Exploring the challenges and opportunities associated with artificial intelligence in the South African banking industry

Abstract

This thesis undertakes a comprehensive exploration of logistics performance within the context of South African imports, emphasising the pivotal role of efficient logistics in socio-economic development. Adding to the existing literature and evidence indicating an intricate connection between sustained economic growth, reliant on international and domestic trade, and the effective operation of global value chains, the study employs a meticulous, bottom-up, process-driven framework to improve logistics performance. This framework, centred on the perspective of freight forwarders, investigates logistics performance based on time, cost, and service reliability. The primary objective is to contribute to the measurement of the national-level logistics system's performance, focusing on all actors from the freight forwarder's standpoint, with an emphasis on reducing international trade time and cost. By employing data analytics, the thesis systematically assesses existing scholarly works on import flow logistics performance, elucidating potential areas for enhancement in operational and detailed dimensions. The freight forwarder, as the central orchestrator in the logistics system, becomes the focal point for developing an operational framework and a bottom-up diagnostic tool. This tool aims to identify specific areas for improvement based on internationally recognised metrics of time, cost, and service reliability. This study also utilises a Total Economic Cost (TEC) model to convert time delays and variability in time delays into monetary values. Results gleaned from the study illuminate substantial opportunities for enhancing logistics performance from the freight forwarder's viewpoint. Key segments in the end-to-end logistics chain, notably trade lane combinations and customs clearance processes, emerge as critical areas for improvement. The ANOVA analysis showed the various combinations of factors and their influence on time delays, and indicated that several factors have a statistically significant influence on logistics time delays and cost, as different cargo categories, using these factors as categorical variables, display time delays that are different from the population. These included (in order of significance based on the influence of the respective process segments) country of origin, shipping line, and port of loading. In practice, cargo owners manage the impact of time delay variability through buffer stock strategies. Insights into the relationship between buffer stock strategies and various cost components, such as interest cost on inventory and total time delay cost, underscore the complexity of logistics optimisation. Ultimately, the results from the TEC model identify the ocean freight transport leg as the most impactful factor in time delays, emphasising the crucial role of optimal supplier-shipping trade lane selections. Port performance, both waterside and landside, significantly influences delays. Inbound road transport has a minimal impact, but delays in the 96th percentile suggest potential inefficiencies in the short haul–long haul inbound strategy. Optimal buffer stock strategies are shown to be essential to minimise the cost impact of time delays, emphasising the need for strategic planning. Variations in TEC due to time delays among top countries and shipping lines underscore the importance of informed decisions for freight forwarders, regarding the selection of sources of cargo and of service providers to optimise logistics performance. The thesis underscores the importance of concentrating improvement efforts on segments entirely within the freight forwarder's control, such as documentary processes and customs clearance. The framework created serves as both a diagnostic tool and a contribution to the intricate field of logistics performance research, and the study appeals to a diverse audience, including national policymakers, multilateral agencies, economic actors, and logistics service providers. In recommending future research directions, the research suggests extending the framework to investigate logistics performance across different industries and countries. Additionally, expanding the logistics system to encompass the entire supply chain and conducting detailed analyses on factors with significant performance variability, such as the choice of supplier and service provider, offers avenues for further exploration. The thesis envisions an ongoing exploration of data analytics applications in improving logistics performance across various roles and levels of analysis, emphasising the limitless potential for investigation in this dynamic field.