Name: Thobekile Gumede

Student No: 202105601

Module: Supply chain Management 3
Campus: Damelin Durban city campus
Question 1

1. In South Africa, contextualizing warehousing value chains is key to understanding their

regional spatial context. Warehouses act as central hubs that connect the various stages of
the supply chain, from producers to consumers and intermediaries. Consider, for example,
the agricultural value chain in Zambia. Strategically located near agricultural production
areas, warehouses allow efficient storage and distribution of crops, ensuring timely delivery
to market. This spatial arrangement directly affects the overall efficiency of the region’s
agricultural supply chain.
 “Contextualization of the South African value chain Value chains connecting
countries and regions in the production process have largely replaced traditional
production and export models at the national level. Participation in value chains o
Developing countries have sought to take advantage of the unique opportunities
offered by participation in value chains that link their national markets to global
production processes and international consumers.”
 “Supply Chains and Regional Competitiveness Factors influencing the ability of the
South African region to develop regional value chains and supply chains: Lack of
competitiveness Trade barriers Limited production factors Remote location in
relation to global markets”.
 “Regional spatial dimensions of warehouses Factors influencing location decisions for
industries: industry- location theory Important considerations:
a) Transportation costs
b) warehouses regional location factors
c) availability of infrastructure Government decisions Market dynamics.”

 “Regional location factor 1:Availability of infrastructure The availability of

infrastructure, including transportation infrastructure, public service provision and
telecommunications infrastructure, is an important factor in whether a company or
industry chooses one location over another. This is emphasized in warehouses,
where the need for easy transportation is particularly important if the warehouse
wants to effectively connect the supply chain parties in the delivery of goods to and
from the warehouse.”
 Regional Location Factor 2:Government Decisions Government decisions can affect
whether a warehouse is located in a particular country. The tax rate on business
profits is taken into account when making a decision; legal protection offered to
companies; incentives to attract business; and land availability and cost. These are all
important considerations when deciding on a storage facility.
 “Regional Location Factors 3:Market Dynamics Regional market dynamics also affect
warehouse location decisions within a region. Important indicators here are the
current and potential future size of the market, as well as where the largest national
market is located in the region”.
2. The spatial context of the city locates the warehouse within the urban fabric and highlights
how the rules of use and zoning affect warehouse placement and other location factors at
the city level.
I. Introduce urban structure
 Concentric zone model
 Sector model
 Multicore mode

II. Land Use and Zoning

 Focuses on the residential area of the city

  The highest land values are in the CBD, where the largest companies can afford to
rent it
 Land values decrease away from the CBD.
 Transitional area: mixed-use commercial and dense and residential development
 Residential density decreases away from the CBD
 Not specifically related to land use such as industry or warehouse

III. Location of warehouse in urban areas
 Zones of development extending along commercial strips outside the CBD
 Recognize the importance of transport as a function of the city
 Zone 2 "Traffic and Industry" is usually where the warehouse and industry are.
components of this model are created, access along a major transportation corridor
 The land use pattern is not concentrated in one CBD but in several different centres.
 Centres developed as the city expands stimulate specialization and migration
 Identifies the consequences of social and economic forces and the characteristics of
certain places on the earth
 This model enables a developmental view of several other user areas, such as uses
where the storage component is usually in zone 2 "Light bulk production"; Zone 7
"Outer Business District" and Zone 9 "Industrial Suburb"..
3.