SUSTAINABILITY REPORT

CUSTOMERS
Customers and consumers
Our customers are a mixture of retail, wholesale and corporate. They range from multinational mining and construction companies who may purchase tens of millions of US dollars of earthmoving equipment from us annually to low income individuals who may buy a single bag of cement for under R60 from a builders merchant. Our sales to governments constitute well below 1% of our total revenues.

Our business units have regular dialogue with their customers and the end-users of the products. A common feature is regular individual face-to-face contact and focus meetings or forums to discuss common issues relating to products and processes. Many of our businesses conduct regular independent customer satisfaction surveys and engage in other ad hoc communications. Barloworld Scientific’s Melles Griot division engages its customers in strategic pursuit, in that its product development goals aim to keep customers technically competitive in their respective markets. It solicits and considers customer feedback pertaining to all its product development programmes. The process of adding value for customers is strengthened by quick response to feedback from customer interaction. In our cement and lime division we measure customer and consumer satisfaction by means of tollfree lines, customer focus interface, surveys and customer interaction. Independent external companies undertake market surveys. Both the Avis and motor franchise operations in Barloworld Motor conduct ongoing and independent customer satisfaction surveys.

Feedback from customers is acted upon in numerous ways. For example, the annual Markinor customer survey in Barloworld Equipment indicates various strengths and weakness (improvement areas), which are then addressed by the relevant business unit directors and managers. Examples of issues raised include the responsiveness of the parts departments, reliable service, promptness of delivery, parts availability, competence of our technicians and understanding of our customers’ business.

Customer feedback is used where appropriate to effect product improvements and changes. In addition, such stakeholder engagement has been found to stimulate innovation within the company. For example, the scientific division’s laboratory businesses use customer and consumer feedback to assess their performance on a wide range of issues from product performance to access to senior management, and this is done in the context of overall satisfaction and competitor positioning. Barloworld Truck Center in the US (part of the industrial distribution division) responded to FedEx’s wish for a single parts supplier by establishing a call centre dedicated to their needs. Barloworld Truck Center now ships approximately 300 orders per day. When SelecTruck needed to outsource its repairs, we further domiciled four technicians at their place of business to repair their trucks. This tailored approach allows the business to evaluate each customer as to their specific needs.

Market shares
National sales do not represent more 5% of GDP in any country in which we operate, although Barloworld divisions tend to have a strong representation in the local markets in which they operate. Equipment in southern Africa, car rental in southern Africa, Norway and Sweden, as well as coatings and steel tube in South Africa and have market shares greater than 25%. Similarly, cement and lime’s market share in Botswana, South Africa and Zimbabwe exceeds 25%.

Consumer privacy
Consumer privacy is enshrined in our Code of Ethics and there were no substantiated complaints on breaches thereof in 2005.

Customer satisfaction
Continuous customer satisfaction measurement is a key activity in ensuring we remain competitive. Our divisions undertake various formal and informal measurement activities.For example, in South Africa, coatings undertakes customer and consumer surveys by an independent market survey company on a biannual basis. A national help desk is also maintained and the results recorded and analysed.

In the motor division, the manufacturers conduct such surveys in all aspects of operations. Avis operations also continually conduct independent customer surveys, the results of which are reported and reviewed monthly at group executive level and quarterly at board level. In South Africa, Avis Rent-A-Car has been voted the best car rental company for three consecutive years. Avis Norway and Sweden have customer satisfaction measurement mechanisms in place and have won The Grand Travel Award for the Best Car Rental company in their regions for nine and fourteen consecutive years respectively.

Cement and Lime carries out ad hoc surveys both internally and externally to establish customer satisfaction levels, which are also part of employee scorecards. Scientific also measures Customer Value Creation on an ongoing basis. Benchmark scores and improvement targets are included in all managers’ balanced scorecards, and reflected in their performance assessments.

Advertising
Barloworld complies with the advertising codes in the countries in which its companies advertise, and are generally advised by specialist advertising agents. Advertising in South Africa is governed by the policies as set out by the South African Advertising Standards Board, and in Australia by the Advertising Standards Council of Australia (ASCA). Advertising in the motor division is done strictly in accordance with manufacturer or principal requirements. Where necessary, we do consult with the relevant advertising standards authority. No breaches of advertising and marketing regulations were reported during the year under review.

Product and service stewardship and supply chain management
Product stewardship initiatives in our own brand technologies include analytical services to guarantee quality of product; training and skills development of consumers, as well as monitoring and measuring process efficiencies and targets for their improvement.

Where we represent other companies’ brands all our original equipment manufacturers are of international reputation and comply with international standards and norms. Other initiatives include efforts to improve product design so as to minimise negative impacts associated with manufacturing, use and disposal of materials.

In a limited number of our divisions, we assess and manage our supply chain in respect of outsourcing and supplier sustainability performance, applying key performance indicators and implementing supplier accreditation policies.

Customer health and safety
Throughout our businesses, customer and consumer health and safety is a top priority. The coatings business’s policy is to supply a material safety data sheet that complies with the SABS-approved format with each product supplied to retailers and distributors. The technical director is responsible for approving these sheets prior to releasing products to pilot scale and full-scale production.

In Australia, coatings complies with consumer health and safety regulation, including the Dangerous Goods Code for transport and storage, the Standard for the Uniform Scheduling of Drugs and Poisons (SUSDP), which is applicable to toxic substances, as well as the Uniform Paint Standard, which prevents use of toxic materials in architectural paints. Use of products in the workplace is covered by Worksafe who regulate labelling and material safety data sheets for designated hazardous substances.

The cement and lime division provides safety information for use of the product, printed on bags and delivery notes as well as on silos and tankers. Detailed product safety data sheets are available on request. Group Laboratory Services and technical sales personnel have direct interface with customers. A toll-free help desk number is printed on the bags.

The scientific division’s electrical products are accompanied by instruction manuals, which not only describe how products are used but also identify issues related to safety such as electrical connections. The manuals are available free of charge as a web download so that customers who have lost manuals can readily obtain replacements, and they are available in multiple languages.

Product information and labelling
No instances of non-compliance with any regulation concerning product information and labelling, nor any penalties or fines for any breaches were recorded in the year.

Avis scoops another Best Car Rental Company Award in South Africa

Keith Rankin, managing director of Avis Rent-A-Car Southern Africa

The Association of South African Travel Agents (ASATA) has voted Barloworld’s Avis the best car rental company in the country for 2004. Avis has won this prestigious award, the travel industry’s highest accolade, for the third consecutive year. In so doing it became the first car rental company in the history of the award to accomplish this feat.

The award is based on votes from ASATA travel agents who select the industry service provider that offers the highest quality service. Competitors are evaluated in various categories including the swiftness of the service provider’s response time, the ease of making reservations, the accuracy of their quotations, access to quality information, regular personal sales contact and personal assistance from key personnel.

“We believe that this continued recognition from our peers in the travel industry is a direct result of the Brand Ambassador Programme*, which we implemented four years ago.”

Keith Rankin, managing director of Avis Rent-A-Car Southern Africa

*	The Brand Ambassador Programme is an initiative which empowers Avis Southern Africa employees to make our vision of exceeding customer expectations at every interface a reality.

This page was updated on 5 May, 2006

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