5.5 Quality in the operator-client relationship
The essence of the operator-client relationship lies in the standard of service that is provided to the other party. The basis of a continuing relationship is mutual long term benefit for all concerned. This comes not only from profitable business today but also from investing in meeting the needs of the other in the future. An aligning of the ethics of doing business is also equally necessary. The benefits of such a relationship must be mutual, what is commonly called a "win - win" situation in quality literature.
The relationship between the organisation and its clients is governed by contracts. The terms and conditions of the contract must be clearly stated, ensuring that requirements are clearly understood by all concerned and that the necessary resources, organisation and facilities are available. Further, documented evidence on formal assessment of any suppliers used should be provided, to ensure that they have the capability to meet the required standard of performance/quality. On its part, the company must demonstrate that the overall process, at all stages, is in control.
When a contract for service is entered into, the client may audit the operator's management system to ensure that their needs are met and the stated system is being followed. This is commonly seen in ship vetting by oil majors and other cargo interests who often physically go on board, with a formal checklist, and thoroughly audit the ship on which their cargo will be carried. Only subsequent to this are negotiations for cargo carriage entered. These audits may be time consuming, and sometimes there may be more than one prospective client carrying out such inspections to their separate requirements in the same port. Since a member of the ship's management team is expected to accompany the auditor, this places some stress on the staff, particularly as it takes up the rest time of key operational personnel. One of the aims of formal quality accreditation is to reduce these sometimes numerous second party audits and allow the operator's staff to concentrate on their duties. This works in some cases. In others, it does not. Clients are within their rights to check standards of operations to meet their particular needs, especially first time clients. With experience, the operator-client relationship develops as knowledge of the other's needs and expectations is gained.
Activity 5.5
In your organisation, how is information on the quality of the services or goods provided by subcontractors obtained?
It would be wrong to assume that formal quality systems would ensure a good relationship in every case. Every company has its own standards and expectations. It is only when these coincide between operators and their clients that the business relationship will strengthen. As mentioned earlier, carrier selection is based on many factors. The quality of service depends upon performance and upon customer satisfaction. Whether the service meets, exceeds or falls below expectations determines long term business relationships.
An important concern in the transport industry is safety. This is based upon, inter alia , maintenance of equipment and suitability of all the units (ship, aircraft, container, truck, pallet, etc.), personnel (properly trained, correctly motivated) and availability of equipment necessary to look after the cargo whilst in transit. Accidents are very expensive, both in money and goodwill terms. Satisfaction with the service provided, leading to a good long term operator-client relationship is based on all the commercial and social aspects of the transaction between the buyer and the seller of the service.
If the question, then, is "Do formal quality systems strengthen operator-client relationship?" the answer can only be: "Sometimes".
From the preceding sections of this chapter, it is seen that the companies seeking certification fall into two groups - the (usually large) ones who see the benefit of formal quality systems in establishing a standard practice in all their sites or departments and also wish for more transparency in their management; and the others (usually small) who seek certification to be able to continue to do, or tender for, business with certain clients. It appears that most clients insist on their service providers having some quality certification, depending on the market that they are in, because, in their sector of business, that is the norm. Having such certification as a way of identifying companies to be short listed for doing business with may be indicative of a lazy management. This is so because the certification does not specify any specific standard of operations. The only definitive way to check quality of output is to audit the other party to ones' own requirements. Only if these requirements are met can satisfaction with the service be assured.
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