Performance Measurement in Service Industries by Lin Fitzgerald, Philip Moon

By Lin Fitzgerald, Philip Moon

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Each depot will offer all, or most of, the different divisional services. Our research concentrates primarily on the depot structure. m. , next day before noon, and next day (time unspecified). Thus, an Oxford business Page 18 person who leaves an important package in a Torquay hotel bedroom on a Tuesday afternoon can have it delivered before the start of the next working day directly to his or her home address. The critical success factor for TNT is to deliver the goods to the right place at the right time.

This is due to consequent money-back guarantees or the need for some depots to employ sub-contractors to meet the delivery deadlines. At the depot level, four separate performance measurement mechanisms are used. Although each one carries implications for the other three, there is no formalised connection made. The four relate to: (i) the depot overall; (ii) sales and customer care; (iii) deliveries; and (iv) finance and administration. 1 The Depot Overall. The need to generate profit at the company level is driven down directly to the depots, a weekly profit and loss account being produced for each depot.

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