Poor service delivery by TFR jeopardised the continuous
supply of feeder stock from the mine and processing plant
in the Northern Cape to the manufacturing facility. As a
result, the firm has increasingly turned to road transport
for the haulage of raw materials and products. This modal
shift has directly impacted on its logistics costs through:
higher transport rates; the necessity to acquire an additional
property adjacent to its manufacturing facility to deal with
the increased number of road tippers required to deliver the
mining extract; needing to develop a new financial system
to deal with the increased number of invoices; and having
to employ additional staff to facilitate the required transport
management activities.