customers which extend beyond three to five years contract lengths

due to failure to meet service level agreements.

1.2 Research objectives

The following were the research objectives of the study:

i. To establish the current performance of Zimbabwean third part logistics firms

specialising in road cargo transnational haulage services during the period 2000 to

2013;

ii. To determine the effects of performance by Zimbabwean 3PL firms specialising in

road cargo transnational haulage companies during the period 2000 to 2013;


iii. To identify the factors that influenced the performance of Zimbabwean 3PL firms


2013;

iv. To identify the challenges faced by Zimbabwean 3PL firms specialising in road cargo

transnational haulage services during the period 2000 to 2013; and

v. To give recommendations for resolving the challenges faced by Zimbabwean 3PL

firms specialising in road cargo transnational haulage services during the period 2000

to 2013.

1.3 Research questions

The research questions in respect of the above objectives were as follows:

i. What was the level of performance of Zimbabwean 3PL firms specialising in road

cargo transnational haulage services during the period 2000 to 2013?

ii. What were the effects of performance by Zimbabwean 3PL firms specialising in road

cargo transnational haulage services during the period 2000 to 2013?

iii. What factors influenced the performance of Zimbabwean 3PL firms specialising in

road cargo transnational haulage services during the period 2000 to 2013?

iv. What were the challenges faced by Zimbabwean 3PL firms specialising in

transnational haulage services during the period 2000 to 2013? and

v. What are the recommendations for resolving the challenges faced by Zimbabwean

3PL firms specialising in road cargo transnational haulage services during the period

2000 to 2013?

1.4 The statement of proposition

Cooper and Schlinder (2003:504) view statement of proposition as used by researchers to

state the expected results for the study. It is more qualitative and not statistically tested. The

following was the statement of proposition for the purpose of this study:

The adoption and implementation of quality logistical infrastructures enhances the

performance of Zimbabwean commercial road transnational haulage sector.


1.5 Assumptions

The two underlying assumptions to the study were that:

i. The management of different Zimbabwean 3PL firms specialising in road cargo

transnational haulage services would give access and use of their sensitive data

sources for the academic research purpose; and

ii. The research environment remained constant and favourable during the period of the

study.

1.6 Significance of the study

To the Zimbabwe transport industry

The study is expected to provide the comprehensive information on the performance of

Zimbabwe Transport industry on international road cargo haulage firms. The study further

establishes the current gaps in terms of performance and provides possible recommendations

to improve the performance of the industry.

To the customers

The improved performance of Zimbabwean third party firms specialising in road haulage

services will result in efficient customer response which reduces some transportation risks of

the consignments.

To the suppliers

The improvement in the performance of companies within commercial road transnational

haulage sector through the suggested recommendations in the study improves their

relationships with the suppliers. The suppliers/ buyer relationship strengthened as the firms

well performed in the industry. The business of suppliers grows in line with the performance

of firms in the industry.

To the government

The current gaps identified in the study will help the government to determine the need of the

transport sector to improve the performance. The research study can highlight some


recommendations which can be adopted by the Zimbabwean government to improve the

performance of the transport sector.

To the citizens at large

The implementation of suggested recommendations from this research study improves the

overall performance of companies in the sector of study. Citizens will benefit in terms of

employment to the firms involved. Companies may also plough back the profits to the

communities through corporate social responsibility (CSR) which benefited the community at

large.

To the academic fraternity

The research study will be used as reference material to the future students who will study the

same field of research.

To the student

The processes of the research improve the experience to the student. It empowers the student

with knowledge and skills to carry out research programs in the future. The study is also a

requirement to the bachelor of Science Honours Degree in International Purchasing Logistics

and Transport.

1.7 Delimitations of the study

The study focused on the Zimbabwean 3PL firms specialising in road cargo transnational

haulage services with head offices in Harare Metropolitan Province. The research was

focused mainly on those companies with trucks mainly utilise Forbes and Beitbridge border

post. Only the period from 2000 to 2013 was considered.

1.8 Limitations of the study

A number of limitations were noted in carrying out the study. The researcher however took

some time to ensure that the study remains reliable and valid despite the limitations.

Financial limitation


High financial cost did not permit the researcher to study the whole population, the researcher

only focused on a particular segment that is transnational companies with Head Offices in

Harare town and their trucks mainly utilise Forbes and Beitbridge border posts. The follow

up of questionnaires was done by emails as a way of cutting transport costs. The economic

mode of transport such as public transport was used during the data collection process.

Assistance from parents in terms of cash also contributed to overcome the financial challenge

Time limitations

The study was constrained by the time allocated to the study. The time was limited for the

full exhaustion of all the requirement of the study. There was need to concentrate on 4.2

courses and at the same time carrying out the research study. The distribution and collection

of questionnaires to and from the respondents was affected by time. The researcher, however

undertake the study during the vacation of 4.1 and Saturdays. The representative sample and

internet was utilised for the distribution and collection of data using questionnaires.

1.9 Definition of key terms

The definitions of terms provided to make sure that there is an understanding of all the terms

used in this study. The following have not been explained in their citations. The key terms for

this study are as follows:

i. Cargo;

ii. Customer service level;

iii. Logistics;

iv. Third party logistics firms;

v. Transnational companies; and

vi. Transportation.

Cargo - articles, goods, materials, merchandise or wares carried by truck, aircraft, ship and or

train.

Logistics- The time related movement of goods, funds and information from the source to the

end users.


Third party logistics firms-A firm that provides service to its customers of outsourced

logistics services all of their supply chain management.

Transnational companies-freight forwarders specialising cross boarder transport services.

Transportation -the movement of goods and animals from point A to point B.

1.10 Organisation of the study

This study is organized as follows:

Chapter One: Introduction- it looks at the major highlights of the study. It gives the

background of the study, statement of the problem, research objective, research questions,

assumption to the study, delimitations, significance of the study, limitations to the study as

well as definition of major terms and the organization of the study. Chapter Two: Literature

review- Focuses on extensive literature review from published books, journals, the internet

sources as well as case studies. The views of different authorities concerning the subject will

be compared and contrasted so as to come up with a common position. Chapter Three:

Research methodology- this deals with data collection, presentation of research findings,

analysis and interpretation of data. The following research tools will be used; questionnaires,

interviews, secondary data review and the internet. Chapter Four: Data presentation, Analysis

and Discussion - It focuses at the findings of the research and provides a summary of the

study findings and the accompanying discussion of the research findings. Basically focuses

on the results and discussions. Chapter Five: Summary, Conclusions and Recommendations-

Provide major conclusions drawn from the study and gives recommendations to the findings

in chapter four. It also looks at possible areas for further research. Chapter Six:

Entrepreneurial thrust- It focuses to deduce the major factors which affect the performance of

Zimbabwean 3PL firms specialising in road cargo haulage services.

1.11 Chapter summary

Chapter laid the clear foundation for the whole study as introduced by the research topic,

giving the background of the research highlighted brief knowledge of the area under study,

statement of the problem, objectives of the study, the research questions. The chapter also

looked into the limitations to carrying out the effective research, delimitations of the study,

definition of key terms and the organisation of the study.



CHAPTER 2

LITERATURE REVIEW

2.0 Introduction

This chapter looks into the review of related and existing literature on the factors that affect

the performance of Zimbabwean third party firms specializing in haulage services (transport

sector). According to Marshal et al (2006), literature review is a thoughtful and insightful

discussion on related literature which builds a logical framework for the research and locates

within the tradition of enquiry and context of related studied.

Bourner (1996:08) states that prior to commencing a research project the first step is to

review the field. He provides number reasons for conducting literature review, including:

i. To identify gaps in current knowledge;

ii. To avoid reinventing the wheel;

iii. To carry on from where others have already reached (reviewing the field allows to

build the platform of existing knowledge and ideas);

iv. To increase the breadth of knowledge of subject area; and

v. To provide the intellectual context for your own work, enabling to position project

relative to other work.

The above author was supported by Neuman (2003:96), who points out the goals of literature

review as:

i. To demonstrate a familiarity with a body of knowledge and establish credibility;

ii. To show the path of the prior research and how current project is linked to it;

iii. To integrate and summarize what is known in an area; and

iv. To learn from others and stimulate new idea.


The researcher used the most relevant sources for the literature reviewed. The sources pointed

out the important information which strengthens up the study carried by the researcher. The

newspapers and some articles used for the literature reviewed produced practical and current

information of the factors which affect the performance of haulage industry in Zimbabwe.

2.1 Definition of key terms

Clarification of terms specifically used in this research and which appear in the appropriate

chapters however to avoid misrepresentation and confusion in the interpretation of terms, the

terms are defined below. The following are the key terms of the study:

i. Cargo;

ii. Customer service;

iii. Logistics;

iv. Road freight;

v. Third party logistics firms; and

vi. Transportation.

2.1.1 Cargo

According to Business dictionary, cargo refers to all articles, goods, materials, merchandise,

or wares carried on board an aircraft, ship, train, or truck and for which an airway bill, or bill

of lading or other receipts is issued by the carrier.

2.1.2 Customer service

According to turban et al (2002), the customer service is a series of activities designed to

enhance the level of customer satisfaction- that is, the feeling that a product or services has

met the customer expectation. Solomon (1991) points out that customer service plays an

important role in an organization ability to generate income and revenue. A customer service

experience can change the entire perception a customer has of the organization. Dall (2004)

argued that the quality and level of customer service has decreased in recent years and that

this can be attributed to lack of support or understanding at the executive and middle

management levels of corporation and/ or a customer service policy.


2.1.3 Logistics

According to CSCMP (2006,online), logistics is the function of supply chain management in

which forward and reverse flow of goods, information and services from the point of origin to

the point of consumption took place. Stock and Lambert (2009) contrasted the definition of

logistics to supply chain by stating that logistics focuses with the flow of services and the

physical goods from the beginning of the chain to the end of the chain. In addition to the

above authors, Bowersox et al (2007:4) defines logistics as the work required to position and

move the inventory throughout the supply chain. Logistics is very important in enhancing the

competitiveness of organisations through the improved information and flow of materials in

the supply chain (Gunasekaran and Sarkis, 2008). Tan (2001) gives a view that logistics firms

which integrate transportation, inventory management, material handling, warehousing and

the product packaging have more competitive advantage than others in the industry.

The role of logistics

Logistics plays important role to both the company and countries economy. According to

Bagchi (1996), firms obtain increased cooperate profits and the competitive advantage

through well performed logistics. Rushton and Walker (2007) pointed out that logistical

activities improves the efficiency and effectiveness in the operations of companies hence

growth in terms of market share and shareholders. In addition to that, sales of goods and

services are facilitated by logistics. Besides delivery in right time, place, quantity, price and

condition, the customer satisfaction enhanced through improved logistics.

The country‟s economic activities throughout the supply chain suffer when there is no

smoothness of logistics (Lambert et al, 1998). The improved logistics productivity improves

the economy significantly. The economy can also be affected as the logistical activities

contribute directly to business expenditures.

2.1.4 Road Freight

Road freight refers to the transportation of all types‟ of goods using the haulage trucks.

Dangerous goods such as fuel and all types of goods are carried by haulages and must be

supported by the necessary documents. Some road transportation is done on regular routes or

for only one consignee per run, while others make use of consolidated goods from many

different loading stations/ shippers to various consignees (www.ups-scs.com/transport/road).


2.1.5 Contract of carriage

According to Business dictionary, contract of carriage is a binding agreement which contains

the conditions for carriage that denotes the obligation and rights of a carrier and a shipper.

The carrier undertakes to deliver the goods from a named place of departure to a clearly

stated place of destination/terminal in consideration for a freight fare. The contract addresses

how liabilities and compensation for damage (loss) assessed, apportioned and paid.

Requirements for the contract of carriage are as follows:

i. Name and address the carrier;

ii. Banking details of the transporter;

iii. Certificate of incorporation and other registration certificates;

iv. Details of the vehicle to carry the load; and

v. Load supporting details that is bill of lading or airway bill and all other supporting

documents for the load.

2.1.6 Third party logistics firms (3PLF)

Hertz (2003:140) defines 3PLF as a firm that provides service to its customers of outsourced

logistics services for part, or all of their supply chain management functions. Third part

logistics providers typically specialize in integrated operation for example warehousing and

transportation. According to the Council of Supply Chain Management Professionals

(CSCMP), 3PL is defined as a firm that provides multiple logistics services for use by

customers. Preferably these services are integrated or bundled together by the provider.

Among the services 3PLF provide transportation warehousing, cross docking, inventory

management, packing and freight forwarding.

Types of 3PLF

Hertz and Alfredsson (2003) points out four categories of 3PLF providers as follows:

1. Standard 3PL provider: This is the most basic form of 3PL provider. They would perform

activities such as pick and pack, warehousing and distribution. For majority of these firms,

the 3PL functions are not their main activity;

2. Service developer: this usually offer their customers advanced value added services such as


i. Tracking and tracing;

ii. Cross docking;

iii. Specific packaging; and

iv. Provide the unique security system.

3. Customer adapter: This type of 3PL provider comes in at the request of the customer and

essentially takes over complete control of the company‟s logistical activities. They improve

logistics dramatically. The customer base for these 3PLF is quite small.

4. Customer developer. This is the highest level of that 3PL provider can attain with respect

to its process and activities. This occurs when3PL integrates itself with customers and takes

over the entire logistics functions. They usually have few customers but it will perform

extensive and detailed tasks for them.

Creation of agency relationships.

An agency relationship refers to the fiduciary relation which result from manifestation of

consent by one person/company to another that the other shall act on his behalf and is subject

to control ( www.shsu.edu/agency et al.html). According to Publications by Estates (2011),

agency relationship can be formed in three different ways. These are agency by appointment,

agency by estoppel (implied appointment) and agency by ratification.

Agency by appointment

i. An agency is created by the express appointment where the principal appoints the

agent by express agreement. The agreement may be on oral or written agreement

between the agent and the principal.

ii. Contract law principles applied to an agency agreement. An agent may agree to act

after considering the reward.

iii. The general rule is that agency may be created orally and sometimes there is no

formality for the creation of agency by express agreement.

Agency by estoppel

i. Agency by estoppel arises when one party(A) makes a representation to a third party,

weather by conduct or by words, that B is his agent and 3rd

party deals with B as A‟s

http://www.shsu.edu/agency%20et%20al.html


agent in reliance on such presentation. A will not be permitted to deny existence of

the agency because it will cause a financial loss to the third party.

ii. In agency by estoppel, the authority of the agent described as only apparent, but not

actual as the principal has.

Agency by ratification

i. Ratification arises when the principal ratifies (approved and adopt) an act which has

already been done in his name and on behalf by another person (agent) who had no

authority to act on principals behalf when act was done.

ii. Ratification by itself only creates an agency relationship between the principal and the

agent in respect of the act ratified by the principal, but not any other act.

iii. The person who ratifies an act of another person must have existence and legal

capacity to carry out the act himself both at the time when the act was done and at the

time of ratification.

2.1.7 Transportation

Transport or transportation is the movement of people, animals and goods from one location

to another. Transport is important because it enables trade between people which is essential

for the development of civilization (Navvack 2006). Dictionary of transport and logistics

define transportation as anything and everything to do with the operation of goods vehicle

and movement of goods. Bardi (2009) proposes that transportation adds value to the company

(haulages) if they usefully utilize the fleet available and the value addition being the physical

movement of the goods to the desired places at the required time.

Types of transport

Road transport

Cooper et al (1998:279), defines road transportation as the movement of goods or people

from point A to point B using the physical road network. Road transport by truck is often the

initial and the final stage of freight transport. Craig (2010), transportation by road can be

grouped into transportation of goods and the transportation of people. The nature of road

transportation of goods depends, apart from the degree of development of the local

infrastructure, on the distance the goods are transported by road, the weight and volume of


the individual shipment, and the type of goods transported. For short distances and light,

small shipments vehicles may be used. For large shipments even if less than a full truckload a

truck is more appropriate.

Merits of road transport

According to Keshav (2012) the merits of road transportation include:

i. Convenience

Road transport provides convenient service to people. Goods can be conveniently

transported from sender to the receiver.

ii. Suitable For Perishable Goods

Road transport or automobiles like truck, motor etc. are the best means for

transporting perishable goods. They can carry such goods to the destination within

shorter time at lower cost.

iii. Low Investment

The road automobiles like bus, truck, tractor etc. are easy to purchase. They need

relatively low cost. The owners of such automobiles do not have to repair or build

roads by themselves.

iv. More Flexible

Road transport is more flexible than other means of transport. If any road is blocked,

the road automobiles like truck, bus can be taken through alternative ways. They do

not need fixed road like railway line.

v. Safety of goods

Goods or people can be carried safely from one place to another through road

transport. As the persons carrying goods or people become careful while transporting

them, there remains least possibility of damage or loss.

Demerits of road transport

Keshav (2012) also reviewed the disadvantages of road transport as follows:

i. Unsuitable for long distance.

The means of road transport like trucks is not suitable in transporting goods to long

distance.


ii. Not suitable for heavy loads.

The means of road transport cannot or are unsuitable to carry heavy goods from

places to place as compared to rail transport.

iii. Irregular

The service of road automobiles such as bus, trucks are nor reliable. They have

neither certain route nor fixed time. Road may be blocked or crumbled or slid down.

As a result, goods cannot reach their destination in time.

iv. Risky

Road transport is risky. Sudden accident may happen. Necessary security arrangement

cannot be made against such accident.

v. No uniformity in fair.

Uniformity in charge or fair for road transport may not be found. The rate of fair

becomes different. Due to unorganized system of road transport, its fair is found

different and remain changing time to time for place to place.

Rail transport

It is a means of conveying goods or people by way of wheeled vehicles running on rails. It is

also commonly known as train transport. In contrast for road transport, where vehicles merely

run on a prepared surface, rail vehicles are also directionally guided by the tracks. Track

usually consists of rails installed on sleepers where the rolling stroke, usually fitted with

metal wheels moves.

Merits of rail transport

According to Keshev (2012), the merits of rail transport are:

i. Suitable for heavy goods and materials

Railway transport is the best means to transport heavy and big goods and it is also

relatively cheap means.

ii. Suitable for long distance.

Railway transport can carry goods and people distant places. It is relatively cheap and

comfortable to transport goods and people to long distant.

iii. Cheap and regular.


Railway transport is cheap and regular means of transporting goods and people. It

provides regular services to business firms and people because it is operated in fixed

time and certain routes.

iv. Reliability and safety.

Railway is dependable and reliable because it is not affected by change of weather,

rain or any adverse weather. This means is dependable and safe to travel or send

goods to distant place.

Demerits of rail transportation

Hylton (2007) pointed the following as the demerits of rail transportation:

i. Huge investment

Railway transport needs huge investment to construct and operate. Private companies

cannot construct and operate it because it needs investment of huge capital. Only

government can invest in it.

ii. Less flexible

Railway transport is less flexible because it has fixed routes and cannot be changed

easily.

iii. Expensive repair and maintenance

Rail transport is highly expensive to operate repair and maintenance. Its security

expense is also high.

iv. Unsuitable for light Goods and materials for short distance

Railway transport is not suitable for light goods and short distance. It becomes

relatively expensive to transport light goods to short distance.

v. No door delivery of goods

Railway transport does not deliver goods to the doors or warehouses because railway

has fixed routes and can travel from one station to another on its routes.


Air transportation

Vreizh (2008:77) defines air transportation as the transportation system which involves the

movement of goods and passengers by air. It is most suitably for high valued goods in low

volumes.

Merits

The advantages of air transportation are that it is faster than by land or sea and that

technological advancements make it even safer and faster(www.ask.com).

Demerits

The disadvantage of air travel is that sitting stationary for hours on end, depending on the

flight. The accidents are airborne which can lead to crashes, in most cases, fatal for all on

board (www.ask.com).

Key performance for the types of transport

Daniel et al (2011) defines performance evaluation as a monitoring and analysis process to

determine how well policies, programs and projects perform with regard to their intended

goals and objectives. Performances indicators are specific measurable outcomes used into

evaluate progress towards established goals and objectives. An index of performance which

compiles indicators is set to facilitate analysis.

Table 3: Examples of performance Indicators for Various Modes of transport.

Mode Service Quality Outcomes Cost Efficiency

Automobile

Roadway supply

Roadway pavement

condition

Roadway LOS

Parking availability

Avg. auto trip travel time

Vehicle energy

consumption and pollution

emissions

Motor vehicle crash rates

Cost per lane-km

Cost per vehicle-km

User cost per capita

External cost per

capita

Multi-modal

Transport system integration

Accessibility from homes to

Total transportation costs

Total average commute

Total cost passenger-

km

http://www.ask.com/


common destinations

User survey results

time

Total crash casualty rates

Total cost per capita

External cost per

capita

Aviation Airport supply

Air travel service frequency

Air travel reliability

Air travel use

Air travel crash rates

Cost per trip

External costs

Airport subsidies

Rail Rail line supply

Rail service speed and

reliability

Rail mode split

Rail traffic volumes

Rail crash rates

Cost per rail-km

Cost per tonne-km

External costs

Marine Marine service supply

Marine service speed and

reliability

Marine mode split

Marine traffic volumes

Marine accident rates

Cost per tonne-km

Subsidies

External costs

Source: Schreffler (2000)

2.2 THEORETICAL LITERATURE REVIEW

2.2.0 INTRODUCTION

Miffin (2000) defines a theory as a set of statements or principles devised to explain a group

of facts or phenomenon, especially one that has been repeatedly tested or is widely accepted

and can be used to make predictions about natural phenomena. It can be also defined as a

belief or principle that guides action or assist comprehension or judgment. Theoretical

literature concerned is concerned with theories rather than their practical applications. The

theories reviewed in this study are as follows;

i. Road haulage, HGV Driver training, LDV driver training, Test and practice theory.

ii. Multimodal transport theory

iii. The geography of transportation theory


iv. Theory of constraints

2.2.1 THEORY ONE: Road haulage, HGV Driver training, LDV driver training, Test

and practice theory.

The theory was established by Emms and Sons (1960) and provides a comprehensive and

highly competent road haulage provider. The theory highlights some strategies of improving

the companies (haulage) performance so that they become competent enough in the industry.

The theory focuses mainly on fleet maintenance and driver training issues.

Driver training: The theory states that drivers should be trained to standard in an effort to

give the customers the service they expect from the company. Further training of drivers is

very essential as it makes drivers competitive during their operations. They further explained

that driver training impress the a potential employer as many people can be surprised when

they test drive for a driving position and find the commercial vehicle different from their

training vehicles.

Robert (1910) supports the theory by stating that driver training offered hands on training and

courses in driving skills (managing the controls and road aptitudes) and repair. Driver‟s

education was intended to supplement the knowledge obtained from printed driving

handbooks or manuals.

Fleet maintenance: The theory clearly points out that commercial maintenance has been

widely developed and ensuring exceptional engineering quality. Servicing and maintaining

fleet to standard means reliability of delivery to be enjoyed by all customers. When a vehicle/

trailer are purchased for fleet use it is subject to full dis assembled and refurbished before

being added to the fleet. All foundation brakes are completely dissembled and checked. New

component fitted wherever appropriate.to complete the process the vehicle has to pass a

rolling break test on the road to ensure safe operation.

Transport carriers: according to the theory 7, 5 tonnes were given to class 1+E status. The

job vary depending on the type of vehicle you are licensed to drive, ranging from general

road transport deliveries to wide container shipments.


2.2.2 Theory two: Multimodal transport theory

Multimodal theory was developed by Gardner and Banomyong (1997:312). It illustrates the

liner shipping industry offers multimodal transport services in Europe and what of regulatory

constraints exists and legislation that may restrict the provision door to door operation by

freight companies. Economic globalization has resulted in shippers and consignees merging

and consolidating into global companies. The global companies are having large impact on

logistics requirements, as most of mergers are on a worldwide basis and require the

establishment of a well-coordinated transport and logistics networks. Shipping companies

form alliances and mergers with other companies as well as other land, rail ports, inland hubs

and freight forwarding companies in order to effectively serve the global customers. Frankel

(1999:10) states that the key role of logistical system is to assist in the production,

consumption and distribution or the supply chain of goods and services.

The horizontal and vertical alliances lead to industries concentration not only to expand on

size of operators but control of the logistics services and operations. In container shipping,

multinational companies can ship more than 50% of inter-continental containers and this

percentage is expected to grow by 70% by 2010 (Banomyong, 2000:4).

UNCTAD (1993) supports the theory by pointing out that containers ensure the transport of

unitized cargo from its origins to final destinations, with efficiency and at the least possible

risk. Graham (1998) points out that 5 elements that describe multimodal transport and these

are:

i. Inland transport to the port;

ii. Cargo handling in the port (transferring from inland transport mode to vessel);

iii. Sea transport( maritime transport from one port to another);

iv. Cargo handling to the port destination; and

v. Inland transport from port destination to the place of final destination.

The multimodal transport through rate is based on the tariffs for these five elements (Graham,

1998). These transport elements were traditionally provided separately by various unimodal

operators whether in the maritime or in the inland sector. With containerisation it has become

increasingly difficult to define the boundaries of ships, port operators and inland hauliers.

Thus liner shipping companies are not only providing shipping services, but are now


competing with hauliers and transport intermediaries to provide the inland leg of multimodal

services on a door to door basis. Liner companies have now integrated the inland leg into

their scope of activity, thus offering a one -stop integrated logistics service to their customers.

Multimodal transport is therefore a system, which places the responsibility for transport

activities under one operator (probably a forwarder or a liner shipping company), who then

undertakes, manages and co-ordinate the total task from the shipper‟s door to the consignee‟s

door.

2.2.3 Theory three: The geography of transportation systems Theory

The theory was propounded by Rodrigue (2006) which is concerned about the movement of

freight, people and information. It links the spatial constraints and the attributes with the

origin, the destination, the extent and the nature and purpose of the movements. It covers

networks, modes and terminals, international transportation and environmental impacts.

Transportability-According to the theory, transportation refers to the movement of freight,

people and information. There should be related to transport costs as well as to the attributes

of what is being transported: fragility, perishability and price. Political issues or factors can

influence transportability and these are laws, regulations borders and tariffs. The specific

purpose of transportability is to fulfil the demand for mobility. Transportation is an outcome

of derived demand.

The theory further explained the following as contemporally trends identified regarding the

transportation system:

i. Growth of demand-The 20th

century, more than any other has seen a considerable

growth of the transport demand related to freight mobility. The growth is due to larger

quantities of freight moved as well as longer distances over which they are carried.

ii. Reduction of costs-Even if the several transportation modes are very expensive into

own and operate, costs per unit transported have dropped significantly over the recent

decades. This has made possible to overcome longer distances and exploit the

comparative advantage of space. The results despite the lower costs, the share of

transport activities in the economy relatively remain constant in time.


Facing the contemporally trend, an important part of the spatial differentiation of economy

related to where the resources are located and how well they can be distributed, these

resources are raw materials, capital, people and information. Transport routes established to

distribute resources between places they were abundant and places they are scarce, but if only

costs are lower than the benefits,

2.2.4 Theory Four: Theory of constraints

The theory of constrains is an overall management philosophy introduced by Goldratt

(1984).The theory of constraints is a management paradigm that views all manageable

systems as limited in achieving more of its goals by a very small number of constraints.

There is always at least one constraint and the theory uses a focusing process to identify the

constraint and restructure the rest of the organisation around it.

Theory of constraints adopts the common idiom which states a chain is no stronger than its

weakest link‟. This means organisations; processes are vulnerable because the weakest part

always damage or break them or adversely affect the outcome.

Constraints

According Godratt (1984) a constraint is anything that prevents the system from achieving its

goals. Constrains can be internal or external to the system. An internal constraint is in

evidence when the market demands more from the system that it can deliver. External

constrains exists when the system can produce more than the market will bear. Types of

internal constrains include:

i. Equipment-The way equipment is currently used limits the ability of the system to

produce more services/goods.

ii. People-Lack of skilled people limits the system.

iii. Policy-Written or unwritten policy prevents a system from making more money.

Key assumptions of the theory

The underlying premise of theory of constraint is that firms can be measured or controlled by

variation of three measures namely throughput, operational expenses and the inventory. The

throughput which is the rate the system generates through sales. Inventory refers to all the


money that the system has invested. Operational expenses refer to all the money that the

system spends in order to turn inventory into throughput.

Legal obligation, quality and safety are the first goals to be reduced first. For most

organization the goal is to make money. However for many organizations and non-profit

making organizations the goal is to make necessary conditions to pursue goals. Financial

decision based throughput, operational expenses and inventory must be critically made.

The five focusing steps of the theory

Assuming the goal of a system has been articulated and the measurement defined, the steps

must:

i. Identify the system constraints which prevent the obtaining of goals;

ii. Describing how to exploit system‟s constraints;

iii. Subordinating everything else to the above decision; and

iv. Evaluating system constraints.

2.3 EMPIRICAL LITERATURE REVIEW

Empirical literature review refers to the literatures, or previous studies that relate or argue

positively with the study‟s hypothesis and variables. It involves systematic identification,

location and analysis of documents containing information related to a research problem

(Flemming, 2008).

Cottell and Mckenze (2011) pointed some importance of literature review as:

i. Understanding current knowledge on topic and illuminates the significant of the new

study; and

ii. It is important to identify problem of the study.


2.3.1 CASE STUDIES

Case study 1: Zimbabwe road freight transport (2012).The underperformance of

Zimbabwean haulage companies.

Boarder situations in Zimbabwe.

The performance of haulage companies was affected by increased turnaround time (cycle

time). Beitbridge and Forbes border post are always congested due to different reasons.

Assistant regional immigration officer for southern region, Charles Gwede in the business

Herald dated 12 September 2012 attributes the delays to a sharp increase in the traffic whilst

the border had not increased its capacity to handle the volumes.

Cycle time matrices are the most natural indicators of transportation performance. According

to Frazelle (2002) the most popular cycle time indicators for transportation include:

i. In-transit time (ITT) -Point-to-point in-transit times by driver, carrier, lane, and

location.

ii. In-transit time variability Point-to-point in-transit time variability by driver, carrier,

land, and location.

iii. Vehicles load/unload time -Vehicle loading and unloading times at each

pickup/delivery location by driver, carrier, lane, and location.

iv. Detention time- Time spent waiting for loading or unloading at a pickup/delivery

location due to dock congestion and/or delays caused by the shipper or consignee.

v. Delays in traffic time- the time spent idling or at reduced speed due to traffic

congestion for each driver, carrier, lane, and Pickup/delivery location.

The Beitbridge border post has limited number of lanes due to the construction type of the

bridge. The bridge used to operate traffic moving in alternating directions. This contributed to

congestion on the transportation of goods at the border post. The following picture indicates

the effect of congestion on the transportation of goods concurrently increasing the cycle thus

disrupting the performance of transnational companies.


Fig 1:Beitbridge Border post congestion

Source: Zimbabwe Transport Report 2012

Delays on border posts as indicated in the picture above lead to reduced turnaround time of

haulage companies thus reducing the performance of these companies. In the Business Herald

dated 10 September 2012, Phiri pointed out that long, winding queues of the haulage trucks

and weary travellers have become order of the day on both sides of Beitbridge border post

resulting in delays. There was the general increase in the movement at Zimbabwean border

posts but the department of Immigration had not increased its capacity to cater for the

volumes. Development bank (2000) attributed the inefficiency and congestion of border

authorities estimates that countries which utilizes Beitbridge in transporting their goods

losing up to $35 million of business every year.

The Zimbabwe Road transport network (road infrastructure)

The transport network of road infrastructure is shown in the Figure 2 below:


Fig2: Zimbabwe road infrastructure and networks

Source: Department of Roads, Government of Zimbabwe.

The above map indicates the Zimbabwe‟s major roads utilized by both local and international

transporters to distribute different types of goods to their final destinations or to pick up them

for transportation purpose. Zimbabwean government seems to have been failed to constantly

maintain the roads to prevent the deteriorations. CEO of ZINARA Mr. Frank Chitukutuku,

points out that there are almost 77868 Km of roads which are approximately 40 yrs.‟ old,

which need urgent attention. The stagnant development and maintenance of roads due to the

economic situations prevailing in Zimbabwe for the past years contribute to the negative


performance of haulage industry. This has also affect transport industry as a whole as it leads

to long lead times and late deliveries to the required destinations.

According to Larson (2006), failure to properly maintain a road contributes to the

breakdowns and cargo damages. The presence of potholes or other wear and deterioration or

fading of road signs especially Harare – Beitbridge highway negatively affect haulage

companies as it leads to break downs and accidents. Hilton Munendoro, Zimbabwean Herald

(02/09/11) reveals that; Zimbabwe‟s Road Haulage Fleet is increasingly challenged by the

ever deteriorating road infrastructure. Over the past decades vehicle fleet management has

been evolving into the core business practice of both state owned and private owned haulage

companies. The fleet management objective has been to operate a fleet of haulage trucks at

the least cost, deriving the highest customer satisfaction.

In Zimbabwe, the major highway utilized by haulage companies to access the border posts

from Harare areas follows;

i. Harare- Beitbridge via Masvingo (600Km)

ii. Harare-Forbes via Mutare (300Km)

iii. Harare- Chirundu via Chinhoyi (352Km)

The World Bank (2006) points out that about 40 percent of the network, which is equivalent

to about 36000Km are in poor conditions and requires rehabilitation by the government.

Researches have proven that most African nations including Zimbabwe are failing to adopt

Just in time delivery due to their poor logistical infrastructures. Maintenance costs of haulage

companies increased due to poor roads thus affecting the financial performance indicators

negatively.


Fig 3: The deterioration of road networks in Zimbabwe since 1994:

Source: Zimbabwe Transport Report, 2011

In the early 1990s, the coverage and quality of the basic infrastructure of Zimbabwe was

among the best in the region. In the past decade, there has been a substantial deterioration in

the quality of these infrastructure assets. As things now stand, the amount and quality of the

country‟s infrastructure is roughly in line with that of other Southern African countries, but as

with many other Sub-Saharan countries, Zimbabwe now lags behind most other regional

groupings in the world in infrastructure service coverage and quality.

Fleet maintenance in Zimbabwe

Most companies in Zimbabwe have poor fleet maintenance system. Fleet maintenance system

combines vehicle movement operations, maintenance, workshop repairs, spare parts stores

inventory of the fleet into a single solution to compete B2B enterprises resource platform


interfaced with ERP, CRM and Accounting system. In Zimbabwe, haulage companies‟ uses

bush mechanic system and faces a challenge of spare parts as they repair their vehicles.

Bush mechanic system has affected the performance of fleet companies in Zimbabwe.

Vehicles are given to people without technical expertise or inventive techniques. The lack of

proper resources such as cash to meet normal repair costs promote the growth of bush

mechanics which affect the overall performance of haulage companies in a negative way. The

bush mechanics promotes incompetent of fleet companies as the solved problems will not

last. The maintenance is based on practical knowledge and wisdom instead of technical skills.

This kind of mechanics performs automotive repairs with minimal equipment and irregular

setting supplies, often residential garage or drive ways. The mechanic type identified as a

retired mechanic, paraprofessional with limited skills, self-employed individual who enjoy

working with vehicles in their spare time.

The life time of the fleets reduced due to ineffective repairs. The financial performances of

the fleet (haulage) companies affected since bush mechanics ended up pumping more cash

than normal repairs of vehicles.

Spare parts

Spare parts has become major issue maintenance and servicing issue for haulage companies

in Zimbabwe. The challenge increased due to the fact that they do not owner one type of

vehicles such, for example, Tauya Freight uses ERF trucks, Volvo trucks and International

trucks. The problems comes when the when the company tried to spare part, some other

vehicle have scarce spare parts due to their complexity and can only be sourced abroad.

Companies do not get discounts as parts are sourced from different companies in different

times. Freight charges and time taken by spare parts to reach the Zimbabwe also affect the

performance of fleet companies as the downtime expanded due to lengthy delivery time.


Fig 4: Indicates engine parts (indicative in US Dollars) and their expected time of arrival

from Japan.

Part name New Used Freight

Engine, diesel 8,000 3,000 1,000

Engine, from 2.0L petrol 6,000 2,000 1,000

Engine, 1.4 - 1.9L petrol 4,800 1,300 1,000

Radiator 500 150 700

Water pump 300 N.A. 130

Starter motor 800 150 200

Alternator 800 150 180

Diesel injection pump 2,800 700 180

Shipping methods

Sent by Air Courier (approximate delivery time 10 days).

Sent by Ship (approximate delivery time 6 weeks)

Source: japan spare parts.jsssapanvehicle.com

Employee’s qualification and experience

According to Edmund G Gubbings (2003), it is necessary to have a fleet manager who can

manipulate their knowledge so as to achieve competitive advantage for the company.

Interpersonal skills are the skills we use to interact with other people. Good experience and

knowledge allow management to participate effectively in the industry, satisfy customers and

clients' expectations, negotiate, make decisions, manage the time efficiently, take

responsibility, and work effectively with other employees (www.skillsyouneed.com).


The performance of haulage companies in Zimbabwe affected by the nature of employees

engaged in those companies. In most cases, they consider neither qualification nor

experience. Company‟s success depends on employees who work there. Engaging right

person for the right job position is one of the main factors affecting the company‟s future

success. Therefore haulage companies should pay attention on hiring employees who is most

suitable for the position than haphazard recruitment.

The inexperienced and less qualified workers for haulage companies in Zimbabwe contribute

to the underperformance of these companies. These workers are failing to run the provisioned

fleet in a profitable manner.

The good example is of trucks running Harare to Beira Mozambique. Fleet managers need to

be competent enough in the following:

i. Organizing loads from Beira to Harare: in most cases the loads containers coming

from the port with the Zimbabwean destinations;

ii. Negotiating rate for the trip: usually the rate from Beira to Harare is US$2300 for

containers. Calculation knowledge and experience of fleet consumption should be

applied for the rate negotiation purpose;

iii. Calculating trip experience. This includes toll fees, driver allowances and

contingencies in case of problems;

iv. Organizing returning loads from Harare to Beira. In this case experience counts

because the loads are not easy to get; and

v. Have knowledge on fleet servicing and maintenance to avoid major breakdowns.

The above matters are not professionally executed in Zimbabwean haulage companies lead to

the following consequences:

i. Increased downtime of fleet and drivers;

ii. Charging the rate which do not cater for trip expenses thus left the companies on the

major financial crisis;

iii. Major fleet breakdown which requires block replacement; and

iv. Empty movement of trucks which increases losses to the companies.


2.3.2 Case study two: Lyall and Transport Exchange Group (2008): Improving efficiencies

within scheduled trucking service. BT transport group (UK, London)

BT group plc is a haulage company which is located in UK, London. The company size is as

large as multinational level and have over 100 000 employees in 2007. According to 2007

statistics of this group, turnover of the company was approximately equal to £20223 million.

Its haulage services offered at local, national and international level.

Transport continues to grow at the same rate as the economy; this will become both an

economic and an environmental problem. Increasingly congested roads are as much a

disadvantage to European business as they are to society at large. The best log project,

initiated by the European Commission, will establish an exchange platform for the

improvement of supply chain management practice across Europe. In common with many

businesses, BT Group plc has a „scheduled‟ time definite trunking network to service its UK

distribution depots. This haulage is carried out by own vehicles, mainly using double-deck

13.6m curtain-side trailers. As an own-account operator, BT seeks to maximise cost recovery

in this network by charging their suppliers for the uplift of goods which have been purchased

on „ex works‟ terms (so-called „factory-gate pricing‟).The BT Supply Chain organisation

required a solution to maximise load utilisation on certain lanes and meet their CSR

obligations to minimise carbon footprint within their transport division. Therefore, they

looked for an effective way to advertise their scheduled vehicle movements to the wider

logistics market with a view to sourcing suitable partners for sharing capacity.

This case study shows the contribution which freight exchanges can make towards long term

collaborative logistics partnerships. These can lead to a significant reduction of freight traffic

and improved efficiencies for all stakeholders. Based on the example of a major

shipper/service provider, opportunities, challenges and mechanisms in using a freight

exchange are presented.

Haulage Exchange is the UK‟s pre-eminent freight exchange for the road transport industry.

Over 2,000 transport companies use the exchange to share available loads and empty vehicle

movements, thereby gaining additional revenues. The exchange is totally impartial and

operates on a subscription basis – this ensures that users are comfortable with entrusting the

exchange with their sensitive commercial information.


The majority of movements are in excess of 100km, and are generally FTL although there is

a growing volume of part-load offers. In excess of 0.5 million movements per annum are

traded between the members. In summer 2008, the decision was taken to develop a new

section of the exchange: “Regular Runs”. Freight exchanges have traditionally focused on

the „spot‟ or ad-hoc market –however, the UK logistics market is heavily driven by contract

logistics serving sophisticated distribution networks, many of them operating on a JIT basis.

“Regular Runs” enables professional operators such as BT plc to advertise scheduled vehicle

movements to a wide audience of transport professionals, and thereby gain a number of

benefits. The process works like this:

Clients such as BT publish their regular runs onto the Haulage Exchange website, details

include:

i. start / finish locations;

ii. departure days;

iii. departure & arrival times;

iv. vehicle type, space availability, suitable freight;

v. load weight available; and

vi. The system accepts multiple runs per day, each with their own details if required.

Comment

Collaborative logistics partnerships can lead to a significant reduction in freight traffic and

improved efficiency to all stakeholders. Increasingly road congestion reduces the turnaround

time for transport operators therefore affect customer service level and company

performance.

2.3.3 Case study three: http//openknowledge.worldbank.org. The Zambia Road Transport

Market

Zambia's main trading partner is South Africa, accounting for 1.8 million tonnes per year

(44% of the estimated total freight traffic in 2005). The DRC and Zimbabwe account for

about 9% and 8% respectively of total trade. The Zambia‟s international trade outside the

SADC region accounts for about 36% of total trade. The main products transported by road

within Zambia are:

i. Mining products (both inputs and outputs: ores, concentrates, metals,


Sulphur, sulphuric acid, coal);

ii. Agricultural products (sugar, tobacco, cotton);

iii. Fuels (diesel and petrol); and

iv. Food (bulk grain).

According to data from the Zambian Revenue Authority, the total volume of Zambian

regional and international trade is 4.1 million tonnes in 2005, made up of 2.3 million of

imports and 1.6 million of exports. Road transport is the dominant mode in Zambia and is

expected to remain high. Current modal share is about 71% of Zambia's trade (in volume) is

carried by road, 24% by rail7 and about 5% accounts for oil imports by pipeline from Dar es

Salaam (TAZAMA pipeline).High value mining and agricultural goods (cobalt and fresh /

frozen products) are generally transported by air freight except for copper cathodes (about

USD 250,000 per load), which are exported by road to Gauteng, where they are containerized

in order to be exported through Durban.

On Zambia's routes from South Africa, only about 10% of general cargo is containerized for

costs savings reasons. Trucks have increased payloads and volumetric capacity when not

containerized. There are two rail operators relevant for Zambia's trade. Railway Systems of

Zambia (RSZ) is the rail operator of Zambian Railways following a 20-year concession

agreement signed in February 2003. The total traffic carried by Zambia railway has fallen

from more than 6 million of tonnes per year in 1975, to 4.5 million in 1988 and to less than

1.5 million in 1998. For such low volumes, the minimum required railway tariffs to achieve

financially viable operations will be, in most cases, higher than the equivalent road tariffs

with longer transit times. This is partly due to deregulation of the road transport sector, but

also due to shrinkage of the economy, particularly mining and agricultural sectors.

In general, regional freight in Southern Africa is dominated by the flow of manufactured and

consumer goods out of South Africa into the other SADC countries. As a result and in the

absence of flows in the reverse direction, some foreign registered trucks travel to South

Africa empty. In the case of Zambia and based on a full payload, the freight flow imbalance

by road is about 630,000 tonnes per year. This imbalance most often translates into freight

tariff discount on the backload. Similar situations exist in Malawi and Namibia with respect

to South African routes.


However, larger operators (with 50 or more trucks), both in Zambia and South Africa, have a

clear advantage over the smaller operators because they have a broader customer profile and

more flexible operating conditions. Hence, larger operators are better able to secure back

hauls. Presently, due to the high demand for transport services in Zambia, large Zambian

operators currently operate with virtually 100% back hauls, which enhances substantially the

trucking sector's profitability and competitiveness. Estimated freight flows are the following:

Zambian imports by road of 1.7 million tonnes (excluding imports by pipeline) versus 1.7

million tonnes of exports by road.

Zambia Main Trade Routes

Compared to most developing landlocked countries in Africa, Zambia is particularly well

serviced in terms of road and rail infrastructure.

There are several alternative road and rail connections from Zambia's main economic centres

to regional ports.

Dar es Salaam Corridor.

This is Zambia's `natural' import and export port and transport corridor. The corridor is

served by road and rail, with the infrastructure on both services being in generally good order

and operating at well below capacity, with the exception of the Nakonde border post, this is

often congested.

North South Chirundu, Beit Bridge, Gauteng, Durban.

This is the most heavily trafficked corridor for regional trade, which connects South Africa

with Zimbabwe, Zambia, and Malawi, central and northern Mozambique, the DRC, Tanzania

and the great lakes region. The average road transit times on the Ndola Gauteng route are

about 7 days 2.1 round trips per months for the larger trucking companies using the

Chirundu-Beitbridge route.

Road infrastructure is in good condition but the border post-upgrades have been delayed.

Delays and congestion occur at the Bainbridge and Chirundu border posts, particularly at

peak periods. Delays at Beitbridge can be up to 3 days due to processing capacity limitations.

At Chirundu, processing normally takes up to 1 day. Some of the traffic appears to have been

switched to the Kazangula crossing, but delays appear to be even higher.


Despite significant longer distance from Zambia, Durban remains an attractive alternative to

Dar es Salaam, because the flow of goods exported out of South Africa allows the trucking

companies to offer a discount for the back haul, to offset the additional cost of the longer

distance. Increasing copper production and export from Zambia during 2004/5,has allowed

the larger trucking companies to achieve a balance of goods transported north and south.

Comment

Well serviced roads and rail infrastructures with alternative road-rail connections improve the

performance of Zambian haulage industry as compared to other countries. The absent flows

of loads in reverse directions disadvantage small transport operators in terms of costs.

However larger operators have an advantage over small firms because of broader customer

base and are more flexible operating conditions. Post upgrading in borders delays haulage

movements.

2.3.4 Case Study Four: www.fleetmind.com.Casella waste systems Enhances Fleet

Operations and Sustainability.

Waste executives and fleet managers are always looking to run better more efficient and more

sustainable operations. Casella waste systems, Inc. headquartered in Rutland accomplished

this and more are implementing fleet management solutions. Casella provides solid waste,

recycling and resource management services in seven North-eastern US countries. The

operation include 7 recycling facilities, 12 disposal facilities, 31 collection operations and 29

transfer stations.

Casella objectives is to keep the vision of their company in a wide operational innovation and

excellence, fleet management solutions were looked for and that would support the

company‟s high standards for sustainability and service. Specifically they wanted to improve

the quality of their customer experience, as well as deliver real environmental health benefits

through the improved vehicle service.

Solution

Casella selected fleet Mind‟s solution for waste and recycling organisations that include tools

for on-board computing, fleet mapping, reporting and analysis, driver direction, automated


service verification, wireless communication and more. The implementation included both

hardware and software installations in vehicle and offices and back office system integration.

Results

The most notably, measurable improvements to customer services, updates, data accuracy

and overall productivity. Casella‟s improvements as a result of fleet Mind system include:

Greener- With the fleet management tools, Casella supports greener fleets by:

i. Optimising each truck routes to reduce time spent on the road and number of

engine hours per day.

ii. Reducing amount of fuel burned by using alarms to monitor and reduce idling time

(by an estimate of 5%).

iii. Identifying efficient driving pattern and vehicle maintenance issues for immediate

resolutions.

Safer – Fleet safety is about reducing risk and reinforcing safe driving behaviour. With fleet

mapping, and reporting capabilities, Casella has real time visibility into driver activity and

behaviour to make sure that its managers have the tools and information they need to

proactively implement fleet safety initiatives and mitigate associated risks.

More responsive-customer service excellence is one of Casella‟s core values. With its fleet

management solutions, Casella‟s can now deliver real time and fully automated services

verification to track individual containers and customer activity. Its new fleet management

dashboard delivers a single view interface into all fleet operations and performance to

identify and respond to container services requirements more efficiently and with greater

degree of accuracy.

Optimises decision making- Casella can now view multiple items of vehicles information on

the map simultaneously including the current vehicle location , alarm location, vehicle

activities, containers and breadcrumbs trails. This allows the dispatch of personnel to identify

the real time, current position for quick and accurate decision making.

Improved billing accuracies- With improved reporting capabilities, Casella is easily able to

identify account that may have been accurately priced, as well as simplify driver and routes

comparisons for production, time, miles.


Comment

Fleet management solutions such as on-board computing, wireless communication, fleet

mapping and analysis, automated service and verification lead to greener, safer, more

responsive, optimised decision making and improved billing accuracy.

2.3.5 Case study five: Atnafseged K (2001), Road transport in Ethiopia.

World Bank and other documents examined that Ethiopia‟s transport comprises about

35000km of roads and 2 ports at Addis Ababa and Massawa, prior to the liberation of Eritrea.

The inadequacy of the transport system to support an efficient production and distribution

system discussed.

The Chamber of Commerce of Addis Ababa (1991) also treated as a commercial transport

sector from the point of view of supply and demand for freight transport services. The fleet

profile from various aspects of age, capacity and ownership has also been considered. It goes

without saying the performance of good freight transport has increased from less than 2000

tonnes to 6014 thousand tonnes per annum. In the 5year plan of ministry of infrastructure

(2000/01-2004/05) it was to reach 7383 thousand tonnes. The bulky of transport on Addis

Ababa to Red Sea Corridor, which is the bulk borne of the country transport system.

According to the report (1978/88) under normal operation conditions, the existing trucking

fleet would be adequate to cope up with current demand. However if the growth rate of

tonnes and tonne km and operational deficiency are taken into account. There is evidence that

will fall short of providing the service required to meet transport requirements unless vehicles

are procured.

According to Hughes Transport system (1983) in the dry cargo freight movements, it is

assessed that each year shortage appears to exist in the number of trucks. The road transport

performance could not meet the transport demand generated by the economy. The major

problems discussed are insufficient road network, old and limited trucking fleet and slow

forwarding operation.

Despite the stated problem the road transport has played great economic social and political

roads, for it shares 90% the total freight transport in the country. Future freight transport has


been forecasted by different bodies at different times. According to the transport sector study

(TSS) conducted by Louis Bregger international (1983-84) forecasted the national freight

transport demand in terms of tonnage. The tonnage ton km forecasted between 1990 and

2005 was made to reach 5817 million in 2005.

Comment

Normal operation condition trucking fleet lead to effective response to demand, operational

deficiency (underperformance) can be evidenced by failing to meet the total transport demand

generated in the industry. The major transport problems are insufficient road network, old

and limited trucking fleet and slow forwarding operation.

2.4.1 Survey One: Zavrnik et al (2007). The indicators used to evaluate logistics in

Slovenian market.

Table 4: The logistics supplier indicator, frequency and the percentage

The indicator of evaluating logics suppliers frequency (%)

Competitive price and payment conditions 26 68.4

Adequate quality of logistical services 23 60.5

On time delivery 21 55.3

Reliability of offered logistical services 17 44.7

Technical equipment and to manage the entire logistical

function

12 31.6

The full services of the logistics and services 10 26.3

The speed of delivery 7 18.4

The size of logistics provider 1 2.6

Source: Zavrsnik et al (2007)

The surveys indicated that competitive price and payment conditions and the adequate quality

of logistical services were the highest indicators in evaluating 3PL suppliers with over 60%.

On time delivery, presents of technical equipment to manage the lo logistical function and the

reliability of logistical services offered are also important indicators in evaluating the

performance of 3PL firms with 55.3%,44.7% and 31.6% respectively. The size of the


logistics provider rated insignificant with 2.6% which is the least indicator in evaluating the

3PL providers.

Comment

Management of the 3PL firms should improve on the competitive price, adequate quality of

logistical services, on time delivery, reliability of logistical services offered, technical

equipment, the full services of logistics and connected services and the speed of delivery in

order to increase the market share of the offered services.

2.4.2 Survey Two: Traffic World (2004). Non-Asset Based transport providers

The Non Asset based transporters are the 3PL firms‟ act as integrators and are not restricted

in using any particular warehouse or the transportation company during the provision of its

services to customers. The customer expects them to be unbiased in the decision making on

customer‟s behalf. They work hand in hand with different service providers that best meet

their customer needs. World Bank (2004) noted the total of US 21.4 Billion.

Table 5: The top 10 3PL firms in Non-Asset Based surface transportation providers.

Non- Asset Based surface transportation Revenue

US$(Billion)

(%) of

category

C.H Robinson $3.294B 15.3

Hub Group $1.335B 6.2

Scherieder Logistics $1.194B 5.5

UPS $1.000B 4.6

Trans place $1.000B 4.6

Caterpillar logistics services $1.000B 4.6

Pacer Global Logistics $1.000B 4.3

RR Donnelley $937M 4.2

Ryder systems $906M 3.7

Penske $784M 3.4


Comment

Third party firms in transportation industry should consider integrating with other logistics

service providers which provide for example warehousing activities. They should be able to

negotiate on behalf of customers for the consigned goods.

2.5 Chapter summary

The chapter covered the definitions of key terms, theoretical literature review where the study

related theories were discussed, the empirical literature review, the empirical literature

review, relevant case studies and the surveys related to the study.


CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

Iryn et al (2005) defines research methodology as a systematic, theoretical analysis of the

methods applied to a field of study, or the theoretical analysis of the body of the methods and

principles associated with a branch of knowledge. It encompasses concepts such as paradigm,

theoretical model phases and quantitative and qualitative techniques. According to

BusinessDictionary.com, research methodology is the process used to collect information and

data for the purpose of making decision. The methodology may include publication research,

interviews, surveys and other research techniques and could include both present and

historical information.

Research methodology is a way to find out the results of a given problem on a specific matter

or problem that is also referred as a research problem. In methodology, researchers use

different criteria for solving the problem (Industrial Research Institute, 2010). Redman and

Morry (2009), in support of the above authors, define research methodology as a

systematized effort to gain new knowledge. In addition to the above authors, Leedy and

Omrod (2005:86) state that methodology define the types of research and the overall strategy

utilised for the research study.

3.1 Research philosophy

Saunders et al (2000) defines research philosophy as the development of the research

background, research knowledge and its nature. The way one perceives the development of

the knowledge affects unwittingly the way the one would conduct a research. According to

Galliers (1991), a research philosophy is a belief about the way which data about a

phenomenon should be gathered, analysed and used.

Research philosophy includes the studies of logic, ethics and epistemology. Logic deals with

principles and systems of reasoning. It is the method by which we deduce and interpret the


information (www.studymode.com).In support of the above authors, Cohen et al (2000)

added that research philosophy can be characterised as a precise procedure, which involves

various steps through which research creates a relationship between the research objectives

and questions.

Saunders et al (2007) state that the four particular research philosophies are:

i. Positivism;

ii. Constructivism;

iii. Phenomenology; and

iv. Realism.

Positivism research philosophy

Sarantakos (2005) defines the positivism research philosophy as a highly objective view of a

common and single reality. This type of research philosophy supports that everything

perceived through the senses is real and therefore reality exists independently of a perception

and human thoughts. According to Guba and Lincoln (1998), the external world can be

accurately described and explained and the theories derived can be useful to explain and

predict the phenomenon.

Constructivism research philosophy

Constructivism research philosophy suggests that there are multiple realities since the reality

is subjective and constructed socially (Berger and Luckman, 1996). Historical and other

mechanisms can shape the reality which makes the researchers to be transformative

intellectuals and be with the capacity to change the social order (Guba and Linkoln, 1994).

Phenomenology research philosophy

Unlike positivism sciences, the phenomenology philosophy does not follow the prescribed

rules; however it has a set of guided principles which the researcher must bear in mind.

Porkihorne (1983) stated that researchers can reveal their own preconceptions and have

opportunities for growth or change. Packer and Addison added that, the results from this

philosophy do not give verifiable knowledge but gives an understanding which can be judged

by its effectiveness in addressing the concerns of the enquiry. According to Barrit et al

http://www.studymode.com/


(1983), they suggested that the goal of phenomenological research is to communicate

effectively the way of seeing things.

Realism research philosophy

According to Fodder (1984), this philosophy derived from the direct contact to relevant

objects, observation reports in representations of social facts. Primary observations are said to

be the foundation of knowledge. Searl (1995) gives a view that knowledge can be derived

from other sources other than direct observations, for example the reports and other

relationships among the extant data. Realism research philosophy uses both qualitative and

quantitative methods for the analysis of data.

For the purpose of this research, realism philosophy was adopted. This was because

observation report from ministry of transport and the primary observations were also used for

the collection of data. The qualitative and quantitative methods were used in the data analysis

for the study.

3.2 Research design

According to Burns and Grove (2003:195), research design is defined as a blueprint for

conducting a study with maximum control over factors that may interfere with the validity of

the findings. Pilot (2001:13) defines research design as a description of the format and

theoretical structure under which the study will be carried. It involves organising the

collection, analysis and interpretation of observation. Parahoo (1997:147) describes a

research design as a plan that describes how, when and where data are to be collected and

analysed. Smith and Lowe (1999:21) give a view that research design is the overall

configuration of a piece of research.

The American Journal of Hospitality Pharmacy (1980:398) pointed out that the purpose of a

research design is to provide a plan of study and permits the accurate assessment of the cause

and effect relationship between the independent and dependent variables. The research should

be designed in such a way that:

i. It answers the questions being investigated;

ii. Extraneous factors are controlled; and

iii. The degree of generalisation that can be made valid.


In this study, the researcher made use of a descriptive research design because the data

collected was both qualitative and quantitative in nature for the clear investigation into

factors contributing to the underperformance of road cargo transnational haulage services.

Qualitative approach

Qualitative approach is an unstructured, primarily exploratory methodology based on small

samples, intended to provide an insight and understanding (Malhotra, 2000:156). Punch

(1998:4) defines qualitative research as an empirical research where data are not in the form

of numbers. In support of the above author, Holtzhausen(2007:15) states that qualitative

research displays a number of characteristics as it is dedicated to viewing events, norms and

values from the point of view of the subject who are studied, researchers are able to give a

detailed description of the social setting they explore. Qualitative research describe events

person and so forth scientifically without the use of numerical data. It is more open and

responsive to its subject. Open ended question involved in the qualitative research approach.

Open ended questions allow respondents to include more information, feelings attitude and

understanding of the subject. The open ended question was also sought to investigate the

future of haulage industry in terms of overcoming the factors that affect the performance of

haulage companies.

Advantages of qualitative research

Smith and Lowe (ibid) outline the following as advantages of qualitative research:

i. It can conduct cross case comparisons and analysis;

ii. Provide understanding and description of people personal experiences of phenomena

(the emic or insiders point of view);

iii. Qualitative research describes in rich detail phenomena as they are situated and

imbedded in local context;

iv. Data are usually collected in naturalistic settings in qualitative research;

v. Qualitative researchers are especially responsive to local situations, conditions and

stakeholders needs; and

vi. Determine idiographic causation (the determination of causes of a particular event).


Disadvantages of qualitative research

Smith and Lowe (ibid) give the following as disadvantages of qualitative research:

i. It is the research method that conveniently allows for the collection of statistical data;

and

ii. The qualitative research methods collects data about the selected group of participants

think or feel, or how they behave. The data could not make assumptions beyond this

specific group of participants.

The researcher used qualitative research design in this study. This was because the qualitative

research allowed the researcher to obtain a more realistic feel of the situation that cannot be

experienced in a numerical data and statistical analysis. It gives the researcher an opportunity

to carry a detailed and in depth studies.

3.3 Population

Brink (1996:132) defines population as set that consist of all people from which data was

collected. The population is the entire group of persons or set of objects and the events the

researcher wants to study. It contains all variables in which the variable wants to study

(Collins et al 2000:47). In addition of the above authors, Wegner (1993) pointed out that

population refers to all the possible observations of the random variable being studied.

For the purpose of this study, the target population comprised directors, managers, logistics

officers, haulage drivers, customers/ clients, suppliers, creditors, government officials and

CZI headquarters staff. The table below indicated the population used for the study.

The targeted population for the study presented in the Table 6 below


Table 6: Targeted population for the study.

Category Frequency Percentage(%)

Directors 40 (20×2) ×

Managers 40 (20×2) ×

Logistics officers 40(20×2) ×

Workshop managers 40 (20×2) ×

Haulage drivers 40 (20×2) ×

Customers/clients Indeterminate Indeterminate

Suppliers Indeterminate Indeterminate

Creditors Indeterminate indeterminate

Government of Zimbabwe officials 10 ×

C.Z.I H.Q staff 10 ×

TOTAL Indeterminate I00

Customers, suppliers and the creditors are indeterminate since the accurate figures could be

available to the firms. Potential suppliers and suppliers were infinite and some are even in

other countries where the actual statistics could not be extracted. Therefore the totals for

frequency and percentage of total were indeterminate due to the missing figures.

3.4 Sample

According to Collins et al (2000: 149), a sample is part of the whole or whole of the

measurements drawn from the population. A sample consists of observation drawn from the

population. Depending on the sampling method, a sample can have fewer observations that

the population, the same number of observations, or more observations (www.stattrek.com).

Valerie and McColl (1997) define a sample as a group of units selected from a larger group

(population). The valid conclusions of the entire population are hoped to be drawn from the

selected sample. A sample is generally selected for the study because the population is too

big in it‟s entirely. The sample should be the representative of the general population and in

most cases achieved by the random sampling.

http://www.stattrek.com/


According to Bartlett et al (2001), a sample size used in the study is determined based on the

expense of data collection. It is an important feature of an empirical study since it makes

inference about a population from a sample. Wansch (1986) states that the researcher uses the

information gathered from the study to generalise the findings from a drawn sample size back

to a population. The inappropriate, inadequate or excessive sample sizes influence the quality

and accuracy of the research under study. Robson (1993:139) and Hussey and Hussey

(1997:148) both agree on the fact that there is no ideal sample size, however the size

depends on the level of confidents of answers, anticipated response rate and discipline.

The following table indicate the sample variable and the sample size for each category used

by the researcher in this study.

Table 7: The sample variable and sample size for each category.

Category Frequency Percentage (%)

Directors 10 12.5%

Managers 10 12.5%

Logistics officers 12 15.0%

Workshop managers 8 10.0%

Haulage drivers 10 12.5%

Customers/clients 8 10.0%

Suppliers 6 7.5%

Creditors 6 7.5%

Government of Zimbabwe officials 5 6.3%

C.Z.I H.Q staff 5 6.3%

TOTAL 80 100%

3.5 Sampling methods

Sampling methods are used to select a sample from within the general population. The proper

sampling methods or techniques are important for eliminating bias in the selection process.

Reduction of costs or efforts in gathering the sample enhanced by the use of sampling

techniques ( www.chegg.com).

http://www.chegg.com/


Random sampling techniques

Simple random sampling

According to www.cheg.com simple random sampling include completely random selection

of the population. Wegner (1993) states that simple random sampling ensures that each item

in the entire group have an equal chance of being included in the sample. This sampling

technique allows the researcher to use the statistical methods in analysing the sample results.

Systematic/ quasi

This is when the population put in order and the selection is on interval basis

(www.chegg.com). Brink (1996:143) pointed out that this sampling technique gives

assurance that the population will be evenly sampled and the requirement of the method is

that the population elements have to be arranged in sequential order.

Stratified sampling

This is a method of sampling that involves the division of a population into smaller groups

known as strata. In stratified random sampling the strata are formed based on members

shared attributes or characteristics. A random sample from each stratum is taken in a number

of proportional to the strata‟s size when compared to the population

(www.investopedia.com).

Cluster sampling

Cluster sampling is a sampling technique where the entire population is divided into groups

or clusters and the random sample of these clusters are selected (stats.gla.ac.uk). Valerie and

McColl (1997) pointed out that cluster sampling is typically used when the researcher cannot

get complete list of members of the population the wish to study but can get complete list of

the clusters or groups of the populations.

Non-random sampling techniques

Judgemental sampling

Judgemental sampling is a sampling technique which is used in cases where the specialty of

an authority can select more representative sample that can bring more accurate results. The

http://www.cheg.com/

http://www.chegg.com/

http://www.investopedia.com/


process involves purposively handpicking representative from the population based on

authority or researchers knowledge and judgement (http// explorable.com).

Judgemental sampling design is used under the following:

i. If the researcher knows a reliable professional or authority that is capable of

assembling a representative sample;

ii. When a limited number of individuals possesses the traits interest; and

iii. When obtaining information from a very specific group of people.

Quota sampling

Wegner (1993) defines quota sampling as a procedure where certain distinct characteristics

have to be adequately reflected in the sample to be selected.

Justification of the sampling method used

The researcher used simple random sampling, stratified sampling and judgemental sampling

technique. Simple random sampling and stratified sampling were used because they give an

element in the population of equal chance to be included in the sample. The judgemental

sampling method used because the researcher had to choose certain people who would

provide relevant information on the factors lead to the underperformance of third party

companies specialising in road cargo transnational haulage services.

3.6 Research instruments

Research instrument is a testing devise for measuring a given phenomenon, such as a paper

and pencil test, a questionnaire, an interview, a research tool or a set of guidelines (Mosby‟s

Medical Dictionary, 2009). According to Bell (1993:35), research instrument is a tool that

enables the researcher to gather data to find the solution to the problems under investigation.

There various instruments which can be used to collect the data and the most popular are:

i. Questionnaires;

ii. Direct observations;

iii. Documentary analysis;

iv. Archives; and


v. Interview was considered as the most appropriate instrument for data collection

purpose after considering the following:

i. A questionnaire will not disrupt respondents in their core duties;

ii. The respondents are educated; and

iii. The questionnaire is easy to analyse and conclusions are easy to draw

on given responses.

Questionnaires

Foddy (1994) defines a questionnaire as a research instrument consisting of a series questions

and other prompts for the purpose of gathering information from respondents. According to

James (1997), a questionnaire is a means of eliciting the feelings, beliefs, experiences,

perceptions, or attitudes of some sample of individuals. It could be structured or unstructured.

The author further pointed that a questionnaire is most frequently a very concise, pre-planned

set of questions designed to yield specific information to meet particular demanded for

research information about a pertinent topic.

Attributes of a good questionnaire

James (ibid) pointed out the following as attributes of a good questionnaire:

i. Deals with a significant topic. The significance of a questionnaire should be clearly

stated on the questionnaire or in the accompanying letter;

ii. The questions should be tailor made to address the problem at hand. They should be

short to sustain the respondent‟s interest;

iii. Questions should be objective, with no leading suggestions to the desired responses.

iv. Questions should not be biased leading questions;

v. Directions must be clear and complete. The important terms are defined, each

question deals with a single idea. All questions must be simple and clear; and

vi. Questions are presented in a good psychological order.

Advantages of a questionnaire

James (1997) pointed the following as some of the advantages of a questionnaire:

i. Economy-The expenses and time involved in training interviewers and sending them

to interview are reduced;


ii. Uniformity of questions-Same set of questions is given to all respondents therefore

yield data is more comparable than information from interviews; and

iii. Standardisation- There is highly structured questions and the conditions under which

they are answered are controlled.

Disadvantages of questionnaires

James (ibid) states the following as disadvantages of a questionnaire:

i. Respondent‟s motivation is difficult to access, affecting the validity of response; and

ii. Returned completed may represent bias samples, unless random sampling of

questionnaire returns is obtained.

Personal interviews

James (ibid) defines an interview as a direct face to face attempt to obtain reliable and valid

measures in the form of verbal responses from one or more respondents. It is the conversation

in which the roles of an interview and respondent change continually. Saunders et al

(1997:210) pointed out, interview could help one to gather valid and reliable data that are

relevant to one‟s research questions and objectives‟‟. The use of an interview as a research

method is unique as it involves the collection of data through direct verbal interaction

between two or more people. It allows the researcher to follow up and obtain more depth, rich

data and greater clarity of data or information.

The researcher held personal interview with the fleet managers, haulage drivers and

workshop managers of different fleet companies specialising in road cargo transnational

services. These interviews were done to follow up some issues which were not addressed by

the questionnaire.

Telephone interviews

Telephone interview were primarily to get clarification from some respondents as well as to

consolidate information that was already gathered.

Advantages of interviews

According to James (1997), the advantages of interview are as follows;


i. It allows the interviewer to clarify questions;

ii. Can be used with illiterates;

iii. Allows the informants to respond in any manner they saw fit;

iv. It allows the interviewers to observe verbal and non-verbal behaviour of respondents;

and

v. It is a means of obtaining personal information, attitudes, perceptions and beliefs of

respondents.

Disadvantages of interviews

i. The unstructured interview often yields data which is too difficult to summarise and

evaluate; and

ii. Training of the interviewers, sending them to meet and interview the informants and

evaluating their effectiveness is costly to the study.

Challenges faced for interviews

The following was stated by James (1997) as some of the challenges in using interviews as a

way of collecting data:

i. Error in asking questions occurs whenever an inappropriate question is asked where

the response to the question will not satisfy the objective of an investigation;

ii. Probing Error- The interviewer could not allow the respondents to have sufficient

time to respond;

iii. Respondents maybe unmotivated therefore they are likely to be uncooperative; and

iv. Respondents answer questions inaccurately by omitting the information.

3.7 Data collection method

Data

According to Davies (2002), data is a least abstract, information next least and knowledge

most. Data becomes information by interpretation. It can be defined as unprocessed facts. The

website www.merian-webster.com gives a full definition of data as:

http://www.merian-webster.com/


i. Factual information used as basis for reasoning, discussion, or calculation. The data is

plentiful and easily available; and

ii. The information in numerical form that can be digitally transmitted or processed.

The BusinessDictionary.com defines data as information in raw unorganised form that refer

to or represent conditions ideas or objects.

Contrast of data and information

The comparison of data and information are presented in the Table 8 below:

Table 8: Comparison of data and information

Data Information

Data is raw, unorganized facts that need to be

processed. Data can be something simple and

seemingly random and useless until it

organized.

When data is processed, organized structured

or presented in a given context so as to make

it useful.

Data in themselves are fairly useless. Interpreted and processed data determine its

true meaning.

Facts, description may or may not be

meaningful.

Captured data and knowledge information is

always meaningful.

Data must be processed to understand. Information is already in understandable

form. It may be processed further to make it

more understandable.

Data may not be in the order. Information should be in the order.

Source: Adopted from www.diffen.com

Primary data

Wyne et al (2008), defines primary data as data collected for the first time. It can be data

observed or collected from first-hand experience. Primary data are those which are collected

for the first time. It is real time data which are collection directly the researcher. This data

originated by the researcher specifically to address the research problem (www.slidenet.com).

http://www.diffen.com/

http://www.slidenet.com/


Methods of collecting Primary data

www.slidenet.com pointed the following as some of the methods of collecting primary data:

i. direct investigations;

ii. indirect investigations;

iii. investigations through local reporters; and

iv. Observation.

Direct personal investigations

The researcher collects the data personally by approaching objects; conduct the enquiry on

the sport, collect information needed. For the correctness of data, the researcher must be

polite, unbiased and aware of local conditions, environment and the languages used.

Indirect investigations

The researcher did not collect the information directly, they get them indirectly through those

persons who knows the information and who are ready to share the information they possess.

The method is useful where the direct contact is not possible.

Investigation through local reporters

In this method the researcher collect data which were not collected through specially

appointed correspondents or enumerators. Information is collected in any fashion.

Observations

This is when the researcher watched the behaviour of objects. The types of observation

include:

i. Participants observation;

ii. Non participant observation;

iii. Disguised observation;

iv. Controlled observation; and

v. Uncontrolled observation.

The state of major roads used by cross border haulage companies was observed for the

purpose of this study. The movements of transnational cargo trucks at Beitbridge and Forbes



border post was also strongly observed by the researcher in this study. The reason for using

the observation as a data collection method was from the assumption that the subject is likely

to give the distorted interpretation of their activities due to strong belief and conditions. The

participants‟ observation enabled the researcher to share the experience by merely observing

the movement and performance of trucks.

Problems associated with collection of primary data.

According to www.write.com , the problems associated with collecting primary data are as

follows:

i. Researcher‟s bias- Bias is any form that skews the research and presents a research

problem. There are three areas in which bias can creep the study:

i. How the researcher ask questions;

ii. How the researcher take notes; and

iii. How the researcher draw conclusions from collected data.

ii. Failure to acknowledge that reported and actual behaviour sometimes differ.

Whenever the researcher asked questions, there is a tendency to report behaviour in

more favourable light;

iii. Ignoring related factors- researchers usually ignores factors related to primary

research;

iv. Overgeneralization of results- Researchers tempted to make generalisation about a

group based on interviews, observations and surveys. The findings attributed as

something that is permanent;

v. Failure to recognise invalid data- Some participants can intentionally provide

inaccurate answers to the researcher; and

vi. Confusion over correlation and causation-Researchers has the temptation to take a

correlation between two things and imply causation. The relationship between two

things does not automatically mean one causes the other.

Secondary Data

Utkarsh Amaravat (2012), in the website www.slidenet.com defines secondary data as the

data that already was collected by others. These are usually found in journals, periodicals,

research publications, diaries and official records. The type of data may be available in

http://www.write.com/



published or unpublished form. Whenever the researcher finds it impossible to collect data

using primary data, the investigator or the researcher go for secondary data.

Methods of collecting secondary data

Company websites

The relevant information was gathered from haulage company‟s databases which were

accessed through internet.

Newspapers and other publications

The researcher gathered information from the daily publications such as herald and company

magazines and journals. Journals from the ministry of transport and UNCTAD were received

to assertion the path towards efficient transport operations.

Merits of secondary data

i. It is more convenient;

ii. It serves finances and time;

iii. It is essential whenever primary data cannot be collected; and

iv. The reliable secondary data are generally available for many investigations.

Demerits of secondary data

i. Most accurate secondary data is very difficult to find;

ii. It is more difficult to find secondary data which exactly fulfils the need of present

investigations; and

iii. It is not available for all enquiries.

Problems/challenges faced in collecting secondary data

The following are the challenges associated with collecting secondary data:

i. Source bias;

ii. Reliability;

iii. Concept error; and

iv. Errors that can invalidate data.


Source bias-The issue of bias is valid for both quantitative and qualitative researches. Some

data are exaggerated. The researcher will not be able to remove or overcome some of the

errors. However knowledge of their existence will help in drawing conclusions. The data

should be checked for errors to verify the accuracy. Rabianski (2006:49) categorised four

categories of potential error in secondary data as:

i. Sampling and non-sampling errors;

ii. Errors that invalidate data;

iii. Errors that require data reformulation; and

iv. Errors that reduce reliability.

Reliability-Reliability is a challenge for secondary data.

Concept error-The researcher can use data containing the concept error in the research

study. Berry and Linoff (1997:87) defines the concept error as the error that arises because of

the difference between the concept to be measured and indicator that is used to measure that

concept. Houston (2004:159) pointed that the decision to use data depends on the following

considerations:

i. The size of discrepancy between concept and indicator;

ii. The purpose of the study; and

iii. The availability of valid and accurate data.

Errors that can validate data-the data might be contaminated and can be represented as

invalid due to actions or attitudes of orientation of the organisation that is collecting the data.

Data might reflect contamination or manipulation caused by inappropriateness, confusion or

concept error (Lacobucci and Churchill, 2009:201).

3.8 RELIABILITY AND VALIDITY OF DATA

Babbie (1979) defines reliability as a matter of whether a particular technique applies

repeatedly to the object and yields the same results each time. The author moved on to say

reliability is the degree of consistency that an instrument of procedure demonstrates. It

implies that whatever method of data collection used should be consistent to every subject

studied. According to Kerlinger (1986:405), reliability is a means of achieving consistent

results form a selected instrument.


According to Leedy (1980), validity is the extent to which a test measures what it supports to

measure. Validity goes on how effective the research instrument is measuring what they

supposed to measure. Fink (1995:33) propounded that straight forward questions and

reasonable responses is the only way of ensuring validity from a questionnaire.

The pre-test of questionnaire was done by submitting the final questionnaire to three

categories of people: industry experts, target respondents and colleagues. Dill Mann (1978)

state that colleagues was to test whether the questionnaires accomplishes the objectives of the

study. The role of haulage industry experts was to avoid some obvious questions in the

document. The respondents were then to provide feedback on asked questions.

3.9 Ethical considerations

Greener (2008) stated that ethics relate to moral choices affecting decisions, the standards and

behaviour. According to Tochin (2006), the individuals or respondents notified with the

following before they become a subject:

i. The aims, anticipated benefits, methods and hazards of the research study;

ii. Their right to abstain from the participation in the research as well as their right to

terminate at any time in their participation;

iii. The confidential nature of their responses; and

iv. The identity of individuals from whom the information obtained should be strictly

confidential. At the conclusion of the project any information that reveals the identity

of individuals who were subjects to the study destroyed.


The chapter focused on research methodology covering issues concerning the research

design, research participants, sampling methods, research instruments, data collection

methods, data reliability and validity and ethical considerations for the study.


CHAPTER FOUR

PRESENTATION OF FINDINGS, ANALYSIS AND DISCUSSION

4.0 Introduction

The research findings, analysis and discussion thereof is done under the cover of the key

concepts that underline each of the research questions as contained in the relevant

questionnaire (Appendix C) and the interview guide (Appendix D) used for this research

study. Data will be presented in the form of appropriately entitled Tables and Figures.

Analysis and the discussion of the research findings will be qualitative in nature or a

combination of both qualitative and quantitative approach.

According to Yin (2003), researchers need to tabulate, examine, categorises and combines the

evidences in order to address the initial propositions of the research study. Miles and

Hubberman (1994) categorises data analysis as the following activities:

i. Data reduction. It includes focusing, abstraction, simplification and data

transformations;

ii. Data display. Data is organised and arranged in the ways which is simpler in verifying

and drawing conclusions; and

iii. Conclusion drawing and verification. It includes the researchers comments and issue

clarification.

The three above activities were adopted for the purpose of this study in data analysis.

Relevant concepts were related to theories and empirical literature review in chapter two of

this study as a way of linking theories and drawing relevant conclusions.

4.1 Response rate

A high response rate of 81% was achieved in respect of questionnaires and relatively lower

percentage of 60% achieved in terms of interviews. The user friendly strategy was adopted in

the administration of questionnaires. The respondents were given ample time within which to

complete the questionnaires which had been pretested and corrections made in a pilot study.

The interviews were planned mainly for logistics managers and drivers. The telephone


communication was used to confirm the availability of this stakeholder for the purpose of

interviews.

The findings in respect of response rate in terms of questionnaires and interviews were

presented in the Table 9 and Fig 5 for questionnaires and Table 9(a) and Fig 5(a) for

interviews.

Table 9: The response rate for the questionnaires.

Category Response Response rate (%)

Returned questionnaires 65 81

Not Returned questionnaires 15 19

Total 80 100

Table 9a: Interview response rate

Category Frequency %

Achieved interviews 6 60

Not achieved interviews 4 40

Total 10 100

81%

19%

Fig 5: Response rate

returned questionnares not returned questionnares

Achived interviews

60%

Not achived interviews

40%

fig 5(a) :Interview response rate


The overall response rate in respect of questionnaires for a presented sample is 81%, one can

conclude that the responses given comprehensively, fairly and truly represent the views and

opinions of the study population in respected of the questions poised to them.

4.2 Demographic characteristics of the respondents.

The findings in respect of demographic characteristics of the respondents are presented from

Table 10 to 14 and Figure 6 to 9. Each demographic characteristic is then briefly analysed

and discussed below the relevant illustrated in Table and Figures.

(i)The gender of the respondents

The findings in respect of the above are presented in Table 10 and Figure 6 below:

Table 10: The gender of respondents

Category Frequency %

Male 52 80%

Female 13 20%

Total 65 100%

There is an overwhelming majority of 80% of the respondents being male, thus leaving 20%

of the female gender in the sector. This appears not to be a gender representative of gender

structure of Zimbabwean population where the female male gender ratio of 52:48 and for the

formal employment sector where it stands 62%-38% in favour of the male gender.

80%

20%

Fig 6: The gender of respondents

MALE FEMALE


The above findings indicated that the nature of logistics activities in road transportation

haulage sector requires the performance relatively difficult, hard manual labour and also

being away from home in the case of drivers and logistics managers. In addition to that, the

Zimbabwean culture determines that hard manual labour is not for women therefore women

were mainly assigned for clerical and the administrative roles in the transport sector.

(ii)The age group of respondents

The findings in respect of the age of respondents are presented in Table 11 and Figure 7

below.

Table 11: The age group of respondents.

Age Group frequency Percentage (%)

18-25 years. 10 15%

26-35 years 25 38.5%

36-50 years 15 23.1%

>50 years 15 23.1%

Total 65 100%

Figure 7: The age group of respondents.

The study indicated that the highest number of the respondents falls in the age group of

26-35 years with 38.5% followed by 36-50 years and greater than 50 years with only

0 10 20 30 40

18-25 yrs

26-35yrs

36-50yrs

>50 yrs

(%) Frequency

(%)Frequency


23.1% each. A relatively lower percentage of respondents are within 18-25 years which

constituted a mere 15% of the total number of respondents.

The greater percentage achieved from 26 years and above especially for the haulage

drivers, directors and logistics managers. The recruitment criterion for most companies in

Zimbabwe requires at least 5 years of the relevant experience and for drivers it requires a

defensive drivers licence and considerable experience also. This makes the majority of

the respondents to be at least 26 years or older as it is very rare to have one with less than

25 years having at least 5 years of relevant experience in the commercial road cargo

haulage industry. Experience and qualification also matters for one to become the

manager, director or workshop manager. Therefore most of the respondents are 26 years

or older considering the issue of experience and qualification in recruitment processes.

(iii)The highest academic qualification of respondents.

The highest academic qualifications of the respondents are shown in Table 12 and Figure8

below.

Table 12: The highest academic qualification of the respondents.

Highest academic qualification Frequency Percentage (%)

GCE „O” Level 30 46.2

GCE „A” Level 12 18.5

Undergraduate Degree 8 12.3

Post-Graduate Degree 6 9.2

Other 9 13.8

Total 65 100%

Fig 8: The highest academic qualification of respondents

0 10 20 30 40 50

GCE 'A' Level

Post Graduate Degree

(%) frequency

Hig

he

st a

cad

em

ic

qu

alif

icat

ion


A majority of 46.2% for the respondents have GCE „O‟ Level as their highest academic

qualification. The GCE „A‟ Level constituted 18.5% followed by other with 13.8%. The

under graduate Degree was achieved by 12.3% of the respondents while the Post- Graduate

Degree had 9.2% of the respondents, thus giving a total of 21.5% for the respondents holding

a university Degree qualification.

The recruitment policy for many companies which consider the „O‟ Level as the minimum

requirement impresses the major effect in academic qualification of respondents where most

of them have „O‟ Level. The undergraduate Degree and Post-Graduate have relatively low

percentage due to the required minimum entry for the programmes. They require good passes

at the Advanced Level for the undergraduate Degrees whereas good passes in First Degrees

for the Post-Graduate Degrees. Some respondents recorded Other as their highest Academic

qualification. For this category, some do not have any qualification especially the drivers

where recruitment is based on Class 2 or 1 Drivers‟ Licence, defensive Drivers‟ Licence,

experience, medical certificate and the ability to read and write.

(iv) Highest professional qualification of respondents.

The highest professional qualifications of the respondents are presented in Table 13 and

Figure 9 below.

Table 13: The highest professional qualifications of respondents.

Professional qualification Frequency (%)

None 15 23.1

Certificate 20 30.8

Diploma 20 30.8

Post Graduate Degree 5 7.7

Relevant university Degree 5 7.7

Total 65 100%


Figure 9: The highest professional qualifications of respondents.

Certificates and Diplomas constitute a higher proportion of 30.8% each as the highest

professional qualification of the respondents. Figures of 23.1% do not have anything as

professional qualification followed by Post- Graduates and relevant University degree with

7.7% each.

The number of respondents with professional qualification is greater than those without any

professional qualification at all due to strict recruitment systems of the companies in the

commercial road haulage sector which gives a higher preference to those with the

professional qualification as a way of building the competitive edge through personnel. In

addition, the Employee Empowerment Programmes (EEP) act as a drive for employees to

have the chance of doing their professional courses as the fees are paid for by the employing

companies.

(v) The relationship of respondents with the commercial road transport industry.

The relationships of the respondents with the commercial road transnational transport

industry are represented in Table 14 and Figure 10 below.

Table 14: The relationship status of respondents with the Zimbabwe commercial road

transnational haulage sector.

%

None 23%

Certificate 31%

Diploma 31%

Post Graduate 7%

Relavant university

degree 8%


Category Frequency Percentage(%) of

total

Directors 6 9.2%

Managers 6 9.2%

Logistics officers 10 15.4%

Workshop managers 8 12.3%

Haulage drivers 10 15.4%

Customers/clients 7 10.8%

Suppliers 4 6.2%

Creditors 5 7.8%

Government of Zimbabwe officials 5 7.8%

C.Z.I H.Q staff 4 6.2%

TOTAL 65 100%

Figure 10: The relationship status of respondents with road transnational haulage sector.

A relatively high percentage of the respondents are the logistics managers, truck drivers,

workshop managers with 15.4%, 15.4%, and 12.3% respectively. The directors, mangers,

02468

10121416

% F

req

ue

ncy

Relationship category


clients, creditors and GoZ officials have 9.2%, 9.2%, 10.8%, 7.8% and 7.8% respectively

while the CZI staff and Suppliers have the least number of respondents with 6.2% each.

Logistics managers and truck drivers constituted a greater percentage of the respondents as

they are the ones who knows or experienced the ground information on factors which affect

the performance of Haulage companies specialised in transnational services. They possess the

first hand information due to the nature of their assigned duties. Directors are generally fewer

than employees since it‟s not easy to be a director of the company; it requires a lot of capacity

and experience to be the Director of the company. Information from Directors was on

strategic perspective while logistics mangers and truck drivers gave information from

operational view point.

4.3 The performance by Zimbabwean 3PL firms specialising in road cargo

transnational haulage services during the period 2000 to 2013.

The findings of the above are presented in Table 15 and Figure 11 below.

Table 15: The performance by Zimbabwean 3PL firms specialising in road cargo


Performance

indicators

Strongly

Agree

Agree Disagree Strongly

Disagree

Not Sure

freq

uen

cy

(%)

freq

uen

cy

(%)

freq

uen

cy

(%)

freq

uen

cy

(%)

freq

uen

cy

(%)

On-Time Delivery 2 3.1 3 4.6 13 20 38 58.5 9 13.8

Financially stable 6 9.2 7 10.8 42 64.6 7 10.8 3 4.6

Minimum risk of motor vehicle

breakdowns.

19 15.4 28 43.1 20 30.8 5 7.7 2 3.1

Optimal vehicle utilization

maintenance repair and servicing.

0 0 5 7.7 40 61.5 20 30.8 0 0

Within the planned transit time 2 3.1 3 4.6 13 20 47 72.3 0 0

Flexibility in meeting customer

needs

5 7.7 10 15.4 37 56.9 13 20 0 0

Quality of logistics services 0 0 30 46.1 30 46.1 0 0 5 7.7

Competitive freight charges 13 20 40 61.5 12 15.4 2 3.1 0 0


Figure 11: The Level of performance by respondents.

Key

A- On-Time Delivery.

B- Financially stable.

C- Minimum risk of motor vehicle breakdowns.

D- Optimal vehicle utilization maintenance repair and servicing.

E- Within the planned transit time.

F- Flexibility in meeting customer need.

G- Quality of logistics services.

H- Competitive freight charges.

The other performances stated by the respondents are as follows:

Trust and fairness- unrated;

Problem solving ability- rated poor; and

Environmental friendly operations- rated well.

0

10

20

30

40

50

60

70

80

A B C D E F G H

(%)

fREQ

UEN

CY

LEVEL OF PERFOMANCE

strongly Agree

Agree

Disagree

Strongly Disagree

Not sure


A total of 78% disagreed on the fact that there were on time delivery by Zimbabwean 3PL

firms specializing in road cargo transnational haulage services. The 78% was constituted of a

high percentage of 58.5% who strongly disagreed and the 20% simply disagreed on that level

of performance.

The reason for not achieving On-Time deliveries being of the delays at border posts,

increased number of roadblocks and the lengthy loading time due to lack of necessary loading

equipment at the points of loading in foreign land such as Eastern DRC. In follow up of the

interviews the respondents stated that Zimbabwean 3PL firms specialising in road cargo

transnational haulage services could be hardly be expected to meet on time delivery targets

set by their companies due to (a) long customs clearing procedures, (b) long delays

experienced in getting company management to meet customs requirements such as

submission of certain customs documents and (c) late payments of the requisite duties by

clients with the consigned cargo.

A greater percentage of 75.4 % (64.6% disagreed and 10.8% strongly disagreed) was

achieved on financially stable. A smaller rate of 20 % (with 10.8% just agree and 9.2%

strongly agreed) gives a view that firms are financially stable. A greater percentage disagree

on financially stable because there is no noticeable improvements to fleet companies in

Zimbabwe, however most of them are downsizing their operations which is an indicator of

lack of finances. Some of the companies are using the vehicles which are inefficient and older

in age as they are limited by the funds to buy the new ones. Sink and Langley (1997) gives a

view that financial stability is an essential consideration as it makes sure that performance

standards are maintained and service availability continues in future.

A higher response rate of 58.5% (43.1% agreed and 15.4% disagreed) supports that there was

maximum risk of motor vehicle breakdowns, thus leaving 7.7% strongly disagree and 4.6%

just agree on the level of performance. The minimum risks of breakdowns were due to

sufficient pre-checks of trucks before leaving the garages. The quick recovery of breakdowns

enhanced through which most of the companies have garages in most of the countries they

operate in as a breakdown recovery strategy.

Majority of the respondents were against that there were optimal utilisation, maintenance and

repair of vehicle fleets as well as operating within the planned transit time. Both the levels of

performance had 92.3% as the response rate. Of the 92.3 of optimal utilisation, maintenance


and repair, 61.5% disagreed and 30.8 % strongly disagreed. The figure 92.3 of within planned

transit times was a combination of 20% who disagree and the 72.3% who strongly disagree.

The planned transit times were difficult to achieve due to delays in different in transit

countries, some countries are still using the manual way of clearing. In Zambia they do not

allow the pre-clearing of abnormal loads; they only cleared as they reach their border post

which is time-consuming. The optimal utilisation of vehicles was not agreed by many

respondents due to lack of contracts or loads to transport. Most of the Zimbabwean

companies are not exporting, they relying on imports therefore means there are limited

exports loads to transnational haulage companies making vehicles lying idle.

Quality of logistics services and competitive freight charges have higher rate of the

respondents who agreed on such performances with a total of 46% and 81.5% respectively.

There were no respondents who strongly agree on the quality of logistics services. The figure

81.5% on competitive freight charges was a combination of 20% strongly agree and 61.5 who

just agree on the level of performance. The increased competition in the industry lead to

competitive freight charges as a way of gaining the market share. The prices are market based

as the transport industry operates under perfect competition where firms are price takers and

produce homogeneous services. The law of demand and supply also force the firms to charge

competitive prices in order to attract customers.

4.4 The effects of performance by Zimbabwean 3PL firms specialising in road cargo


The findings of the above are shown in Table 16 and Figure 12 below.

Table 16: The Effects of performance by Zimbabwean 3PL firms specialising road cargo

transnational haulage services.

Effect Strongly

Agree


Disagree

Fre

qu

ency

(%)

Fre

qu

ency

(%)

freq

uen

cy

(%)

Fre

qu

ency

(%)

Loss of goodwill 40 61.5 20 30.8 5 7.7 0 0


Loss of customers to

international competitors

43 66.2 18 27.7 3 4.6 1 1.5

Reduced profit margins 30 46.1 30 46.1 5 7.7 0 0

Poor customer service 27 41.5 13 20 10 15.4 5 7.7

Lengthy turn-around time 41 63 21 32.3 3 4.6 2 3.1

Insolvency of firms 5 7.7 30 46.1 30 46.1 0 0

Reliability of service offered 5 7.7 6 9.2 39 60 15 23.1

Figure 12: The effect of performance by Zimbabwean 3PL firms specialising in road cargo


Other effects stated by respondents are:

i. Transport safety- rated moderate;

ii. Obtain access to other markets-rate fair; and

iii. Less competitive in the industry- unrated.

Loss of goodwill and loss of customers to international competitors have a higher responds

rate agreeing them as effects of performance by Zimbabwean 3PL firms specialising in the

road cargo transnational haulage services. The two effects of performance have 91.5% and

0 10 20 30 40 50 60 70

Loss of Goodwill

Loss of customers to internationalcompetitors

Reduced profit margins

Poor customer service

Lengthy Turn around time

Insolvency of firms

Reliability of services offered

Strongly Disagree

Disagree

Agree

strongly Agree


93.9% respectively. The 91.5% of the loss of goodwill constituted of 61.5% strongly agreed

and 930.8% agreed. The 93.9% of loss of customers to international competitors was

constituted of 66.2% who strongly agreed and 27.7% agreed thus leaving 4.6% disagreed and

a insignificant figure if 1.5% who strongly disagreed on the effect.

The failure of firms to deliver services as prescribed by the contract of carriage caused the

transporters to lose goodwill and lose the customers to international competitors. Customers

shift themselves from poor service providers to efficient service providers as a way of

avoiding loses to their side. The international competitors will gain the customers as they

capitalise on the mistakes of local transporters. Lieb et al (1993), also gives a view that

reputation and price are essential factors in the selection of 3PL providers. Byme (1993)

added that reputation is the major factor considered by the customers in logistics industry.

The majority of the respondents, 92.2% and 61.5% agreed with the reduced profits and poor

customer service as the effects of performance by Zimbabwean road cargo transnational

haulage companies. The 92.2% was a combination of 46.1% strongly agreed and 46.1% again

who agreed on reduced profit margins as the effect. The responds rate of 61.5% on poor

customer service was a combination of 41.5% strongly agreed and 20% just agree on the

effect.

The increased number of delays and the long turnaround time reduces the total revenue of the

haulage companies as they managed few loads per month. Organisations expenses such as

rentals, salaries and wages are always wanted to be covered every month irrespective of the

income generated. Therefore if the income generated by trucks, the net profit of the company

will be very minimal (Income-Expenses = Net profit). The decrease in income means the

decrease in the profit margins. Delays at the border posts delays the overall movements of the

trucks therefore poor customer service enhanced as the customer will suffer the consequences

of the delays. This was in line with the theory of constraints which states that firm‟s variation

can be measured by throughput and operational expenses for a certain period.

A high responds rate of 95.3% supported that the effect of performance and also 53.8%

pointed out that insolvency is also an effect of performance. The delays at different border

posts and the poor road infrastructure conditions increased the length of time between the

pickup point and delivery point. The absent of pre-clearing strategies also lengthens the

turnaround time where the trucks wait longer times pending clearances. Companies become


insolvency as their debts increased than actual capital being caused by poor finances

(debts>capital = insolvency). The gearing ratios of firms ended up being too high due to large

debts incurred.

4.5 The factors that influenced the performance of Zimbabwean 3PL firms specialising

in road cargo transnational haulage services during the period 2000 to 2013.

The findings of the above are shown in Table 17 and Figure 13 below.

Table 17: The factors influenced the performance of Zimbabwean 3PL firms specialising in

road cargo transnational haulage services.

Factor

Strongly

Agree


Disagree

Fre

qu

ency

(%)

Fre

qu

ency

(%)

freq

uen

cy

(%)

Fre

qu

ency

(%)

Border congestion 38 58.5 20 30.8 5 7.7 2 3.1

Poor road infrastructure 50 76.9 5 7.7 7 10.8 3 4.6

Fleet maintenance and servicing 4 6.2 36 55.3 18 27.7 7 10.8

Incompetent personnel 10 15.3 30 46.1 20 30.8 5 7.7

Lack of finance 37 56.9 23 35.4 5 7.7 0 0

Reliability of service offered 20 30.8 20 30.8 18 27.7 7 10.8

Speed of delivery 40 61.5 25 38.5 0 0 0 0

Figure 13: the factors that affect the performance of Zimbabwean 3PL firms specialising in

road cargo transnational haulage services during the period 2000 to 2013.


Competition with the international firms was given by the respondent as another factor that

influenced Zimbabwean 3PL firms specialising in road cargo transnational haulage services

during the period 2000 to 2013.

The high rate of response above 60% agreed on the above factors as factors contributing to

the performance of Zimbabwean 3PL firms specializing in road cargo transnational haulage

services. Border congestion had 89.3% constituted of 58.5% strongly agreed and 30.8%

agreed on the factor of performance. Poor road infrastructure had 84.6% which was a

combination of 76.9% strongly agreed and 7.7% agreed. The fleet maintenance servicing and

repair had an overall response rate 61.5% of which 6.2% strongly agreed and 55.3% agreed

on the factor. A combination of 15.3% and 46.1% strongly agreed and just agreed

respectively on incompetent personnel thus contributing to a total of 61.4%. lack of finance

got a higher percentage 92.3% constituted of 56.9% who strongly agreed and 35.4% of the

respondents agreed on it as a factor contributing to the performance of firms in road cargo

transnational haulage services in Zimbabwe. The reliability of service offered and speed of

delivery both have total of 61.6%.

Border posts congestion was as a result of manual clearing methods and the lack of advanced

ICT equipment to increase the clearing speed. This ended up causing the border area to be too

congested thus ended up affecting the performance of haulage companies as their increased

revenue is based on the quick turnaround times. The total in transit time lengthened due to

congestion at the border posts. Companies ended up failing to deliver the within the planed

transit time.

01020304050607080

(%)

Fre

qu

en

cy

Factor

strongly Agree

Agree

Disagree

Strongly Disagree


Poor road infrastructure reduces the average speed trucks they should travel on. This is

because the roads have many portholes and are narrow in terms of width size. The overall

vehicle maintenance and repair cost accumulated because the poor road infrastructure have a

direct impact on breakdowns, fuel consumption and accident rates. The overall efficiency of

haulage companies reduced. The state of infrastructure can be as a result of age, vandalism

and the little attention to maintenance by the government. The same view was given by

Batmell (2006) who states that poor infrastructure leads to high transport costs which

estimated to account for 60% to 70% of the production of many goods.

Maintenance repair and servicing of fleet plays a greater role in the overall performance of

fleet and the lifespan of vehicles. The road haulage, LDV training and practise theory states

that servicing fleet to standard means the reliability of the delivery. Poorly maintained fleet

vehicles impacted negatively on the overall performance of the organisation. Companies

without the fleet maintenance department on their own hire the service from other companies.

Some companies ended up using the bush mechanic systems as an attempt of minimising the

maintenance costs. However this activities cost the company in the long run as the rate of

break downs increased affecting the efficiency and effectiveness of the company thus out

compete the company in the industry. The unavailability of spare parts also impacted on the

level of maintenance repair and servicing of vehicle fleet.

Lack of finance to Zimbabwean 3PL firms specialising in road cargo transnational haulage

services hold the growth and progress of the firms in the industry. Most of the companies are

failing to get loans due to insufficient collateral securities required thus leading the firms to

ineffectively compete in the industry due to financial constraints.

4.6 The extent to which border congestion, poor road infrastructure, fleet maintenance

and servicing, incompetent personnel, lack of finance, reliability of services offered and

the speed delivery affected the operations of Zimbabwean 3PL firms specialising in

road cargo transnational haulage services.

The findings in respect of the above were illustrated in Table 18 and Figure 14 below:


Table 18: The extent to which the factors below affected the operations of Zimbabwean 3PL

firms specialising in road cargo transnational haulage services.

Factor Very

Strong

Positive

Influence

Strong

Influence

Moderate Insignificant Negative

Influence

Very strong

Negative

Influence

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Border congestion 0 0 0 0 5 7.7 0 0 10 15.3 50 76.9

Poor road infrastructure 0 0 0 0 10 15.3 0 0 15 23.1 40 61.5

Fleet maintenance and

servicing

0 0 0 0 4 6.2 1 1.5 17 26.2 43 66.2

Incompetent personnel 0 0 0 0 15 23.1 0 0 18 27.7 32 49.2

Lack of finance 0 0 0 0 5 7.7 0 0 6 9.2 54 83

Reliability of services 1 1.5 1 1.5 6 9.2 0 0 28 43.1 30 46.1

Speed of delivery 1 1.5 1 1.5 18 27.7 3 4.6 22 33.8 20 30.8

Figure 14: The extent in which the following affected the operation of the Zimbabwean 3PL

A high rate of respondents of 76.9% contributed that border congestion had a very strong

negative influence on operations by Zimbabwean 3PL firms specialising in road cargo

0102030405060708090

(%)

Fre

qu

en

cy

very strong positive influence

Strong Influence

Moderate

insignificant

Negative influence

Very strong negative influence


transnational haulage services. The fleet maintenances and incompetent workers have 61.5%

and 66.2% respectively of the respondents stated that the two factors have a very strong

negative influence on the operations of haulage companies. Lack of finance, reliability of the

services offered and speed of service have 83%, 46.1% and 30.8% respectively of the

respondents who are on the side that these factors have very strong negative influence on the

operations of Zimbabwean firms specialising in road cargo transnational haulage services.

The presents of border congestion, poor road infrastructure, poor fleet maintenance repair and

servicing, incompetent personnel, lack of finance and reliability of the services offered lead

to ineffective and the inefficiency in the overall operation by Zimbabwean transnational

haulage companies specialising in road cargo transnational haulage services. The factors

reduces effectiveness of the firms thus leaving them with the low market shares, poor

customer service, inability to expand and poor strategies to overcome the challenges.

4.7 The extent to which traditional clearing methods, poor service and maintenance of

road infrastructure, use of bush mechanic systems, ineffective human resources, limited

access to loans and quality of management affect the operations of Zimbabwean road

cargo transnational haulage services.

The findings of the above were presented in Table 19 and Figure 15 below;

Table 19: The extent to which traditional clearing methods, poor service and maintenance of


access to loans and quality of management affect the operations of Zimbabwean road cargo


Cause Very

Strong

positive

Effect

Strong

positive

Effect

Moderate Insignifi

cant

Strong

Negative

Effect

Very

Strong

Negative

Effect

freq

uen

cy

(%)

Fre

qu

ency

(%)

freq

uen

cy

(%)

freq

uen

cy

(%)

freq

uen

cy

(%)

freq

uen

cy

(%)

Traditional/manual consignment

clearing methods at border posts

0 0 0 0 2 3.1 0 0 60 92.3 3 4.6


poor service and maintenance of road

infrastructure

0 0 0 0 2 3.1 3 4.6 6 9.2 54 83.1

Use of bush mechanic systems 0 0 0 0 0 0 0 0 2 3.1 63 97

Ineffective human resources 0 0 0 0 0 0 1 1.5 44 67.7 20 30.8

Limited access to loans 0 0 1 1.5 1 1.5 3 4.6 30 467.2 30 46.2

Quality of management 0 0 0 0 10 15.4 0 0 35 53.8 20 30.8

Figure 15: The extent to which traditional clearing methods, poor service and maintenance of


access to loans and quality of management affect the operations of Zimbabwean road cargo


The greater number of respondents, 92.3% supports that the traditional or manual clearing

methods at the border posts have a negative influence on operations of Zimbabwean 3PL

firms specialising in road cargo transnational haulage services. Poor maintenance and

servicing of road infrastructure as well as the use of bush mechanic system have 83.1% on

very strong negative influence and the 97% again on very strong negative influence

respectively. The ineffective of human resources, limited access to loans and the quality of

management to the firms have 67.7% on negative influence, 46.2% on negative strong

influence and 53.8% on the negative influence respectively. All the causes mentioned on the

table above have insignificant figures on positive influence side meaning that they all

contributed negatively.

0

20

40

60

80

100

Very strongpositiveeffect

strongpositive

influence

Moderate Insignificant Strongnegative

effect

very strongnegativeinfluence

Traditional clearing methods Poor service and maintanance of roads

Use of bush mechanic sysyem Ineffective human resources

Limited access to loans Quality of the management


Traditional, manual consignment clearing methods at border posts lead to the traffic

congestion at these port of entry and exit thus causing the general delays of the fleets. Before

the invention of Asycuda World system in 2002, customs officers were utilising on manual

way of clearing the consigned cargo at ports which was a major cause of traffic congestion

due to slowness of the method. The absent of advance ICT equipment at border posts such as

scanners lead to physical examination of consigned consignment which is time consuming.

The poor service and maintenance of road infrastructure caused the road deteriorations which

have a negative influence on the operations of 3PL firms specialising in road cargo haulage

services. The unmaintained roads reduces the average speed truck drivers should travel on,

increased vehicle breakdowns especially tyre and shock problems and increased the rate of

damages to the carried consignments. All these effects are a cost to the organisation which

increases the overall expenses of the organisation.

The use of „bush mechanic system; used by the firms as they want to cut the maintenance

cost to the organisation. This kind of the mechanic system is not the best practise as it cost

the company in the long run. The firms may end up facing the major vehicle breakdowns

which usually stops the vehicle to operate at all thus affecting the performance of the

organisation. The ineffective human resources lead to the recruitment of unsuitable personnel

in the organisation. The failure to perform by those people usually reduces the competitive

edge of the company in terms of the capabilities thus affecting the overall performance of the

organisation.

4.8 The challenges faced by Zimbabwean 3PL firms specialising in road cargo


The findings of the above are shown in Table 20 and Figure16 below.


Table 20: The challenges faced by Zimbabwean 3pl firms specialising in road transnational

haulage services during the period 2000 to 2013.

Challenge Strongly

Agree


Disagree

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Insufficient finances for operations 50 76.9 15 23.1 0 0 0 0

Delays at border posts 49 75.4 9 13.8 6 9.2 1 1.5

In-transit laws 30 46.2 25 38.5 5 7.7 5 7.7

Inadequate fleet servicing facilities 36 55.4 20 30.8 9 13.8 0 0

Unavailability of contracts 10 15.4 20 30.8 20 30.8 15 23.1

Lack of necessary capital equipment 45 69.2 10 15.4 10 15.4 0 0

Lack of transparency in the industry 50 76.9 5 7.7 5 7.7 5 7.7

Poor supply of fleet spare parts 20 30.8 30 46.2 15 23.1 0 0

Delays in customs clearing and

processing of documentation

54 83.1 10 15.4 1 1.5 0 0

Inexperienced personnel/workers 42 64.6 20 30.8 2 3.1 1 1.5

Government rules and regulations 10 15.4 39 60 5 7.7 3 4.6

Stiff industry competition 12 18.5 50 76.9 3 4.6 0 0


Figure 16: The challenges faced by Zimbabwe 3PL specializing in road cargo transnational

haulage services during the period 2000 to 2013.

All the respondents agreed on the challenge of insufficient finances for operations with

76.9% strongly agree and 23.1% agree thus leaving an insignificant figure of 0% to the other

side of the challenge. Delays at border posts also managed to have a greater rate of the

respondents with a total of 89.2% constituted of 75.4% who strongly agreed and 13.8% who

just agreed. The in transit laws and inadequate fleet servicing and maintenance facilities have

a higher rate of the respondents agreeing on them as challenges to Zimbabwean 3PL firms in

road haulage with a total of 84.7% and 86.2% respectively. A greater percentage of the

respondents also agreed on the fact that unavailability of contracts, lack of necessary capital

equipment, lack of transparency in the industry, poor supply of fleet spare parts, delays in

customs clearing and the processing of documentation, inexperienced personnel, government

rules and regulations and stiff competition with 56%, 84.6%, 84.6%, 77%, 98.5%, 95.4%,

75.4% and 95.4% respectively.

The insufficient finances for operations affected the performance of Zimbabwean 3Pl firms

specialising in road transnational haulage services as they are limited to venture into many

contracts due to the financial constraints. Some of loads undertaken by the firms will be paid

some days after POD. This requires the firm to use its finances to finance the all trip expenses

0 20 40 60 80 100

Insufficient finances for operations

Delays at border posts

Tough Intransit laws

Inadquate fleet servicing facilities

Unavailability of contracts

Lack of necessary capital equipment

Lack of transparency i9n the industry

Poor supply of fleet spare parts

Delays in customs clearing and…

Inexperienced personell

Government rules and regulations

Stiff industry competion

(%) Frequency

chal

len

ge Srtongly Disagree

Srtongly Disagree

Disagree

Agree

Strongly Agree


such as fuel, trip bonuses and the tours. Most of the companies lose such loads as they fail to

finance the trip expenses before the actual payment.

Delays at the port of entry and exit mostly results due to absent of network for the systems

and electricity power cuts. Customs officers will end up adopting the manual clearing of the

consignments as progress. However these manual methods are slow as compared to

automated systems. Fleet companies may end up suffering the high costs of demurrage costs

which accumulates the overall expenses of the organisation and eroding the potential profits

for these firms.

Differences in in transit laws become a challenge to the haulage companies in international

haulage services. Companies are forced to comply with all the in transit laws of different

countries of which this move is a hard nut to crack. The Geography transportation theory also

mentioned regulation borders, laws and tariffs as factors affecting transportability. Some of

the hard laws may hinder the performance of international fleet companies as they have

restrictions for them to freely operate in some countries. An example is of Zambia in transit

laws which states that all fuel transporting companies should have the compatible tanks and

should not have the rethreaded tyres. Such laws disadvantage especially companies with the

low financial base to meet such requirements. All the hazardous goods and abnormal loads

should not be pre-cleared in Zambia, however should have cleared by the border which is a

time consuming activity.

The unavailability of contracts was derived by the nature of the Zimbabwean economy

especially in 2002. The exports loads were very difficult to have as the local production

companies were not able to produce for the exports, rather there were relying on imports.

Transport companies was only having the capacity to have import loads, of which they have

to travel empty loaded to pick up points which was costly to companies. These findings for

this matter supported the geography of transportation theory which noted that transportation

is an outcome of derived demand.

4.9 The recommendations on resolving challenges faced by Zimbabwean 3PL firms

specialising in road cargo transnational haulage services.

The findings on the recommendations are presented in Table 21 and Figure 17 below.


Table 21: The recommendations of resolving challenges faced by Zimbabwean 3PL firms

specialising in road cargo transnational haulage services during the period 2000 to 2013.

Recommendation Strongly

Agree

Agree Disagree Strongly Disagree

Fre

qu

ency

(%)

freq

uen

cy

(%)

Fre

qu

ency

(%)

Fre

qu

ency

(%)

Employing updated ICT systems at all Borders

posts

58 89.2 5 7.6 2 3.1 0 0

Employing qualified and experienced personnel 61 93.8 4 6.2 1 1.5 0 0

Development of road infrastructure (by the

government)

63 97 2 3.1 0 0 0 0

Outsource the fleet maintenance activity 5 7.7 45 69.2 10 15.3 5 7.7

The use of international in-transit laws 60 92.3 3 4.6 2 3.1 0 0

Loan access from banks 63 97 2 3.1 0 0 0 0

Pre-clearing of consigned cargo 45 69.2 10 15.3 10 15.3 0 0

Effective promotion of haulage companies 20 30.8 40 61.5 3 4.6 2 3.1

Training opportunities to workers 25 38.5 40 61.5 0 0 0 0

Figure 17: The ratings of the recommendations by respondents.

0

20

40

60

80

100

120

(%)

Fre

qu

en

cy

Recommendation

Srtongly DisagreeDisagreeAgreeStrongly Agree


A higher rate of more than 70% supported that employing updated ICT systems at all border

posts, employing the qualified and experienced personnel, development and maintenance of

road infrastructure, outsourcing the fleet maintenance activities, use of international in transit

laws, loans access from banks and other creditors, pre-clearing of the consigned cargo,

effective promotion of haulage companies and training opportunities to workers are some of

the recommendations to the challenges faced by Zimbabwean 3PL firms specialising in road

cargo transnational haulage services during the period 2000 to 20013.

Employing updated ICT systems at all border posts had a high response rate of 96.8%

constituted of 89.2% strongly agreed and 7.6% agreed on it as a recommendation. The higher

response rate of 99.3% was achieved in respect of employing qualified and experienced

workers of which 93.8% strongly agreed and the difference 7.6% agreed on the

recommendation. Only an insignificant figure of 1.5% disagreed on that recommendation.

The development and maintenance of road infrastructure was responded by all respondents as

the recommendation with 100% which was a combination of 97% who strongly agreed and

the remaining 3% just agreed on the recommendation. Outsourcing of the fleet maintenance

services and the use international in transit laws also have the higher response rate of 76.8%

and 96.9% respectively. The 96.9% of using international in transit laws was a combination

of 92.3% strongly agreed and 4.6% agreed in favour of the recommendation. The access to

loans from banks and other creditors, pre-clearing of the consigned cargo, effective

promotion of the haulage firms and the training opportunities to organisation workers yields

100%, 84.5%, 92.3% and 100% respectively in favour of the recommendations. The rate of

100% for on loan access from banks and other creditors was a combination of 97% strongly

agreed and the remaining 3% just agreed. A combination of 69.2% who strongly agreed and

15.3% who agreed together made up a total of 84.5% on pre-clearance of cargo as a

recommendation to the challenges faced by Zimbabwean road cargo transnational haulage

services during the period 2000 to 2013. All the respondents (100%) agreed on training

opportunity as the recommendation again.

Experienced and qualified workers will help the organisations to have the distinctive

advantage over their competitors. The firms will possess the competitive edge in terms of the

capabilities in their workers. These capabilities may include ability to get contract and the

ability to cut the cost in the overall value chain activities of the firms through some

competitive strategies being formulated by these employees. Bottani and Rizzi (2006) support


the issue of experienced people in the industry by giving a view that 3Pl firms should have

qualified and skilled workforce that characterise the organisation. Sink et al (1996) added that

3Pl companies should employ relevant expertise as a way of producing high customer service

levels.

Development and maintenance of the road infrastructure by the government contribute to the

efficiency and effectiveness of motor vehicle fleets. The haulage drivers will be able to meet

planned transit times as they will be managed to travel at relatively high speeds. The good

road infrastructure has also a positive contribution on reduced rate of breakdowns, accidents

and the fuel consumption of the motor vehicle fleet. The overall life span of the vehicle also

increased due to the availability of good road infrastructure.

The outsourcing of the fleet maintenance and servicing activities helps the organisation to

operate effectively and efficiently. This is because the maintenance of fleet will be

undertaken by professional in those areas and spare parts problem will be minimised as the

fix and supply performed. The outsourcing of such activity can lead the logistics managers of

companies to focus mainly on core business such as finding the loads for the vehicles.

The use of international in transit laws reduces the risk of not complying with such rules. The

system will be easier and cost effective to comply on. Different laws of different countries are

difficult to comply with and some of them are too demanding in terms of the finances. The

overall performance of the firms will be boosted if international in transit laws adopted.

The Zimbabwean 3Pl firms have the potential to expand but however they are mostly

constrained by the availability of funds. The easy accessibility of funds from different

creditors will make it easy for the haulage firms to expand their necessary operations and the

boosting their overall performance.

Pre-clearing of the consigned cargo is the mandate of clearing agencies or the customers if

they perform the in-house clearing activities. The strategy increased the number of the loads

per week as trucks will not get stuck at the border posts. This will automatically benefit both

the organisation and the clients. Organisations will be able to increase their revenues as they

have many loads per periods while clients will receive the good as per planned periods which

will not create bottlenecks to their operations.



The chapter presented the research data and gave the analysis and discussion of the results or

findings. The results were presented in the form of tables and figures. The findings of the

study were related to the theories which were discussed in Chapter two to determine whether

there is a gap between practise and theory.


CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.0 Introduction

In this chapter are presented a summary of major research findings of the study, conclusions

and the feasible recommendations for the sustainabily and cost effectively resolving the

challenges faced in the Zimbabwean commercial road transnational haulage sector during the

period 2000 to 2013.

5.1 Summary

The Zimbabwean 3PL firms specialising in road cargo transnational haulage services during

the period 2000 to 2013 were characterized by poor on-time delivery; financial instability,

maximum risk of breakdowns; poor optimal vehicle utilisation; repair and servicing; inability

to meet the planned transit time and poor quality of logistical activities. The above

characteristics have more than 50% of the blame on the performance of relatively most of the

firms within this sector. However, the firms within this sector were said to have the

competitive freight charges as the industry is under perfect competition environment.

Loss of goodwill, loss of customers to international competitors, reduced profits, poor

customer service, lengthy turnaround time, insolvency of firms and the unreliability of the

services offered were all have more than 60% of the influence as the effect of performance

by Zimbabwean 3PL firms specialising in road cargo transnational haulage services during

the period 2000 to 2013.

The findings indicated that border congestion, poor road infrastructure, fleet maintenance and

servicing, incompetent personnel, lack of finance reliability of services offered, slow speed of

service delivery, competition with the international were the major factors influenced the

performance of Zimbabwean 3Pl firms specialising in road cargo transnational haulage

services during the period 2000 to 2013. Border congestion, poor road infrastructure, lack of

finance and speed of delivery had more than 80% of the blame towards the performance of


firms in the sector under study. The fleet maintenance servicing and repair, incompetent

personnel and the reliability of services offered were having just above the 60% of the blame.

The major challenges faced by Zimbabwean 3Pl firms in road cargo transnational haulage

services were insufficient finances for operations, in transit laws, inadequate fleet servicing

maintenance and repair, unavailability of contracts, lack of necessary capital equipments, lack

of transparency in the industry, poor supply of fleet spare parts, the delays in customs

clearing and processing of documentation, inexperienced personnel, government rules and

regulations and the stiff industry competition. Most of the above challenges have more than

70% impact on the overall performance of the firms operating under Zimbabwe commercial

road transnational haulage services.

The implementation of updated ICT systems at all border posts, employing of qualified

personnel, development of road infrastructure, outsourcing of the fleet maintenance activities,

the use of international in transit laws, accessing loans from banks, pre-clearing of the

consigned cargo, effective promotion of haulage companies, training opportunities to workers

and the use of one stop border were suggested as the recommendations on resolving the

challenges faced by Zimbabwean 3PL firms specializing in road cargo transnational haulage

services during the period 2000 to 2013. They were all rated more than 80% as the effective

way of overcoming the challenges in the Zimbabwean commercial road transnational haulage

sector.

5.2 Conclusions

Logistical performance of the Zimbabwe commercial road transnational haulage sector is

affected by poor road infrastructure, border congestion, lack of finance, incompetent workers

and poor fleet maintenance and servicing are the major causes of the underperformance in

Zimbabwean commercial road haulage services with more than 80% of the blame. The ability

of Zimbabwean 3PL firms to operate as per planned in transit time in order to have increased

revenue and ability to meet the customer expectations declined. These consequences affect

the profit, loyalty of organisations and overall negative influence on all operations of the

firms.

The problem of border congestion cost up the firms as it caused the delays at the border posts

which have a negative impact on the expected turnaround times by the firms. The revenue of


the firms is based on the regular runs of the trucks which are affected by the border

congestion. When the turnaround of the firms is negatively affected, the net profit of these

firms is also affected since the profit is based on number of loads attained. The delays also

disrupt the relationships of clients and the firms as the reliability of offered service declined.

The poor road infrastructure lead to accumulated the expenses of the Zimbabwean 3PL firms

specialising in commercial road cargo haulage services as it lead to increased breakdowns

and accidents. It also increased the in transit time which impacted the profits as trucks

achieved low turnaround time since the roads were not suitable for relatively high speeds.

The damages ratio to the consigned cargo also experienced due to poor road infrastructure.

This usually affected the quality of logistical services leading to loss of goodwill by

customers.

The lack of finance limited the firm‟s potential to expand their capacities, acquire the

necessary equipment such as loading cranes and venture into contracts which require more

capital before the actual payment. Some firms ended up operating below capacity or overall

downsizing of their activities due to lack of finances for them to operate at full capacity. The

bush mechanic systems used as they face challenges in meeting proper maintenance of the

trucks.

5.3 Recommendations

The conclusions from the study enlightened on the arrears which needs improvements. The

following recommendations should be implemented and used in order to improve the

performance of Zimbabwean 3PL firms specialising in road cargo haulage services:

5.3.1 Employing updated ICT systems at all border posts. The updated ICT systems reduces

the border congestion and all the delays as the border clearances are done by

automated systems which are more efficient than manual or traditional ways of

customs clearing. The same recommendation was supported by Goldsby and Clinton

(1997) who states that ICT capabilities significantly influenced the overall logistics

competency. Vidayanathan (2005) supports that improved ICT systems improves the

performance of 3PL firms;


5.3.2 The use of one stop border post system at all border posts. This strategy enabled the

trucks to improve their turnaround as the borders will not be congested. The trucks

will not take more time than is necessary at the border post pending clearance;

5.3.3 Pre-clearing of the consigned cargo. When the consigned cargo is cleared in advance,

the general congestion at the border by the trucks is minimised. Trucks do not stop at

the borders waiting for the clearance and this helps to decongest the border;

5.3.4 Development of road infrastructure by the government. The government should

allocate sufficient funds to the Department of Road for them to develop and maintain

the public roads. The allocated funds should be properly audited to make sure that the

roads are maintained;

5.3.5 Loan access from banks and other creditors. Management of Zimbabwean 3PL firms

specialising in road cargo transnational haulage services should source the funds from

all possible financiers to boost the overall operations of the organisations. The funds

may be used to acquire new trucks and servicing the available trucks;

5.3.6 Issue of shares to investors. This strategy helps to boost the finances of the firms by

way of issuing shares. The financial base of the organisation improved and also the

organisational may benefit some technical knowledge as the investors can bring new

ways of doing things in the industry as a way of defending their investments;

5.3.7 Employing qualified and experienced workers. The experienced and qualified workers

manipulate their knowledge for the benefit of the organisation. The form distinctive

advantage and competitive advantage to the industry as their knowledge and

experience have a direct impact on effectiveness, efficiency and competitive way of

performing different tasks of the organisation. The recommendation was supported by

Sink et al (1996) by stating that 3PL companies should employ highly expertise as a

way of producing high customer service levels. Bottani and Rizzi (2006) also is of the

same view on the recommendation by pointing out that 3PL providers should have the

qualified management and skilled workforce;

5.3.8 Training opportunities to employees. The training of employees broadens the industry

knowledge and the competency of workers. The broadened knowledge contributes to

strategic, competitive and effective manner of performing tasks within the

organisations. This will contribute to the growth, improved profits and competitive

edge through empowering employees;


5.3.9 Outsource the fleet maintenance, servicing and repair. The outsourcing strategy of

fleet maintenance servicing and repair improves the efficiency of trucks as they are

serviced by firms with greater expertise in that field. The improved efficiency of the

vehicle improves the turnaround of trucks as there will be reduced breakdowns to the

trucks and also the risk of accidents reduced. The system helps the company to have

improved profits and good quality of logistical services to their clients as the goods

will be delivered as per planned time frames. Grover et al (1996) and Lacity et al

(2006) pointed out that outsourcing as a strategy makes the firm focusing on strategic

issues, increasing flexibility and quality of services produced and get rid of routine

tasks. Jurison (1995) also views outsourcing as a good strategy as it simultaneously

increased availability of resources; and

5.3.10 Effective promotion of haulage companies. The recommendation is the mandate of

the marketing departments of different Zimbabwean 3PL firms specialising in road

cargo transnational haulage services. The strategy increases the markets share of the

firms (number of contracts and customers). This is because the industry operates

under perfect competition where there are many service providers.

5.3.11 Benchmarking. The benchmarking strategy plays a pivotal role in increasing the

performance of organisations within the Zimbabwean commercial road transnational

haulage services. The quality of logistical services produced by the firms should be

benchmarked against the international leading companies in road haulage to

determine and correct the gaps in terms of the performance. Boxwell (1994) indicates

that organisations benchmark gain better understanding of their present positions.

Harmer (1990) gives a view that benchmarking is a beneficial as it leads to superior

performance through best practices that exceeds customer expectations.


CHAPTER SIX

ENTREPRENEURIAL THRUST

6.0 Introduction

In this chapter is presented the last aspect of the research study which deals with the issues

relating to Zimbabwe commercial haulage sector from an entrepreneurial perspective. The

key issues will revolve around the major interest of issues of a well-resourced and

appropriately risk taking entrepreneurial in a given macro and micro environments of the

Zimbabwean commercial road transnational haulage sector. The issues will include definition

of key terms such as entrepreneurial thrust, opportunities, threats, sectorial specific

weaknesses, PESTELED and SWOT analysis and theoretical models or framework that

entrepreneur ought to consider in their decision making process of whether or not to venture

into Zimbabwe commercial road haulage sector.

6.1 Definition of key concepts

The following are the key concepts to be defined:

i. Entrepreneur

ii. Entrepreneurship

iii. S.M.E

Entrepreneur

According to management scholars, an entrepreneur is a person who takes the responsibility

of managing the firms. Deakins and Freel (2012) supports the above author by pointing that

an entrepreneur is a leader who initiate to take advantages of opportunities in the market

though planning, organising and executing the resources. According to Jonson (2005), an

entrepreneur identifies the opportunity gap and closes it by innovating new products or

services.


Entrepreneurship

Kao and Raymond (1993) define entrepreneurship as the process of doing new things and

something different in an attempt of creating individual wealth and adding value to the

society. Paul (2010) added that entrepreneurship is the process of identifying and venturing

into a new business, sourcing and organising the required resources while taking the reward

associated with the risk involved. It results in new organisation in response for the perceived

opportunities.

Small and Medium Enterprise (SME)

Borrow (1998:07) define SME as a small business that managed by its owner and relatively

small in its operating market. According to Stroker (1995:07), SME are independent of other

firms as they are not able to fully satisfy their intended market. There are differences in

practice between small firms and large firms. In support of the above authors, SEDCO (2007)

defines SME as independently owned business operated by the owner. The Ministry of SME

and cooperative developments (2011) view an SME as firms which employee below 75

permanent employees which differs with the Ghana statistical services which view SME as

any enterprise that employ less than people.

The definitions of SME vary from country to country but base on number of employees,

capital base, formalisations of the organisation, turnover, revenue and fixed assets

(Munyanyiwa, 2009).

6.2 PESTELED Analysis

Political risk related factors

The indigenisation policy which allows the sharing ratio of 51/49% in favour of indigenous

people increases the capital problems especially in the transport sector as foreigners withdraw

their funds from the businesses. For a new Zimbabwean investor, it becomes difficult to have

joint ventures with foreign based investors due to the conditions of the indigenous policy.

Economic environment


Most of the companies in Zimbabwe are specialising in imports rather than local

manufacturing. This created an opportunity to start a business in international transporting

sector due to the entire availability of business from importers.

The adoption of dollariasation in Zimbabwe stabilises the exchange rates, inflation rates and

improves the economy of Zimbabwe as compared to situations before the dollarization. The

use of the US dollar as a medium of exchange enhances the business environments as the

US$ is generally acceptable in almost all countries therefore investment becomes less risky.

The unemployment rate is generally high therefore the new investor will not face any

challenges in terms labour.

Social cultural environment

The cultural environment is made up of the African culture with a mixture of some other

cultures. The entrepreneur should consider the values and norms of different people within

their organisation. Considering the values and norms of the employees will boost the morale

of the employees within the organisation and contribute positively to the attainment of goals.

Technology environment

The access to globalisation due to technology lower the cost of doing the business as the

goods sourced from a wide range of suppliers. In this case, the trucks can be bought from the

global North countries where it is cheaper and economic as the total landing costs are less

than purchasing locally. The investor can buy motor vehicle spare parts using the internet

which is cost effective. In road commercial haulage sector, the use of updated ICT systems

such as tracking systems generally improves the efficiency and effectiveness of firms in this

sector leading to efficient customer response.

Geo-ecological

The use of containerisation improves the green logistics. The containers reduce the personal

contamination of the environment with the consignments. Temperatures in the Southern

Africa regions are favourable to transportation services as the weather conditions are not too

cold and too hot. Favourable temperatures reduce the tyre management cost and their

consequences like accidents


Demographic

The market size for international transportation services is large in nature as it is a

combination of local and foreign clients. The size of the market determines the potential

turnover of the firms in this industry. In this case, the more the turnaround times the more the

turnover for the firm. The market share of firms is determined by the quality of services

offered and the ability to advertise because the industry is operating under perfect

completion.

6.3 SWOT Analysis

Strength of Zimbabwean commercial road transnational haulage sector.

The following are the strength of the Zimbabwe commercial road transnational sector:

i. Good road networks throughout the country;

ii. More import loads as the country currently rely on imports;

iii. Good weather conditions which do not cause disturbances in the operations of trucks;

iv. The weather conditions of Zimbabwe are not hot and too cold which is user friendly

in the running of trucks;

v. Availability of qualified personnel as there are many Universities, colleges and

Polytechnic colleges which offer courses relevant to the sector.

Weaknesses

The weaknesses of the sector are as follows;

i. Lack of modern technology infrastructure;

ii. Poor road infrastructure;

iii. Scarcity of export loads or contracts as the Zimbabwean companies are not exporting

due to economic nature;

iv. Delays in border clearances;

v. Lack of appropriate capital equipment, for example the loading equipment‟s.


Opportunities

Zimbabwe is almost closely surrounded by countries with the sea ports. This will create the

loads to the sector, for example to and from the sea ports thus creation of business.

Threats

The threats of the Zimbabwe road transnational haulage sector are given below:

i. The indigenisation in Zimbabwe causes the leaving of many heavy investors in the

country. Most of the companies in the sector operate blow capacity and downsizing

the overall activities of their operations; and

ii. The in transit laws of some countries hinder some countries to cooperate with these

countries as the laws are tough.

6.4 Theoretical framework/Model

The Michel Porter five forces framework is used by an entrepreneur who wants to invest in

the Zimbabwean commercial road haulage sector as the theoretical framework. The following

figure indicates the five forces of Porters model:

Figure 18: Porters five forces framework

a

Threat of

Entry

Threat of

Substitutes

Bargaining Power of Buyers

Rivalry Among Existing

Firms

Bargaining Power of Suppliers

Source: Dove et al (2002)


Rivalry among the existing players

The commercial road haulage sector in Zimbabwe is characterised by perfect completion.

The sector itself is a battlefield where the fighters supposed to use different weapons and

tactics to win the battle. Rivals include local transporters and international transporters. The

completion is tense in the industry therefore an entrepreneur should the collective advertising

strategies, utilise the gap by transporting local loads and having joint ventures with the clients

which secure their business from competitors.

Bargaining power of the buyers

The buyers of the transportation services are fragmented therefore they do not influence the

service price however the organisations determines the price of the transportation services.

Although the buyers are fragmented, they price sensitive and require the best quality services

from the service providers. The new investor in this sector should be very competent enough

in all activities to boost the market share over its competitors.

Bargaining power of suppliers

The industry is characterised by many suppliers who supply different products and services

and therefore the suppliers are also fragmented. The items or services supplied in the industry

include vehicles, spare parts, mechanic services, tracking software and even consultant

services. However their bargaining power achieved due to complexity of their products and

services offered. The new investor in the sector can have strategic alliances with the suppliers

of core products or services or use the strategies like vendor managed inventory which

strengthen the relationships. The single sourcing strategy can also be applied by an

entrepreneur to gain the buyer/ supplier relationship and therefore having the competitive

advantage in terms of industry suppliers.

Threat of new entry

Entry to the Zimbabwean commercial road haulage industry is not difficult. This is the legal

requirements are not complex and the industry is characterised by limited barriers to entry.

Threat of substitutes


Buyers of transportation services can substitute the road consignment transportation to either

rail transportation or air transportation. The use of cross price elasticity should be applied to

reduce the threat of substitute by buyers of the transportation services.

Chapter summary

The opportunities, SWOT analysis and PESTELED analysis within the Zimbabwean road

commercial haulage sector was discussed in this chapter. The theoretical framework was also

suggested as a tool to be used by a new investor in the sector.


REFERENCES

Addis-Ababa Chamber of Commerce (1988). Report on Private Participation on Freight

Transport Service .Addis- Ababa

American journal of hospitality pharmacy 1980:398

Arroyo,P, Gaytan J and Boer L (2006). A survey of 3rd

party logistics in Mexico and the

comparisons with the reports on Europe and USA. International Journal of Operation and

Production Management

Atnatseged Kiffle. (2001). Designing a strategic information systems planning

Methodology for Malaysian Institute of higher learning .Volume No 1

Bagch, PK (1996). Role of Benchmarking as a competitive strategy: the logistics

experience. International Journal of Physical distribution and Logistics management

Banomyon R (2000), Transnational merger of rise with globalization Bangkok Post

Shipping Section

Bardi Edward, John Coyle and Robert Novak (2006). Management of transport. Thomson

South Western.

Barrit L.S, Beekman T, Bleeker H and Mulderij K (1983), A Hand Book for

Phenemological Research, Ann Arbor:University of Michgan Press

Bell J (1993), Doing your research project: A guide for first time researcher in

education and social sciences, 2nd

Edition, Buckingham: Open University Press

Berry M and Linoff G (1997). Data mining techniques: Wiley New York

Bottani, E and Rizzi, A (2006). A fuzzy TOPSIS methodology to outsourcing of logistics

services. Supply chain management. An international Journal

Bourner, T(1996). The research process. Four steps to success, in research methods:

Arnold London.


Bowersox, D.J, Closs D.J and Cooper M.B (2007). Supply Chain and Logistics

management (2nd

Edition). Boston, Mass: McGraw/Irwin

Brink H (1998), Fundamentals A Research Methodology for Healthy Care

Professionals. 2nd

Edition, Juta and Company Ltd. South Africa.

Burns N and Grove SK (2003). Understanding Nursing Research. 3rd

Edition.

Philadelphia, PA: WB. Sounders

Business Herald 10 September 2012

Business Herald 12 September 2009

Cap Germini (2004), Third party logistics results and findings of the 9th

Annual study,

Retrieved March 29, 2014 from the worldwide web: http/www.uk.capgermin.com

Cohen , L. Mamon, L and Morrison, K.R.B (2007) .Research Methods in Education ,6th

Edition. Routeledge

Craig (2010) ,The Closes of Roads: Palimpsest, UK

CSCMP (2006). 17th

Annual state logistics Report. Retrived March 28, 2014 from World

Wide Weeb. Web: http//www.loginstitute.ca/files/pdfs

Daniel B, Dominic. S, Cornie Huizengn (2011), Substanable Transport Evaluation:

Developing Practical Tool for Evaluation in the Context of the CSD Process, United

Nations Department of Economic and Social Affairs.

Davies PB (2002), Information Systems: An introduction to information in

organization. Basingtoke, UK

Dull, Michael, Bailine, Adam (2004). Winning the wall against customer disservice (1st

Edition).

Flaming R , P.A ,Crookes and Sum. S (2008). A review of the imperial literature on the

design of physical environments for people.

Foddy WH (1994), Constructing questions for interviews and questionnaires: theory and

practice in social research (New Edition) (1994), Constructing questions for interviews


and questionnaires: Theory and practice in social research (New Edition). Cambridge

University Press

Fodor J (1984). Observation Reconsidered. Philosophy of Science

Frankel E (1999),”Intermodal Integration” Lloyds Shipping Economists

Frazelle Edward (2002)

Galliers RD (1991), Choosing Appropriate Information Systems Research approaches.

Elsevier science Publishers, North Holland

Gardner B.M (1977), Development in transport policy. Completion policy and liner

shipping conference. Journal of Transport Economics.

Global Logistics Distribution Planning: Strategy Management, London, Kogan.

Goldratt. E (1984), Essays on Theory of Constraints. Great Barrington, MA: North River

Press.

Gooseberry, M (2010). Continuing Professional Development and work place learning 4th

edition. Pearson Education: Singapore.

Graham S (1998) “Stability with competition in intermodal container shipping: finding a

balance, Maritime Policy and Management

Greener, S (2008). Business Research Methods. Ventus publishing

Grover, V,Cheon M.J and Teng TC (1996). The effects of service quality and partnership

in the outsourcing. Journal of management Information systems. Volume 27

Guba EG and Linkoln, YS (1998), Competing Paradigms in Qualitative Research, The

landscape of qualitative research: theories and issues, Sage, Thousand Oaks

Gunasekaran, A and Sarkis J (2008). Research and application in e-commerce and Third

party logistics management. International journal of Production Economics

Herz, Susanne, Monica, Alfredsson (February 2003).‟‟ Strategic development of third

logistics providers’’. Industrial marketing management (Eisevier Science).


Houston M.B (2004). Assessing the validity of secondary data proxies for marketing

contrasts, Journals of Business Research (151-161)

http//openknowledge.worldbank.org/ Arvis, Jean- Francis, Robulland, Guel and Marteam,

“the cost of being land locked: Logistics costs and supply chain reliability” World Bank

policy Research working paper No4258

http/explorable.com/judgmental sampling, 05/03/14.

Hyltonn, S (2007), The Grant Experiment. The Birth of the Rail Age 1820-1845. Ian

Allan Publishing.

Industrial Research Institute (2010). Research Management. Michigan: Industrial Research

Institute

James P (1997), Research Design in occupational Education, Oklahoma State University

Jurrison, J (1995). The role of risk and return in information technology, Volume 10

Kershav (2012), Business – Marketing Insurance, London

Lacity M and Hircschleim R (2006). The information systems Outsourcing Brandwagon.

Sloan Management Review, Vol 35

Lacobucci D and Churchhill A (2009). Marketing Research: Methodological

Foundations, South Westen College publications. London

Lambert D.M (2000). Issues in supply chain management. Industrial marketing management

Lyall. C, Transport Exchange Group (2008): Bestlog Good Practice cases, Improving

efficiencies within trucking service. Berlin Institute of Technology. London.

Marshal C and Gretchen B.R (2006), Designing Qualitative Research: Sage Publications.

Mckinsey and Company (2006), Organizing for Successful Change Management. The

Mckinsey Quarterly.

Miffin H (2000), American Heritage Dictionaryof English language, 4th

Edition America.

Mosbys medical dictionary 2009, 8th

Edition ,Elsevier


Mr BAtsirai Chadzingwa, ZIMRA Customs and Excise, Regional Manager ZIMRA

Workshop on Bonded Warehouse held in Harare 7 November 2012.

Neuman W. Lawrance (2003). Social research methods qualitative and quantitative

approaches, 5th

Edition, Allyn and Bacon Boston.

Packer M.J and Eddison R.B (Eds) (1989), Entering the cycle, Albany: Sunny Press

Pioneer Corporation Africa 2009 Annual report.

Publications by Estate Agents Authority (2011)

Punch K (1998), Introduction to social Research: Quantitative and Qualitative

Approaches, London: Sage

Rabianski. J.S (2006). Primary and Secondary Data: Concepts, errors and issues.

Appraisal journal

Redman, L.V and Morry A.V.H(2009) . The Romance of Research. Baltimore: The

Williams and Wilkins Co.

Road Freight Transport Industry Guide, David Martin, Daniel Glover, Australia 1986,

Sidney.

Roberts. S (1910). British School of monitoring (BSM), United Kingdom, London.

Rodrigue JP, Comtois C, Sluck B (2006). The Geography of transport system, Rutledge:

London and New York.

Ruston A and Walker S (2007). International logistics and supply chain outsourcing:

From local to Global. London: Philadelphia: Kogan Palgrave

Saarle, J.R (1995), The construction of the social reality. London : Allen Lane

Sarantakos, S (2005), Social Research, 3rd

Edition, Palgrave Mcmillan, Basingstoke

Saunders MNK, Lewis P, Thornhill A (2000). Research methods for business students,

Amazon :UK


Scary, Philip B, (1999), Changing Scope and Direction: Managing Supply Chain in Donald

Waters (ED)

SEDCO (2004) Annual Report

Shuffer , R.H and Thompson, H.A , (1998). Successful Change Begins With Results. In

Harvard Business Review on Change. Harvard Business School Press. Boston, M.A,

U.S.A.

Sink H,L and Langle C.T (1997). A managerial framework for acquisition of 3PL logistics

services. Journal of Business logistics.

Sohail MS and Al- Abdali,OS (2005). The usage of 3PL services in Saudi Arabia: Current

position and future prospects. International Journal of Physical Distribution and Logistics

Management

Sohail MS, Bhatnagar,R and Sohal AS (2006). A comparative study on the use of 3PL

services in Singaporean and Malaysian Firms. International Journal of Physical

Distribution by Logistics Management

Stokes,D (1995), Small Business Management, London, UK

Tan K.C (2001). A framework of supply chain management literature. European Journal

of Purchasing and supply chain

Turban, Efraim (2002), Electronic Commerce. A Managerial Perspective. Prentice Hall.

UNCTAD (1993), Containerization and Standards, UNCTAD, Geneva, UNCTAD

United Nations Conference on trade and Development (2000:45).

Valerie J and Mc Coll (1997), Statistic Glossary, University of New Castle: Australia

Wunsch, D (1986), Survey Research: Determining sample size and representative response.

Business Education Forum

Zavrisnik B, Jerman D and Vukovi G (2007), Evaluating Logistics Suppliers in the Slovenian

market. Organizacija

Zimbabwean Herald 02/09/11


Internet Sources

www.ask.com

www.cheg.com

www.diffen.com

www.fleetmind.com/ cusellawastsystems.inc

www.investopedia.com

www.meriam.com

www.shsu.edu/agency et al htm

www.slillsyouneed.com

www.statrek.com

www.studymode.com

www.write.com

http://www.ask.com/

http://www.cheg.com/

http://www.diffen.com/

http://www.fleetmind.com/

http://www.investopedia.com/

http://www.meriam.com/

http://www.shsu.edu/agency

http://www.slillsyouneed.com/

http://www.statrek.com/

http://www.studymode.com/

http://www.write.com/


APPENDIX B: LETTER TO THE RESPONDEND

Dear Sir /Madam

My name is Shepherd Maganga (Registration number C108762Y). I am an undergraduate

student in final year studying Bachelor of Science in international purchasing logistics and

transport management with Chinhoyi University of Technology. I am required to undertake a

research project therefore I ask for your assistance in the provision of the requested data from

your Industry knowledge concerning the performance Zimbabwean third party firms

specialising in road cargo transnational haulage companies.

I would appreciate if you can spare your time in answering the attached questionnaire. The

responses will be treated confidentially and only used for the purpose of this study.

Student name : Maganga Shepherd

Date : ……………………

Signature : …………………….

Email Address: [email protected]

Contact detail: 0776 626 110


APPENDIX C: QUESTIONNAIRE

Instructions

I. Answer with a tick in the boxes provided.

II. Comment briefly in the spaces provided.

1. Please provide the following personal details about yourself.

(i)Your gender

Male Female

(ii)Your Age group.

18 to 25yrs 26 to 35yrs 36 to 50yrs >50yrs

(iii)Your highest academic qualification.

GCE

„O‟ Level

GCE

„A‟Level

Undergraduate

Degree

Post-Graduate

degree

Other

Comment………………………………………………………………………………………

………………………………………………………………………………………………...


(iv) Your highest professional qualification.

Certificate Diploma Postgraduate

Degree

Relevant University Degree N/A

(v) Your relationship with the Zimbabwe road commercial haulage transport sector

Director Logistics

manager

Workshop

Supervisor

Truck

Driver

Supplier Client Government Of

Zimbabwe Official

2. In your opinion, what was the level of performance of Zimbabwean 3PL firms specialising

in road cargo transnational haulage services during the period 2000 to 2002?

More than one tick maybe placed here.

Performance Strongly

Agree


Disagree

Not

Sure

On-Time Delivery

Financially stable

Minimum risk of motor vehicle breakdowns.

Optimal vehicle utilization maintenance repair

and servicing.

Within the planned transit time

Flexibility in meeting customer needs

Quality of logistics services

Competitive freight charges

Other

………………………………………….

………………………………………….


Comment

……………………………………………………………………………..................................

…………………………………………………………………………………………………

…………………………………………………………………………………………………..

3. In your opinion, what were the effects of performance by Zimbabwean 3PL firms

specialising in road cargo transnational services during the period 2000 to 2013?


Effect Strongly

Agree


Disagree

Loss of goodwill

Loss of customers to international

competitors

Reduced profit margins

Poor customer service

Lengthy turn-around time

Insolvency of firms

Reliability of service offered

Other

……………………………………


4. In your opinion, what factors influenced the performance of Zimbabwean 3PL firms

specialising in road cargo transnational haulage services during the period 2000 to 2013?


Factor Strongly

Agree


Disagree

Border congestion

Poor road infrastructure

Fleet maintenance and servicing

Incompetent personnel

Lack of finance

Reliability of service offered

Speed of delivery

Other

………………………………………

………………………………………

Comment

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………


5. In your opinion, to what extent do the factors given below affected the operations of

Zimbabwean 3PL firms specialising in road cargo transnational haulage services for the

period 2000 to 2013?

Factor Very

Strong

Positive

Influence

Strong

positive

Influence

Moderate Insignificant Negative

Influence

Very strong

Negative

Influence

Border congestion

Poor road

infrastructure

Fleet maintenance

and servicing

Incompetent

personnel

Lack of finance

Reliability of services

offered

Speed of delivery


6. In your opinion, to what extent do the following affected the operations of Zimbabwean

3PL specialising in road cargo haulage services during the period 2000 to 2013?

Cause Very

Strong

positive

Effect

Strong

positive

Effect

Moderate Insignificant Strong

Negative

Effect

Very

Strong

Negative

Effect

Traditional/manual

consignment clearing methods

at border posts

poor service and maintenance of

road infrastructure

Use of bush mechanic systems

Ineffective human resources

Limited access to loans

Quality of management

Other

…………………………………

…………………………………

Comment

…………………………………………………………………………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………


7. In your opinion, what were the challenges faced by Zimbabwean 3PL firms specialising in

road cargo transnational services during the period 2000 to 2013?


Challenge Strongly

Agree


Disagree

Insufficient finances for the operations

Delays at border posts

In-transit laws

Inadequate fleet servicing facilities

Unavailability of contracts

Lack of necessary capital equipment

Lack of transparency in the industry

Poor supply of fleet spare parts

Delays in customs clearing and processing

of documentation

Inexperienced personnel/workers

Government rules and regulations

Stiff industry competition

Other

………………………………………

………………………………………

Comment

…………………………………………………………………………………………………

…………………………………………………………………………………………………


8. In your opinion, what are the recommendations for resolving the challenges faced by

Zimbabwean 3PL firms specialising in road cargo haulage services during the period 2000 to

2013?


Recommendation Strongly

Agree


Disagree

Employing updated ICT systems at all

Borders posts

Employing qualified and experienced

personnel

Development of road infrastructure (by

the government)

Outsource the fleet maintenance activity

The use of international in-transit laws

Loan access from banks

Pre-clearing of consigned cargo

Effective promotion of haulage companies

Training opportunities to workers

Other

………………………………….

………………………………….

Comment

…………………………………………………………………………………………..............

......................................................................................................................................................

Thank you for your cooperation


APPENDIX D: INTERVIEW GUIDE

The following were the interview questions:

vi. In your view, what was the level of performance of Zimbabwean 3PL firms


2013?

vii. In your opinion, what were the effects of performance by Zimbabwean 3PL firms


2013?

viii. In your experience, what factors influenced the performance of Zimbabwean 3PL

firms specialising in road cargo transnational haulage services during the period 2000

to 2013?

ix. In your view, what were the challenges faced by Zimbabwean 3PL firms specialising

in transnational haulage services during the period 2000 to 2013? and

x. In your opinion, what are the recommendations for resolving the challenges faced by

Zimbabwean 3PL firms specialising in road cargo transnational haulage services

during the period 2000 to 2013?

an analysis of the impact of factors which affect the performance of third pard logistics party in zimbabwe

Documents