A Research Report submitted to the Faculty of Engineering and Built Environment, University of the Witwatersrand, in fulfilment of the requirements for the degree of Master of Science in Engineering, October 2019 / Today, an organisation’s successful operations and bottom line is impacted by logistics management. Effectively organized logistics can help reduce costs and time spent to move products from one point to another. According to KPMG (2016) FMCG is characterised by companies that supply low-cost products that are in constant high demand. These products include food, beverages, personal hygiene and household cleaning utensils (KPMG, 2016). Due to complexity and customer requirements in the FMCG industry, the final part of transporting goods to customers is a very inefficient and highly expensive part of logistics. FMCG companies, thus, face high transport costs and inefficiencies in the distribution of finished goods to customers. The aim of this research was to identify the factors impacting the efficiency of the distribution of finished goods to multiple customers at an FMCG company. Nine valid interviews were used for data analysis. Interviews were transcribed and hand coded into themes to identify the factors. Secondary data was analysed from the company’s database using Microsoft Excel. Seven factors that impact the efficiency of the distribution of finished goods to multiple customers were identified. These included minimum order quantity and full truck loads, planning and process, resource management, inventory management replenishment, supply network, delivery frequency, truck turnaround time and booking slot. / PH2020

Text in Afrikaans, abstract in Afrikaans and English / Die tradisionele Suid-Afrikaanse kontant-afhaal-groothandelaar het vir meer as twintig jaar in sy bestaande vorm oorleef maar vertoon tans tekens van 'n kragtige innoveringsproses. Aspekte soos kleiner verpakkings, kredietverlening, aflewering en bemarking aan die verbruiker wat teen die grondbeginsels van die tradisionele kontant-afhaal-groothandel indruis, is besig om pos te vat. Die impetus tot innovering is afkomstig van veranderings in die doelmark en spesifiek as gevolg van die insluiting van die spazawinkeldoelmark. Verhoogde groei in die kontant-afhaalgroothandelsektor kan deels toegeskryf word aan die opkoms van die spazawinkel maar ongelukkig is hierdie doelmark nog te klein en versplinter om die voortbestaan van die kontant-afhaal-groothandelaar te waarborg. Die navorsing toon dat die spazawinkel 'n belangrike, toekomstige doelmark van die kontant-afhaal-groothandelaar is. In die navorsing wat gedoen is, is menings van die kontant-afhaal-groothandelaars ingewin oor 'n verskeidenheid aspekte aangaande die plek en funksie van die kontant-afhaal-groothandelaar in die Suid-Afrikaanse distribusiekanaal. Van die bevindings was dat intratipe mededinging toegeneem het en dat dit die voortbestaan van die kleiner kontant-afhaal-groothandelaars bedreig. Die groot kleinhandel is ge'identifiseer as die kontant-afhaal-groothandelaar se grootste mededinger. Strawwe mededinging dwing die kontant-afhaal-groothandelaar om sy bemarkingsfunksies te verander en veranderings is reeds aan die verpakkings-, verkoopsverteenwoordigers-, krediet- en afleweringsfunksies aangebring. Gevolglik verrig die kontant-afhaal-groothandelaar al hoe meer kleinhandels- en aldiensgroothandelsfunksies. Daar is sprake van die ontwikkeling van 'n nuwe tipe kontantafhaal- groothandelaar wat eienskappe van die groot kleinhandel en die aldiensgroothandel besit. Sa.IJ).evattend kan gekonstateer word dat die kontant-afhaal-groothandelaar beslis 'n belangrike plek in die Suid-Afrikaanse distribusiekanaal het. Die voortbestaan van die kontant-afhaal-groothandelaar in die distribusiekanaal is grootliks afhanklik van sy vermoe om aanpassings aan sy bemarkingsfunksies te maak om tred te hou by veranderende doelmarkte. / The traditional South African cash and carry wholesaler survived for more than twenty years in its present form but shows signs of a strong innovative process. Aspects such as smaller packaging, credit, delivery and consumer marketing, which go against the principles of the traditional cash and carry wholesaler, are taking root. The impetus for innovation derives from changes in the target market, specifically as a result of the inclusion of the spaza shop target market. Increased ' growth in the cash and carry wholesale sector can partly be ascribed to the rise of the spaza shop, but this target market is unfortunately still too small and fragmented to guarantee the survival of the cash and carry wholesaler. The research shows that the spaza shop is an important future market of the cash and carry wholesaler. In the research undertaken the opinions of cash and carry wholesalers were gathered on various aspects of the role of the cash and carry wholesaler in the South African distribution channel. The main findings are that mutual competition has increased and this threatens the survival of the smaller cash and carry wholesalers. The large retailer was identified as the main competitor of the cash and carry wholesaler. Intensive competition forces the cash and carry wholesaler to modify its marketing functions. Modifications have already been made to the packaging, sales representative, credit and delivery functions. Consequently, the cash and carry wholesaler performs more functions typical of the large retailer and full-service wholesaler. There are indications that a new type of cash and carry wholesaler is developing with characteristics of both the large retailer and the full-service wholesaler. It can be concluded that the cash and carry wholesaler definitely performs an important role in the South African distribution channel. The existence of the cash and carry wholesaler in the distribution channel depends largely on its ability to adapt its marketing functions to keep abreast with changing target markets. / Business Management / D.Comm. (Sakebestuur)

(MBA) North-West University, Mafikeng Campus, 2005

Text in Afrikaans, abstract in Afrikaans and English / Die tradisionele Suid-Afrikaanse kontant-afhaal-groothandelaar het vir meer as twintig jaar in sy bestaande vorm oorleef maar vertoon tans tekens van 'n kragtige innoveringsproses. Aspekte soos kleiner verpakkings, kredietverlening, aflewering en bemarking aan die verbruiker wat teen die grondbeginsels van die tradisionele kontant-afhaal-groothandel indruis, is besig om pos te vat. Die impetus tot innovering is afkomstig van veranderings in die doelmark en spesifiek as gevolg van die insluiting van die spazawinkeldoelmark. Verhoogde groei in die kontant-afhaalgroothandelsektor kan deels toegeskryf word aan die opkoms van die spazawinkel maar ongelukkig is hierdie doelmark nog te klein en versplinter om die voortbestaan van die kontant-afhaal-groothandelaar te waarborg. Die navorsing toon dat die spazawinkel 'n belangrike, toekomstige doelmark van die kontant-afhaal-groothandelaar is. In die navorsing wat gedoen is, is menings van die kontant-afhaal-groothandelaars ingewin oor 'n verskeidenheid aspekte aangaande die plek en funksie van die kontant-afhaal-groothandelaar in die Suid-Afrikaanse distribusiekanaal. Van die bevindings was dat intratipe mededinging toegeneem het en dat dit die voortbestaan van die kleiner kontant-afhaal-groothandelaars bedreig. Die groot kleinhandel is ge'identifiseer as die kontant-afhaal-groothandelaar se grootste mededinger. Strawwe mededinging dwing die kontant-afhaal-groothandelaar om sy bemarkingsfunksies te verander en veranderings is reeds aan die verpakkings-, verkoopsverteenwoordigers-, krediet- en afleweringsfunksies aangebring. Gevolglik verrig die kontant-afhaal-groothandelaar al hoe meer kleinhandels- en aldiensgroothandelsfunksies. Daar is sprake van die ontwikkeling van 'n nuwe tipe kontantafhaal- groothandelaar wat eienskappe van die groot kleinhandel en die aldiensgroothandel besit. Sa.IJ).evattend kan gekonstateer word dat die kontant-afhaal-groothandelaar beslis 'n belangrike plek in die Suid-Afrikaanse distribusiekanaal het. Die voortbestaan van die kontant-afhaal-groothandelaar in die distribusiekanaal is grootliks afhanklik van sy vermoe om aanpassings aan sy bemarkingsfunksies te maak om tred te hou by veranderende doelmarkte. / The traditional South African cash and carry wholesaler survived for more than twenty years in its present form but shows signs of a strong innovative process. Aspects such as smaller packaging, credit, delivery and consumer marketing, which go against the principles of the traditional cash and carry wholesaler, are taking root. The impetus for innovation derives from changes in the target market, specifically as a result of the inclusion of the spaza shop target market. Increased ' growth in the cash and carry wholesale sector can partly be ascribed to the rise of the spaza shop, but this target market is unfortunately still too small and fragmented to guarantee the survival of the cash and carry wholesaler. The research shows that the spaza shop is an important future market of the cash and carry wholesaler. In the research undertaken the opinions of cash and carry wholesalers were gathered on various aspects of the role of the cash and carry wholesaler in the South African distribution channel. The main findings are that mutual competition has increased and this threatens the survival of the smaller cash and carry wholesalers. The large retailer was identified as the main competitor of the cash and carry wholesaler. Intensive competition forces the cash and carry wholesaler to modify its marketing functions. Modifications have already been made to the packaging, sales representative, credit and delivery functions. Consequently, the cash and carry wholesaler performs more functions typical of the large retailer and full-service wholesaler. There are indications that a new type of cash and carry wholesaler is developing with characteristics of both the large retailer and the full-service wholesaler. It can be concluded that the cash and carry wholesaler definitely performs an important role in the South African distribution channel. The existence of the cash and carry wholesaler in the distribution channel depends largely on its ability to adapt its marketing functions to keep abreast with changing target markets. / Business Management / D.Comm. (Sakebestuur)

D.Phil. / The spatial distribution patterns of wholesale establishments on an intra-urban level is a neglected field of study. This is mainly due to the fact that various disciplines regard the wholesale establishment merely as an annexure to industrial land-uses. This study attempts to prove that wholesaling has its own distinct character and that it is indeed necessary to give more serious attention to the locational problem of wholesale establishments ...

The purpose of this research paper is to examine and evaluate the economic significance of the pharmaceutical wholesaler in South Africa’s health care industry. The pharmaceutical wholesaler experienced several challenges over the last decade. These challenges originated from changes in the competitive environment of the industry and more recent changes in the regulatory environment brought on by the State in its attempts to make medicine more accessible to the South African public. The wholesaler was forced by these changes to adapt its business model drastically in order to remain competitive. Historically the wholesaler made its profits by purchasing bulk at a discount, passing a fraction of the discount to its customers and adding a mark-up to the purchase price. It was now forced to abandon the discount and mark-up scheme and distribute medicines by negotiating a fee for the services it renders. Wholesalers now not only have to compete between themselves but also with distributors on the same basis - by negotiating logistics fees with pharmaceutical manufacturers. Operating efficiency and customer service have become essential ingredients for the wholesaler in its quest to remain competitive. / Graduate School of Business Leadership / MBL

Most contemporary South African businesses are facing tough times. This is the result of emerging trends such as intense global competition which requires businesses to be quick, agile and flexible; new technology available to any business willing to adopt it; more advanced customer expectations and the implementation of new strategic, proactive management approaches. In fact, many of them (including wholesalers) will succeed only if they can successfully integrate strategy, processes, business arrangement, resources, systems and empowered workforces to render their core business effectively. Choosing suppliers and purchasing products are critical wholesaling activities and often determine the success of wholesalers. Wholesaling institutions, however, vary considerably in size, activity, style of business, types of products provided and services rendered. These variables imply that the complexity of wholesaling activities differs. It therefore stands to reason that the level of sophistication with which these wholesalers manage their purchasing, sourcing and supply activities may differ. The level of sophistication with which wholesalers manage their purchasing, sourcing and supply function may vary from traditional management approaches to advanced integrated management approaches. The use of the new management approaches by businesses is a vital instrument in facilitating change. This leads to the development of more focused, specialised and high-performance organisations. Manufacturers are not geared to deal directly with the thousands of small retailers and therefore use wholesalers for this function. Wholesalers provide a vital link between manufacturers and retailers, and play a pivotal role in efficiency of the whole supply chain. Adapting to the supply chain management approach may thus mean the difference between success, failure and the continued existence of the wholesaler in supply chains. This research study was undertaken to determine to what extent wholesalers in South Africa have adapted to new demands and developments in their purchasing, sourcing and supply functions. Secondary to this objective was the need to (1) investigate the scope of wholesaling, with reference to the global and South African context; (2) investigate the concepts of and the evolution of purchasing to strategic sourcing as part of the broader supply chain management approach; (3) analyse the scope and concept of supply chain management; and (4) determine the purchasing, sourcing and supply management approaches used by the wholesale sector in South Africa. The study was conducted in several phases. Firstly, a literature research was conducted to gather and integrate secondary data in order to (1) expound the definitions, importance, types, activities and trends of wholesalers; and (2) investigate the development of purchasing to strategic sourcing and evolution of supply chain management, and to give an overview of purchasing, strategic sourcing and supply chain management. Secondly, a questionnaire was compiled containing all the relevant issues identified in the literature research to enable the researcher to establish how far South African wholesalers have advanced in adopting new approaches to managing the purchasing, sourcing and supply function. This questionnaire was pretested on two respondents to verify its validity, before proceeding to the next step. Thirdly, a letter and the refined and tested questionnaire were mailed to all the wholesalers identified to be involved in the survey, informing them of the research study and soliciting their cooperation. The letter requested the participants to return the questionnaire via facsimile. Fourthly, to improve the response rate, after the date for returning the questionnaire had lapsed, additional questionnaires were faxed to all the respondents who had not completed the initial questionnaire. The literature research established that the new demands and developments facing wholesalers in managing their purchasing, sourcing and supply function are a reality. Wholesalers are confronted with a variety of challenges concerning these demands and developments which is jeopardising their vital role in the supply chain, and they need to adopt a more sophisticated method of managing these activities, not only to ensure their own survival, but also to lower the costs of the wholesale operation, and ultimately allow an increase in shareholders' wealth. The empirical study, however, clearly indicated that South African wholesalers are still significantly focused on the tactical aspects of purchasing, incorporating only a few aspects of strategic sourcing and supply chain management. The position of South African wholesalers regarding the level of sophistication in their management approach to the purchasing, sourcing and supply chain management approach can be regarded as a mechanical approach, with proactive tendencies. It is therefore clear that South African wholesalers have not adapted to the strategic sourcing and supply chain management approaches, and need to prepare themselves for this change - or risk failure. / Business Management / M. Comm.

Most contemporary South African businesses are facing tough times. This is the result of emerging trends such as intense global competition which requires businesses to be quick, agile and flexible; new technology available to any business willing to adopt it; more advanced customer expectations and the implementation of new strategic, proactive management approaches. In fact, many of them (including wholesalers) will succeed only if they can successfully integrate strategy, processes, business arrangement, resources, systems and empowered workforces to render their core business effectively. Choosing suppliers and purchasing products are critical wholesaling activities and often determine the success of wholesalers. Wholesaling institutions, however, vary considerably in size, activity, style of business, types of products provided and services rendered. These variables imply that the complexity of wholesaling activities differs. It therefore stands to reason that the level of sophistication with which these wholesalers manage their purchasing, sourcing and supply activities may differ. The level of sophistication with which wholesalers manage their purchasing, sourcing and supply function may vary from traditional management approaches to advanced integrated management approaches. The use of the new management approaches by businesses is a vital instrument in facilitating change. This leads to the development of more focused, specialised and high-performance organisations. Manufacturers are not geared to deal directly with the thousands of small retailers and therefore use wholesalers for this function. Wholesalers provide a vital link between manufacturers and retailers, and play a pivotal role in efficiency of the whole supply chain. Adapting to the supply chain management approach may thus mean the difference between success, failure and the continued existence of the wholesaler in supply chains. This research study was undertaken to determine to what extent wholesalers in South Africa have adapted to new demands and developments in their purchasing, sourcing and supply functions. Secondary to this objective was the need to (1) investigate the scope of wholesaling, with reference to the global and South African context; (2) investigate the concepts of and the evolution of purchasing to strategic sourcing as part of the broader supply chain management approach; (3) analyse the scope and concept of supply chain management; and (4) determine the purchasing, sourcing and supply management approaches used by the wholesale sector in South Africa. The study was conducted in several phases. Firstly, a literature research was conducted to gather and integrate secondary data in order to (1) expound the definitions, importance, types, activities and trends of wholesalers; and (2) investigate the development of purchasing to strategic sourcing and evolution of supply chain management, and to give an overview of purchasing, strategic sourcing and supply chain management. Secondly, a questionnaire was compiled containing all the relevant issues identified in the literature research to enable the researcher to establish how far South African wholesalers have advanced in adopting new approaches to managing the purchasing, sourcing and supply function. This questionnaire was pretested on two respondents to verify its validity, before proceeding to the next step. Thirdly, a letter and the refined and tested questionnaire were mailed to all the wholesalers identified to be involved in the survey, informing them of the research study and soliciting their cooperation. The letter requested the participants to return the questionnaire via facsimile. Fourthly, to improve the response rate, after the date for returning the questionnaire had lapsed, additional questionnaires were faxed to all the respondents who had not completed the initial questionnaire. The literature research established that the new demands and developments facing wholesalers in managing their purchasing, sourcing and supply function are a reality. Wholesalers are confronted with a variety of challenges concerning these demands and developments which is jeopardising their vital role in the supply chain, and they need to adopt a more sophisticated method of managing these activities, not only to ensure their own survival, but also to lower the costs of the wholesale operation, and ultimately allow an increase in shareholders' wealth. The empirical study, however, clearly indicated that South African wholesalers are still significantly focused on the tactical aspects of purchasing, incorporating only a few aspects of strategic sourcing and supply chain management. The position of South African wholesalers regarding the level of sophistication in their management approach to the purchasing, sourcing and supply chain management approach can be regarded as a mechanical approach, with proactive tendencies. It is therefore clear that South African wholesalers have not adapted to the strategic sourcing and supply chain management approaches, and need to prepare themselves for this change - or risk failure. / Business Management / M. Comm.

The purpose of this research paper is to examine and evaluate the economic significance of the pharmaceutical wholesaler in South Africa’s health care industry. The pharmaceutical wholesaler experienced several challenges over the last decade. These challenges originated from changes in the competitive environment of the industry and more recent changes in the regulatory environment brought on by the State in its attempts to make medicine more accessible to the South African public. The wholesaler was forced by these changes to adapt its business model drastically in order to remain competitive. Historically the wholesaler made its profits by purchasing bulk at a discount, passing a fraction of the discount to its customers and adding a mark-up to the purchase price. It was now forced to abandon the discount and mark-up scheme and distribute medicines by negotiating a fee for the services it renders. Wholesalers now not only have to compete between themselves but also with distributors on the same basis - by negotiating logistics fees with pharmaceutical manufacturers. Operating efficiency and customer service have become essential ingredients for the wholesaler in its quest to remain competitive. / Graduate School of Business Leadership / MBL