SUPPLY CHAIN COST IMPROVEMENT OPPORTUNITIES THROUGH STREAMLINING CROSS-BORDER OPERATIONS

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Abstract

The Cross-Border Road Transport Agency (CBRTA) in South Africa aims to encourage and facilitate trade between South Africa and its neighbouring countries. The CBRTA sponsored a study by Stellenbosch University (SU) to determine the logistics cost impact of cross-border delays between
South Africa and its major neighbouring trading partners, and prioritise opportunities for improvement. SU is the proprietor of both a comprehensive freight demand model and a logistics cost model for South Africa, which enable extractions and extensions of freight flows and related costs for
specific purposes. Through the application of these models, the following information is identified and presented in this paper: South Africa’s most important border posts (based on traffic flows); a product profile for imports and exports through these border posts; the modal split (road and rail); the annual logistics costs incurred on the corridors feeding the border posts, as well as the additional costs incurred due to border delays. The research has proved that the streamlining of border-post operations that take a total supply chain view (i.e. of both border operations and those that could be moved from the border) is beneficial.

Keywords: Cross-border Operations; Road Freight Transport; Supply Chain Cost; South Africa

How to cite this paper: Havenga, J. H., van Eeden, J., & Pienaar, W. J.(2013). Supply chain cost improvement opportunities through streamlining cross-border operations. Risk Governance and Control: Financial Markets & Institutions, 3(3), 28-34. https://doi.org/10.22495/rgcv3i3art3