Carrier Value

30 May 2018


‘Carrier Value’ refers specifically to the motor carrier industry. There are other carriers, for example, rail, airways, ships and pipelines. All are part of the bigger group of activities known as logistics and although I have confined my writing to the motor carrier industry, much of the content could apply to other types of carriers.

This book should be of interest to anyone in the management of a logistics function. Almost all businesses, institutions and government bodies have a logistics function in some form or other; therefore this book is focused at a broad market.

The Road-Based Economy

The economies of countries like South Africa have been referred to as ‘road-based economies’ – such is the dependence for both passenger transport and freight transport on roads. The lion’s share of logistics in many businesses is road transport – 50% of logistics’ costs in some industries.

The Motor Carrier Industry

I have referred to the industry as the motor carrier industry and not the road freight industry. The motor carrier industry moves goods for reward as a ‘front-room operation’, with road transport being a core undertaking, whereas the road freight industry includes ancillary transporters (firms that have a fleet of trucks that are not part of their core business – ‘back-room’ activities).

The title of this book, “Carrier Value”, is based on the Value Chain framework theory. The book analyses the different segments in the industry and attempts to explain how a motor carrier is able to provide a competitive service to clients and achieve ‘sustainable competitive advantage’. It is about the contribution a carrier makes to the Value Chain of its client, in assisting the client to achieve ‘sustainable competitive advantage’ in their own industry.
 
Neil Wright