Outsourcing for competitive advantage : an evaluation of an owner driver proposition in a South African removals company

摘要

The aim of the research was to assess what competitive advantage a Removals company could expect to gain by outsourcing its driver function to owner drivers. An extensive literature review identified key outsourcing issues. The literature was related to a case study of Stuttaford Van Lines (SVL), a company that is experiencing problems with its current independent contractor driver arrangements and that needs to review its outsourcing decision. In order to learn from best practice in the field of outsourcing to owner drivers, a benchmarking exercise was undertaken at South African Breweries (SAB). The benchmarking exercise identified six key issues that contributed to the success of the SAB owner driver scheme. These points, together with others identified from the literature, were integrated into a recommended outsourcing implementation process for SVL. The research found that it is possible for SVL to outsource the driver function to owner drivers and that such a scheme can be expected to improve customer service levels. The success of the scheme will depend on the selection of the drivers and how effectively it is managed. It was found that it would not be profitable for SVL to outsource to owner drivers using the compensation model proposed. Cost reduction is however only one of the factors to consider in an outsourcing decision.