Abstract
Logistics management is vital to the movement of products from the point of manufacture to the consumer in the supply chain and is particularly susceptible to challenges during the last mile. The last mile is the last stage in the delivery of goods to customers and needs to be conducted efficiently, especially in the context of Fast-Moving Consumer Goods (FMCG) so as not to result in challenges such as late deliveries, which in turn may result in shortages and spoilt goods. The aim of this study is to identify and examine the last mile distribution challenges faced by Company X distributors and their forecourt convenience stores customers and to assess strategies adopted to overcome these challenges. Company X is a South African distribution company based in Alberton, South of Johannesburg in the Gauteng province. The last mile distribution phenomenon was approached qualitatively, utilising the case study method which will be detailed in this report’s third chapter. Employees involved in the last mile distribution of both Company X and forecourt convenience stores were interviewed. The research results revealed a number of internal and external challenges for Company X in their last mile delivery activities; some relate to the distributing company itself and others to the forecourt convenience stores, and ultimately the customers. For the distributor, the challenges found include poor road conditions, unfavourable proximity or location proximity or location of the forecourt convenience retail stores and others. In terms of the forecourt convenience stores, the challenges included limited unloading bays, among others. A combination of these challenges leads to delays in delivery and transport fleet capacity. In addition, traffic congestion in the urban area, delivery transit time delivery window period of the forecourt convenience stores, and unpredictable changes in demand by the stores also feature as some of the major challenges. The study also highlighted some of the existing measures employed by Company X to deal with last mile delivery challenges. These mitigation measures include: the management of employee performance, managing customer demand and service-level agreement contracts as attempts to reduce costs at this stage of distribution. Moreover, it was found that Company X has not yet embraced the...
M.Com. (Business Management)