Optimising supply chains through container triangulation
- Authors: Ferreira, Marianne
- Date: 2012-06-05
- Subjects: Supply chain management , Container triangulation , Freight and freightage , Sasol Polymers triangulation project
- Type: Mini-Dissertation
- Identifier: uj:2426 , http://hdl.handle.net/10210/4886
- Description: M.Comm. , The South African government passed legislation in 2003 whereby fuel would have to meet a number of stringent environmental standards by 2006. These standards include the ceasing of sale of leaded petrol and sulphur added diesel and has a requirement for a higher octane unleaded fuel. To meet these standards Sasol Limited committed to invest R7 billion in new production facilities. The Fischer Tropsch process is used by Sasol Limited to produce liquid fuel from coal. By-products are formed during the process and is further refined and sold as raw materials to producers of various other products. In October 2003 Sasol invested R7 billion in the transformation of the plant to produce by-products (polymers) for export. In the course of this process the SASOL Turbo Project was initiated. In order to build the most efficient supply chain and to ensure short lead times to target markets, Safmarine (Pty) Ltd was identified as a strategic partner to handle the external supply chain included but not limited to the ocean freight, cross-docking and packing of cargo. During an assessment of the supply chain, an opportunity for container triangulation was recognised. One of Safmarine’s global key accounts based in South Africa, was recognised as a fitting import partner to Sasol Polymers (a subsidiary of Sasol Limited) in the triangulation project. Very little theory exists on the concept of container triangulation and its application in the field of supply chain management. The author could find only a few examples of successful container triangulation in practice so a need exits to study the concept further. The main aim of this study is to determine whether container triangulation can be used to improve supply chains and to provide guidelines for the successful implementation of such an initiative. The study is based on a combination of a literature review and experiences gained from a real-life triangulation project which was planned and partially implemented by Sasol Polymers and two supply chain partners. The study found that the successful implementation of a container triangulation project holds the potential of many advantages for supply chain partners. During the planning of the triangulation project, potential advantages were identified to the supply chains of Sasol Polymers and partners. Some of the possible advantages include, but are not limited, to: • Cost saving benefits • Improved equipment utilization • Mutually beneficial partnerships • Improved speed of container movement in the supply chain The correct application of information technology is a prerequisite for the successful implementation of a container triangulation project. This study also briefly reflects on the information technology used in the Sasol Polymers triangulation project and provides suggestions for further improvement in this regard.
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Road versus rail debate : logistics opportunity cost of using road transport in a mining company
- Authors: Van Jaarsveld, Leani
- Date: 2013-07-18
- Subjects: Road transportation , Railroad transportation , Mineral industries , Freight and freightage
- Type: Thesis
- Identifier: uj:7654 , http://hdl.handle.net/10210/8523
- Description: M.Com. (Business Management) , Transport plays a pivotal role within the South African economy as it enables the country to achieve economic growth. The transport industry does not only facilitate the movement of freight and people, it also employs a great number of individuals and forms a major part of South Africa‟s GDP. The 8th Annual State of Logistics Survey for South Africa indicated that transport costs were accountable for 6.8 per cent of the country‟s GDP in 2010. The importance of the transport industry necessitates that the industry is operated efficiently and effectively. Transport mode choices are not only made based on transportation costs but various other factors are affecting how companies choose the mode of transport for their freight movement requirements. Other factors that are considered include transit time, reliability, accessibility, capability and security/safety. Opportunity costs should also be considered when choosing a mode of transport. There are various different types of opportunity costs that exist within the supply chain, these include the opportunity cost associated with poor service levels, the opportunity cost of returning a vehicle without a backhaul, opportunity costs due to delays, the opportunity cost of holding inventory and lost sales opportunity costs. As transportation costs are not the only factor that companies consider when making a modal choice decision, many companies within South Africa have been moving their goods off rail and onto road. This study highlights the importance of determining the impact that an inefficient mode of transport has on a company‟s transportation model and costs. The main focus of this study is to determine the logistics opportunity cost of using road transport within a mining company. A case study approach is followed as the study aims to present a complex problem experienced by one company to be analysed and presented in an easily understandable format. All the data and company information used within this study was supplied by company DKVL. Data was collected through unstructured personal interviews and specific questions were developed for each person interviewed. The data was triangulated and verified through the use of company DKVL‟s financial statements. From the results of this study, the logistics opportunity cost associated with the mode of transport is substantial. This necessitates the need for companies to revise their transport mode choice 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. Based on the findings of this study, Transnet Freight Rail (TFR) should not only focus on expanding its existing capacity, it should also focus on improving its customer service delivery. By providing poor service delivery, companies will not shift their freight back onto rail and will rather choose to use road transport to receive the benefit of reliability and flexibility, even if it is a more expensive mode of transport. The knock-on effect of companies choosing to use road transport as opposed to rail transport is significant. The quality of South African roads will continue to deteriorate, companies will continue to pay more to maintain and repair their vehicles and the transport industry will continue to increasingly damage the environment through increased carbon emissions. The impact of not having reliable rail transport is increased logistics costs which have a significant impact on the South African economy.
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Strategic control within a South African freight forwarding organisation
- Authors: Visser, Daneel
- Date: 2012-06-06
- Subjects: Cargo handling , Physical distribution of goods , Freight and freightage , Business logistics , Freight and freightage management , Transportation management
- Type: Mini-Dissertation
- Identifier: uj:2510 , http://hdl.handle.net/10210/4964
- Description: M.Comm. , The purpose of this study was to determine whether a strategic control tool, such as the Balanced Scorecard, could be used within a leading international forwarding and clearing organisation operating in the South African and international logistics markets. The name of the organisation has been concealed, for confidentiality purposes, and therefore in this study the organisation is referred to as SA Logistics. A literature review was conducted where firstly the elements of strategic control were examined. This was followed by a review of certain strategic control tools such as benchmarking and Economic Value Added models. Then the literature regarding the Balanced Scoreacard was analysed in detail. The research was conducted in two phases. In the first phase a self-administered questionnaire was sent out to a group of respondents from middle management, within SA Logistics. The questionnaire required respondents to rank on a semantic differential scale their preferences from a proposed set of key performance indicators. These Key performance indicators could potentially be used to exercise strategic control within SA Logistics. The proposed measures obtained from phase one was then verified with a group of executive members of SA Logistics during phase two of the study. Phase two was conducted by means of personal interviews with selected executive members. This verification process helped to determine the business sense of these proposed key performance indicators and allowed executive members to propose changes to these key performance indicators. The study found that the Balanced Scorecard could be used as a strategic control tool within a clearing and forwarding logistics organisation. The study established that all four of the perspectives of finance, customer, internal and learning/growth measures of the Balanced Scorecard can be tied into key business areas and related measures within SA Logistics. However, in order for this Balanced Scorecard to be widely accepted throughout the organisation, a more centralised approach is required. This study also allowed for a proposed Balanced Scorecard to be compiled for SA Logistics.
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The role and characteristics of private (not for reward )road transport operators in the South African freight market
- Authors: Bierman, Nina-Lize
- Date: 2008-10-17T13:17:10Z
- Subjects: Freight and freightage , Carriers , Trucking
- Type: Thesis
- Identifier: uj:12677 , http://hdl.handle.net/10210/1251
- Description: M.Comm. , Statistics on private road freight transportation services (not for reward) (defined as: “a business’s own vehicles that are used to transport its own products to its own customers”) are very limited in South Africa. Statistics South Africa’s (SSA) research focuses on road freight carriers for reward and excludes the data on private (not for reward) carriers. The CSIR in 2004 published a report entitled Second Annual State of Logistics Survey for South Africa. The focus of this study was on land freight transport, i.e. road and rail. Maritime, air and pipeline volumes were not included in this study’s scope. Therefore, the number of studies investigating the private (not for reward) road freight market and even the total freight market in South Africa is limited to the above-mentioned two sources and the Rand Afrikaans University’s (RAU) 1991-study (published in 1993), entitled Freight Transport Survey. , Prof. J. Walters Prof. G. Prinsloo.
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