Thesis (MComm (Logistics))--Stellenbosch University, 2008. / One of the results of globalisation is that supply chains are getting longer, in both time and distance. For example, the local bookstore around the corner now competes with the bookstore in the USA. Logistics ties together geographically distant sources and markets. The implications of this are that there is a greater need for efficiency in specifically transportation and distribution networks. The integration of transport infrastructure into a logistics hub is seen as an enabler of distribution on a global basis. A solution to overcome the above complications is the development of logistics hubs as a means to simplify supply chain processes. Logistics hubs are generally defined as integrated centres for transhipment, storage, collection and distribution of goods (Jorgenson, 2007). Universally logistics hubs have intermodal or multi-modal solutions to abridge transportation difficulties and creating seamless movement of goods and in doing so optimising general operations. Freight shipments now have the ability to be consolidated at a central point and distributed from that point to its final destination. This creates added value for freight products. Customers now receive products at the right time, at the right place and in the right quantity, but with the benefit of paying less as a result of economies of scale created by the value added at the logistics hub. Logistics hubs are very well established internationally and many examples exist where these have been successfully built and implemented. This does not suggest that there is one specific recipe to success. Each region has its own demands which need to be satisfied. There are however numerous common characteristics which were identified during the course of the study. It is important for South Africa to integrate existing transport infrastructure to optimise logistics in the country and in doing so, ascertaining itself as a regional logistics hub.

Um dos desafios na operação de uma cadeia de suprimentos é a definição de uma política de controle dos estoques de forma a manter a estabilidade dos estoques, evitando a amplificação da demanda ao longo da cadeia e atendendo adequadamente o cliente. A política de controle do estoque determina o momento (ponto de pedido) e a quantidade (tamanho do lote) adequada de reposição dos estoques nos diferentes elos da cadeia. Esta tese propõe um novo procedimento de atualização do ponto de pedido e do lote de reposição para uma política Order-Up-To-Level (OUTL) de controle dinâmico de estoques em sistemas de revisão contínua. Este procedimento altera a política OUTL clássica ao introduzir o conceito de estoque de absorção, caracterizado pela demanda de mercado e pelo lead time de cada elo da cadeia, que ajusta o ponto de pedido e o tamanho do lote a partir da ocorrência de eventos. Para tanto, uma cadeia de suprimentos mono-produto composta de três níveis produtivos (varejista, distribuidor e manufatura) é simulada por eventos discretos considerando incerteza na demanda. O desempenho da cadeia de suprimentos é avaliado por métricas para o efeito chicote, nível de serviço ao cliente, responsividade, nível e ruptura do estoque, tamanho do lote e ponto de reposição. Os resultados mostram redução do efeito chicote, melhora no nível de serviço, redução da variabilidade dos lotes e melhor estabilidade dos estoques quando comparados com a política OUTL clássica. / The inventory control policy is a challenge in supply chain operation. It has to maintain inventory stability by avoiding amplification of the market demand in the supply chain levels while keeping good custom service. The inventory control policy determines the correct time (reorder point) and quantity (lot size) to fill inventories of the supply chain levels. This thesis proposes a new procedure to update both reorder points and lot sizes for an inventory control policy Order-Up-To-Level (OUTL) in continuous review systems. The new procedure modifies the classical OUTL policy by introducing the concept of absorption inventory characterized by the market demand and lead time in each chain level. This procedure updates order points and lot sizes when particular events have occurred. A mono-product supply chain composed by three levels (retailer, distribution, and manufacturing) is simulated by a discrete event simulation considering uncertainty in demand. The supply chain performance is evaluated by several metrics taking into account the bullwhip effect, customer service level, responsiveness, inventory level and stock out, and lot sizes and reorder points. The results show that the bullwhip effect and lot size variability are reduced, service level is improved, and inventories are stable when compared with the classical OUTL policy.

Tanzania’s good climatic condition of four agro-ecological zones and six farming system together with adequate good soils and water resources with reasonable rainfall patterns (except in semi-arid regions) are favourable for agricultural production. Despite this abundance of resources, Tanzania is still far from taping full potentials in crop production and productivity that could be attained if the existing agricultural resources were fully utilised. The agricultural sector has failed toraise the rural poor above the poverty line and has perpetuated the existing pervasive poverty among farming communities. These constraints facing the agricultural sector have contributed to low production and productivity of the agricultural sector. For several decades the agricultural sector has failed to fulfil its role as the “engine of economic growth”; as a result, the general picture of the Tanzania’s economy has remained untransformed and unreliable. Given the importance of agriculture as the mainstay of rural livelihoods, it must grow much faster to realise rural poverty reduction in Tanzania. In view of the above state of affairs, this study posed the following research questions: Are support activities and services in coffee production, processing and marketing significantly linked to allow application of Supply Chain Management (SCM)?; Do institutions responsible for coffee provide mandatory services to enable farmers undertake support activities and services in production, processing and marketing of this crop? Finally, are the coffee marketing support activities and services significantly integrated along the supply chain in order to enhance its marketing? Thus, the above underlined challenges and questions imply thatstagnation in agricultural development is a function of a multiplicity of soci-economic, technological and political factors. As a result, the call for improving the agricultural sector production and productivity needs a holistic approach, particularly the application of SCM. The above fact suggests that Tanzania should among others, find ways to increase agricultural production, productivity, promote agro-processing and expand markets for its agriproducts through a well co-coordinated system. The present study calls for a collaborative and integrative approach in the supply chain to plan and control the flow of value adding materials from the producers to the consumers. The objective of this study is to examine the application of the Conceptual Supply Chain Management Model (SCMM) in coffee support activities and services in the areas of production, processing and marketing in order to suggest an appropriate model that can improve production and productivity of the agricultural sector thereby enhancing the income of the rural poor and ultimately alleviating poverty and raising the standard of living of Tanzanians. Following the format prescribed by the University of South Africa, this thesis is organized into eight chapters. Also, it is structured in a coherent manner to bring the logic for the development of the conceptual framework for the coffee subsector in Kagera region. Chapter One provides the introduction and background information. It creates a base and sets a framework for the entire study. Chapter Two presents the literature review including both the theory and practice of SCM. It also presents the background and SCM development as well as the importance of integrating SCM in the agricultural sector in Kagera, Tanzania and the world at large. The objective of the chapter is to present an in-depth review of literature and show the gap so as to make justification for proposing a study on the application of the SCM in agriculture with reference to Coffee in Kagera Region. Chapter Three discusses the Model Development. It discusses the meaning and the type of conceptual models. Further more, it discusses the reasons for and the advantage of applying the conceptual models. Finally, it highlights the rationale for selecting a particular criterion for evaluating the conceptual models. Chapter Four presents research methodology including identification of the definition of research and different research methods and their respective instruments for undertaking this study. It presents the theoretical and research process, showing the types of research methods and research designs. It also presents in detail, sampling, sampling techniques and data collection techniques. Finally, the chapter highlights how the collected data have been organised, analysed and presented. Chapter Five is about research findings. It covers the outcome of the exercise set by Chapter Four. It presents descriptive and empirical information of basic agricultural support activities along the supply chain from production through consumption. It involves the analysis of the production, processing and marketing support activities to examine their influence on the production and productivity of coffee in Kagera Region. Chapter Six entails synthesis analysis and results. This is an amalgamation of the research findings as well as synthesis, descriptive and empirical analysis of those findings. Thus, the chapter is about the analysis of coffee production, processing and marketing support activities and services in Kagera Region. Chapter Seven describes the contribution to knowledge which shows the existing conceptual SCMM for coffee in Kagera. The Chapter presents the appropriate conceptual model which adopts planning of many components in the coffee supply chain such as suppliers, materials, resources, warehouses, transporters and customers. The Model has been developed and proposed for application in Kagera Region in order to address the shortcomings addressed in the analysis made in the existing model as indicated in Chapter Six. Chapter Eight presents the summary, conclusions and recommendations. In this chapter, the study concludes that coffee marketing support activities and services in Kagera are not significantly linked to production and processing in order to allow the application of SCM principles. Furthermore, it shows that coffee management institutions such as private coffee traders, cooperative unions, government regional and district agricultural offices and other stakeholders do not provide all mandatory services to enable coffee production, processing and marketing support activities and services. According to this study, marketing support services are not significantly integrated in the coffee supply chain that will enhance its marketing. Given this reality, this study proposes the adoption of the appropriate conceptual SCMM. The Coffee SCMM has been developed to coordinate key players and processes in coffee SCM for the integrated framework. The proposed model has been successfully implemented in many successful management systems. The conceptual model for Kagera integrates various participants involved in the entire coffee supply chain including coffee producers, processors and exporters. The Tanzania Coffee Board (TCB) is proposed to be the overall coordinator of the entire coffee supply chain. In addition, it proposes an information exchange procedure among players (feedback) initiated by consumers. For further studies, the study recommends three major blocks of studies such as support activities and services in the areas of SCM in coffee production, processing and marketing. Finally, the study proposes these three major areas to be individually and deeply studied. / Business Management / D.B.L.

Only a few middlemen linking chemical intermediate product supply to world tyre productions have managed to survive new direct business models. In fact, the only region, where the practice of using a middleman in the supply chain of tyre production, for a certain primary manufacturer, is in South Africa. Tyre producers in other world regions, similar in market complexity to South Africa, have experienced the elimination of the middleman. Hence the question of this research, why is the middleman in the supply chain of tyre production in South Africa still a better option than that of direct business models? To begin with, the thesis stated that the middleman in the supply chain of South African tyre producers delivers better value than that of the direct business model. To prove/disprove this thesis, the principle that value is a trade-off between what you get for what you give was the basis of this research (Zeithaml, 1998). Further, a model was developed, from secondary literature, to conceptualise this trade-off to provide evidence to prove/disprove that the middleman provides greater value than value from the direct business model. From this point, the research approach was to collect data through interviews to find out the most important aspect of value created by the middleman. Data collected were analysed, using the structure of the model as a guide, to find evidence of the trade-off. This analysis provided evidence that the relationship between the middleman and the tyre producers in South Africa and between the middleman and primary product supplier is the value that the direct business model cannot replace.

Reverse logistics is an important process that is often misunderstood. Reverse logistics can cause considerable cost, but provide numerous opportunities. Many organisations do not understand the correct processes and procedures to follow and how to manage reverse logistics efficiently. The focus of this study was on best practices in reverse logistics. A best practice framework was developed to help organisations overcome problems and manage their reverse logistics more efficiently. This study adopted a mixed method research approach with both qualitative and quantitative elements. A comprehensive literature study was conducted to develop a conceptual best practice framework in reverse logistics and a survey was conducted to seek inputs from industry in South Africa to refine the framework into a workable instrument in practice. The study concluded that the best practices identified in literature have proven to be important in practice, and applying such practices will enable organisations to manage their reverse logistics more efficiently. / Business Management / M. Com. (Logistics)

Abstract in English, Afrikaans and Sesotho / The study was inspired by the global phenomenon of failure rates of outsourcing ventures; yet, the outsourcing value proposition of 3PL providers is promising and potentially lucrative. The approach of the outsourcing venture was thus investigated, specifically how to align and integrate outsourcing parameters appropriately at the inception of the outsourcing venture in order to attain the benefits brought about by the outsourcing decision over the projected life of the outsourcing venture. To this effect, a strategic decision-making model, with the objective of ascertaining optimal alignment and integration was developed. The model comprises a dualistic development followed by a methodological process path to operationalise the strategic decision-making model. A services continuum (development one) is established, which is a permutation matrix that classifies four aspects of importance (service type, category of 3PL provider, strategic alignment and investment), in order to align the aspects optimally and enable appropriate model application. The services continuum is a conglomeration of nine models:  a capabilities matrix for 3PL provider services;  a framework for evaluating the supply chain role of 3PL providers;  a mathematical model;  a supplier selection and evaluation process;  a presentation of the Hayes–Wheelwright framework;  an outsourcing variables differentiated model;  four categories of the 3PL providers model;  an estimated path model; and  a process integration via survey data collection model. The services continuum was extended for utilisation with risk management practices, and an outsourcing risk matrix (development two) was established. The enablement of the outsource risk matrix is an element review, consisting of three categories: collaboration and integrated planning systems; performance measurement; and broad-based black economic empowerment. The strategic decision-making methodology process path was developed as having three phases, which operationalise the strategic decision-making model. The research was primarily focussed on literature reviews, with the models classified according to the services continuum. To a lesser extent, the research focussed on primary data, which served as model application input specifically for application requirements related to Sasol. The study established a universally applicable strategic decision-making model, as well as the application of the model for Sasol’s outbound (final packaged product) supply chain. / Thuto e ile ya kgothaletswa ke tshebetso ya lefatshe mabapi le maemo a ho hloleha ha ho nyaolwa/ntshuwa ha diprojeke kgwebong; leha ho le jwalo, tlhahiso ya boleng ba ditshebeletso tsa 3PL e a tshepisa ebile e ka ba le hlahiso ya tjhelete e ngata. Ka tsela eo, mokgwa wa ho tswa kgwebong o ile wa phenyekollwa, haholoholo mabapi le ho tsamaisana le ho kenyelletsa maemo a ho ntshetsa pele maruo ka mokgwa o nepahetseng ha ho thehwa kgwebo ya ho ntshetsa pele ho fumana melemo e tliswang ke qeto ya ho ntshetsa pele ka bophelo ba morero wa ho nyaolwa kgwebong. Ka lebaka lena, ho ntshetswa pele mokgwa/motlolo o motle wa ho etsa diqeto, ka sepheo sa ho netefatsa hore ho na le boemo bo nepahetseng le ho kopanngwa ho tsitsitseng. Motlolo ona o na le ntshetso pele e habedi e latelwang ke tshebetso ya mokgwa wa ho kenya tshebetsong tsela ya ho nka diqeto. Tatellano ya ditshebeletso e tswelang pele (ntshetsopele ya pele) e a thehwa, e leng phethoho ya tikoloho e kgethollang dikarolo tse nne tsa bohlokwa (mofuta oa tshebeletso, mokga wa mofani wa 3PL, kemiso ya moralo le matsete), e le ho dumellana le dintlha ka tsela e nepahetseng le ho etsa hore ho sebediswe motlolo hantle. Ditshebeletso tse tswelang pele ke kopano ya dimotlolo tse robong:  bokgoni ba maemo a tikoloho bakeng sa ditshebeletso tsa bafani ba 3PL;  sebopeho sa ho hlahloba phepelo ya tatellano ya ho nka karolo ha bafani ba 3PL;  mokgwa/motlolo wa mathemathiks;  kgetho ya mofani le mokgwa wa o hlahloba;  tlhaloso ya moralo wa Hayes-Wheelwright;  mefuta e fapaneng ya ho nyaola dikarolo tse fapaneng;  ntho tse mene tsa bafani ba 3PL;  mohlala wa tsela ya dimotlolo; le  mokgwa wa ho kopanya ka mokgwa wa ho bokella lesedi la dipatlisiso. Dishebeletso tse tswelang pele di ile tsa atoloswa bakeng sa tshebediso ya mekgwa ya taolo ya dikotsi, mme maemo a tikoloho a kotsing ya boipheliso (ntlafatso ya bobeli) a thehwa. Ho kengwa tshebetsong ha kotsi ya maemo a tikoloho ke ntho e shejwang botjha e nang le mekga e meraro: mekgwa ya ho sebedisana le meralo e kopanetsweng; tekanyo ya tshebetso; le ho matlafatsa bofuma ba batho batsho lehlakoreng la moruo. Mokgwa wa ho etsa diqeto o ile wa ntlafatswa e le o nang le mekgahlelo e meraro, e sebetsang ka mokgwa o motle wa ho etsa diqeto. Phuputso e ne e lebisitswe haholo ditabeng tsa tlhahlobo ya dingodilweng, le dimotlolo tse kgethollwang ho latela ditshebeletso tse tswelang pele. Ho ya ka tekanyo e nyenyane, dipatlisiso di lebisitse tlhokomelong ya lesedi la mantlha, le neng le sebetsa e le mokgwa wa ho kenya letsoho bakeng sa ditlhoko tsa kopo tse amanang le Sasol. Phuputso ena e thehile mokgwa wa ho etsa diqeto tse amohelehang lefatsheng ka bophara, hammoho le ho sebediswa ha setshwantsho sa phepelo ya tlhahiso ya Sasol (thlahiso ya ho qetela). / Dié studie is deur die globale verskynsel van die falingstempo van uitkontrakteringsondernemings geïnspireer; ten spyte hiervan lyk die uitkontrakteringswaardevoorstel van 3PL-verskaffers belowend en is dit potensieel winsgewend. Die benadering wat die uitkontrakteringonderneming volg, is derhalwe ondersoek en in die besonder hoe om die uitkontrakteringparameters by die aanvang van die uitkontrakteringonderneming toepaslik in lyn te stel en te integreer om die voordele te benut van die uitkontrakteringsbesluit oor die geprojekteerde lewe van die uitkontrakteringsonderneming. ’n Strategiesebesluitnemingsmodel wat ten doel het om optimale inlynstelling en integrasie te verseker, is dus ontwikkel. Die model bestaan uit ’n dualistiese ontwikkeling, gevolg deur ’n metodologiese prosesbaan om die strategiese besluitnemingsmodel te operasionaliseer. ’n Dienstekontinuum (ontwikkeling een) is op die been gebring, wat ’n permutasiematriks is wat vier aspekte van belangrikheid (dienssoort, kategorie van die 3PL-verskaffer, strategiese inlynstelling en investering) klassifiseer, ten einde die aspekte optimaal in lyn te stel en toepaslike modeltoepassing moontlik te maak. Die dienstekontinuum bestaan uit ’n versameling van nege modelle:  ’n bekwaamheidsmatriks vir 3PL-diensverskafferdienste;  ’n raamwerk om die voorsieningskettingsrol van 3PL-verskaffers te evalueer;  ’n wiskundige model;  ’n verskafferseleksie en evalueringsproses;  ’n aanbieding van die Hayes-Wheelwright-raamwerk;  ’n uitkontrakteringsveranderlike-gedifferensieerde model;  vier kategorieë van die 3PL-verskaffersmodel;  ’n geraamde baanmodel; en  prosesintegrasie deur middel van ’n ondersoekdata-insamelingsmodel. Die dienstekontinuum is uitgebrei vir gebruik by risikobestuurspraktyke en ’n uitkontrakteringrisikomatriks (ontwikkeling twee) is op die been gebring. Die bemagtiging van die uitkontrakteringsrisikomatriks is ’n elementhersiening, wat uit drie kategorieë bestaan: samewerkings- en geïntegreerdebeplanningstelsels; prestasiemeting; en breë swart ekonomiese bemagtiging. Die strategiese besluitnemingsmetodologieprosesbaan is met drie fases ontwikkel, wat die strategiese besluitnemingsmodel operasionaliseer. Die navorsing het hoofsaaklik op literatuuroorsigte gefokus, met die modelle wat volgens die dienstekontinuum geklassifiseer is. Die navorsing het in ’n mindere mata op die primêre data gekonsentreer, wat as die modeltoepassingsinset gedien het, in die besonder vir die toepassingsvereistes wat op Sasol betrekking het. Die studie het ’n universele, toepaslike strategiesebesluitnemingsmodel daargestel, asook die aanwending van die model op Sasol se uitgaande voorsieningsketting (finaal verpakte produk). / Business Management / D. Phil. (Management Studies)

Este trabalho considera uma cadeia de suprimentos (CS) que opera com logística reversa. A modelagem da CS foi adaptada de um modelo de Programação Linear Inteira Mista (PLIM) da literatura que maximiza o valor presente líquido (VPL) esperado para o caso de uma empresa brasileira. Esta adaptação considera uma CS de menor complexidade, com um número menor de nós e produtos em relação à aplicação da literatura. A estrutura da CS considerada é formada por duas fábricas, dois centros de distribuição, dois pontos varejistas e quatro mercados consumidores, assim como fluxos de transporte direto e reverso de produtos. A modelagem da CS considera ainda incertezas na demanda e cenários com e sem tributação. Os resultados mostram os fluxos de transporte de produtos no sentido direto e reverso, estoques ao longo da CS, assim como aspectos econômicos segundo regras tributárias e incentivos fiscais. Estes aspectos econômicos são utilizados para justificar o investimento na logística reversa. Embora a incerteza na demanda altere o VPL esperado, que é maior quando cenários otimistas de demanda são considerados, resultados obtidos para diversos cenários de demanda mostram que esta alteração não é significativa. / This dissertation considers a supply chain (SC) with reverse logistics. The SC modeling has been modified for a Brazilian company from a MILP model which maximizes the expected net present value (NPV) found in the literature. This modification considers a low complexity SC with fewer number of nodes and products than the application of the literature.The SC structure is composed by two factories, two warehouses, two retailers, and four markets as well as direct and reverse flows of products. The SC modeling also considers demand uncertainty and cenarios with and without taxes. The results show direct and reverse flows of products, inventories, and economic aspects according to tax rules and incentives. These economic aspects are used to justify the investment in reverse logistics. Although the demand uncertainty changes the expected NPV, which is big for cenarios with optimistic demand, the results obtained for several cenarios of demand show that the expected NPV is not quite affected.

Este trabalho considera uma cadeia de suprimentos (CS) que opera com logística reversa. A modelagem da CS foi adaptada de um modelo de Programação Linear Inteira Mista (PLIM) da literatura que maximiza o valor presente líquido (VPL) esperado para o caso de uma empresa brasileira. Esta adaptação considera uma CS de menor complexidade, com um número menor de nós e produtos em relação à aplicação da literatura. A estrutura da CS considerada é formada por duas fábricas, dois centros de distribuição, dois pontos varejistas e quatro mercados consumidores, assim como fluxos de transporte direto e reverso de produtos. A modelagem da CS considera ainda incertezas na demanda e cenários com e sem tributação. Os resultados mostram os fluxos de transporte de produtos no sentido direto e reverso, estoques ao longo da CS, assim como aspectos econômicos segundo regras tributárias e incentivos fiscais. Estes aspectos econômicos são utilizados para justificar o investimento na logística reversa. Embora a incerteza na demanda altere o VPL esperado, que é maior quando cenários otimistas de demanda são considerados, resultados obtidos para diversos cenários de demanda mostram que esta alteração não é significativa. / This dissertation considers a supply chain (SC) with reverse logistics. The SC modeling has been modified for a Brazilian company from a MILP model which maximizes the expected net present value (NPV) found in the literature. This modification considers a low complexity SC with fewer number of nodes and products than the application of the literature.The SC structure is composed by two factories, two warehouses, two retailers, and four markets as well as direct and reverse flows of products. The SC modeling also considers demand uncertainty and cenarios with and without taxes. The results show direct and reverse flows of products, inventories, and economic aspects according to tax rules and incentives. These economic aspects are used to justify the investment in reverse logistics. Although the demand uncertainty changes the expected NPV, which is big for cenarios with optimistic demand, the results obtained for several cenarios of demand show that the expected NPV is not quite affected.

Reverse logistics is an important process that is often misunderstood. Reverse logistics can cause considerable cost, but provide numerous opportunities. Many organisations do not understand the correct processes and procedures to follow and how to manage reverse logistics efficiently. The focus of this study was on best practices in reverse logistics. A best practice framework was developed to help organisations overcome problems and manage their reverse logistics more efficiently. This study adopted a mixed method research approach with both qualitative and quantitative elements. A comprehensive literature study was conducted to develop a conceptual best practice framework in reverse logistics and a survey was conducted to seek inputs from industry in South Africa to refine the framework into a workable instrument in practice. The study concluded that the best practices identified in literature have proven to be important in practice, and applying such practices will enable organisations to manage their reverse logistics more efficiently. / Business Management / M. Com. (Logistics)

The objective of this study was to investigate and compare the brokered transport costs of road and rail transport for the independent timber growers of NCT Forestry Co-operative Limited in Kwa-Zulu-Natal. Reliability, flexibility, visibility, rates and total transport time were evaluated for each mode of transport. The impact of the carbon emissions was also considered and the option of performance based standard vehicles investigated. During the period 2000 to 2003, rail was the dominant mode of transport. However from 2004 onwards, due to the diminishing service levels and the high tariff structures of rail transport, road became the preferred mode of transport. The results of the survey conducted for the purposes of this study showed that although road transport outperformed rail transport, rail transport scored significantly higher than road transport as a cost-effective mode of transportation. Rail transport was shown to be a far less carbon intensive mode of transport than road transport, while there were substantial cost savings and benefits from performance based standard vehicles. / Transport Economics, Logistics and Tourism / M. Com. (Logistics)