Diagnosis of ‘extra distance’ in the South Africa FMCG retail sector

Abstract

Uncertainty can cause significant disruptions throughout supply chains. This paper focuses specifically on uncertainty within transport operations, an often neglected area within the literature. While the causes of uncertainty are documented, there is a need for research to understand the consequences of uncertainty on the transport operations. This paper introduces the concept of ‘Extra distance’ as a measure of uncertainty using a case study research approach. The measure is then applied to a distribution operation in South Africa to quantify the link between causes and consequences of uncertainty. From the results, it is found that 6% of the transport distance actually run does not add value to the end customer, with both economic and environmental implications.