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- Volume 9, Issue 1, 2015
Journal of Transport and Supply Chain Management - Volume 9, Issue 1, 2015
Volume 9, Issue 1, 2015
Author Jacobus N. CronjeSource: Journal of Transport and Supply Chain Management 9, pp 1 –9 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.161More Less
Background: Since logistics emerged as an applied discipline during the latter part of the 20th century, there has been an increased need for skills development in logistics and supply chain management. However, literature suggests a general shortage of educated and skilled logistics and supply chain managers worldwide.
Objectives: The purpose of this article was to benchmark an in-house training programme in logistics management in the beverage industry of Zimbabwe with international best practice.
Method: A case study approach was followed focusing on the programme curriculum, content and delivery. The article reports on the nature and effectiveness of the programme. The curriculum was benchmarked with skills requirements identified in literature. Relevance was evaluated based on participant perceptions over a period of 3 years using questionnaires with both closed- and open-ended questions.
Results: Findings suggested that the programme offering is in line with international practice whilst it also addresses particular issues in Third World countries. Participants perceived the programme as being practical and valuable for enhancing their job performance and career development.
Conclusion: The article provides a framework for evaluating logistics training programmes. Future research could include an evaluation that measures changes in on-the-job behaviour of participants.
Statutory compliance in assets disposal practices in the public sector : evidence from Ghana : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –6 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.158More Less
Background: This article examined the unserviceable assets disposal practices of five polytechnics (tertiary educational institutions) in Ghana.
Objectives: The aim was to determine the extent of statutory compliance, and the degree to which value for money was achieved in actual disposal.
Method: A survey was conducted using interviewer-administered questionnaires containing five-point likert scale test items. Descriptive statistics and a one-way analysis of variance (ANOVA) were employed to analyse the data.
Results: The study results showed that a limited number of polytechnics had internal policies to operationalise statutory procurement legislation. Top management demonstrated very clear understanding of procurement legislation whilst senior-level managers displayed mixed levels of understanding. The section of the legislation dealing with disposals and the procedures pertaining thereto is perceived to be difficult to implement and does not promote value for money. Top management's interference in auctions was the toughest challenge in the process, whilst public auction was the predominant method used in assets disposal.
Research limitations: The research was carried out in only five polytechnics. This study could be replicated in other tertiary institutions or in other sectors outside higher education.
Author Hans W. IttmannSource: Journal of Transport and Supply Chain Management 9, pp 1 –9 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.165More Less
Background: Change is inevitable and as supply chain managers prepare for the future they face many challenges. Two major trends over the last few years are the growing importance of 'big data' and analysing these data though 'analytics'. The data contain much value and companies need to capitalise on the variety of data sources by in-depth and proper analysis through the use of 'big data' analytics.
Objective: This article endeavours to highlight the evolving nature of the supply chain management (SCM) environment, to identify how the two major trends ('big data' and analytics) will impact SCM in future, to show the benefits that can be derived if these trends are embraced and to make recommendations to supply chain managers.
Method: The importance of extracting value from the huge amounts of data available in the SCM area is stated. 'Big data' and analytics are defined and the impact of these in various SCM applications clearly illustrated.
Results: It is shown, through examples, how the SCM area can be impacted by these new trends and developments. In these examples 'big data' analytics have already been embraced, used and implemented successfully. Big data is a reality and using analytics to extract value from the data has the potential to make a huge impact.
Conclusion: It is strongly recommended that supply chain managers take note of these two trends, since better use of 'big data' analytics can ensure that they keep abreast with developments and changes which can assist in enhancing business competitiveness.
Source: Journal of Transport and Supply Chain Management 9, pp 1 –9 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.169More Less
Background: Robotic vehicles such as straddle carriers represent a popular form of cargo handling amongst container terminal operators.
Objectives: The purpose of this industry-driven study is to model preventative maintenance (PM) influences on the operational effectiveness of straddle carriers.
Method: The study employs historical data consisting of 21 273 work orders covering a 27-month period. Two models are developed, both of which forecast influences of PM regimes for different types of carrier.
Results: The findings of the study suggest that the reliability of the straddle fleet decreases with increased intervals of PM services. The study also finds that three factors - namely resources, number of new straddles, and the number of new lifting work centres - influence the performances of straddles.
Conclusion: The authors argue that this collaborative research exercise makes a significant contribution to existing supply chain management literature, particularly in the area of operations efficiency. The study also serves as an avenue to enhance relevant management practice.
Source: Journal of Transport and Supply Chain Management 9, pp 1 –9 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.166More Less
Background: State Procurement Board procedures and the public procurement process have been blamed for the lagging behind of government projects that impact on public service delivery in Zimbabwe.
Objectives: This article provides insight into challenges resulting from the legal framework for public procurement in Zimbabwe that detract from service delivery.
Method: Empirical data was collected through in-depth interviews with five participants at five public entities, using a semi-structured interview guide. Content analysis was used to analyse the primary data.
Results: The findings revealed various challenges in the public procurement process that detract from service delivery. These include a lack of strategic recognition of the procurement function and procurement policy; a lack of professional, managerial and leadership skills; a lack of appropriated funds from Treasury; and a lack of accountability in the procurement process.
Conclusion: There is a dearth of research on the public procurement process and its efficiency in Zimbabwe, and this study contributes to the existing body of knowledge by identifying areas through which public procurement can be improved in Zimbabwe.
Challenges facing procurement professionals in developing economies : unlocking value through professional international purchasing : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –9 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.152More Less
Background: Until recently, procurement was seen as a necessity only. In fact, in many developing economies the profession is still being treated as a 'back-office' function. However, not much has been done to explore and address challenges facing procurement professionals in developing economies.
Objectives: The purpose of this article was to examine the critical role played by the procurement function in business and to reveal the challenges faced by procurement professionals in developing economies as well as to suggest solutions to these challenges.
Method: A sequential literary analysis was used, complemented by cross-country qualitative data gathered from one hundred diverse procurement practitioners from Botswana, Namibia and Zimbabwe. These were primarily participants in a series of procurement workshops run by the researchers from January to June 2014.
Results: Findings suggested that limited recognition, increasing unethical behaviour, poor supplier service delivery, poor regulatory environment, varying supplier standards and poor corporate governance are the main challenges faced by the procurement profession in these countries.
Conclusion: The study's findings imply that there is limited understanding regarding the role procurement plays in both government and non-government institutions in developing economies. The article suggests solutions which procurement professionals and organisations can implement in order to unlock the potential value in the procurement function.
Perceptions of managers regarding supply chain cost reduction in the South African mobile phone industry : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –11 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.176More Less
Background: Many industries, including the mobile phone industry, experience a surge in supply chain (SC) costs in the provision of products and services to their customers. Despite this, only a few studies have been conducted on SC cost reduction in South Africa and globally.
Objective: This study seeks to understand the perceptions of managers regarding cost reduction in the South African mobile phone SC.
Method: A qualitative case study was conducted, involving eight willing managers and using semi-structured interviews, observation and documents. Interviews transcripts were analysed thematically with the help of Atlas.ti and a threefold process was followed, comprising data reduction, data display and data interpretation and conclusion drawing.
Results: The findings suggest that mobile phone companies should consolidate their strategic relationships and be efficient, in order to effectively reduce costs in the South African mobile phone SC. To achieve this, whilst South African mobile network operators have to share more and more infrastructure and outsource their operations, other mobile phone companies should re-engineer their operational processes and their reduce costs across the SC.
Conclusion: The knowledge generated from this study should assist South African mobile phone companies to reduce their SC costs and address high-priced mobile services. On the other hand, this study should assist regulating authorities (the Department of Communications and the Independent Communication Authority of South Africa) to gain insights into the challenges faced by the mobile phone industry in South Africa and, therefore, to make appropriate and adequate mobile telecommunication policies.
Source: Journal of Transport and Supply Chain Management 9, pp 1 –9 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.159More Less
Background: Logistics service providers (LSPs) are becoming increasingly involved in their clients' businesses. Beyond just providing vehicles and buildings, LSPs are now becoming involved with knowledge-related work that is connected to the traditional services provided.
Objectives: To investigate the likelihood and potential value of LSPs extending their range of services to their clients by means of a convergence of planning and execution activities.
Method: In the research through a literature review and empirical study presented here, attention is given to the practical impact that convergence planning and execution functions have on business success, as well as how selected clients of an LSP (referred to in this article as logistics company A or LCA) perceive the impact of increased integration of LCA within its businesses. The results should assist LCA and other LSPs considering the same objective to ascertain the opportunities and key requirements associated with a strategy to converge planning and execution activities for their clients.
Results: The study found that the vast majority of respondents see value in the convergence of planning and execution activities.
Conclusion: Such convergence will be challenging, owing to the importance of the planning function for clients, as well as key collaborative and measurement requirements that will have to be put in place for successful business integration.
Source: Journal of Transport and Supply Chain Management 9, pp 1 –13 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.180More Less
Background: Since the past two decades, the Lagos seaports have experienced vessel and storage yard cargo congestion, resulting in dwell times of about 30 days for containerised imports and high trade logistics costs.
Objectives: The purpose of this study was to identify the critical factors that impact the operational efficiency of the Lagos seaports with a view to improving liner trade activities.
Method: The study adopted an operational-based approach to understand the dynamics of the various interfaces of the port value chain. The research paradigm adopted for the study was therefore a combination of constructivism and post-positivism paradigms, which entailed the exploration and understanding of the various stakeholders in the port value chain. The epistemology of the research relied on the use of the exploratory sequential mixed method research technique (i.e. the qualitative approach followed by the quantitative approach) at the operational level of port operations.
Results: The result of the research showed that significant challenges exist and that some of these challenges cut across all functions of port operations. Challenges are experienced in the areas of corruption, trade fraud, transport infrastructure deficits, the absence of a supply chain culture and shortcomings in the execution of the 'contract of customs'. Additionally, these factors include the deficiencies in services and facilities provided by state agencies and government-appointed service providers and private sector companies such as truckers, inland container depots, Inland Container Depots (ICDs) and terminal operators.
Conclusion: Specific recommendations are made to address the issues identified which, if implemented, could significantly address the current inefficiencies observed in the Lagos seaport's operations.
The application of outsourcing decision-making methods in a logistics context in South Africa : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –14 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.168More Less
Background: Companies have often relinquished the control of important business functions to outside suppliers for the sake of short-term savings and because of the lack of use of proper decision-making methods within the business.
Objectives: This article identified three methods of decision-making and applied it to a logistics outsourcing problem. The logistics outsourcing problem consisted of a make-or-buy decision as well as a supplier selection process. The purpose of the study was to determine the most suitable method in the case of logistics outsourcing.
Method: The decision-making methods were applied to a South African case study within the fast moving consumer goods (FMCG) industry. The logistics functions considered in the case study included secondary distribution and warehousing of finished goods. Each method considered the same evaluation criteria and the results were analysed and compared.
Results: Each method produced different results to the logistics outsourcing problem. The method developed by Platts, Probert and Canez (2000) suggested that the logistics functions be in sourced. The decision tree method suggested outsourcing both functions, with a unit rate cost model. The results from the linear programming (LP) method indicated that the secondary distribution function should be in sourced and the warehousing function outsourced, with a fixed and variable cost model pending further analysis of the demand trends.
Conclusion: The study provides empirical evidence that proven outsourcing decision-making methods, such as the method developed by Platts et al. (2000), the LP method and the decision tree method traditionally applied to a manufacturing outsourcing decision problem, can be adapted and applied to a logistics outsourcing decision problem of a South African FMCG company.
Benchmarking supply chain management practices in a South African confectionery manufacturing organisation : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –10 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.179More Less
Background: In an increasingly competitive business world, businesses need to be able to measure the effectiveness of their supply chain management process practices against proven best practice frameworks. A number of these frameworks exist internationally but have to be used within the context of knowing the relative strengths and weaknesses of potential benchmarking frameworks. Two such frameworks were identified in the research and a case was made to use one such framework, the Global Supply Chain Forum (GSCF) framework, to measure the effectiveness of the supply chain practices of a leading confectionery manufacturing company in South Africa.
Objective of the research: The purpose of the research was to identify an international best practice framework, which could be used by South African manufacturing organisations to benchmark their supply chain management (SCM) practices.
Methodology: The methodology followed was a literature review of the existing SCM frameworks to identify a framework, which would be the most suited to the objective of the study, followed by a case study of a leading manufacturing organisation's SCM practices benchmarked against those found in the framework.
Results and conclusions: The main finding of the case study was that there is a high degree of adherence between the case study organisation's SCM practices and those found in the SCM framework. There was also generally a high level of importance ascribed by respondents to the best practices contained by the GSCF framework. It was therefore concluded that the GSCF framework proved to be a useful instrument for a comprehensive analysis of supply chain management processes and practices for a manufacturer in the fast moving consumer goods industry, with potential for applications by organisations in the supply chains of other industries.
An analysis of the influence of logistics activities on the export cold chain of temperature sensitive fruit through the Port of Cape Town : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –9 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.201More Less
Background: South Africa exports a large variety of different fruit types and cultivars worldwide. Yet, there is concern in the South African fruit industry that too much fruit and money is lost each year due to breaks along the fresh fruit export cold chain.
Objective: The objective of this article was to identify the influence of logistics activities on breaks along the South African fruit export cold chain. The focus is specifically on temperature sensitive fruit, exported in refrigerated containers to Europe and the United Kingdom through the Port of Cape Town. This supply chain was selected as this was the most accessible supply chain in terms of retrieving the necessary temperature data.
Method: The cold chain was investigated from the cold store, through all segments, until the Port of Cape Town. Temperature data collected with temperature monitoring devices from different fruit export supply chains of grapes, plums and pome fruit (apples and pears) were analysed to identify the percentage of temperature breaks and the length of temperature breaks that occur at each segment of the cold chain.
Results: The results show that a large number of breaks are experienced along South Africa's fruit export cold chain, specifically at the interface between the cold store and the truck. In addition, the findings also show that there has been an improvement in the number of breaks experienced in the Port of Cape Town following the implementation of the NAVIS and Refcon systems.
Conclusion: This article concludes by providing the fruit industry with areas that require addressing to improve operational procedures along the fruit export cold chain to help ensure that the fruit arrives at its final destination at optimal quality.
Provincial logistics costs in South Africa's Western Cape province : microcosm of national freight logistics challenges : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –8 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.206More Less
Background: Logistics costs are most commonly measured on a national level. An understanding of the provincial logistics landscape can add significant value both to provincial and national policy interventions; such measurements are however scarce. South Africa's national freight logistics survey points to significant challenges in the structure of the freight transport market, most importantly the dominance of road freight transport on dense, long-distance corridors. The Cape Town-Gauteng corridor is the main economic artery linking the Western Cape province to the rest of the country.
Objectives: The provincial government commissioned this research to develop an understanding of the province's contribution to the national logistics challenges in order to alleviate both provincial and national logistics challenges.
Results: The research results provide a distinct description of the key action required - to provide an intermodal solution for the dense flows of fast-moving consumer goods on the Cape Town-Gauteng corridor in order to reduce the significant transport and externality costs related to these flows and reduce exposure to exogenous cost drivers.
Conclusion: Collaborative research between government and private industry into appropriate intermodal technologies must be prioritised within the ambit of South Africa's socioeconomic environment. This shift can be further supported through the internalisation of road transport externalities to enable a total cost decision between modes, as well as through appropriate regulation of the freight transport industry.
A logistics sector's perspective of factors and risks within the business environment that influence supply chains' effectiveness : an explorative mixed method study : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –9 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.177More Less
Background: Supply chains in South Africa operate in a challenging business environment. This environment influences the efficiency and effectiveness of South African businesses and supply chains. These factors further influence the competitiveness of products produced in the country, the economic growth and development of South Africa.
Objectives: The purpose of this study was two-fold: Firstly, to obtain insight into the main business environment risks and other factors, from a logistics perspective; and secondly, to demonstrate the use of methodology not often used in logistics research - the sequential mixed method.
Method: The explorative study was conducted amongst logistics service providers and cargo owners in 2013 by means of a sequential mixed method study, consisting of a survey to determine the importance of risk factors in the business environment, followed by a qualitative study in the form of a focus group discussion to obtain richer data and insight into these risks and factors. The results of these two methods were integrated with industry literature.
Results: It was found that increasing transportation costs, operational management of infrastructure and human resources-related problems pose the biggest challenges in the logistics industry. In addition, it was found that the mixed method research study has application possibilities in logistics research.
Conclusion: The factors identified as particularly problematic for the logistics industry, namely ineffective operational management of infrastructure, the general conditions in the labour market and increasing costs (to some extent) are outside the control of individual organisations. However, organisations can control how they react and mitigate these risk factors. It is shown that these factors and risks can change overnight. The use of the explorative mixed method in obtaining qualitative and quantitative inputs and integrating it with existing literature proved to be a workable and usable methodology.
Impact of a radio-frequency identification system and information interchange on clearance processes for cargo at border posts : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –14 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.181More Less
Background: Improved operational efficiency is important to role players in cross-border logistics and trade corridors. Cargo owners and cargo forwarders have been particularly concerned about long delays in the processing and clearing of cargo at border posts. Field studies suggest that these delays are due to a combination of factors, such as a lack of optimum system configurations and non-optimised human-dependent operations, which make the operations prone to corruption and other malpractices.
Objectives: This article presents possible strategies for improving some of the operations in this sector. The research hinges on two key questions: (1) what is the impact of information interchange between stakeholders on the cargo transit time and (2) how will cargo transit time be impacted upon by automatic identification of cargo and the status of cargo seals on arriving vehicles at the border?
Method: The use of information communication systems enabled by automatic identification systems (incorporating radio-frequency identification technology) is suggested.
Results: Results obtained by the described simulation model indicate that improvements of up to 82% with regard to transit time are possible using these techniques.
Conclusion: The findings therefore demonstrate how operations at border posts can be improved through the use of appropriate technology and configuration of the operations.
Supply chain relationships between first and second tier suppliers in South African automotive supply chains : a focus on trust : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –8 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.205More Less
Background: The automotive industry is characterised by a network of long term collaborative agreements between component suppliers and assemblers. For collaboration to be successful trust between the supply chain partners is vital. Although many variables influence the efficiency of collaborative relationships, the human behaviour issues related to culture and trust are often much more difficult to solve. Trust is singled out in this article as a contributor to value in the supply chain relationships. Increased trust leads to more confidence resulting in better collaboration.
Objectives: The purpose of the study was to explore collaborative relationships between first and second tier suppliers (component manufacturers) in automotive supply chains in South Africa and the role of trust in the relationship value.
Method: This quantitative study had been conducted amongst members of the National Association for Automobile Component and Allied Manufacturers of South Africa (NAACAM), who are suppliers to the large automotive assemblers. The research utilised closed ended questions to obtain the perceptions of managers in automotive component manufacture regarding trust and relationship value with their best suppliers.
Results: With a linear regression model it was found that there is a high degree of trust in the collaborative relationships between first and second tier suppliers of components in the automotive industry in South Africa.
Conclusion: The automotive industry is one of the most successful industries in South Africa. They compete globally and apply best practices, particularly those in supply chain management. The industry is characterised by networks of collaborative relationships on different levels. These relationships seem to be successful as they are based on trust.
Source: Journal of Transport and Supply Chain Management 9, pp 1 –10 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.192More Less
Background: Whilst there are separate streams of established research on lean, green and best practice initiatives, the intersection of these three strategic principles has not been addressed extensively in the past.
Objectives: In this study a framework to integrate lean, green and best practice principles into an integrated business model was developed as a strategy for businesses to develop sustainable competitive advantages.
Method: A descriptive case study was conducted on Toyota South Africa Motors (TSAM) to understand whether a clear link between the company's environmental approach, lean principles and established best practice culture could be determined. In addition, the case study tested the view that the implementation of these three principles concurrently resulted in improved business results.
Results: The main findings of the study revealed that TSAM's commitment to lean, green and best practice business principles contributed and was directly linked to its business success in terms of sales and market position.
Conclusion: It is recommended that businesses implement an integrated lean, green and best practice business model as a strategy to reduce costs and sustainably enhance profitably and competitiveness.
The influence of information sharing, supplier trust and supplier synergy on supplier performance : the case of small and medium enterprises : original researchSource: Journal of Transport and Supply Chain Management 9, pp 1 –11 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.187More Less
Background: The assessment of supplier performance is an important activity for small to medium enterprises (SMEs) as they adopt and implement plans and policies aimed at enhancing their performance in order to achieve sustainable competitive advantages.
Objectives: The purpose of this study was to examine the influence of information sharing, supplier trust and supplier synergy on supplier performance in SMEs.
Method: A quantitative research design was adopted in which a survey questionnaire was administered to a sample of 309 owners and managers of SMEs based in southern Gauteng, South Africa. A confirmatory factor analysis was undertaken to assess the properties of the measurement scale. Hypotheses were tested using the path modelling technique.
Results: Information sharing exerted a moderate positive and significant influence on supplier trust and a weak but significant influence on supplier synergy. Supplier synergy had a strong positive and significant influence on supplier performance. However, the influence of supplier trust on supplier performance was weak and insignificant.
Conclusion: The study provides a useful framework for analysing the interplay between information sharing, supplier trust, supplier synergy and supplier performance in SMEs.
Source: Journal of Transport and Supply Chain Management 9, pp 1 –3 (2015) http://dx.doi.org/10.4102/jtscm.v9i1.220More Less