Logistics

Supply chain complexity drivers are also profitability drivers

TafaraSvosve.jpgNo one introduces complexity into their supply chains just for the sake of it. Complexity emerges as organisations pursue their profit goals. Within every strategy or action that an organisation pursues to improve profitability, lies a hidden cost of complexity, which supply chain practitioners must be aware of, capture and deal with. This is necessary because complexity drivers are also profitability drivers, explains Tafara Svosve (MSc Supply Chain Management, CMILT), in this month's SmartProcurement.

Logistics: an opportunity for competitive advantage

TafaraSvosve.jpg"What business strategy is all about is, in a word, competitive advantage. The sole purpose of strategic planning is to enable a company to gain, as efficiently as possible, a sustainable edge over its competitors. Corporate strategy thus implies an attempt to alter a company's strength relative to that of its competitors in the most efficient way" (Kenichi Ohmae, 1982).

Recessionary markets and increasingly fierce global competition are two of the main challenges facing organisations today in their quest to gain and sustain competitive advantage. However, providing a level of service that stands above the rest can rarely be achieved if a supplier fails to focus on its logistics strategy, argues Tafara Svosve (MSc Supply Chain Management; CMILT). A new management approach that recognises and locates logistics in its rightful place on a strategic platform (rather than merely a support activity) is required if organisations are to achieve and sustain competitive advantage, writes Svosve in this month's SmartProcurement.

Importance of logistics in supply chains: a micro perspective

TafaraSvosve.jpgToday companies face increasing levels of competitive pressure and challenges to maintain and improve profitability. There is also increasing pressure from customers and shareholders, necessitating that managers seek ways of reducing costs, while at the same time improving performance.

In a series of SmartProcurement articles, Tafara Svosve (Msc Supply Chain Management; CMILT) will focus on the role of logistics in supply chains. Our goal is to help our readers identify skills gaps they need to close to improve their logistics operations and, hopefully, improve the overall logistics performance index of their countries on a global scale.

Drones delivering blood for transfusions: Supply Chain Innovation

 

drones_.jpgA drone service delivering blood for transfusions has been launched in Rwanda.

The drones are expected to make between 50 and 150 life-saving deliveries each day to far-flung and inaccessible clinics across the western half of the country. Excessive blood loss during childbirth is the leading cause of death in pregnant women in Rwanda.

Zipline, the company behind the technology, said it could complete a delivery in around 30 minutes after receiving an order via a call or text message.

Food safety reliant on efficient and transparent supply chain systems

 

FriedelSpies.jpgFood safety is a priority throughout the whole supply chain. From manufacturer, its suppliers and logistics service providers, to a retailer and ultimately the end-user, critical care needs to be applied to ensure that food safety and hygiene are not compromised.

But, how best to manage food safety across the global supply chain while adhering to regulatory requirements remains a difficulty for the food industry.

“It has become more than a necessity, but an obligation for logistics service providers to provide clients with necessary controls to ensure best practices and operations when it comes to food safety and hygiene” say Friedel Spies, Business Development Director in South Africa, ID Logistics in this month’s SmartProcurement.

SA freight set to triple by 2030 due to costs of other modes

 

ZaneSimpson.pngEscalating road tariffs, increasing driver fees, rising maintenance costs and erratic fuel prices, along with the amount of long distance freight compared with Europe, are set to cause problems for South Africa’s logistics sector, according to Stellenbosch University’s Logistics Barometer.


The current 781-million tons of freight moved is likely to triple over the next three decades, based on the current demand growth rate.


The well-being of the sector in South Africa is crucial, but it is running out of options, said Zane Simpson, from the university’s department of logistics.

2014 Trends in South African logistics

 

Logistics.jpgThe CSIR’s 10th Annual State of Logistics Survey for South Africa¹, released in May 2014, highlights progress made and areas for improvement in South African logistics. The survey’s results mirror Tech-Pro’s experiences in this increasingly specialised area of supply chain management, Tech-Pro tells SmartProcurement.

SA Logistics must make bold steps to drive costs down


Increased fuel price still biggest cost driver

 

10StateOfLogistics.jpgRising costs and the global economic situation spell out increased competition and tighter margins in the logistics industry. Driving down the cost of logistics and making South Africa more competitive will require no less than bold steps forward, finds the 10th State of Logistics Survey.


Published by the Council for Scientific and Industrial Research (CSIR) in collaboration with Imperial Logistics and Stellenbosch University, the survey reports that South African logistics has moved beyond survival to an optimised mode, where costs, inventories and lead times have been minimised within individual supply chain functions.

Value for Money trumps low cost when assessing logistics partners

 

ValueVsCost.jpgResearch in the Courier and Express Parcel (CEP) industry shows that brands choosing a delivery partner consider reliability, efficiency and accuracy of data before cost. “You get what you pay for.”


South African businesses seeking CEP partners are familiar with this maxim, according to a benchmark research report prepared by independent research specialists TerraNova.

Transport's contribution to logistics costs reaches 9-year high

OilBarrels.jpgThe vulnerability of South Africa’s transport costs to a volatile cost driver - the price of crude oil - and South Africa’s entrenched dependence on road transport does not bode well for the economy, according to the 9th State of Logistics survey for South Africa 2012.

 

The contribution of transport costs to overall logistics costs in 2012 is pinned at 61%, the highest it has been in the past nine years and far higher than the global average, said Nadia Viljoen, scientific editor of the survey, at the survey launch in June.


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