scholarly journals Supply chain cost improvement opportunities through streamlining cross-border operations

2013 ◽  
Vol 3 (3) ◽  
pp. 28-34
Author(s):  
Jan Hendrik Havenga ◽  
J. van Eeden ◽  
Wessel Pienaar
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Cost Model ◽  
Road Transport ◽  
Demand Model ◽  
Logistics Cost ◽  
Cross Border ◽  
Cost Impact ◽  
Product Profile ◽  
Trading Partners

The Cross-Border Road Transport Agency (CBRTA) in South Africa aims to encourage and facilitate trade between South Africa and its neighbouring countries. The CBRTA sponsored a study by Stellenbosch University (SU) to determine the logistics cost impact of cross-border delays between South Africa and its major neighbouring trading partners, and prioritise opportunities for improvement. SU is the proprietor of both a comprehensive freight demand model and a logistics cost model for South Africa, which enable extractions and extensions of freight flows and related costs for specific purposes. Through the application of these models, the following information is identified and presented in this paper: South Africa’s most important border posts (based on traffic flows); a product profile for imports and exports through these border posts; the modal split (road and rail); the annual logistics costs incurred on the corridors feeding the border posts, as well as the additional costs incurred due to border delays. The research has proved that the streamlining of border-post operations that take a total supply chain view (i.e. of both border operations and those that could be moved from the border) is beneficial.

scholarly journals A case for measuring logistics costs on a national level: A South African application

2011 ◽  
Vol 8 (3) ◽  
pp. 622-631 ◽  
Author(s):  
Jan Hendrik Havenga ◽  
Wessel Pienaar ◽  
Zane P. Simpson
Keyword(s):  
South Africa ◽  
South African ◽  
Cost Management ◽  
Cost Model ◽  
National Level ◽  
Volatile Oil ◽  
Road Transport ◽  
Cost Driver ◽  
Logistics Cost ◽  
Monetary Unit

This paper makes a case for macroeconomic logistics measurement and presents the results of the 2009 logistics cost model for South Africa. The major portion of logistics costs is attributable to road transport, of which the biggest cost driver is fuel, which, in turn, is determined by volatile oil prices and the exchange rate of the country’s monetary unit. This poses a significant exogenous risk to logistics cost management in South Africa.

scholarly journals Calculation of freight externality costs for South Africa

2012 ◽  
Vol 6 (1) ◽  
Author(s):  
Stefaan Swarts ◽  
David King ◽  
Zane Simpson ◽  
Jan Havenga ◽  
Leila Goedhals-Gerber
Keyword(s):  
South Africa ◽  
Cost Model ◽  
Road Transport ◽  
Freight Transport ◽  
Transport Infrastructure ◽  
Transport Cost ◽  
Sources Of Information ◽  
Demand Model ◽  
Transport Costs ◽  
The Cost

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.

scholarly journals Managing Supply Chain’s Transaction Costs Through Logistics

2011 ◽  
Vol 22 (1) ◽  
Author(s):  
Al Chen ◽  
Karen Nunez
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Chemical Industry ◽  
Cost Model ◽  
Cost Savings ◽  
Potential Cost ◽  
Logistics Cost ◽  
Chain Management ◽  
Bulk Chemical ◽  
Truck Transportation

The bulk chemical industry primarily relies upon truck transportation. Truck transportation, although costly, has a high percentage of on-time deliveries. Cheaper alternative transportation modes are less preferred due to a lack of supply chain information. Traditionally, the lack of information about in-transit products leads to higher safety stock and inventory levels, which results in higher costs. Process mapping and activity-based cost analysis are used to identify cost drivers and highlight the areas of opportunity for improving bulk chemical supply chain management. The activity-based cost information was used to develop a logistics cost model specifically tailored to the bulk chemical industry. The activity-based logistics cost model was used to assess potential cost savings from integrating centralized supply chain management software (visibility solutions), into the bulk chemical supply chain. The results of our analysis support integrating visibility solution software into multi-modal transportation to improve bulk chemical supply chain management. Integration of visibility solutions enables suppliers to improve their ability to monitor and control their inventory throughout the supply chain, increase overall asset utilization, and reduce global supply chain costs.

A SOFT SYSTEMS METHODOLOGY APPROACH TO IMPROVING THE SUPPLY CHAIN OF A CONSTRUCTION PROJECT IN GAUTENG PROVINCE, SOUTH AFRICA

2020 ◽  
Vol 10 (1) ◽  
pp. 86-99
Author(s):  
Lewis Tsuro ◽  
Stan Hardman
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Construction Project ◽  
Soft Systems Methodology ◽  
Project Planning ◽  
Suitable Model ◽  
Senior Managers ◽  
Good Tool ◽  
Systems Methodology ◽  
Soft Systems

The Soft Systems Methodology (SSM) was developed as a set of tools for identifying and making incremental steps to improve situations with poorly defined causes or solutions. The supply chain forms a key process of any construction project; however, on any given construction site, supply chain inefficiencies could arise from many different avenues. Opinions vary, though, on which of these avenues is more important for increasing supply chain efficiencies; whether any problem even exist across the different aspects of the supply chain; as well as what steps should be taken to resolve them. It was therefore studied, here, whether SSM could be employed as a useful tool to systematically apply in the supply chains of a construction project in South Africa, for understanding and targeting the problematic situations that arise. Following thorough cyclical open-ended interviews with 17 workers, supervisors, foremen, site clerks, senior managers, and the CEO of the principal contractor at a new office park construction project in Rosebank, Johannesburg, and a thematic analysis of the data, SSM was performed to understand the existing challenges, and develop a suitable model for improvement. The study found that SSM was a good tool for understanding the ‘messy’ circumstances surrounding the chosen construction project supply chain, as well as actions that could be taken to improve the supply chain’s efficiency on site. The findings add weight to the argument that SSM could be a good tool for project managers to systematically introduce into their project planning regimens

scholarly journals Sensitivity Analysis of Emission Models of Parcel Lockers vs. Home Delivery Based on HBEFA

2021 ◽  
Vol 18 (12) ◽  
pp. 6325
Author(s):  
Maren Schnieder ◽  
Chris Hinde ◽  
Andrew West
Keyword(s):  
New York ◽  
Road Transport ◽  
Emission Factors ◽  
Home Delivery ◽  
Demand Model ◽  
External Effects ◽  
Last Mile ◽  
Emission Models ◽  
Home Deliveries ◽  
Parcel Deliveries

Global concerns about the environmental effects (e.g., pollution, land use, noise) of last-mile deliveries are increasing. Parcel lockers are seen as an option to reduce these external effects of last-mile deliveries. The contributions of this paper are threefold: firstly, the research studies simulating the emissions caused by parcel delivery to lockers are summarized. Secondly, a demand model for parcel deliveries in New York City (NYC) is created for 365 days and delivery trips to lockers and homes are optimized for 20 “real-world” scenarios. Thirdly, using the emission factors included in the HandBook Emission Factors for Road Transport (HBEFA) database, the maximum percentage of customers who could pick up a parcel by car from parcel lockers that would result in fewer total emissions (driving customers + walking customers) than if home deliveries were adopted is calculated for various pollutants and scenario assumptions (i.e., street types, temperature, parking duration, level of service and vehicle drivetrain). This paper highlights how small changes in the calibration can significantly change the results and therefore using average values for emission factors or only considering one pollutant like most studies may not be appropriate.

Research on Mode of after-Sale Reverse Logistics Operation of Auto Maintenance Industry Based on Time Window

2011 ◽  
Vol 121-126 ◽  
pp. 4635-4639
Author(s):  
Hao Hao ◽  
Xing Gen Wu ◽  
Hong Yu Li
Keyword(s):  
Supply Chain ◽  
Reverse Logistics ◽  
High Speed ◽  
Time Window ◽  
Auto Industry ◽  
Road Transport ◽  
Motor Vehicles ◽  
Safety Testing ◽  
Internal Operations ◽  
Evaluation Mechanism

The author maintains that, with the quick development of domestic auto industry, the auto maintenance industry is progressing with high speed accordingly. The auto maintenance enterprise are inclined to focus on sales and forward supply chain operation, however, lacking of efficient resource and systematic management into reverse logistics operation, as lead to a few potential risks. In order to avoid and control the risks, the auto maintenance companies need to closely cooperate with channel supply chain partners, meanwhile build up the mode of reverse logistics operation with timing efficiency orientation. This mode consists of eight sub-system modules: organization structure, network planning and layout, reverse logistics operation procedure, time window evaluation mechanism, automatic replenishment system, reverse forecasting system, Kan-ban message system as well as disposal & reuse system. Furthermore, the article makes analysis of the internal operations and external relevance of these eight sub-systems. In recent years, with the overall opening up of road transport market and the rapid growth in domestic economy, the total number of China’s motor vehicles is entering a high-speed growth channel, and “the car goes to the country” policy further promotes the auto industry. Under the situation of quick development, the auto maintenance industry is developing by 10% to 15% each year as a young profession. According to the statistics, there are over 380,000 auto maintenance enterprises in our country at the moment, and various types of auto safety testing stations are built around one after another. The intense competition among auto maintenance manufacturing enterprises does not only focus on product quality, but also on the after-market reverse logistics. According to the statics of Gartner, 70 percent of resale is related with sales service, and 60 percent of resale is related with after market. However, except for few leading business enterprises which have realized the direct influence and value contribution of after-service reverse logistics to profit increase and customer loyalty and take action to pioneer the profit territory in the after-sale reverse logistics, the ‘price war’ is still the main competition method which the majority of enterprises adopt in the market.

Supply chain cost model for prefabricated building material based on time-driven activity-based costing

2016 ◽  
Vol 43 (4) ◽  
pp. 287-293 ◽  
Author(s):  
Yong-Woo Kim ◽  
Seung-Heon Han ◽  
June-Seong Yi ◽  
SooWon Chang
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Supply Chains ◽  
Construction Industry ◽  
Cost Model ◽  
Building Construction ◽  
Activity Based Costing ◽  
Chain Management ◽  
Material Supply ◽  
Supply Chain Costs

The effect of ‘supply chain management’ can be leveraged when benefits of collaboration within and beyond the capacities of individual organizations are witnessed. One of the primary tasks in reducing total supply chain costs is to understand where the costs occur in a supply chain and how each activity impacts the total supply chain costs. Most supply chains in construction usually involve multiple entities, each one in a different process. A rebar supply chain is one example where many entities are involved in different processes. The supply chain coordinator needs a supply chain cost model, which shows how each activity impacts all supply chain costs to reduce the total costs. The research suggests a supply chain cost model using time-driven activity-based costing. The proposed cost model was applied to a building construction project, followed by sensitivity analysis identifying critical activities. This method can be adapted to analyze other fragmented material supply chains in the construction industry.

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