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- Volume 6, Issue 1, 2012
Journal of Transport and Supply Chain Management - Volume 6, Issue 1, 2012
Volume 6, Issue 1, 2012
Author Stephen KrugerSource: Journal of Transport and Supply Chain Management 6, pp iv –v (2012)More Less
The Department of Transport and Supply Chain Management at the University of Johannesburg proudly presents to you the sixth edition of the Journal of Transport and Supply Chain Management (JTSCM), an accredited publication unique in South Africa.
The Journal continues to serve as an independent publication for scientific contributions in the field of transportation and supply chain management, i.e. logistics, operations management, purchasing management, distribution management, warehousing management, transportation (all modes), production planning and related fields.
Source: Journal of Transport and Supply Chain Management 6, pp 1 –14 (2012)More Less
This article advances a new logistics financing model based on the notes receivable. This is a written promise to receive a stated amount of money in future. The article describes the structure and key processes of the model, and analyses the roles of the involved stakeholders. In order to enhance understanding, the article compares the model with a loan financing model, establishes a game model based on logistics enterprise financing, studies the strategies in the process of investment and financing, and concludes by defining its feasible region. This involves comparing the expected net revenues of different stakeholders in the two models. Based on the results, the paper analyses the financing process of a logistics enterprise in Shanghai and determines the optimal financing strategy. This paper is an attempt to improve business innovation in logistics financing and provides a sensible solution for the integrated logistics and finance services. This can effectively improve the stakeholders' profit.
The study and design of a national supply chain for the aerospace titanium components manufacturing industrySource: Journal of Transport and Supply Chain Management 6, pp 15 –34 (2012)More Less
Titanium's strength-to-density ratio, corrosion resistance and high thermal compatibility makes it the perfect metal for aerospace. Titanium is for instance used for the structural airframe, seat tracks, engine components and landing gear of aircraft. The Boeing 787 that had its test flight in 2009 is one of the latest aircraft designs that incorporates a substantially higher percentage of parts manufactured from titanium due to the weight benefit.
Titanium's extensive use in aerospace applications ensures that the aerospace market is the main driver of titanium metal demand. South Africa is the second largest titanium producer in the world after Australia. The abundance of titanium in South Africa together with the growing demand has led it to be identified as a beneficiation priority in a collaborative government initiative, called Titanium Beneficiation Initiative (TBI).
The purpose of this paper is to develop a supply chain model for the anticipated South African titanium component manufacturing industry.
Source: Journal of Transport and Supply Chain Management 6, pp 35 –54 (2012)More Less
South Africa has had a policy of competitive tendering for the provision of public transport services (subsidised commuter bus services) since the mid-1980s. Although this policy approach was conceptualised by the previous government, prior to the transfer of political power in 1994, it was reaffirmed in a 1996 White Paper on National Transport Policy. Despite the nearly 25 years that have passed since the intention to tender services, only about 32% of the subsidy budget is currently spent on some form of contracting. The majority of services are still operated on authorisations (interim contracts) which formalised services that operators were operating pre-1994. The purpose of this paper is to analyse the reasons why public transport contracting policy progress has been so slow in South Africa. The paper relies on an extensive study that was conducted regarding policy implementation obstacles in general, as well as a questionnaire survey among the subsidised commuter bus operators to solicit their views on the reasons for the delay in the implementation of the contracting system in the country. The findings of the survey indicate that the major issues hindering the implementation of the contracting system are to be found in a lack of funding, lack of capacity to implement policy and major operational issues in the permit offices.
Source: Journal of Transport and Supply Chain Management 6, pp 55 –72 (2012)More Less
It is imperative for airport operators and airlines to have a clear understanding of the factors which influence the passenger's decision with regard to which airport/airline combination to use in a multi-airport scenario. Interactions between demographic variables, such as gender and purpose of travel, and the choice attributes in the decision-making process exist. The extent to which specific attributes influence the passenger's decision could be invaluable to service providers (airport operators and airlines) in allocating and employing limited resources. The purpose of this article is to investigate the extent of the interactions between passenger demographics and attribute evaluation by taking into account the ordinal nature of the measurement scale.
Source: Journal of Transport and Supply Chain Management 6, pp 73 –90 (2012)More Less
The concept of reverse logistics is often misunderstood and academic research in this field is limited, especially in South Africa. The research for this article was based on the available literature. Various international sources and a limited number of South African sources were studied in an attempt to explore the concept of reverse logistics, and identify possible problems and potential solutions to such reverse logistics problems. There are several definitions of reverse logistics and the term is often confused with other terms such as returns management. Various problems and challenges also exist in reverse logistics; however, solutions have been proposed to address these problems. The research presented in this article clearly shows that a variety of opportunities exists in the field of reverse logistics in South Africa, with regard to research as well as the proper implementation and management of reverse logistics in business.
Source: Journal of Transport and Supply Chain Management 6, pp 91 –106 (2012)More Less
The South African automotive industry, which is an important sector in the South African economy, needs to function efficiently if it is to compete internationally. However, South African automotive components manufacturers (ACMs) are not internationally competitive and automotive assemblers, also known as original equipment manufacturers (OEMs), often import cheaper components from abroad. All parties in the South African automotive supply chains need each other to ensure optimal efficiency and competitiveness. Furthermore, it is vital that good relationships exist between customers and suppliers in the automotive supply chains in South Africa. ACMs are central to automotive supply chains. A survey was conducted among ACMs to determine the nature of relationships that exist between buyers and suppliers in South Africa's automotive supply chains. The results showed that collaborative relationships do indeed exist between members of the supply chain but that communication, understanding of the parties' situations and cooperation can improve this relationship and so create total alliance between OEMs and ACMs.
Source: Journal of Transport and Supply Chain Management 6, pp 107 –125 (2012)More Less
The skills shortage in the supply chain industry in South Africa is much touted but under-researched. The research conducted attempts to identify the skills sets typically required by supply chain organisations as well as those skills areas that are the most challenging to fill, thus identifying the critical skills shortages in South Africa. The study includes benchmarking with international trends, conclusions and identification of key areas for future research.
Author Intaher M. AmbeSource: Journal of Transport and Supply Chain Management 6, pp 126 –147 (2012)More Less
In today's business environment, many companies want to become efficient and flexible, but have struggled, in part, because they have not been able to formulate optimal supply chain strategies. Often this is as a result of insufficient knowledge about the costs involved in maintaining supply chains and the impact of the supply chain on their operations. Hence, these companies find it difficult to manufacture at a competitive cost and respond quickly and reliably to market demand. Mismatched strategies are the root cause of the problems that plague supply chains, and supply-chain strategies based on a one-size-fits-all strategy often fail. The purpose of this article is to suggest instruments to determine an optimal supply chain strategy. This article, which is conceptual in nature, provides a review of current supply chain strategies and suggests a framework for determining an optimal strategy.
The development of a performance measurement system for the South African container shipping industrySource: Journal of Transport and Supply Chain Management 6, pp 148 –163 (2012)More Less
Globalisation is dependent on efficient supply chains and a variety of transport systems. South Africa participates in the world's economy with an extensive container shipping industry, as well as a road/rail/air distribution system. One of the aims of this research study was to develop a measurement system, or model, that may assist in measuring the performance of a container shipping service, from the time a ship arrives in the harbour, through the process in the container depot until the container arrives at the final customer for imports, and the other way round for exports. The objective was to develop a performance index that would assist management in assessing and/or improving the current system. It is a global phenomenon that inefficiencies cannot be eliminated by a single organisation; it requires the cooperation of all the parties in a supply chain.
Author Theuns F.J. OosthuizenSource: Journal of Transport and Supply Chain Management 6, pp 164 –179 (2012)More Less
Leadership in an operational environment requires operational employees to take on responsibility as leaders. This leadership role could vary from self-leadership to team leadership with personal and organisational vision as key drivers for operational leadership performance. The research population included operational employees working in a transport environment who attended a leadership development seminar. A census was conducted using a questionnaire-based empirical research approach. Data analysis was conducted using SPSS, and the results were analysed. Responses indicate the development of an awareness of the importance of values and vision in order to establish effective leadership practices through the leadership development programme. Research confirmed the importance of vision as a key driver in operational leadership in this context. Further skill development is required on how to align personal values and vision with that of the organisation (department) within which operational employees function.
Source: Journal of Transport and Supply Chain Management 6, pp 180 –191 (2012)More Less
This paper investigates the suitable location for an intermodal inland container terminal (IICT) in the city of Cape Town. A container market segmentation approach is used to project growth for container volumes over a 30-year period for all origin and destination pairings on a geographical district level in an identified catchment area. The segmentation guides the decision on what type of facility is necessary to fulfil capacity requirements in the catchment area and will be used to determine the maximum space requirements for a future IICT. Alternative sites are ranked from most suitable to least suitable using multi-criteria analysis, and preferred locations are identified. Currently, South Africa's freight movement is dominated by the road sector. Heavy road congestion is thus prevalent at the Cape Town Container Terminal (CTCT). The paper proposes three possible alternative sites for an IICT that will focus on a hub-and-spoke system of transporting freight.
Extending freight flow modelling to sub-Saharan Africa to inform infrastructure investments - trade data issuesSource: Journal of Transport and Supply Chain Management 6, pp 192 –206 (2012)More Less
This paper highlights the first attempt by researchers at Stellenbosch University to model freight flows between and for 17 countries in sub-Saharan Africa (SSA). The model will be informed by and linked to the South African surface Freight Demand Model (FDM) given these dimensions. By analysing and collating available datasets and developing a freight flow model, a better understanding of freight movements between countries can be obtained and then used for long-term planning efforts. A simple methodology is envisaged that will entail a high-level corridor classification that links a major district in the country with a similar district in another country. Existing trade data will be used to corroborate new base-year economic demand and supply volumetric data that will be generated from social accounting matrices for each country. The trade data will also provide initial flow dynamics between countries that will be refined according to the new volumes. The model can then generate commodity-level corridor flows between SSA countries, and between SSA countries and the rest of the world, as well as intra-country rural and metropolitan flows, using a gravity-based modelling approach. This article outlines efforts to harmonise trade data between the 17 countries identified, as well as between these countries and the rest of the world as a first step towards developing a freight demand model for sub-Saharan Africa.
Source: Journal of Transport and Supply Chain Management 6, pp 207 –222 (2012)More Less
The purpose of this study is to quantify the marginal external costs associated with freight transport in South Africa. Six cost elements are included as externality cost items, namely, costs related to accidents, emissions, roadway land availability, policing, noise and congestion. Inputs in the calculations were a gravity-oriented freight flow model, a road transport cost model, actual transport costs for other modes, a warehousing cost survey, an inventory delay calculation and various national sources of information such as accident statistics and government budgets. Estimation techniques resulted in advances for externality cost measurement in South Africa. The quantification of the cost elements will be used to update the South African Freight Demand Model. The results show that the cost of transportation would have been 20% more if external factors were taken into account. The marginal rates of externalities can be used to develop scenarios based on alternative choices for South Africa's freight transport infrastructure configuration.
Global economic recessions and the maritime industry 1980-2009
Impact on South African shipping 2000-2012Source: Journal of Transport and Supply Chain Management 6, pp 223 –241 (2012)More Less
The maritime industry is the major enabler of international trade. Major economic events in the international arena such as global recessions affect world trade and therefore the maritime industry as well. South Africa imports and exports major commodities and products therefore such events will also affect the country's economy. This paper explores how different industries within the South African maritime industry have been affected by global economic recessions. As some of them are of great significance to the country's economy, it is imperative to look at how these industries are affected so as to be able to see the national impact.
Source: Journal of Transport and Supply Chain Management 6, pp 242 –261 (2012)More Less
This article reports on an exploration of challenges experienced in the field of procurement within the South African public sector. To institute procurement best practices, a supply chain management system was adopted in South Africa in 2003. The procurement process was granted constitutional status and has been used to address past inequitable policies and practices. It promotes aims which are, arguably, secondary to the primary aim of procurement. For the exploration, a conceptual analytical approach was employed and some of the key guiding pillars of public procurement in South Africa divulged. The challenges restraining effective and efficient implementation of public procurement are also revealed. The article concludes by recommending the development of competency through customised (separate) training materials and programmes, the involvement of stakeholders in the bidding process and the employment of good strategic sourcing practices.
Quality of the paratransit service (tricycle) and its operation in Aba, Nigeria : an analysis of customers' opinionsSource: Journal of Transport and Supply Chain Management 6, pp 262 –276 (2012)More Less
This study examines the quality of the paratransit service and its operations in Aba, Abia State, Nigeria, with a view to identifying its challenges and contributions to informal transport and equitable service distribution to the residents of Aba. Structured questionnaires and past literature were used as sources of data. The primary data included road networks, number of trips per day by operators, operating speed, and purpose of travel, passengers' security, tricycle speed, and waiting time. The study was conducted by using two questionnaires: one for the operators and the other for tricycle users. The total number of completed questionnaires for the survey was 100 for operators and 229 for users. The sampling technique used was random sampling from several zones of the study area. Data were analysed using percentage and Chi-square statistical techniques for testing the hypotheses with the Minitab 11.0 version package. The study found that 92% of operators reported a high level of road network deterioration, and 61% reported making 9-12 trips per day. The hypothesis test was used to study people's feelings about the attributes of the service provided for paratransit users, such as affordability, regularity, comfort and safety. It was found that there is no significant difference at the 5% level between the various categories of these respondents.
The influence of public procurement policies on the implementation of procurement best practices in South African universitiesSource: Journal of Transport and Supply Chain Management 6, pp 277 –293 (2012)More Less
The relationship between public procurement policies and procurement best practices (PBPs) in higher education institutions is inevitable. Higher education institutions (HEIs) in South Africa play a crucial role in contributing to the economic, social and environmental development of the country. Hence the implementation of PBPs has a key role in creating a competitive advantage for higher education. The purpose of this article is to determine the influence of public procurement policies on the implementation of PBPs in the public HEIs in South Africa. The article employs a theoretical review of related literature on public procurement and PBPs. The article articulates that public procurement policies influence the implementation of PBPs in public HEIs in South Africa.