RECOMMENDATIONS

E- COMMERCE

1. Three Train Traffic Categories

5.3 RECOMMENDATIONS

The fmdings of both the qualitative and quantitative research has resulted in the following areas being identified as areas for improvement:

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Customer Involvement

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Employee training

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Customer contact activities

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Technology and e-commerce

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Streamlined processes

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Corporate Image

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Further research

Each of the areas identified will be further elaborated in terms of recommendations and subsequent benefits / advantages for Spoomet.

5.3.1 Customer Involvement

As the customer plays a key role in the definition and evaluation of the quality of rail services offered, managers of Spoomet should incorporate consumer expectations and perceptions in the formulation of effective long-term marketing strategies. Itis strongly recommended that a further in-depth qualitative study amongst the Intermodal Industry customers be undertaken to ascertain key criteria in the ever changing import /export market. Once the qualitative phase is completed, it is also strongly recommended that the quantitative measure replicate the Servqual model adopted in this study.

Further in-depth feedback to the Intermodal Industry Sector regarding its clients and areas of interest is imperative for Spoomet to reach its ultimate goal of becoming a more customer service orientated company. In the current enviroment of organisational restructuring, it is more important than ever to retain and reinforce the customer orientation achieved thus far by regular monitoring of client feedback. This process has been identified to have helped to prevent significant slippage during past periods of restructuring and change.Ithas the potential to do so again as Spoomet faces substantial challenges not only in local markets but also in the global economic enviroment.

5.3.2 Employee Training

Spoomet management could start by improving on staff training, especially to train their staff to be more professional and courteous when dealing with customers. The customer confidence of

Spoomet has tobegained and the best way is for the management to look at improving on aspects such as training of staff to realize greater customer focus. Management must implement cultural changes to alter existing ideas of what Spoomet is and how it should operate in order to achieve greater customer orientation. Significant efforts to change the culture and beliefs of individuals who have been in the company for a considerable period of time and who may doubt that these changes are possible, is required.

5.3.3 Customer Contact Activities

Spoomet must reassess the basic ways in which customers contact, communicate and do business with Spoomet. The segmentation approach currently proposed is correct but must be refmed. The segmentation of customers must lead to the offering of transport options that reflect the distinctive nature of each industry's business. The Intermodal Sector mustbesegmented based on the import and export of containerised traffic and not combined with other unique industries such as the

cement industry. Customised services cannot be offered to such diverse customers when grouped as one sector. Such a grouping prevents the offering of transport options unique to the import / export container business. This proposal requires urgent reviewing during Spoornet's current restructuring. Furthermore, the alignment of services with the nature of the industry will ensure greater responsiveness and predictability and ultimately lead to increased rail volumes.

The role of Customer Relationship Management (CRM) via existing Key Account Managers are essential in ensuring that customised services are offered to customers and customer satisfaction realised. The mentality of "one size fits all" cannot be applied to all customer segments within Spoornet. The essential nature / dynamics of the import / export container division clearly differentiates it from all other sectors within Spoornet. Customised interaction enables the understanding of the customer's unique needs, which is then translated into unique service offerings.

5.3.4 Technology and E-Commerce

More effective technology and improved e-commerce usage has the potential to transform Spoornet's level of customer satisfaction. This will result in:

• More accurate handling of customer requests promptly thereby improving responsiveness, a key service quality dimension of transport operators, and simply, by streamlining internal processes. This would reduce both transaction costs and current complexities ofSpoornet's operations.

• Better interface with customers through user - friendly systems that offer more ways of engaging in business with Spoornet resulting in value adding.

• Customised information to customers via linked Spoornet / customer websites / intranets.

• Alignment of Spoornet employee's actions and abilities with the business strategy.

• Customer Relationship Managers can utilize e-commerce to manage the customer relationship.

Itis essential for Spoornet to start investing significantly in technology and resources to realise these benefits and improve the quality of service offered to its customers.

5.3.5 Streamline Processes

In streamlining processes to serve customers better, Spoornet can successfully address both the revenue and cost sides of the business. Systems and processes that simplify the delivery of services

such as wagon ordering and that simplify the transaction process such as claims would have the ability to drastically reduce costs and improve profitability. Streamlining Spoomet's processes would lead to:

• Optimisation of resource utilization.

• Increased use of scheduled operations such as the Import / Export service.

• Establishment of reliable reservation and wagon ordering systems.

• Sophisticated yield management systems once Spoomet is capable of managing and controlling capacity.

• Improved profitability systems enabling Spoomet to price existing business, manage yields and selectively accept new business.

5.3.6 Corporate Image

Service companies such as Spoomet are increasingly positioning through the communication channel i.e. advertising and marketing, with the objective of building strong corporate images in order to create relative attractiveness. Inaddition, the service quality dimensions of tangibles can also contribute to an improved corporate image for Spoomet. Statements BI - B4 in table 4.6 details the tangibles dimension as measured by the servqual questionnaire. The tangibles expectation scores (table 4.6) indicate that respondents either agree or strongly agree with the statements which points to the importance of this dimension. The perception scores for tangibles (table 4.9) however indicate that respondents have a low perception of the tangible aspects of Spoomet. This contributes to a further understanding of current negative media focus. Spoomet should focus on improving the tangible aspects of service, which would ultimately result in an improved corporate image. The adoption of a superior corporate image under current marketing conditions will play an important role in both attracting and retaining customers.

5.3.7 Further Research

In view of the intense competition in the transport sector since the deregulation of the transport industry in South Africa, it is imperative that the management of Spoomet undertakes further research to discover any shortfalls in service quality and to take necessary corrective measures in case of a shortfall. This would ensure that the service quality that Spoomet provides to its

customers is of a high standard that would also enable it to compete effectively with other modes of transport.

The study should include a more indept analysis of the Spoornet's service delivery in the import / export market. A more representative sample should be obtained than that which was used for this study. The Servqual questionnaire should be administered to not just the Intermodal Marketing Companies but also to their principals who are the cargo owners and other role players in the supply chain.