LSCM ice test

• Functions within Supply Chain

  • Operations and production
  • Strategy and operations
  • Logistics management
  • Customer Service management
  • Concerns within the Supply chain
• Operations and production

  • Production deals with how new products/services will be produced
  • Basic principles a production team should follow
  • Innovative developments
  • Strategies on how to alter products
  • Value-added production activities
  • Ensuring no defects, breakdowns and continuous production
  • Meeting customers expectations
• Strategy and operations

  • Strategy should be achieved by both internal and external stakeholders
  • Activities completed by operations team: Production, Design and improvement, Financial control, Reverse logistics, Decision making, Strategy, Integration, Logistics management
• Logistics management


  • Warehousing and Inventory management
  • Procurement management
  • Transportation management
• The Seven R of the logistics function

  • Right product
  • Right time
  • Right price
  • Right quantity
  • Right customer
  • Right condition
  • Right Place (distributed to consumer and have the right supplier)
• Customer Service management


  • Customer Service delivery is one of the most critical functions
  • Customer relationship management occurs internally or externally
• Concerns within the Supply chain

  • Economy
  • Government and legislation
  • Environmental
  • Technological
  • Employees
• Benefits of a Supply Chain

  • Reduced uncertainty and risk
  • Quality customer service delivery
  • Competitive advantage
  • Operational costs and profitability
• Importance of warehousing

  • Central location - facilitates receiving, Sorting and distribution
  • Increase Stock visibility
  • Customer Satisfaction - goods and services are delivered right time, quality, and price
• Types of warehouses

  • Private warehouses
  • Public warehouses
  • Bonded warehouse
  • Automated warehouse
  • Climate controlled warehouse
  • Distribution center
  • Fulfilment center
• Centralised warehouse


  • Advantages: Reduction of operation cost, Better Customer Service

  Disadvantages: Increased Shipping cost
• Decentralised warehouses


  • Advantages: Reduction in delays in materials handling, Increased ability to store products

  Disadvantages: Increase operating costs
• Criteria for selecting a warehouse location

  • Rent, rates and taxes
  • Workforce availability, labour skills and costs
  • Roads, freeways and traffic flow
  • Proximity to airports, railway stations and ports
  • Markets and local environment factors
  • Building and data availability and utility costs
• Activities of warehouse

  • Receiving
  • Put-away
  • Storage
  • Picking
  • Packing
  • Shipping
• Warehouse management System (WMS)

  A software designed to assist processes that allow an organisation to control and administer warehouse operations from the moment goods enter the warehouse until they are moved out of the warehouse for delivery
• Internet of Things (IoT)

  A system of interrelated computing devices provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-computer interaction
• Scope of warehousing operations

  • Reducing labour costs
  • Improving Inventory accuracy
  • Improving flexibility and responsiveness
  • Decreasing errors in packing and shipping goods
  • Improving customer service
• Benefits of a Cloud-based WMS

  • Increased operational efficiency
  • Lower total cost of ownership
  • Improved customer experience
• Evolution of warehouse operations

  • Warehouse
  • Distribution centre
  • Logistics centre
  • Fulfilment centre
• SADC Countries

  • South Africa
  • Lesotho
  • Eswatini
• Sorting and packing

  • Put-to-light method
  • Automated sorting through conveyor systems, cross belt sorters and sliding shoe sorters
  • Sorting process as an additional quality check
• Spatial and Sectoral policies on warehouse development

  • National Spatial development framework
  • FOSA
  • Department of trade and industry's initiatives on industrial development
  • Equal employment opportunity
  • Fair labour Standard act
  • Trade and export
• Site-level perspective on warehouses

  • Layout and design of streets
  • The impact of traffic on the surrounding areas
  • Planning for transport facilities to and from the premises for the labour force and clients
  • The provision of engineering services
• Reasons for SADC countries to participate in value-adding chain activities in interconnected, transnational value chains

  • Tap into global supply
  • Stimulate productive output through exports
  • Catalyse employment creation
  • Improve standard of living
• SADC countries have formed a regional grouping with the objective of developing stronger partnerships to ensure collective socioeconomic development in Southern Africa
• Value chains that connect countries and regions in the production process


  • Have largely replaced traditional manufacturing and export models on a national level
  • Due to globalisation and the liberalisation of trade and production, countries have sought to specialise in the production of specific intermediary goods that are used to manufacture the final product
• Participating in spatially dispersed value chains


  • Allows countries to specialise and be competitive in specific tasks in the production process
• Factors influencing the ability of the Southern African region to develop regional value chains and supply chains

  • Lack of competitiveness on the global market
  • Trade barriers
  • Peripheral location in relation to global markets
• Factors that influence the location decisions of organisations and industries

  • Transport cost
  • Labour cost
  • Factors of agglomeration
• Factors in regional warehouse location

  • Infrastructure
  • Labour availability
  • Government decisions
  • Market dynamics
• Factors in warehouse location in urban areas

  • Accessibility
  • Availability of engineering services
  • Physical suitability of the site
• Land-use planning


  Links spatial planning and development facilitation with development control to create a system of land-use management
• Objectives of land use

  • Create safe and healthy environment
  • Promote efficiency and energy conservation
  • Create environmental quality
  • Promote convenience through land use and the relationship that each functional area bears
  • Promote equity and social choice in terms of opportunity
  • Create pleasant urban environment
• Zoning

  • Classification of land tracks into residential, business, manufacturing and mining
  • Provide land owners with information on how land can be optimized
  • Regulate use of land in residential, industrial and agricultural areas
  • Highlight terms of building, height and building lines