scholarly journals Levels of advancement in supply chain planning by large-scale petrochemical companies in South Africa

2011 ◽  
Vol 8 (3) ◽  
pp. 535-547
Author(s):  
Johan J. Louw ◽  
Wessel Pienaar

The adoption of a full supply chain approach in the chemical industry is still relatively slow compared to other industries. Although the awareness has been kindled, very few petrochemical companies have advanced to a point where supply chain considerations and influences are proactively taken into account and incorporated in the formulation of corporate- and unit-specific business strategies/tactics, and formally structured and applied. Conventional supply chain integration concepts focus primarily on the internal and external integration of individual supply chains. Due to the highly integrated nature of petrochemical value chains, the related supply chains should also be integrated by taking account of enterprise/industry-wide synergies and interdependencies. Since not much research has been done to indicate the level of advancement in terms of supply chain planning in large-scale, South African-based petrochemical companies, this empirical research is the first of its kind. This research provides useful information regarding an understanding of the petrochemical industry, appropriate supply chain planning practices and the level of advancement in a number of related planning dimensions

2011 ◽  
Vol 8 (3) ◽  
pp. 452-463 ◽  
Author(s):  
Johan J. Louw ◽  
Wessel Pienaar

Most petrochemical companies are undergoing radical changes. The markets being served have expanded globally, customer service expectations have increased, and demand has become much more volatile and hence less predictable. The resulting product supply chains evolve/develop over time, with integrating decision-making processes and advanced planning practices becoming more prominent. A proactive approach with longer time horizons becomes the norm for excellence. Refinery expansion and highly integrated/sophisticated manufacturing technology have also contributed to increased interdependency within and between supply chains (upstream to feed sources, downstream to end consumer, and between logistics networks). These developments resulted in what is termed advance supply chain planning. Notwithstanding its unique differences, the petrochemical industry still has a lot of ground to cover before it can reach some of the advance supply chain planning benefits reported in other industries. This article presents what is believed to be an appropriate supply chain planning approach/framework for decision making in large-scale, integrated petrochemical companies.


Author(s):  
Leila L. Goedhals-Gerber

As South Africa strives to be a major force in global markets, it is essential that South African supply chains achieve and maintain a competitive advantage. One approach to achieving this is to ensure that South African supply chains maximise their levels of efficiency. Consequently, the efficiency levels of South Africa’s supply chains must be evaluated. The objective of this article is to propose a model that can assist South African industries in becoming internationally competitive by providing them with a tool for evaluating their levels of efficiency both as individual firms and as a component in an overall supply chain. The Composite Supply Chain Efficiency Model (CSCEM) was developed to measure supply chain efficiency across supply chains using variables identified as problem areas experienced by South African supply chains. The CSCEM is tested in this article using the Sishen-Saldanda iron ore supply chain as a case study. The results indicate that all three links or nodes along the Sishen-Saldanha iron ore supply chain performed well. The average efficiency of the rail leg was 97.34%, while the average efficiency of the mine and the port were 97% and 95.44%, respectively. The results also show that the CSCEM can be used by South African firms to measure their levels of supply chain efficiency. This article concludes with the benefits of the CSCEM.


2018 ◽  
Vol 2 (1) ◽  
pp. 41-49
Author(s):  
Iruka Chijindu Anugwo ◽  
Winston Shakantu ◽  
Ibrahim Saidu ◽  
Anita Adamu

The African continent stands on the verge of developmental take-off, most especially the Southern African Development Community (SADC) region being one of the emerging economies. The 15 years SADC strategic plan for implementation of infrastructure and construction development is believed to stimulate economic, social and technological advancement; and increase the competitiveness and sustainability amongst the Small, Medium and Micro Enterprises (SMME) and large contractors within the region and globe. The major problem is that most of the SMME contractors within South Africa, which have the potential to grow into large construction companies and, to further internationalise their businesses lacks the global readiness. Thus, the global thrusts have generated the concepts of globalizing business strategy and operations, as one of the drivers of competitiveness of many countries and organisations. The purpose of this study is to evaluate the potential of the South African construction SMME /contractor's capability for globalizing within and beyond the SADC construction market. This study was conducted among the construction SMME contractors in Port Elizabeth, the Eastern Cape Province of South Africa.  The qualitative research method was adopted an in-depth interviewing technique with 34 contractors (civil engineering and general building contractors) within the cidb grade 4 to 6 contractors. These SMMEs are being perceived to have the potential capacity to become large-scale construction organisations shortly. Findings revealed that only two SMME contractors are operating internationally while other contracting firms are currently sustainable and competitive in the domestic market, and however, few are planning to go global. The study also revealed that most of the SMME contractors are reluctant to amplify their potential capabilities, and needed the readiness to develop international business strategies that would enable them to penetrate and participate in the SADC region and global construction market. The study recommends that the SA construction contractors both SMME and large contractors should strive earnestly to harness their potential capacity towards globalizing their businesses, strategies and operations frameworks that would foster their global competitiveness.  Keywords: Business Strategies, Capability, Globalisation, SMME Contractors, South Africa.


Author(s):  
Aletta S. Tolmay ◽  
Johanna A. Badenhorst-Weiss

Background: The automotive industry is characterised by a network of long term collaborative agreements between component suppliers and assemblers. For collaboration to be successful trust between the supply chain partners is vital. Although many variables influence the efficiency of collaborative relationships, the human behaviour issues related to culture and trust are often much more difficult to solve. Trust is singled out in this article as a contributor to value in the supply chain relationships. Increased trust leads to more confidence resulting in better collaboration.Objectives: The purpose of the study was to explore collaborative relationships between first and second tier suppliers (component manufacturers) in automotive supply chains in South Africa and the role of trust in the relationship value.Method: This quantitative study had been conducted amongst members of the National Association for Automobile Component and Allied Manufacturers of South Africa (NAACAM), who are suppliers to the large automotive assemblers. The research utilised closed ended questions to obtain the perceptions of managers in automotive component manufacture regarding trust and relationship value with their best suppliers.Results: With a linear regression model it was found that there is a high degree of trust in the collaborative relationships between first and second tier suppliers of components in the automotive industry in South Africa.Conclusion: The automotive industry is one of the most successful industries in South Africa. They compete globally and apply best practices, particularly those in supply chain management. The industry is characterised by networks of collaborative relationships on different levels. These relationships seem to be successful as they are based on trust.


2011 ◽  
Vol 11 (1) ◽  
Author(s):  
M. J. Naude ◽  
J. A. Badenhorst-Weiss

Purpose: The purpose of the article is to report on research that was completed to explore the concept of the bullwhip effect in supply chains and to illustrate empirically the presence of the bullwhip effect in automotive supply chains in South Africa. Problem Investigated: This article investigates the presence of the bullwhip effect - which was identified through an empirical study - and its causes and implications for supply chain management in the South African automotive component industry. Methodology: A literature study was conducted on the causes and implications of the bullwhip effect phenomenon. This was followed by an empirical study in the form of a survey among South African automotive component manufacturers. Descriptive and inferential statistics were used to determine the significant supply chain problems relating to the bullwhip effect in automotive supply chains. Findings and Implications: The results indicate that automotive component manufacturers are dependent on demand-forecasting information from their customers. They experience long lead times, fluctuating orders, cancellation of orders, excess and slow moving inventory and a lack of integration with suppliers and customers. There are also signs of relationship problems and a possible silo mentality. The mentioned results indicate the presence of the bullwhip effect in South African automotive supply chains. Since the bullwhip effect can have a major impact on organisations' costs, knowing where to invest effort and resources should be a high priority for supply chain managers. Value of the Research: Since the field of supply chain management is extremely dynamic, this article contributes to the body of knowledge and provides new insight into the bullwhip effect phenomenon. The results included in this article could assist parties in automotive supply chains to focus their attention on problems that might be within their control and if solved could lead to improved competitiveness. Furthermore, there is little empirical research on this topic in the South African automotive component industry. Conclusion: It is possible that the bullwhip effect is responsible for inefficiencies in automotive supply chains. Knowledge of the indicators of the bullwhip effect can enable supply chain managers to identify it at an early stage and thus be proactive in preventing its costly influence on the efficiency of the supply chain. The bullwhip effect can be experienced by any industry. This is possibly the case in the automotive component industry in South Africa.


2015 ◽  
Vol 43 (3) ◽  
pp. 261-279 ◽  
Author(s):  
Leonie C.E. Stevens ◽  
Iris F.A. Vis

2021 ◽  
pp. 348-374
Author(s):  
Pamela Mondliwa ◽  
Simon Roberts

The orientation of large corporations is at the heart of how countries develop. These firms make large-scale investments and realize economies of scale and scope, as well as make long-term commitments to the learning and research necessary to build capabilities required for industrial development. In many industries and sectors the large firms have key technologies, govern access to markets, and control material inputs which can shape the structure of an economy. The chapter reviews the changing corporate structure in South Africa focusing on the implications for industrial development, the evolving internationalization of South African businesses, and the political economy of economic policy. While the South African economy has remained highly concentrated, the corporate structure has altered in fundamental ways. The chapter identifies key elements of continuity and change to explain the implications of the continued high levels of economic concentration for the economy through the lens of the corporate structure.


Author(s):  
Clinton Aigbavboa ◽  
Neo Malose Masemeni ◽  
Wellington Thwala

This chapter report on some of the challenges faced and successes achieved during the construction of the recently completed Department of Environmental Affairs (DEA) headquarters in South Africa. Qualitative interviews where conducts with five (5) professionals which were part of the construction supply chain team that completed the DEA project in South Africa. Findings summary were that the South African construction industry exists in a very dynamic and volatile environment with common challenges as evident in other countries. This challenge, necessitates the use of collaborative means of managing the various phases of the supply chain. It was also found that the use of collaborative models such as Public Private Partnership (PPP) can prove rewarding when stakeholders involved in a project have an understanding of the model and its dynamics. This chapter contributes to the use of PPP collaborative models in construction project delivery in South Africa.


Author(s):  
Clinton Aigbavboa ◽  
Neo Malose Masemeni ◽  
Wellington Thwala

This chapter report on some of the challenges faced and successes achieved during the construction of the recently completed Department of Environmental Affairs (DEA) headquarters in South Africa. Qualitative interviews where conducts with five (5) professionals which were part of the construction supply chain team that completed the DEA project in South Africa. Findings summary were that the South African construction industry exists in a very dynamic and volatile environment with common challenges as evident in other countries. This challenge, necessitates the use of collaborative means of managing the various phases of the supply chain. It was also found that the use of collaborative models such as Public Private Partnership (PPP) can prove rewarding when stakeholders involved in a project have an understanding of the model and its dynamics. This chapter contributes to the use of PPP collaborative models in construction project delivery in South Africa.


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