ASSIGNMENT 2
SEMESTER 1
2023
, Q1.1The five transportation metrics and how they are likely to affect supply chain
performance in the context of the rail infrastructure challenges facing South Africa:
In general, transportation plays a crucial role in the supply chain management process, and
the five transportation metrics - capacity, speed, reliability, safety, and cost - are important
considerations for any transportation system. In the context of South Africa's rail
infrastructure challenges, these metrics have been significantly impacted, which has affected
the efficiency of the transportation system and ultimately, the performance of the supply
chain.
Capacity is the first transportation metric, which refers to the ability of the rail network to
handle the volume of goods and passengers required by the market. In South Africa, the rail
network has limited capacity due to underinvestment in rail infrastructure, which has led to a
decrease in rail freight volume and an increase in road freight transport. As mentioned in the
initial statement, this has led to challenges such as high operating costs, supply chain lead
times, and rising fuel costs, which ultimately impact the performance of the supply chain.
Speed is the second transportation metric, which refers to the time it takes to transport
goods and passengers from one place to another. Inadequate rail infrastructure can cause
delays in transport, resulting in longer lead times, which can lead to decreased efficiency in
the supply chain. South Africa's rail transport system is hampered by a lack of investment in
infrastructure, as mentioned by the South African Road Transport Management System
(RTMS). This lack of investment leads to a slower transportation system, which is less
attractive to shippers and transporters.
Reliability is the third transportation metric, which refers to the consistency of the
transportation system in delivering goods and passengers on time, in good condition, and
with the expected quality. The unreliability of the South African rail network due to
inadequate infrastructure can result in disruptions and delays in the supply chain. This can
lead to increased costs and losses for businesses, as well as decreased customer satisfaction.
Safety is the fourth transportation metric, and it refers to the measures taken to ensure the
safe transportation of goods and passengers. Inadequate rail infrastructure can lead to safety
concerns, such as derailments, collisions, and other accidents, which can result in loss of life
and property. As mentioned by the Railway Safety Regulator (RSG), rehabilitation,