Department of Logistics

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Browsing Department of Logistics by Author "Allies, Audria"

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    Understanding the impact of global supply chain risks on costs through the total landed cost methodology – a fashion retail organisation case study
    (Stellenbosch : Stellenbosch University, 2024-03) Allies, Audria; Goedhals-Gerber, Leila Louise; Human, Daniel Benjamin Verwoerd; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Logistics.
    ENGLISH SUMMARY: The fashion retail industry is rapidly evolving due to globalisation and e-commerce, making understanding, and optimizing supply chain costs and their drivers crucial. However, there is limited research on the relationship between supply chain risks and total landed costs (TLC). Most literature focuses on procurement and supplier selection, but challenges exist in building a framework that considers evolving variables and unique industries. This research aims to expand understanding of supply chain risks and disruption, and their effect on the TLC within the South African fashion retail industry. To illustrate this research and its outcomes, the researcher identified a fashion retail organisation as their primary sponsor and stakeholder. This study investigates the impact of supply chain risks on a prominent fashion and lifestyle retailer operating in Southern Africa. With multiple retail brands that spans across luxury to value-market segments, quantifying these risks has become challenging. The research aims to ascertain the extent to which these risks affect the retailer over two financial years, the resulting disruptions, and their influence on the Organisation’s total landed cost (TLC). In addition, it explores strategies to mitigate these risks and preserve value by understanding and quantifying their impact and associated costs, enabling more effective responses. This study utilised a mixed-method approach, combining qualitative and quantitative data analysis of internal and external secondary data. It analysed the impact of macro-economic supply chain events and the Organisation’s Total Landed Cost (TLC). Power Query and MS Excel was used to extract, cleanse, and analyse actual transactional data, recorded during periods of significant supply chain disruption, based on the Organisation’s Key Performance Indicators (KPIs) and Supply Chain Cost measurements. The study identified trends and gaps for further research. The findings indicated that supply chain disruptions directly affect the total landed cost (TLC), with some events having indirect impacts. The Organisation managed to mitigate additional costs by minimising negative business effects through cost estimation and shifting production. However, delays from lengthy supply chains lead times to substantial sales losses. Macro-economic events like Covid-19, the Suez Canal incident and South African unrest significantly impacted the Organisation's supply chain. The study underscores the importance of identifying inbound supply chain risks and tailoring mitigation strategies accordingly. It further recommends adopting advanced predictive analytics tools to mitigate risks and facilitate timely, data-driven decision-making, enhancing operational efficiency and cost savings.