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Article
Publication date: 7 September 2018

Jan Hendrik Havenga and Zane Paul Simpson

The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of…

Abstract

Purpose

The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the modelling outputs to inform macrologistics policy.

Design/methodology/approach

Spatially and sectorally disaggregated supply and demand data are developed using the input-output (I-O) model of the economy as a platform, augmented by actual data. Supply and demand interaction is translated into freight flows via a gravity model. The logistics costs model is a bottom-up aggregation of logistics-related costs for these freight flows.

Findings

South Africa’s logistics costs are higher than in developed countries. Road freight volumes constitute 80 per cent of long-distance corridor freight, while road transport contributes more than 80 per cent to the country’s transport costs. These challenges raise concerns regarding the competitiveness of international trade, as well as the impact of transport externalities. The case studies highlight that domestic logistics costs are the biggest cost contributor to international trade logistics costs and can be reduced through inter alia modal shift. Modal shift can be induced through the internalisation of freight externality costs. Results show that externality cost internalisation can eradicate the societal cost of freight transport in South Africa without increasing macroeconomic freight costs.

Research limitations/implications

Systematic spatially disaggregated commodity-level data are limited. There is however a wealth of supply, demand and freight flow information collected by the public and private sector. Initiatives to create an appreciation of the intrinsic value of such information and to leverage data sources will improve freight demand modelling in emerging economies.

Originality/value

A spatially and sectorally disaggregated national freight demand model, and related logistics costs models, utilising actual and modelled data, balanced via the national I-O model, provides opportunities for increased accuracy of outputs and diverse application possibilities.

Details

The International Journal of Logistics Management, vol. 29 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 5 February 2021

Effnu Subiyanto

This study aims to shed light on defining precisely variables of logistics costs model in Indonesia’s cement projects and generally other projects scientifically. The…

Abstract

Purpose

This study aims to shed light on defining precisely variables of logistics costs model in Indonesia’s cement projects and generally other projects scientifically. The variables have previously so far been identified based on pragmatism and practical experience without rigorous scientific and empirical findings. The models are deeply awaited by every project practitioner, especially project controllers, in Indonesia.

Design/methodology/approach

Data for the period 2010–2018 of eight cement projects were taken in quarterly and tested with a statistical tool EVIEWS10 to develop a robust proposed model. Investigating models were done by literature studies and empirical studies, and the results had been examined by statistical tests to be determined as robust or not-robust models. The certain period taken due to the availability data of the cement projects in which after 2018 was unavailable because the cement product is overcapacity in Indonesia.

Findings

The model proposed is resulted by synthesizing logistics literature and empirical from the cement projects in which the model consists of foreign logistics costs, domestic manufacture, and domestic logistics costs as the best findings to develop logistics model for the cement projects with a-10 independent variable. It significantly found the variable of foreign logistics costs have taken higher portions in the model, and therefore must be prior carefully anticipated.

Practical implications

To guide investors to alert with several important variables of logistics in Indonesia. As education that to invest in Indonesia, the best logistics model must prior be known to anticipate further uncertainty.

Originality/value

This study is advanced applied research of logistics models developed by author for future possibility implementation in the sector beyond cement projects.

Details

Journal of Science and Technology Policy Management, vol. 12 no. 2
Type: Research Article
ISSN: 2053-4620

Keywords

Open Access
Article
Publication date: 17 May 2022

Micael Thunberg and Anna Fredriksson

The purpose of this study is to identify how the responsibilities and costs of planning, controlling and executing the material, resource and waste flows are shifted…

Abstract

Purpose

The purpose of this study is to identify how the responsibilities and costs of planning, controlling and executing the material, resource and waste flows are shifted between actors when introducing a construction logistics setup (CLS) as a product innovation in a construction project, compared to the traditional way of organizing these activities.

Design/methodology/approach

This study is an analytical conceptual research study which aims to bring new insights into a problem through logical relationship building. Empirical data are gathered in two cases where CLSs are used, through observations and interviews regarding how the activities within the order-to-delivery process are performed. The results have been discussed at workshops with suppliers, installation companies, contractor firms and trade unions.

Findings

The outcome of this study is a model for illustrating how costs and responsibilities are shifted in the construction project and supply chain when a CLS is introduced. The cost shift is dependent on the activity shift that accompanies the services included in the setup.

Practical implications

The practical contribution of this work is twofold. First, this study provides a methodology of how to evaluate the impact of logistics services on the actors in the construction project. Second, this study shows shifts in costs and responsibilities in logistics activities with the introduction of construction logistics services.

Originality/value

The theoretical contributions of the model and this study lie in the inclusion of a multi-actor perspective in total cost modelling in supply chains.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Abstract

Details

Freight Transport Modelling
Type: Book
ISBN: 978-1-78190-286-8

Article
Publication date: 1 June 1987

William C. Copacino and Donald B. Rosenfield

Logistics has been receiving increased attention in management literature in the past few years. In particular, logistics has been recognised not only as a group of…

Abstract

Logistics has been receiving increased attention in management literature in the past few years. In particular, logistics has been recognised not only as a group of important functions, but as functions that have important strategic impacts as well. Logistics, as demonstrated by many corporations, can either gain or lose leverage in the marketplace, and more firms are recognising its importance.

Details

International Journal of Physical Distribution & Materials Management, vol. 17 no. 6
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 6 May 2014

Jan Havenga and Zane Simpson

South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation…

2128

Abstract

Purpose

South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies. This paper aims to discuss these issues.

Design/methodology/approach

The research approach is quantitative, based on a gravity-orientated freight flow model, a road transport cost model, actual transport costs for other modes, a warehousing cost survey, an inventory delay calculation (to inform warehousing cost calculations and inventory financing costs) and an externality cost calculation.

Findings

Transport cost pressures are expected to deteriorate due to the increasingly negative outlook for the oil price and the internalisation of externality costs. The nature of these forces compels transport cost challenges to be addressed strategically through collaborative, industry-wide and even nationwide initiatives.

Research limitations/implications

Key limitations are inconsistent commodity classification schemes across information sources, and incomplete container content data. The researchers are collaborating with information providers to address these issues and refine model accuracy and forecasting.

Practical implications

The exogenous risks strengthen the argument for new approaches to South Africa's logistics cost challenges driven by the high densities of corridor freight flows.

Social implications

The inclusion of externality costs highlighted the negative environmental impact of the current modal configuration and provides impetus for change.

Originality/value

Major advancements to logistics cost modelling were made by incorporating externality costs and developing scenarios for risk mitigation. Freight flow data granularity (in excess of one million records) allows both aggregation to national-level intelligence to inform policies, large-scale infrastructure investments and industrial positioning, and disaggregation to enable practical application.

Details

The International Journal of Logistics Management, vol. 25 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 11 April 2008

Patricia Everaert, Werner Bruggeman, Gerrit Sarens, Steven R. Anderson and Yves Levant

The purpose of this paper is to describe the experiences of a wholesaler with time‐driven activity‐based costing (TDABC). Three research questions are addressed: How are…

8704

Abstract

Purpose

The purpose of this paper is to describe the experiences of a wholesaler with time‐driven activity‐based costing (TDABC). Three research questions are addressed: How are complex logistics operations modeled by TDABC? Does TDABC provide more accurate cost information than activity‐based costing (ABC)? How is TDABC cost information used?

Design/methodology/approach

Case study research was performed at a Belgian wholesaler. Interviews were conducted. The cost and activity database was analyzed.

Findings

This case study illustrates that there are logistics operations that cannot be modeled using a single cost driver, as is done with ABC. TDABC uses time equations to estimate the time spent on each activity. The results herein show how the time equations can capture the different complexities, by including different terms or interaction terms in the time equations. The database analysis clearly demonstrates that TDABC provided more accurate cost information than ABC at this case company. ABC oversimplified 64 percent of the activities, and misallocated 55 percent of all indirect costs.

Research limitations/implications

This study is one of the first, investigating the experiences with TDABC. The results are derived from analyzing all activities, at a single case company.

Practical implications

The study illustrates the technique of TDABC and provides a real company example of time equations in logistics. The users declared the TDABC model very useful for profitability reporting and profit management. The time drivers provided insight into the causes of excessive distribution and logistics costs.

Originality/value

This paper complements current discussion on cost drivers and subtasks and logistics costing.

Details

International Journal of Physical Distribution & Logistics Management, vol. 38 no. 3
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 April 1986

Frank P. Buffa

Consolidation, the grouping of several small shipments into one at a designated location, can reduce total logistics cost. Total logistics cost includes consolidation…

Abstract

Consolidation, the grouping of several small shipments into one at a designated location, can reduce total logistics cost. Total logistics cost includes consolidation, transportation and inventory costs. Identifying where cost‐saving opportunities exist is often confused by the interrelated nature of these various costs.

Details

International Journal of Physical Distribution & Materials Management, vol. 16 no. 4
Type: Research Article
ISSN: 0269-8218

Abstract

Details

Recent Developments in Transport Modelling
Type: Book
ISBN: 978-0-08-045119-0

Article
Publication date: 1 March 1985

Yash Gupta and Wing Sing Chow

This article surveys the literature dealing with theory and applications of life cycle costing (LCC). It deals with the literature published in the last 25 years and…

Abstract

This article surveys the literature dealing with theory and applications of life cycle costing (LCC). It deals with the literature published in the last 25 years and provides 667 references.

Details

International Journal of Quality & Reliability Management, vol. 2 no. 3
Type: Research Article
ISSN: 0265-671X

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