Journal of Transport and Supply Chain Management - Volume 5, Issue 1, November 2011

The Department of Transport and Supply Chain Management at the University of Johannesburg proudly presents to you the fifth edition of the Journal of Transport and Supply Chain Management (JTSCM), an accredited publication unique in South Africa.

The purpose of this article is to demonstrate the development of a supply chain model for the automotive industry that would respond to changing consumer demand. Now more than ever, businesses need to improve the efficiency of their supply chains in order to maintain a competitive advantage. The principles of lean manufacturing and just-in-time (JIT) inventory control that were renowned for helping companies like Toyota, Dell and Walmart to rise to the top of their respective industries are no longer adequate. Leading companies are applying new technologies and sophisticated analytics to make their supply chains more responsive to customer demand. This challenge is driven by fierce competition, fluctuating market demand and rising customer requirements that have led to customers becoming more demanding with increased preferences. The article is based on theoretical reviews and suggests guidelines for the implementation of an automotive supply chain model for a demand-driven environment.

This research paper identifies the supply chain performance attributes that are relevant to the Fast Moving Consumer Goods (FMCG) industry. The FMCG supply chains are analysed from the perspective of processes, components and typology. The typical issues faced by the FMCG supply chains are also explored. Three supply chain operational models are compared and identify SCOR as the one best suited for the FMCG industry. The survey, conducted with the respondents from four research cases across two product categories, demonstrates the acceptance and the usage of the performance attributes for the FMCG supply chains. The results also include the analysis of the typology of the research cases across two product categories.

Disasters are becoming an unavoidable part of everyday life throughout the world, including South Africa. Even though South Africa is not a country affected by large-scale disasters such as earthquakes, the impact of disasters in South Africa is aggravated significantly by the vulnerability of people living in informal settlements. Humanitarian logistics, as a 'new' sub-field in the supply chain management context, has developed significantly recently to assist in disaster situations. This paper provides an overview of the South African humanitarian logistics context. Even though humanitarian logistics plays a critical role in the aftermath of disasters, it extends far beyond events that can typically be classified as 'disasters'. Therefore the implication of the South African humanitarian logistics context on future research and collaboration opportunities in South African humanitarian logistics is also discussed. Finally, two recent case studies in the South African humanitarian logistics environment are discussed.

Business managers and students often criticise university teaching for not addressing real-life problems. Furthermore, professors are dissatisfied with the research capabilities of postgraduate students. This paper advocates an integrated approach to teaching and learning based on the features of project-based learning aimed at enhancing the practical and research skills of undergraduate students in Logistics. A case study is presented where third-year students were engaged in a real-life project in collaboration with industry, exposing them to collaborative learning, questionnaire design, surveys, analysing and evaluating results, literature review and report writing. The project was carried out in phases where students were assessed after each phase. The paper analyses the assessment of students and their perception of the value of the project. It is concluded that an integrated teaching and learning approach will increase students' interest in the subject, understanding of theoretical concepts, research skills, business skills and life skills.

A brand represents the essence of the value proposition an organisation extends to the market. It is crucial that brands are nurtured with the goal of trying to establish the brand in a top-of-mind awareness position among consumers. By means of a qualitative case study employing 25 interviews which were analysed by using Grounded Theory coding techniques, the most pertinent factors influencing the Corobrik brand were identified. The greatest challenge facing Corobrik is the growing residential sector. The study highlights how Corobrik has grappled and come to terms with the changing nature of its market, and how it has combined all functional areas, from production to distribution, marketing and finance, in promoting its brand.

Retailers not only need the right data capture technology to meet the requirements of their applications, they must also decide on what the optimum technology is from the different symbologies that have been developed over the years. Automatic identification systems (AIS) are a priority to decision makers as they attempt to obtain the best blend of equipment to ensure greater loss prevention and higher reliability in data capture. However there is a risk of having too simplistic a view of adopting AIS, since no one solution is applicable across an industry or business model. This problem is addressed through an exploratory, descriptive study, where the nature and value of AIS adoption by grocery retailers in the Johannesburg area is interrogated. Mixed empirical results indicate that, as retailers adopt AIS in order to improve their supply chain management systems, different types of applications are associated with various constraints and opportunities. Overall this study is in line with previous research that supports the notion that supply chain decisions are of a strategic nature even though efficient management of information is a day-to-day business operational decision.

This paper evaluates service quality in the Durban freight transportation industry, in which a high degree of competition exists. Previous measurements of service quality in the industry have been casual gauges, rather than a formalised process. This paper makes a contribution by examining the level of service quality, specifically from a tangibles, reliability and responsiveness perspective, thereby identifying service quality gaps which need to be closed, with a view to raising service quality levels in the industry. The SERVQUAL instrument has been used to measure service quality levels administered to 500 of the industry's active customers, i.e. organisations utilising the services of the freight transportation industry. The targeted respondents were managers responsible for logistics in their organisations. It was found that gaps existed between expectations and perceptions of service quality on 14 of the 15 measured items. Recommendations are made as to how the industry can improve its service quality levels.

Despite two decades of visionary policies, problems within South Africa's freight logistics system remain. Logistics costs are high, the current road and rail solutions will be unable to meet long-term demand for freight transport sustainably, and rural economies still do not have efficient access to the corridor transport network. This article postulates that one of the core reasons for the state of affairs is the inability of government to enable an optimally functioning freight logistics system. The main challenges faced by government are identified and an intervention is proposed to develop an overarching framework and implementation plan to address South Africa's long-term freight logistics needs.

Due to the rapid deregulation of freight transport in South Africa two decades ago, and low historical investment in rail (with resultant poor service delivery), an integrated alternative to road and rail competition was never developed. High national freight logistics costs, significant road infrastructure challenges and environmental impact concerns of a road-dominated freight transport market have, however, fuelled renewed interest in intermodal transport solutions. In this article, a high-level business case for domestic intermodal solutions in South Africa is presented. The results demonstrate that building three intermodal terminals to connect the three major industrial hubs (i.e. Gauteng, Durban and Cape Town) through an intermodal solution could reduce transport costs (including externalities) for the identified 11.5 million tons of intermodal-friendly freight flows on the Cape and Natal corridors by 42% (including externalities).

The most common approach used internationally for forecasting international trade containers is models based on the correlation between container trade and economic growth. While the strong historical correlation is indisputable, this paper argues that there will be saturation in the propensity to containerise as all the suitable volumes of the underlying commodities shift to containers over time. In addition, the link between freight transport and GDP will decouple as more sustainable approaches to economic development, and therefore freight transport, are necessitated by economic and environmental realities. A commodity-based model, taking into account the underlying drivers of containerisation, is proposed here as a more realistic forecast of container demand. This could have a material impact on how large-scale investment decisions are directed.

The choices made by departing air transportation passengers from multiple airport regions impact on the strategies of competing airlines, airport operators and planners and local authorities. For these stakeholders it is important to understand which determinants influence passenger decision-making. The purpose of this article is to determine the main factors which influence airport choice decisions at a regional airport in the Greater Johannesburg area in South Africa.

One of the cornerstones of the judicial process is the presentation of evidence in a court of law. The integrity of evidence is vital to reassure the courts that the correct procedures were followed throughout all the processes it was subjected to. In South Africa, the Forensic Science Laboratory (FSL) in Pretoria analyses and stores evidence. The storage facility within the FSL should contribute to the prevention of evidence contamination or degradation thereby also leading to improved service quality and output to its customers. The proper delivery of evidence can lead to the conviction of suspects and to the freedom of the innocent. This study investigates the storage facilities at the FSL to determine whether these are appropriate to ensure the integrity of evidence throughout all the processes it goes through and to recommend actions to continue to add value to the judicial system.

Worldwide, there has been a rapid growth in the use of pipelines to transport energy products. Due to the strategic nature of energy products that are transported by pipelines, the importance of risk awareness, assessment and management cannot be over-emphasised. With the risk of pipeline disruptions increasing globally, energy pipeline organisations are compelled to incorporate measures that should help to identify and address areas that can lead to energy pipeline disruptions. The incorporation of such measures for any organisation is premised on an understanding and appreciation of the risks involved. Given the strategic importance of energy pipelines, the main purpose of this paper is to establish whether the South African energy pipeline sector and the public at large appreciate the risks associated with energy pipelines. Thus, the paper seeks to ascertain awareness of the risks associated with the energy pipeline's physical environment, not only from the energy pipeline operators, but also from communities who are exposed to such risks. Data for the study was collected from energy pipeline operators and from a selected residential area in Johannesburg using both structured and unstructured questionnaires. The findings show that the corporate energy sector in South Africa is aware of risks associated with energy pipeline supply chains while the general public's awareness is very low.

Despite the importance of transport to the social and economic development of a country, very little, if any, work appears to have been done in South Africa to assess the impact of transport policy in achieving its aims and objectives. Two policy areas that have wide social and economic impacts are the public transport industry and the development of the national roads network. Public transport, or more specifically commuter bus transport policy, is aimed at improving the mobility and affordability of the travelling public while at the same time increasing the transparency of the subsidy system through a tender and negotiated contract regimen. The policy on national roads directly impacts the general economy as an estimated 88% of all freight tonnage (excluding the dedicated iron ore and coal lines of Transnet Freight Rail) is moved over the road network of South Africa with the national roads linking the main economic centres of the country. This research assesses the impact of these two areas of policy making by comparing policies for commuter bus transport and primary (national) roads for two policy periods, namely, 1986 to 1994 and 1994 to 2004. The research methodology used is that of the mixed-methods research procedure explained more fully in the article and the annexure to the paper. The research arrives at conclusions in respect of the impact of the policy on the problems and issues in the two separate sectors of transport during the policy periods analysed. It also draws conclusions on the policy-making process used as well as identifying deficiencies in the process. Finally it makes recommendations to address these inadequacies.

Botswana has one of the highest rates of increase in road traffic accidents and fatalities in the world. The amendment of road laws came with stricter penalties for road offences which included higher fines and longer jail terms. This study uses multiple regression analysis subjecting variables to backward stepwise regression with a view to assessing the impact traffic law enforcement has had on fatalities in Botswana after the review of the Traffic Act of Botswana in 2008. The study uses secondary data and interview data obtained from law enforcers. The findings reveal that the enforcement of the new road laws has achieved little in the reduction of fatalities. Increasing the minimum driver licensing age may be a panacea to road accidents. Licensed drivers in the age group 30 to 45 years have the lowest rate of fatalities. The study questions the ability of punitive policies (i.e. road fines) to reduce fatalities. It offers that driver behaviour should be studied to come up with relevant policies.

For any business to compete successfully in the modern, globalised business environment, it needs to mobilise its suppliers and customers to co-operate in order to reduce unnecessary costs and inefficiencies between them and to ensure the best value for the final customer. The focus is on management of the supply chain as a whole (or a system) and maximum value for the final customer of the supply chain, instead of on management for the maximum benefit of one of the parties in the supply chain. If the supply chain is seen as a system of organisations with one aim (value for the final customer), it is logical that a problem in one part of the supply chain must affect the workings and efficiency of the system or supply chain as a whole.

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This article reports on an exploratory empirical study to illustrate the effect of problems at one party in the supply chain on the whole supply chain. The study was done at automotive component manufacturers. To determine how problems at one place permeate through the whole supply chain, correlation testing was done between supply-side, internal operations, and distribution or customer-side problems. The study found that problems experienced at one place in the supply chain had a negative impact throughout the supply chain. Automotive supply chains should therefore be managed more as a system, taking into consideration the effect of decision making and actions at one part of the supply chain on other parts of the supply chain. There should be a supply chain wide co-operative effort to find solutions to inefficiencies at all places in the supply chain.

Organisations can use supply chain strategies to gain a competitive advantage for the supply chain. A competitive advantage can be achieved by means of low cost or by means of differentiation. However, organisations have to implement the correct supply chain strategy. Returns on investment can be compromised if organisations implement an incorrect supply chain strategy. The objective of the article is to analyse the differences between theoretically implied and implemented supply chain strategies within selected organisations. The differences between supply chain strategies implied by literature and those implemented by selected organisations are analysed by determining how the organisations are managing their supply chain drivers. Organisations with lean supply chains should manage their supply chain drivers to achieve efficiency, while organisations with agile supply chains should manage their supply chain drivers with responsiveness towards customers' needs in mind. Non-probability sampling was used to include 13 organisations in the research. Six organisations are implementing different supply chain strategies to what literature principles are suggesting to them based on specific supply chain characteristics. An analysis is done on how these six organisations are managing their supply chain drivers.

It is estimated that about two-thirds of global coal is used for power generation and that, in the next 20 years, over 70% of the demand for coal will come from China and India. Coal accounts for approximately 41% of the world's electricity generation. Demand for thermal coal is influenced by factors that include availability, prices of competing products such as oil, gas and nuclear power, and the demand for electricity. The aim of this article is to provide an exposition of supply chain dynamics within the South African coal mining industry and to argue for a more efficient and collaborative supply chain. The authors attempt to investigate at local and global level, the current trends pertaining to the level of reserves, production and consumption of coal. The article further demonstrates the shortcomings of current logistics in meeting the demand for coal in both domestic and export markets. The article draws from secondary data sourced from academic papers, government and agency documents in the exposition of the coal mining supply chain. The paper concludes by recommending the need for a scientific study on supply chain constraints facing the coal mining industry in South Africa.

As organisations find themselves in an increasingly dynamic and competitive world they are seeking new strategies to ensure their competitive advantage and profitability. Logistics presents an area in which these organisations can improve customer service and reduce costs, and strategies in support thereof such as the outsourcing of logistics activities, should be considered. However, it is critical that logistics outsourcing is done diligently to avoid potential problems for the organisation and to achieve the best possible benefits. In South Africa little research has been done regarding current outsourcing practices of local manufacturers. In this article literature on international logistics outsourcing as well as research on some of the logistics outsourcing practices of South African manufacturers is discussed. The findings of a questionnaire survey of South African manufacturers provided information on their logistics outsourcing practices and problems. Prominent issues seem to include inadequate managerial involvement in the logistics outsourcing process, as well as insufficient time spent on many of the important aspects of the outsourcing agreement, the transitioning of resources and ongoing management of the outsourced relationship. It is concluded that a thorough outsourcing process should be followed in order to achieve the benefits of logistics outsourcing.