Abstract
The petroleum supply chain is regarded as the source of a contemporary economy. It can influence national and global economies by producing and trading petroleum crude and derivatives, refining these into petroleum products, and selling them to retail customers (Fernandes et al., 2014). The distribution of bulk fuel products to customers is one of the key activities in the downstream petroleum supply chain. For this activity to be effected successfully, three groups of supply chain participants; drivers, supervisors and customers, play key roles. Truck drivers are responsible for conveying the final product to the customer, while supervisors ensure that trucks are dispactched on time, driver performance is monitored and performance feedback is properly communicated to drivers. Customers, who purchase the final products are the foundation of business success. Business success is only possible by meeting or exceeding customer expectations and it is therefore imperative that the performance of employees is exemplary. It is therefore required that performance is measured and monitored regularly. Key performance indicators play an important role in measuring performance. Without these indicators, performance gaps may not be clearly identified and rectified, which may lead to demotivation of workers and affect customer service strategies. This study was undertaken to determine the impact of measuring driver performance on the bulk fuel supply chain and the impact on customer service strategies. The main objective of this study was to determine the impact of measuring driver performance on driver motivation, supervision and customer satisfaction through the implementation of key performance indicators. A quantitative research methodology was conducted using structured questionnaires which were disseminated before and after the key performance indicators were implemented to three target groups namely bulk truck drivers, transport supervisors and customers serviced by the depot. Secondary data was retrieved from the Business Intelligence and Systems Applications and Products in Data Processing programs of the company. The findings, although non-generalisable, indicate that there was an improvement on work performance by supervisors after the implementation of key performance indicators. While the research was limited to a single petroleum company, using a small sample size and focusing only on drivers that deliver products to local customers, implying that the findings are non-generalisable, the results can provide management with guidance and an insight on how to improve performance of employees through the use of key performance indicators, with a goal of providing excellent customer service.
M.Com. (Logistics Management)