01154985

Component

The purpose of this research was to measure the cost of Logistics in South Africa, determine the major cost drivers and assist both the country to manage those drivers and logisticians to manage logistics in this context. The measurement is on an industry and national level and can therefore relate logistics input with gross domestic product (GDP) as well as with industry-level turnover. A quantitative approach, based on a gravity-orientated freight flow model, road transport cost model, real transport costs for other modes, warehousing cost survey and inventory delay calculation for the economy, is followed. The overarching outcome is logistics cost measurement in an extended and detailed model, backdated for five years to establish trends and cost drivers. This leads to specific items that can be considered by industry and managed by government. In the recent past the sensitivity of logistics costs to fuel and interest rates is disconcerting as both items are “administered” costs on an industry level and even on a national level for economies relying on imported fuel to move freight over long transport distances. Logisticians manage inventory delay downward relentlessly, but the “Tragedy of the Commons”-effect is overlooked and trade-offs on a national and even industry level often not managed effectively. In contrast, collaboration does not only contribute to micro improvements, but could counter negative trends on a macro level. Eventually the tradeoffs between specialization, growth and sustainability come into play. The relationship between energy optimization and environmental consciousness is also illustrated and solutions suggested.

01147878

10-0587

English

14p

2010

Transportation Research Board 89th Annual Meeting

DVD

Figures (11) ; Tables (5)

Freight traffic; Freight transportation; Gross domestic product; Logistics; Transportation policy; Travel costs; Travel surveys; Warehousing

South Africa

Highways; Planning and Forecasting; I72: Traffic and Transport Planning

Transportation Research Board Annual Meeting 2010 Paper #10-0587

TRIS, TRB

Jan 25 2010 10:18AM