An investigation into logistics outsourcing practices, trends and issues within the manufacturing sector in South Africa
- Authors: Kujawa, Beverley Jane
- Date: 2009-04-21T08:56:46Z
- Subjects: Logistics
- Type: Thesis
- Identifier: uj:8303 , http://hdl.handle.net/10210/2430
- Description: D.Comm. , Logistics outsourcing can make a significant contribution to the competitive advantage and profitability of a company through its role in reducing costs and improving customer service. In a country such as South Africa, where companies are under increasing pressure from both customers and shareholders to improve performance, and where the growth strategy is aimed at exports, logistics outsourcing can have an important impact. However, if not undertaken properly it can result in failure with negative and far-reaching implications for a company. The main purpose of this study has therefore been to investigate logistics outsourcing practices, trends and issues within the manufacturing sector in South Africa; including a comparison with logistics outsourcing in the United States (US), as an example of a developed country. In order to fulfil this purpose, the study covers the following aspects: • The role of logistics, outsourcing and logistics outsourcing in a company • Best practice logistics outsourcing in the US including a discussion of: o The growth and extent of outsourcing o Reasons for, and for NOT, outsourcing o The number of providers used and the agreement/relationship type with the providers o The logistics outsourcing process including managerial involvement o Areas of concern with current relationships and general opinions • Logistics outsourcing service provision • Logistics outsourcing practices and trends of South African manufacturers • Impact of company size and supply chain position on logistics outsourcing • Logistics outsourcing in South Africa by successful outsourcing companies • Comparisons between US and South African logistics outsourcing The study includes detailed discussions of outsourcing options and arrangements, and their advantages, opportunities, pitfalls, and impacts. The activities most frequently outsourced are identified, as well as the levels of satisfaction estimated with respect to the South African manufacturing sector. Some of the problems experienced with regard to the outsourcing of logistics activities are identified and the levels of success and general opinions of South African manufacturing companies provided. Relationships, or the lack thereof, are also established with regard to the logistics outsourcing practices of South African manufacturing companies and their characteristics in terms of position in the supply chain, and size as determined by their number of employees. The relationship between logistics outsourcing success and the general practices of South African manufacturing companies is also established. Finally, a comparison is provided of South African experiences as opposed to international practices and trends gleaned from literature reviewed, mainly with regard to the US. Based on the above, a number of conclusions about, and recommendations for, logistics outsourcing by South African companies in the manufacturing sector are made, a summary of which is provided by the following headings: (i) Recommendations for logistics service users Companies need to recognise the role and importance of logistics Companies need to identify their core competencies and non-core activities Companies must consult and involve all functions impacted by logistics Companies must decide upon the most appropriate outsourcing relationship Companies must undertake the steps necessary in the outsourcing process Companies must facilitate and manage the transitioning of resources (ii) Recommendations for logistics service providers Companies must understand the market Companies need to grow and strengthen their service provision Companies need to build excellent relationships with their clients Companies need to consider collaborating with other providers
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- Authors: Kujawa, Beverley Jane
- Date: 2009-04-21T08:56:46Z
- Subjects: Logistics
- Type: Thesis
- Identifier: uj:8303 , http://hdl.handle.net/10210/2430
- Description: D.Comm. , Logistics outsourcing can make a significant contribution to the competitive advantage and profitability of a company through its role in reducing costs and improving customer service. In a country such as South Africa, where companies are under increasing pressure from both customers and shareholders to improve performance, and where the growth strategy is aimed at exports, logistics outsourcing can have an important impact. However, if not undertaken properly it can result in failure with negative and far-reaching implications for a company. The main purpose of this study has therefore been to investigate logistics outsourcing practices, trends and issues within the manufacturing sector in South Africa; including a comparison with logistics outsourcing in the United States (US), as an example of a developed country. In order to fulfil this purpose, the study covers the following aspects: • The role of logistics, outsourcing and logistics outsourcing in a company • Best practice logistics outsourcing in the US including a discussion of: o The growth and extent of outsourcing o Reasons for, and for NOT, outsourcing o The number of providers used and the agreement/relationship type with the providers o The logistics outsourcing process including managerial involvement o Areas of concern with current relationships and general opinions • Logistics outsourcing service provision • Logistics outsourcing practices and trends of South African manufacturers • Impact of company size and supply chain position on logistics outsourcing • Logistics outsourcing in South Africa by successful outsourcing companies • Comparisons between US and South African logistics outsourcing The study includes detailed discussions of outsourcing options and arrangements, and their advantages, opportunities, pitfalls, and impacts. The activities most frequently outsourced are identified, as well as the levels of satisfaction estimated with respect to the South African manufacturing sector. Some of the problems experienced with regard to the outsourcing of logistics activities are identified and the levels of success and general opinions of South African manufacturing companies provided. Relationships, or the lack thereof, are also established with regard to the logistics outsourcing practices of South African manufacturing companies and their characteristics in terms of position in the supply chain, and size as determined by their number of employees. The relationship between logistics outsourcing success and the general practices of South African manufacturing companies is also established. Finally, a comparison is provided of South African experiences as opposed to international practices and trends gleaned from literature reviewed, mainly with regard to the US. Based on the above, a number of conclusions about, and recommendations for, logistics outsourcing by South African companies in the manufacturing sector are made, a summary of which is provided by the following headings: (i) Recommendations for logistics service users Companies need to recognise the role and importance of logistics Companies need to identify their core competencies and non-core activities Companies must consult and involve all functions impacted by logistics Companies must decide upon the most appropriate outsourcing relationship Companies must undertake the steps necessary in the outsourcing process Companies must facilitate and manage the transitioning of resources (ii) Recommendations for logistics service providers Companies must understand the market Companies need to grow and strengthen their service provision Companies need to build excellent relationships with their clients Companies need to consider collaborating with other providers
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An evaluation of distribution and warehousing systems in the perishable foods industry
- Authors: Maree, Jacobus Nicolaas
- Date: 2012-08-23
- Subjects: Warehouses - South Africa - Evaluation , Warehouses - Automation , Warehouses - Management , Perishable goods - South Africa , Logistics , Physical distribution of goods - South Africa
- Type: Mini-Dissertation
- Identifier: http://ujcontent.uj.ac.za8080/10210/386921 , uj:3099 , http://hdl.handle.net/10210/6517
- Description: M.Comm. , South Africa is currently in the same position regarding distribution channel design and operations as the rest of the world during the 1970's and many of our warehouses still operate in the same manner as those of the 1970's, using outdated methods and infrastructures. According to Bailey (1996:3), the failures of the outdated systems were: 90% of the systems functioned ineffectively - High-tech systems were inflexible ; - Computers could not cope ; - Focus was on storage rather than throughput ; - Just-In-Time destroyed many facilities ; - Lack of integration within the supply chain Some distribution executives and warehouse managers may disagree, but it is evident that there is uncertainty and frustration associated with the management of warehousing activities in companies today. During research conducted, a statement was made by a distribution executive of a leading corporation, who said: "I am unaware of any corporate function where the manager knows so little about what he will do tomorrow as the manager of a warehouse." Traditionally, warehousing has fulfilled a support function to both manufacturing and marketing by storing the company's raw materials, semi-finished and finished products. However, the warehousing function also responded to other corporate needs without receiving the necessary attention and support of management to improve its organisation and effectiveness. The challenge of this study will therefore be to design and develop a distribution channel which will approach the supply chain holistically, from the identification of the total costs associated with alternative logistical systems right through to identification of the lowest cost network that meets corporate, marketing and customer requirements. The objective is to develop a strategy for a throughput distribution centre close to the market place to shorten the cycle time within the South African context, which will accommodate the principles of reducing individual warehousing requirements and transportation costs by transforming the modus operandi from the conventional "push" way of operating to a "pull" system. This is commonly known as Quick Response (QR) or Continuous Replenishment (CR) and will allow the principals to reduce stockholding areas and simultaneously provide fresh delivery.
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- Authors: Maree, Jacobus Nicolaas
- Date: 2012-08-23
- Subjects: Warehouses - South Africa - Evaluation , Warehouses - Automation , Warehouses - Management , Perishable goods - South Africa , Logistics , Physical distribution of goods - South Africa
- Type: Mini-Dissertation
- Identifier: http://ujcontent.uj.ac.za8080/10210/386921 , uj:3099 , http://hdl.handle.net/10210/6517
- Description: M.Comm. , South Africa is currently in the same position regarding distribution channel design and operations as the rest of the world during the 1970's and many of our warehouses still operate in the same manner as those of the 1970's, using outdated methods and infrastructures. According to Bailey (1996:3), the failures of the outdated systems were: 90% of the systems functioned ineffectively - High-tech systems were inflexible ; - Computers could not cope ; - Focus was on storage rather than throughput ; - Just-In-Time destroyed many facilities ; - Lack of integration within the supply chain Some distribution executives and warehouse managers may disagree, but it is evident that there is uncertainty and frustration associated with the management of warehousing activities in companies today. During research conducted, a statement was made by a distribution executive of a leading corporation, who said: "I am unaware of any corporate function where the manager knows so little about what he will do tomorrow as the manager of a warehouse." Traditionally, warehousing has fulfilled a support function to both manufacturing and marketing by storing the company's raw materials, semi-finished and finished products. However, the warehousing function also responded to other corporate needs without receiving the necessary attention and support of management to improve its organisation and effectiveness. The challenge of this study will therefore be to design and develop a distribution channel which will approach the supply chain holistically, from the identification of the total costs associated with alternative logistical systems right through to identification of the lowest cost network that meets corporate, marketing and customer requirements. The objective is to develop a strategy for a throughput distribution centre close to the market place to shorten the cycle time within the South African context, which will accommodate the principles of reducing individual warehousing requirements and transportation costs by transforming the modus operandi from the conventional "push" way of operating to a "pull" system. This is commonly known as Quick Response (QR) or Continuous Replenishment (CR) and will allow the principals to reduce stockholding areas and simultaneously provide fresh delivery.
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Beplanning, logistiek en bedryfsaspekte van die oliebedryf en die invloed daarvan op Suid-Afrika
- Authors: Meiring, Johannes Henricus
- Date: 2014-04-15
- Subjects: Petroleum industry and trade , Logistics , Petroleum industry and trade - South Africa , Petroleum products - Prices - South Africa
- Type: Thesis
- Identifier: uj:10725 , http://hdl.handle.net/10210/10236
- Description: Ph.D. (Economic Sciences) , The international oil industry has always been subject to significant changes throughout the years, mainly as a result of changes in the environment, government policies, the world economy and a developing technology. Since the turn of the century, however, no changes have been as fundamental as the events of 1973. The international oil industry found itself in a very short period of time, with the following changes: The loss of production resources to the industry's previous host countries. A significant increase in the price of the products the industry handle. Increased interference by the governments of the countries in which the industry markets its products. No growth. A permanent change in the mix of petroleum products required by the market. The oil industry reacted to these changes in the following ways: Large proportions of refining networks were closed and large amounts of money were spent on additional cracking facilities for the remainder of the industry's networks. Organisational changes were introduced, with the objective of removing surplus infra-structure from a shrinking industry. iii Attention was given to other forms of energy. Whatever the reaction had been, the mere fact that refining capacity had to be reduced, and large oil tankers scrapped, suggests a lack of proper planning during the period preceding the problems of 1973. During the late fifties and sixties, when there was a steady growth in the world economy and oil prices remained static, planning ahead became relatively simple, and the oil industry planners slipped into the illusion that none of the upheave1s of history would be repeated. The signals were clearly there, but were totally ignored until far too late. To a large extent, this happened because government officials and oil company executives tended to specialise, and therefore they lacked knowledge of the oil industry as a whole. In South Africa, more planning was conducted than elsewhere in the world, but was mainly directed towards the development of synfuels and strategic storage. This was the result of South Africa's peculiar political circumstances and not because of an awareness of the need for realistic commercial planning.
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- Authors: Meiring, Johannes Henricus
- Date: 2014-04-15
- Subjects: Petroleum industry and trade , Logistics , Petroleum industry and trade - South Africa , Petroleum products - Prices - South Africa
- Type: Thesis
- Identifier: uj:10725 , http://hdl.handle.net/10210/10236
- Description: Ph.D. (Economic Sciences) , The international oil industry has always been subject to significant changes throughout the years, mainly as a result of changes in the environment, government policies, the world economy and a developing technology. Since the turn of the century, however, no changes have been as fundamental as the events of 1973. The international oil industry found itself in a very short period of time, with the following changes: The loss of production resources to the industry's previous host countries. A significant increase in the price of the products the industry handle. Increased interference by the governments of the countries in which the industry markets its products. No growth. A permanent change in the mix of petroleum products required by the market. The oil industry reacted to these changes in the following ways: Large proportions of refining networks were closed and large amounts of money were spent on additional cracking facilities for the remainder of the industry's networks. Organisational changes were introduced, with the objective of removing surplus infra-structure from a shrinking industry. iii Attention was given to other forms of energy. Whatever the reaction had been, the mere fact that refining capacity had to be reduced, and large oil tankers scrapped, suggests a lack of proper planning during the period preceding the problems of 1973. During the late fifties and sixties, when there was a steady growth in the world economy and oil prices remained static, planning ahead became relatively simple, and the oil industry planners slipped into the illusion that none of the upheave1s of history would be repeated. The signals were clearly there, but were totally ignored until far too late. To a large extent, this happened because government officials and oil company executives tended to specialise, and therefore they lacked knowledge of the oil industry as a whole. In South Africa, more planning was conducted than elsewhere in the world, but was mainly directed towards the development of synfuels and strategic storage. This was the result of South Africa's peculiar political circumstances and not because of an awareness of the need for realistic commercial planning.
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Die rol van logistiek in die verkryging van 'n mededingende voordeel vir spoorvervoer in die Suid-Afrikaanse vraggoedere mark
- Authors: Scheepers, J. Z.
- Date: 2012-08-16
- Subjects: Logistics , Transportation - South Africa. , Railroads - South Africa. , Transportation, Automotive - South Africa.
- Type: Thesis
- Identifier: uj:9564 , http://hdl.handle.net/10210/5989
- Description: M.Comm. , The modern business environment is characterised by a new focus on strategies towards competitiveness and customer service. This includes efficient and effective logistical systems to support just-in-time, shorter production run strategies of customers. Furthermore, the outsourcing of non-core functions to third party service providers, is an increasing tendency. Transport providers are strategically positioned within logistical processes to provide value-adding services. Historically, the transport industry was a highly regulated arena which changed to a competitive deregulated industry. PROBLEM STATEMENT: With the deregulation of the transport industry, rail transport lost market share in the total land freight market. Other than deregulation, the following: In contrast with road, rail is responsible for the accomplishment of transport infrastructure and the maintenance thereof; the differences in the competitive traits of rail and road; and the increasing nature of change within the dynamic marketplace itself. After 200 years, the rail transport mode is confronted with the challenge of relevancy in the twenty first century. The main objective of the study is founded on systematic literary research of land transport within the RSA. The focus is on the role logistics plays in obtaining competitive advantage from a rail perspective. In order to achieve this, the following were investigated: the economics of transport; an evaluation of the competitiveness of the RSA road and rail industry; logistics as an approach to add value and differentiate the transport product; and suitable strategies specifically for rail in support of value adding and competitiveness. FINDINGS: The study finds that logistics can create competitive advantage for rail transport with an unique marketing orientation. This can be maximised by differentiating the rail transport product alignment with market share in the different segments and positioning in the product life cycle. The manufacturing higher value segment represents the biggest growth opportunity in market share. Innovation and quality improvements are prerequisites within rail, whilst selective divestiture strategies on non-profitable business must be considered. The requirement is to provide logistical services within the total supply chain which add value to customers products. Rail transport must therefore find a balance between cost leadership and differentiating strategies. Rail transport in the RSA is aware of the importance to provide logistical value in the freight market. However, it was found that the transformation to make logistics an integrated part of its business is lacking. In contrast, road transport rapidly developed the provision of complete logistical solutions in the freight market. Lastly, it was found that the outsourcing of logistics is a world trend, especially in respect of the USA and Europe.
- Full Text:
- Authors: Scheepers, J. Z.
- Date: 2012-08-16
- Subjects: Logistics , Transportation - South Africa. , Railroads - South Africa. , Transportation, Automotive - South Africa.
- Type: Thesis
- Identifier: uj:9564 , http://hdl.handle.net/10210/5989
- Description: M.Comm. , The modern business environment is characterised by a new focus on strategies towards competitiveness and customer service. This includes efficient and effective logistical systems to support just-in-time, shorter production run strategies of customers. Furthermore, the outsourcing of non-core functions to third party service providers, is an increasing tendency. Transport providers are strategically positioned within logistical processes to provide value-adding services. Historically, the transport industry was a highly regulated arena which changed to a competitive deregulated industry. PROBLEM STATEMENT: With the deregulation of the transport industry, rail transport lost market share in the total land freight market. Other than deregulation, the following: In contrast with road, rail is responsible for the accomplishment of transport infrastructure and the maintenance thereof; the differences in the competitive traits of rail and road; and the increasing nature of change within the dynamic marketplace itself. After 200 years, the rail transport mode is confronted with the challenge of relevancy in the twenty first century. The main objective of the study is founded on systematic literary research of land transport within the RSA. The focus is on the role logistics plays in obtaining competitive advantage from a rail perspective. In order to achieve this, the following were investigated: the economics of transport; an evaluation of the competitiveness of the RSA road and rail industry; logistics as an approach to add value and differentiate the transport product; and suitable strategies specifically for rail in support of value adding and competitiveness. FINDINGS: The study finds that logistics can create competitive advantage for rail transport with an unique marketing orientation. This can be maximised by differentiating the rail transport product alignment with market share in the different segments and positioning in the product life cycle. The manufacturing higher value segment represents the biggest growth opportunity in market share. Innovation and quality improvements are prerequisites within rail, whilst selective divestiture strategies on non-profitable business must be considered. The requirement is to provide logistical services within the total supply chain which add value to customers products. Rail transport must therefore find a balance between cost leadership and differentiating strategies. Rail transport in the RSA is aware of the importance to provide logistical value in the freight market. However, it was found that the transformation to make logistics an integrated part of its business is lacking. In contrast, road transport rapidly developed the provision of complete logistical solutions in the freight market. Lastly, it was found that the outsourcing of logistics is a world trend, especially in respect of the USA and Europe.
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A group genetic algorithm for the fleet size and mix vehicle routing problem
- Mutingi, M., Mbohwa, Charles
- Authors: Mutingi, M. , Mbohwa, Charles
- Date: 2012
- Subjects: Logistics , Vehicle routing , Genetic algorithms , Vehicle fleets - Management
- Type: Article
- Identifier: uj:5181 , http://hdl.handle.net/10210/14423
- Description: In logistics management, the use of vehicles to distribute products from suppliers to customers is a major operational activity. Optimizing the routing of vehicles is crucial for providing cost-effective services to customers. This research addresses the fleet size and mix vehicle routing problem (FSMVRP), where the heterogeneous fleet and its size are to be determined. A group genetic algorithm (GGA) approach, with unique genetic operators, is designed and implemented on a number of existing benchmark problems. GGA demonstrates competitive performance in terms of cost and computation time when compared to other heuristics.
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- Authors: Mutingi, M. , Mbohwa, Charles
- Date: 2012
- Subjects: Logistics , Vehicle routing , Genetic algorithms , Vehicle fleets - Management
- Type: Article
- Identifier: uj:5181 , http://hdl.handle.net/10210/14423
- Description: In logistics management, the use of vehicles to distribute products from suppliers to customers is a major operational activity. Optimizing the routing of vehicles is crucial for providing cost-effective services to customers. This research addresses the fleet size and mix vehicle routing problem (FSMVRP), where the heterogeneous fleet and its size are to be determined. A group genetic algorithm (GGA) approach, with unique genetic operators, is designed and implemented on a number of existing benchmark problems. GGA demonstrates competitive performance in terms of cost and computation time when compared to other heuristics.
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Optimising maintenance inventories of a cement manufacturer
- Authors: Eloff, Morné
- Date: 2013-07-11
- Subjects: Manufacturing industries , Cement industries , Inventory control , AfriSam , Marketing channels , Business logistics , Logistics
- Type: Thesis
- Identifier: uj:7612 , http://hdl.handle.net/10210/8478
- Description: M.Com. (Business Management) , A key performance indicator of a cement manufacturer is that of its operating equipment efficiencies or OEE. The world-best standard for OEE of cement manufacturers is 85%, and this figure can only be achieved through very good maintenance practices and programmes combined with exceptional maintenance inventory levels and good maintenance inventory strategies. Maintenance inventory can be described as spares that support the manufacturing process, but that is not included in the final product. Like all types of inventory, maintenance inventory has a cost associated with carrying the inventory that can be calculated through applying the various carrying cost components associated with inventory. In a cement manufacturer this carrying cost figure can be excessively high as a result of the slow movement of major spare components that have to be held in inventory due to its critical importance to the manufacturing process. It is also evident that inventory levels in AfriSam are high. This may be due to the fact that management believe the best possible method to minimise the risk of production loss during a breakdown, is to increase maintenance inventory levels with no comparison to the costs associated with carrying the inventory. The chosen research problem is: “AfriSam (Pty) Ltd carries maintenance inventory worth millions of rands with slow movement of high value maintenance inventory sometimes in excess of 3 years. The cost of managing the inventory together with the carrying cost of the inventory has become a key focus point in the business and there is a need to find methods to optimise the inventory.”
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- Authors: Eloff, Morné
- Date: 2013-07-11
- Subjects: Manufacturing industries , Cement industries , Inventory control , AfriSam , Marketing channels , Business logistics , Logistics
- Type: Thesis
- Identifier: uj:7612 , http://hdl.handle.net/10210/8478
- Description: M.Com. (Business Management) , A key performance indicator of a cement manufacturer is that of its operating equipment efficiencies or OEE. The world-best standard for OEE of cement manufacturers is 85%, and this figure can only be achieved through very good maintenance practices and programmes combined with exceptional maintenance inventory levels and good maintenance inventory strategies. Maintenance inventory can be described as spares that support the manufacturing process, but that is not included in the final product. Like all types of inventory, maintenance inventory has a cost associated with carrying the inventory that can be calculated through applying the various carrying cost components associated with inventory. In a cement manufacturer this carrying cost figure can be excessively high as a result of the slow movement of major spare components that have to be held in inventory due to its critical importance to the manufacturing process. It is also evident that inventory levels in AfriSam are high. This may be due to the fact that management believe the best possible method to minimise the risk of production loss during a breakdown, is to increase maintenance inventory levels with no comparison to the costs associated with carrying the inventory. The chosen research problem is: “AfriSam (Pty) Ltd carries maintenance inventory worth millions of rands with slow movement of high value maintenance inventory sometimes in excess of 3 years. The cost of managing the inventory together with the carrying cost of the inventory has become a key focus point in the business and there is a need to find methods to optimise the inventory.”
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