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- Journal of Transport and Supply Chain Management
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- Volume 7, Issue 1, 2013
Journal of Transport and Supply Chain Management - Volume 7, Issue 1, 2013
Volume 7, Issue 1, 2013
Public transport policy and performance : the results of a South African public opinion poll : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –8 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.96More Less
Public opinion plays a vital role in a democracy, as democracies are, by nature responsive to the people. In South Africa, public participation is entrenched in the Constitution. Despite this, the spate of service delivery protests in South Africa in recent years would appear to indicate that the government is out of touch with the opinions of the South African citizens. Public transport policy in South Africa is described by a number of documents, mainly the White Paper on National Transport Policy, Moving South Africa and, more recently, the National Development Plan. An annual survey of 1000 South Africans is conducted to gauge opinion on transport related matters. The purpose of this article was to compare the current public transport policies (as stated above) and the public opinion on public transport (as gauged by the survey) in order to determine the extent to which these are aligned. The results show that current public transport policy is relatively strongly aligned with the public transport needs of the South African population, however, concerns regarding public transport such as mobility, accessibility, affordability and safety have not yet to be addressed satisfactorily.
Instilling safety culture in the passenger rail transport industry within the South African context : original researchAuthor Khulumane J. MalulekeSource: Journal of Transport and Supply Chain Management 7, pp 1 –6 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.84More Less
South Africa has two major rail operators that constitute the rail transport industry. These are Transnet Freight Rail (TFR), which operates freight and the Passenger Rail Agency of South Africa (PRASA). Although the Railway Safety Regulator (2011:29) reported the year on year declining trend of collisions, the main concern is that the costs incurred for each year's incidents is escalating. This article is concerned with the declining safety standards of these operators as evidenced by 742 collisions recorded during the 2011/2012 financial year for both operators. The focus is mainly on collisions during the movement of rolling stock within the PRASA environment. The analysis of the occurrences is narrowed down, with the emphasis on the province of Gauteng. In the analysis of the causes of these collisions, the problems that led to the root causes of these collisions is reported. Of critical importance is that every transport operator is faced with the challenges of how to effectively respond to the basic transport needs and requirements of the travelling public. The transport users' need is to travel between the two geographical points. During the journey between these geographical points, the operator has safety and security requirements and must provide a reliable, accessible and affordable transport system. As the travelling public becomes more affluent, the transport needs become open ended and require much more rational public choices. The rail transport system remains a vital or indispensable business sector of the economy. By investing in new technology, rolling stock and infrastructure, we would see an increase in innovation, competitiveness, and an elevated standard of living.
Supplier relationship management - anathema for the South African public procurement sector : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –8 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.93More Less
The public sector is recognised as being one of the most important customer groups for many suppliers and service providers because of the volume of public expenditure. Supplier relationship management (SRM) is a necessary tool on which businesses in the public and private sectors rely. However, in the South African public sector, despite the intention to boost service delivery through efficient and effective supplier-management processes, the development of sound supplier relationships is a challenge. The purpose of this article is to provide insight into supplier-relationship challenges and to suggest a framework for implementing SRM in the South African public sector. The research presented is based on a survey using both descriptive and exploratory research. Data were gathered through semi-structured interviews with 15 participants at eight institutions in KwaZulu-Natal. Purposive sampling techniques were used. The findings reveal that the main supplier-related challenges that handicap procurement practices in the province are a lack of experience, a lack of affirmable suppliers, threats and bribes, a lack of integrity, an inability to meet delivery deadlines and quality issues. The findings further reveal that supplier relationships in the public sector are of a transactional nature. A five-stage framework is therefore recommended for implementing SRM in the South African public sector and in order to assist government procurement officials to reap the benefits of SRM whilst supporting the requirements of public-sector procurement.
The application of design criteria for locating a hub configured supply chain for a restaurant cluster in the Stellenbosch area : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –7 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.90More Less
Restaurants, in general, utilise numerous suppliers. Normally they deliver on different days in the week and at different times during the day, logistically not an optimum approach. Not only does the current practice cause frequent interruptions, but by segregating the food supply chain unnecessary traffic is generated. This article investigated the need for developing a third party supplier hub, the best positioning of that hub and the most economical routes to the customers. With the aim of providing non-franchised restaurants with the necessary leverage to become market leaders, the hub is planned to only service the restaurants within the vicinity of the Stellenbosch area. In such a hub-configured supply chain, the suppliers would be delivering to the proposed hub, from where once-off deliveries to all the restaurants may be made on days and/or times determined by them. In order to investigate the benefits of providing such a hub structure, a systematic implementation approach was used. The first step was to do market research in order to establish the need for such a hub. That is, the viability of the hub from a restaurant's perspective was established. The next step entailed the investigation of the design criteria needed in determining a favourable hub location. Four possible hub locations were identified. The Clark and Wright's savings algorithm was then used to determine the optimal hub location and the feasibility of the results was verified with the aid of a global positioning system (GPS) device. The last steps followed involved the determination of an effective hub floor plan that may be utilised, possible products that can be supplied to the restaurants and the necessary assets needed to provide the hub's service. Finally, by incorporating all these facets, a cost analysis was done to determine the hub's profitability.
Developing measures for the evaluation of information flow efficiency in supply chains : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –13 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.88More Less
Member organisations in a supply chain are dependent on each other to provide material, services and information to perform optimally in the supply chain. Efficient, unrestricted information flow is needed in supply chains to function properly. Information flow is thus an element of supply chain management that needs to be managed. Yet, no indication could be found in supply chain management literature of the measurement of information flow efficiency. Hence, the aim of this article is to explore the measurement of information flow efficiency in supply chain management (SCM) and exploratively develop possible measures (indicators and associated metrics) to measure the efficiency of information flow. In this research the theory of information and related concepts, the basic notions of information systems and the models of business performance measurement were explored. Based on information flow theory and information flow characteristics a research instrument was developed. It was used in a survey to seek inputs from supply chain managers as to the usefulness of characteristics as indicators and metrics for the measurement of information flow efficiency in a supply chain. The main contribution of the study is the development of a conceptual framework of indicators and metrics that may be used to evaluate the efficiency of information flows in supply chains. The results of this study can be used as a basis for further studies to validate the instrument for measuring information flow efficiency and to develop scales to actually measure information flow efficiency.
Information technology as a facilitator of suppliers' collaborative communication, network governance and relationship longevity in supply chains : original researchAuthor Richard ChinomonaSource: Journal of Transport and Supply Chain Management 7, pp 1 –10 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.83More Less
There is an increasing awareness about the paramount importance of information technology within business in the context of large businesses. However, research about the investigation of the role of information technology resources in fostering collaborative communication, network governance and relationship longevity in the small and medium enterprise sector has remained scant. The primary objective of this study was to investigate the influence of information technology on collaborative communication, network governance and relationship longevity in Zimbabwe's SME sector. Five research hypotheses were posited and sample data from 162 small and medium enterprise suppliers were collected and used to empirically test the hypotheses. The results of this study showed that information technology resources positively influenced small and medium enterprise suppliers' collaborative communication, network governance and consequential relationship longevity with their buyers in a significant way. Overall, the current study findings provided tentative support to the proposition that information technology resources, collaborative communication and network governance should be recognised as significant antecedents for improved relationship longevity between suppliers and their buyers in the SME setting. Therefore, managers in the small and medium enterprise sector and small and medium enterprise owners need to pay attention to both collaborative communication and network governance in order to optimise information technology resource impact on their relationship longevity with their business counterparts. Limitations and future research directions were also indicated.
Source: Journal of Transport and Supply Chain Management 7, pp 1 –8 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.100More Less
Locally manufactured vehicles are destined (partly) for the export market and thus, global competitiveness is important. This article explores the challenges facing supply chains of locally manufactured vehicles in South Africa. The automotive industry is perceived to be the most advanced in supply chain management practices in South Africa. It has embraced technology and management practices that have transformed the manufacturing environment by using cutting-edge design and visualisation tools. However, the industry has fragilities and faces new and emerging supply chain challenges. A survey research design was employed and the data was collected through face-to-face semi-structured interview questionnaires based on the purposive sampling technique. Data analysis and interpretation was based on descriptive statistics using SPSS software. The findings revealed that there are challenges hindering best supply chain practices of local vehicle manufacturers. The research also revealed that there is a perceived difference in supply chain challenges between the different manufacturers of different origins in South Africa. Asian manufacturers felt much stronger about the adequacy of their information systems compared to the European manufacturers. Asian manufacturers tended to agree more than their European counterparts that labour problems were a challenge. European manufacturers, on the other hand, tended to agree more that rail transport is unreliable. This article contributes to the body of knowledge on supply chain practices in South Africa.
Source: Journal of Transport and Supply Chain Management 7, pp 1 –8 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.86More Less
Logistics is perceived to be important for Namibia's growth and development, but this may be a matter of conjecture as there is a dearth of documented information about the industry in Namibia. Furthermore, it is uncertain what the understanding of logistics is for key stakeholders in the country. This article reports on a project; the objectives were to address some of these issues and to lay the foundation for a more thorough investigation in the future. The findings of the initial project were disseminated in 2012 by: a conference paper showing the challenges and opportunities facing logistics in Namibia in 2012; a report; and through a Logistics and Transport Workshop held in Walvis Bay, Namibia in September 2012. These reports, additional interviews and subsequent discussions highlighted some potential opportunities and problems. This article summarises the project to date, showing the methodology and findings as updated by subsequent feedback and further interviews. The findings from key stakeholders of the logistics industry in Namibia include: universal agreement on the importance of logistics to Namibia; the variety in the understanding of the term logistics; the strength of the continuing influence of South Africa as the dominant economic power in southern Africa; and contrasting views on the main factors limiting logistics development, including infrastructure, attitude, government, customs, training, railways, corruption and driver shortage.
An empirical supply chain measurement model for a national egg producer based on the supply chain operations reference model : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –13 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.97More Less
The management of a supply chain is both an offensive and defensive weapon that organisations can use to increase their competitive edge and capture a larger share of the market. In management science and supply chain management, multi-criteria decision making techniques have been used to solve a range of real-world problems. The problem is that many, if not most, companies in South Africa either do not have the required skills to use these decision-making techniques to improve or re-configure their supply chain, or they do not have a complete data set with which to model it effectively. In order to manage supply chains effectively, organisations at the very least need feedback on the performance of their entire supply chain. In this article, generic supply chain performance measures were used and a theoretical or empirical model was developed for the performance measurement of a national egg producer's supply chain. It focused on a managerial program for the identification and management of their supply chain with recommendations for applying a measurement model. The overall performance of the supply chain as well as the five different performance attributes was presented to management in a dashboard format. This article could be used as a basis for future studies of supply chain performance measurement and the model could be used as a foundation for developing an improved version, not only for the egg industry, but for other industries as well.
The importance of disaggregated freight flow forecasts to inform transport infrastructure investments : original researchAuthor Jan H. HavengaSource: Journal of Transport and Supply Chain Management 7, pp 1 –7 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.106More Less
This article presents the results of a comprehensive disaggregated commodity flow model for South Africa. The wealth of data available enables a segmented analysis of future freight transportation demand in order to assist with the prioritisation of transportation investments, the development of transport policy and the growth of the logistics service provider industry. In 2011, economic demand for commodities in South Africa's competitive surface-freight transport market amounted to 622 million tons and is predicted to increase to 1834m tons by 2041, which is a compound annual growth rate of 3.67%. Fifty percent of corridor freight constitutes break bulk; intermodal solutions are therefore critical in South Africa. Scenario analysis indicates that 80% of corridor break-bulk tons can by serviced by four intermodal facilities - in Gauteng, Durban, Cape Town and Port Elizabeth. This would allow for the development of an investment planning hierarchy, enable industry targeting (through commodity visibility), ensure capacity development ahead of demand and lower the cost of logistics in South Africa.
Source: Journal of Transport and Supply Chain Management 7, pp 1 –11 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.120More Less
This study highlighted the importance of determining the impact that an ineffective mode of transport has on a firm's transportation model and costs. The main focus of this study was to determine the logistics opportunity costs of using road transport within a mining firm. A case study approach was followed, as the investigation aimed to analyse a complex problem experienced by one company and present it in an easily understandable format. From the results of this study, it was apparent that the logistics opportunity costs associated with the mode of transport was substantial. This highlighted the need for firms to revise their choice of transport mode on a regular basis, as it has a major impact not only on their transportation costs, but also on their inventory holding and carbon emissions. The results also have implications for South Africa's only freight railway, Transnet Freight Rail, which should not only focus on expanding its existing capacity, but also on improving its customer service delivery whilst containing tariff increases.
Investigating temperature breaks in the summer fruit export cold chain : a case study : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –7 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.99More Less
There is concern in the South African fruit industry that a large amount of fruit and money is lost every season due to breaks in the fruit export cold chain. The possibility of a large percentage of losses in a significant sector of the economy warranted further investigation. This article attempted to highlight some of the possible problem areas in the cold chain, from the cold store to the port, by analysing historic temperature data from different fruit export supply chains of apples, pears and grapes. In addition, a trial shipment of apples was used to investigate temperature variation between different pallets in the same container. This research has added value to the South African fruit industry by identifying the need to improve operational procedures in the cold chain.
Distribution tactics for success in turbulent versus stable environments : a complexity theory approach : original researchAuthor Roger B. MasonSource: Journal of Transport and Supply Chain Management 7, pp 1 –7 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.112More Less
This article proposes that the external environment influences the choice of distribution tactics. Since businesses and markets are complex adaptive systems, using complexity theory to understand such environments is necessary, but it has not been widely researched. A qualitative case method using in-depth interviews investigated four successful, versus less successful, companies in turbulent versus stable environments. The results tentatively confirmed that the more successful company, in a turbulent market, sees distribution activities as less important than other aspects of the marketing mix, but uses them to stabilise customer relationships and to maintain distribution processes. These findings can benefit marketers by emphasising a new way to consider place activities. How marketers can be assisted, and suggestions for further research, are provided.
The effects of greening the supplier and innovation on environmental performance and competitive advantage : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –7 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.121More Less
Companies in South Africa should realise the important influence of greening their suppliers and of innovation to achieve environmental goals and competitive advantages. In order to prove this, a questionnaire survey was conducted with 75 companies from 11 industries in the City of Johannesburg Metropolitan Municipality region, South Africa. A confirmatory factor analysis was done, followed by bivariate correlations to determine the strength of association between the latent constructs. Correlations between greening the supplier, innovation, environmental performance and competitive advantages were done. The research found thata green innovative process had a significant effect on environmental performance. Green managerial innovation further had a significant correlation with competitive advantage. The primary result of the study indicated that all the constructs positively related to each other, meaning that greening suppliers, by means of green innovation, leads to an enhanced environmental performance and to competitive advantages.
The influence of logistics integration on information sharing and business performance : the case of small and medium enterprises in South Africa : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –9 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.92More Less
Logistics integration across partnering firms has become the backbone of supply chain management as it facilitates information sharing, which is required in order to enhance business performance. This study investigated the mediatory role of information sharing on the relationships between logistics integration and business performance within the small and medium enterprise (SME) context. Five research hypotheses were postulated and the hypotheses were empirically tested using sample data from the SME sector in South Africa's Gauteng Province. The results indicated that logistics integration positively influences information sharing and business performance in a significant way within the context of South African SMEs. Managerial implications of the findings are discussed, whilst limitations and future research directions are indicated.
Source: Journal of Transport and Supply Chain Management 7, pp 1 –7 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.108More Less
The North American and South African logistics cost calculation-time series are the two longest-running statistical series available worldwide. These calculations indicate that transportation's contribution to logistics costs is rising, as the key cost driver (oil price) is increasing exponentially. This is exacerbated by volatile oil prices and the inclusion of externality charges to reduce the logistics environmental footprint. Therefore, it is necessary to consider a new paradigm where material logistics requirements are reduced through localisation and consumption reduction. This, in turn, implies the consideration of new indicators for the future measurement of logistics costs. Because this article asks questions about the suitability of GDP as the primary (and often only) measurement of economic output, new measurements are required. If this position changes, the comparison of logistics costs with GDP alone will become questionable.
Source: Journal of Transport and Supply Chain Management 7, pp 1 –4 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.87More Less
The evaluation and selection of suppliers are important tasks in any organisation. Each organisation needs to have a supplier evaluation matrix or model in place. The goal of this article is not only to give an overview of supplier performance evaluation techniques but also to present an example of such a supplier evaluation matrix used in practice. The article shows that suppliers' qualities, strategies and abilities affect a buying company's business. Reliable suppliers can help to develop stable, long-term relationships that will be beneficial to both parties. Effective sourcing and purchasing require high-quality suppliers.
Travel patterns and challenges experienced by University of Johannesburg off-campus students : original researchSource: Journal of Transport and Supply Chain Management 7, pp 1 –8 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.114More Less
When universities across the world emerged, the majority of students were provided with on-campus accommodation. However, with the increase in the number of universities, students seeking to enter universities and the decline in university funding, the result was an increase in the number of students residing off-campus. This lead to more limited social-contact opportunities with other students, which are vital for the enhancement of their learning and development. It also resulted in off-campus students spending a considerable amount of time travelling to and from university. This study aimed to investigate the travel patterns, characteristics and challenges faced by University of Johannesburg off-campus students by ascertaining inter alia: the means of transport used; travel time; the views of students in regard to the challenges they face; and possible improvements thereto. A quantitative approach was predominantly used to collect data from students by means of a questionnaire and this was supplemented with focus group discussions on two campuses. The study results revealed that off-campus students experience considerable challenges accessing campuses.
Source: Journal of Transport and Supply Chain Management 7, pp 1 –9 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.94More Less
The objective of this study was to determine the optimal allocation of shipments (least cost) of two manufactured products between depots and places of consumption. In this study, the least-cost method was used in solving the transportation algorithm using Tora 2.0 version software. The study was necessary because of the high operating costs associated with physical distribution when deliveries are not properly planned and considered with reference to alternative strategies. In contrast, significant savings can be achieved by using techniques available for determining the cheapest methods of transporting goods from several origins to several destinations. Cost minimisation is a very useful approach to the solution of transportation problems.
A framework for prioritising practices to overcome cost-related problems in reverse logistics : original researchAuthor Amanda BadenhorstSource: Journal of Transport and Supply Chain Management 7, pp 1 –10 (2013) http://dx.doi.org/10.4102/jtscm.v7i1.113More Less
Reverse logistics has gained increasing attention in recent years. One of the biggest problems for organisations and supply chains is reducing cost in reverse logistics. This study attempted to gain a better understanding of reverse logistics and the costs associated with it. A literature study was conducted to identify the cost problems in reverse logistics and possible practices to overcome them. Following that, a survey was conducted to determine whether the practices identified in literature are perceived to be important in South Africa and if they are viable to implement. This was done by means of a gap and opportunity analysis. Results indicated that most practices are important, but some may be difficult to implement. The framework developed in this study provides a guideline for organisations to consider, adapt and adopt the most important implementable practices to overcome cost problems in reverse logistics. The limitation of this study is that only ten respondents participated in the survey. The approach followed in this study can be used as a foundation for future studies in reverse logistics.