The impact of measuring driver performance on the bulk fuel supply chain

Abstract

Background: 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, whilst supervisors ensure that trucks are dispatched 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 measured and monitored regularly. Objectives: This study was undertaken to determine the impact of measuring driver performance on the bulk fuel supply chain and on customer service. Method: 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. Results: The study found that the performance of drivers improved because of the performance feedback they received from supervisors who were perceived to have improved in their performance through the effective utilisation of key performance indicators, and as a result, this increased customer service levels. Conclusion: Whilst the research was limited to a single petroleum company, the results can provide management with guidance and insight on how to improve performance of employees through the use of key performance indicators, with a goal of providing excellent customer service.