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.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:9564 |
| Date | 16 August 2012 |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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