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1.1 Understanding the challenges facing the rail infrastructure development in South Africa. Discuss in detail at least the five transportation-related metrics and explain how they are likely going to affect supply chain performance looking at the issue...
Effective supply chain management is crucial for the success of businesses and economies
alike. In this discussion, we will focus on two key aspects. Firstly, we will address the
challenges facing rail infrastructure development in South Africa and their impact on supply
chain performance. Secondly, we will analyse a case study to understand how a company
aligns its supply chain strategy with its competitive strategy. These topics highlight the
importance of robust supply chain management and strategic alignment in today's dynamic
business environment.
1.1 Understanding the challenges facing the rail infrastructure development in South Africa.
Discuss in detail at least the five transportation-related metrics and explain how they are
likely going to affect supply chain performance looking at the issues raised on the above
statement
Metric 1: Average Inbound Transportation Cost per Unit (Chopra, 2019):
Explanation of the Metric:
Average inbound transportation cost per unit measures the cost of bringing products into a
facility per unit. In South Africa, where rail infrastructure challenges are prevalent, this metric
helps quantify the financial impact of shifting transportation modes from rail to road.
How it Affects Supply Chain Performance:
The challenges in South Africa's rail infrastructure are likely to result in an increase in the
average inbound transportation cost per unit. This cost increase can have several effects on
supply chain performance:
Cost Structure: Higher inbound transportation costs per unit impact the cost of goods
sold (COGS), which may necessitate adjusting product pricing to maintain profitability.
Supplier Relations: Measuring this cost separately for each supplier is essential. It can
reveal variations in transportation efficiency among suppliers, offering opportunities
for negotiation and optimization.
Metric 2: Average Incoming Shipment Size (Chopra, 2019):
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