Jurnal Internasional

International Journal Logistic Management: Reducing national freight logistics costs risk in a high-oil-price environment A South African case study

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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 gravityorientated
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 refinemodel 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.
Keywords South Africa, Cost tradeoffs, Total logistics cost, Transportation economics,
National freight logistics costs, Oil price risk, Modal shift
Paper type Research paper

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Ketersediaan

Tidak ada salinan data

Informasi Detail

Judul Seri

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No. Panggil

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Penerbit

: Emerald Insight., 2014

Deskripsi Fisik

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Bahasa

English

ISBN/ISSN

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Klasifikasi

NONE

Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

ol. 25 Iss 1 pp. 35 - 53

Subjek

Jurnal Logistik

Info Detail Spesifik

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Pernyataan Tanggungjawab

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Versi lain/terkait

Lampiran Berkas

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