ASSIGNMENT 3 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, TRL3707
Assignment 3 Semester 1 2025
Unique Number:
Due Date: 2025
Logistics Activities
1.1 Economic benefits of having a warehouse to South African sugarcane farmers
Theory
Warehousing plays a key role in logistics and supply chain management by:
Providing storage for goods to manage supply and demand efficiently.
Acting as a buffer to reduce supply chain disruptions.
Enabling value-adding services, such as sorting, grading, and packaging.
Supporting economies of scale by allowing bulk storage and reducing
transportation frequency and cost.
Application
In the case study:
Warehousing enables sugarcane to be stored temporarily before processing,
which is crucial because sugarcane must be processed within 24–48 hours to
avoid sucrose degradation.
Farms stack cane in field-side billets or stalks with storage capacities up to
5,000 metric tons, ensuring operational flexibility and reducing post-harvest
losses.
At the mill level, silos with capacities of up to 50,000 metric tons or more (e.g.,
Tongaat Hulett’s terminal stores 200,000 metric tons) allow buffer storage,
supporting consistent processing and meeting export demands.