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Logistics efficiency in the South African chemical distribution sector.

The chemical raw material distribution sector in South Africa is a very competitive
market segment, moving mainly commodity raw materials between their
manufacturers and the finished goods manufacturers. With ever more
knowledgeable customers demanding service excellence and inventory
availability, with short lead times, the distributors need to leverage their logistics
efficiencies to set themselves apart by offering unique additional value to their
customers. This also improves margins, providing a sustainable competitive edge.
The objective of the study was to identify best practices and technology tools to
improve logistics efficiencies, information systems to enable these best practices
and human resource and training aspects that need to be considered within the
South African context. After an initial explorative literature review, the data that
was analysed through descriptive and inferential statistics, in support of the
objectives, was derived from a phenomenological interview schedule completed by
33 subjects and a structured questionnaire completed by 121 subjects, comprising
of elements from suppliers, distributors and customers. The literature review
revealed a number of business operations and logistics management concepts
and best practice management tools useful for logistics improvements. The need
for good information and communication was highlighted, along with the need for
appropriately designed, networked business supply chains that meet the
customers’ buying behaviours. Furthermore a number of technological tools and
information systems to enable the best practices were revealed. It was found that
correctly identified core capabilities necessary for success assist in identifying core
competencies and skills needed. A number of skills development methods were
identified. From research data collected, the constraints and needs discussed and
recommendations received, it was confirmed that a number of the best practices,
technology tools, information systems, human resource strategies and skills
development techniques identified in the literature review and the data are
applicable in the chemical raw material distribution sector in South Africa. It is
recommended that distributors invest in technology and information systems,
focus on supply chain design, demand forecasting, advanced shipping notices,
effective management tools and invest in skills development to improve logistics efficiency. / Thesis (MBA)-University of KwaZulu-Natal, Durban, 2012.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ukzn/oai:http://researchspace.ukzn.ac.za:10413/10803
Date January 2012
CreatorsBayley, Karen.
ContributorsMcCabe, Danny.
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis

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