Logistics performance in South Africa (original) (raw)
Related papers
2007
Logistics was identified by the South African government in the Accelerated and Shared-Growth Initiative of South Africa (ASGISA) as one of the six potential hurdles that may limit future growth in the country. Strategies were put in place to address this potential treat. The National Freight Logistics Strategy and the National Land Transport Strategic Framework are two such strategies, supported by strategies in many other spheres of government to ensure that the country increases its competitiveness. Currently these strategies are being implemented within our developing economy with varying degrees of success. The theme of this survey, "Implementing logistics strategies in a developing economy", is therefore highly appropriate. Implementation is critical but doing it properly and thoroughly with a long-term view does not happen overnight. Proper foundations need to be laid to ensure sustainable growth as well as increased competitiveness through world-class supply chains. It is only through such endeavours that South Africa will be able to operate and compete in the global market place. In addition, those within the second economy who require focused assistance, specifically from a logistics and supply chain management point of view, cannot be ignored. The CSIR (Council for Scientific and Industrial Research) and its associates believe that critical aspects are addressed in the third State of Logistics report. The report is similar in format to the first two surveys and allows for trend analysis, which is vital to keep track of what is happening in this critical area. From our current results it is interesting to note that although logistics costs are rising as a result of growth, the percentage of logistics cost, as a percentage of GDP, is decreasing since the growth in GDP is faster! Indications are that the envisaged improvements in infrastructure have not yet happened and this is to be expected. These improvements will take time to have the desired effect and impact. Nevertheless, all indications are that the appropriate interventions have been made and these now need to be implemented. As stated in the second survey, the National Freight Logistics Strategy now also needs time to affect reform. Our industry focus in this survey is the fast-moving consumer goods (FMCG) sector. This is a large sector which is growing at almost the same rate as the economy but it also faces a whole range of challenges in the supply chain environment. It was important to determine how the sector copes with these and what innovation, if any, there is in this sector. This survey should not only open the agenda for further discussions on various logistics and supply chain management issues, but also contribute to an appropriate R&D agenda. In this regard all stakeholders are urged to interact with the CSIR and academic institutions. It is only through these collaborative interactions that relevant research can be conducted that will benefit the country. The CSIR and its associates are however grateful for past feedback and interactions.
Proposals for improving the Logistics Performance Index
The Asian Journal of Shipping and Logistics, 2020
The purpose of this study is to propose ways for improving the current Logistics Performance Index published by the World Bank. The Logistics Performance Index is based on a global survey of logistics experts, which can be biased towards a subjective view on different countries' logistics systems, which leads to a potentially skewed rating. The authors propose a modified index that qualitatively and quantitatively represents an objective view of 159 countries' logistics systems and subsystems, based on international statistical data, which can be used as a benchmarking tool for governments.
The State of LogisticsTM – an overview of logistics in South Africa
2010
Logistics and supply chain management play a big role in any economy and are a critical contributor to the competitiveness of a country. The demand for products can only be satisfied through the proper and costeffective delivery of goods and services. South Africa’s main economic activity is located in Gauteng and this has a serious effect on logistics costs. In addition, most of the freight in the country is transported by road. Furthermore, for South Africa to grow its market share of various products in the global market, the supply chains need to be world class to ensure effective delivery of goods. These and other aspects of the logistics environment in South Africa will be presented and major issues affecting logistics costs will be discussed. In addition, reference is made to the recent World Bank report on logistics competitiveness, and comparisons are made with Brazil and the USA on logistics performance.
The state of logistics: Research priorities for sustained improvement
Journal of Transport and Supply Chain Management, 2008
The importance of logistics and supply chain management for the South African economy was re-emphasised by the findings of the CSIR’s third annual State of Logistics Survey. To meet current and future demands, the research agenda for logistics needs to be wider than the traditional (mainstream) focus. System inefficiencies as well as specific non-traditional areas need to be explored, e.g. the integration of rural and small businesses, government service delivery, sector cooperation, and emergency logistics. This article provides a brief overview of the current state of logistics in the country and the government’s response in terms of the National Freight Logistics Strategy. Research needs, research priorities and the role of research organisations are discussed.
Comparative Analysis of Logistics Performance in IGAD Countries
"Logistics insight: A comprehensive Analysis of IGAD countries' Performance based on the logistics performance index s , 2023
The purpose of the study is to assess the logistics performance in IGAD countries (Somalia ( include Somaliland)Djibouti, Ethiopia, Eretria, Uganda, Kenya Sudan and South Sudan). According to both the overall scores of the logistics performance index and the scores of the 6 sub-items of the index, the countries with the highest logistics performance are Kenya and Uganda, and the country with the lowest is Somalia. Djibouti has that made significant increase last four years. In general, the logistics performance of the countries where unstable. Improvements in logistics performance will positively affect global competitiveness by enabling countries to do their foreign trade more easily and effectively. For this reason, countries need to invest more in the logistics sector and increase their sectoral efficiency in order to increase their global competitiveness
2005
The following organisations made publication of this document possible: The CSIR is one of the leading R&D, technology and innovation institutions in Africa, with a track record spanning 60 years. The Centre for Logistics is home to extensive expertise in operations research, quantitative modelling and logistics. It has a long history in research and consulting in various industries, and is the originator of the Annual State of Logistics Survey for South Africa. USB-ED Consulting offers customised business solutions which combine the theory and practice of business science. This allows for strong research-based methodologies when assisting clients in fields such as strategy-setting, market research and change management. The Department of Logistics offers undergraduate and postgraduate programmes in logistics, as well as academic and professional research and the production of accredited publications.
Sustainability
Performance evaluation in logistics is crucial in identifying improvement opportunities. This study assessed performance indicators (PIs) for import–export logistics chains, including transport, dry ports, transhipment and warehouses, focusing on Ethiopia. PIs were identified by means of a literature review. An expert survey based on the analytical hierarchy process (AHP) was used to obtain weightings for the indicators to allow an evaluation of the overall performance of the country’s import–export chains. Key challenges faced in the sector were also identified. Indicators such as turnaround time and damage frequency were given high weightings by experts for dry port PIs, security was given the highest weighting for transport PIs, and order lead time was given the highest weighting for warehouse PIs. Technological advancements, human resource capacity building and government policies were found to be the main areas that could improve the performance of logistics operations and addr...
This survey highlights that South Africa's core structural problems are far worse than expected: Logistics cost represents a considerable percentage of the GDP (14.7% or R180bn). We spend more on transport than generally expected and much more than we should; The "normal" macro economic model is to transport long-distance corridor freight on rail, with feeder and distribution services provided by road. Structural investment mypoia caused an unhealthy situation in South Africa, with three quarters of long-haul tonnage on road; Our dense long-haul road corridors are intrinsically more expensive than a possible intermodal solution (even more so if extrinsic costs are considered). An overarching investment strategy should therefore consider that greater efficiency in one mode is a "second prize" compared to greater efficiency between road and rail. CSIR Centre for Logistics and Decision Support and Spoornet