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Gerard de Villiers Pr Eng Logistics Specialist

Improving Competitiveness of Companies in South Africa through Logistics and Supply Chain Management Session 1D, 15:30 to 16:00, 10 July 2017. Gerard de Villiers Pr Eng Logistics Specialist. Contents Setting the scene Defining logistics and supply chain management Importance of logistics

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Gerard de Villiers Pr Eng Logistics Specialist

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  1. Improving Competitiveness of Companies in South Africa through Logistics and Supply Chain Management Session 1D, 15:30 to 16:00, 10 July 2017 Gerard de Villiers PrEng Logistics Specialist

  2. Contents Setting the scene Defining logistics and supply chain management Importance of logistics Transport mode comparison Inland intermodal terminals State of logistics in South Africa Public sector perspectives Firm level logistics performance The supply chain of the future Conclusion Improving Competitiveness through Logistics and Supply Chain Management

  3. 1. Setting the Scene

  4. 1 "Supply chains compete, not products, commodities or companies"(Martin Christopher 2016) Improving Competitiveness through Logistics and Supply Chain Management Setting the Scene (1/1)

  5. 2. Defining Logistics and Supply Chain Management

  6. 2 Logistics Functions/Elements: Transport Warehousing Inventory Procurement Customer service Information systems Order management Materials handling Packaging Reverse logistics Freight forwarding Customs clearing Supply Chain Management: "Integration of all logistics functions/elements" Improving Competitiveness through Logistics and Supply Chain Management Defining Logistics and Supply Chain Management (1/1)

  7. 3. Importance of Logistics

  8. Cost of Logistics in 2014 in % of the Gross Domestic Product (GDP) (Logistics Barometer 2016) 3 Improving Competitiveness through Logistics and Supply Chain Management Importance of Logistics (1/2)

  9. Supply Chain Factors and Business Performance "Last Mile" (supplychainforesight 2016) 3 Improving Competitiveness through Logistics and Supply Chain Management Importance of Logistics (2/2)

  10. 4. Transport Mode Comparison

  11. Transport Modes Primary modes: Road (trucks/road trains) Rail (trains) Sea (vessels) Air (aircrafts) Pipelines Secondary modes: Conveyors Canals/inland waterways Drones (rotating and fixed wings) 4 Improving Competitiveness through Logistics and Supply Chain Management Transport Mode Comparison (1/3)

  12. Transport Mode Comparison Economic characteristics Service characteristics Functionality Road-friendly Rail-friendly Compete vs complement Durban - Gauteng: ≈ 600km 4 Improving Competitiveness through Logistics and Supply Chain Management Transport Mode Comparison (2/3)

  13. Container versus Tautliner 4 Improving Competitiveness through Logistics and Supply Chain Management Transport Mode Comparison (3/3)

  14. 5. Inland Intermodal Terminals

  15. Inland Intermodal Terminals Developed to integrate various individual components in adding logistics value at a facility that acts as an intermediary in the supply chain. 5 Improving Competitiveness through Logistics and Supply Chain Management Inland Intermodal Terminals (1/3)

  16. 5 Improving Competitiveness through Logistics and Supply Chain Management Inland Intermodal Terminals (2/3)

  17. 5 Improving Competitiveness through Logistics and Supply Chain Management Inland Intermodal Terminals (3/3)

  18. 6. State of Logistics in South Africa

  19. Logistics Performance Index (LPI) (World Bank 2016) 6 Improving Competitiveness through Logistics and Supply Chain Management State of Logistics in South Africa (1/4)

  20. Top 3 Supply Chain and Logistics Objectives (supplychainforesight 2014) Improving service levels to customers Lowering procurement costs and reducing order lead times Improving the flow of business intelligence 6 Integration of technology Improving visibility in the supply chain Aligning with key players in the supply chain Warehousing and distribution optimisation Optimising inbound and outbound transportation Improving inventory deployment across supply chains Outsourcing functions for cost and service improvement Improving Competitiveness through Logistics and Supply Chain Management State of Logistics in South Africa (2/4)

  21. Long-term View of SA's Logistics Costs - % of GDP (Logistics Barometer 2016) 6 Improving Competitiveness through Logistics and Supply Chain Management State of Logistics in South Africa (3/4)

  22. Trends in South Africa's Logistics Costs Elements (Logistics Barometer 2016) 6 Improving Competitiveness through Logistics and Supply Chain Management State of Logistics in South Africa (4/4)

  23. 7. Public Sector Perspective

  24. Transnet (Strategic Thrusts, 2016) AGILE - Fit and focused in a volatile world ADMIRED - Trusted, innovative South African brand DIGITAL - Evolve or die UNITED - Together we succeed National Development Plan 2030 Lowering the costs of transport and logistics and investing in remedies to address spatial divides; Industrial zone developments and trade promotion will rely on competitive logistics; Creating adequate warehousing and logistics facilities; Instituting efficient procedures and customs and border posts; and Corridors of logistics hubs, road, rail, fuel and other infrastructure, is vital to the future of the national economy. 7 Improving Competitiveness through Logistics and Supply Chain Management Public Sector Perspective (1/2)

  25. Department of Transport Draft White Paper on National Rail Policy (June 2017): Indicative Gauge Change Map - 1065mm / 1435mm Cabinet approved the Road Freight Strategy on Wednesday, 24 May 2017 7 Improving Competitiveness through Logistics and Supply Chain Management Public Sector Perspective (2/2)

  26. 8. Firm Level Logistics Performance

  27. Strategic Profit Model (Stock and Lambert 2001) 8 Improving Competitiveness through Logistics and Supply Chain Management Firm Level Logistics Performance (1/3)

  28. 8 Improving Competitiveness through Logistics and Supply Chain Management Firm Level Logistics Performance (2/3)

  29. 8 Improving Competitiveness through Logistics and Supply Chain Management Firm Level Logistics Performance (3/3)

  30. 9. The Supply Chain of the Future

  31. The new industrial revolution (Industry 4.0) 1. Rapid manufacturing 2. Advanced robotics 3. Digitisation of supply chains (Internet of Things / Big Data) (Martin Christopher 2016) 9 Improving Competitiveness through Logistics and Supply Chain Management The Supply Chain of the Future (1/1)

  32. 10. Conclusion

  33. So, what can logistics and supply chain management do to assist businesses in South Africa to gain, maintain or improve their competitive edge? 10 Improving Competitiveness through Logistics and Supply Chain Management Conclusion (1/1)

  34. Questions? Thank You!

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