Developing a service model for a successful freight forwarding organisation in South Africa

The Freight Logistics Industry underpins the efficient movement of freight goods globally and supports the South African economy by accounting for 80% of the movement of goods. While South Africa’s formal trade with the rest of the continent and the world has increased steadily over the years, the country is yet to make significant inroads in some of its larger and fast-growing economies. This is despite having a substantially more diversified economic base and relatively higher levels of technological advance-ment (Department of Research and Information, 2018). Complex challenges relating to transport infrastructure (roads, customs processes, sea- and airports, amongst others), determine the efficiency with which business can be done and therefore has a direct impact on the growth of the Freight Logistics Pro-vider (FLP) industry (Belfreight, 2016). Changes in the global business environment have also led FLP’s to diversity strate-gies, incorporating asset ownership on a small to large scale in order to cope with the ever-changing demands of customers. However, at its core, the FLP industry exists to manage the freight transport process. This study investigated, through interviews and surveys involving senior industry pro-fessionals; whether a service model for a successful FLP could be developed; one that did not require asset ownership. The empirical evidence gathered yielded a list of the top FLP services currently being used in business; together with the support structures and enablers for these services in the form of transport modes. A model was then developed based on these param-eters that would best suit a small to medium sized FLP for success. Success in this study proved to be non-tangible due to the limited information available in company and industry figures, however, indication of an optimal market by product was included in the developed model