scholarly journals Difficulty To Overcome Supply Chain Challenges Faced By Vehicle Manufacturers In South Africa

2014 ◽  
Vol 30 (5) ◽  
pp. 1539 ◽  
Author(s):  
Intaher Marcus Ambe
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Automotive Industry ◽  
Operating Costs ◽  
Level Of Service ◽  
Technological Infrastructure ◽  
Road Freight ◽  
Light Vehicle ◽  
Fuel Costs ◽  
Service Relationship

<p>This article explores supply chain challenges faced by light vehicle manufacturers in South Africa and determines how difficult the challenges are to overcome. A mixed research design was employed. The supply chain challenges revealed in the findings were categorised into technological, infrastructure, cost, market/service, relationship and production/skills challenges. Most are difficult to quantify, such as road freight volumes, port delays, rail unreliability, high fuel costs, high operating costs and high port charges. Nevertheless, addressing some of the challenges could help manufacturers to become more competitive, for example by replacing outdated assembly/manufacturing tools, finding new markets, preventing or reducing the effect of cancellation of customer orders and improving the level of service in general. This article provides an understanding of the challenges in the supply chain, which is paramount not only for locally manufactured vehicle supply chain practitioners, but also for the automotive industry and South Africa as a whole.</p>

scholarly journals The use of Postponement Decisions in Determining Supply Chain Strategies of Light Vehicle Manufacturers in South Africa

2017 ◽  
Vol 9 (3) ◽  
pp. 180
Author(s):  
Intaher Marcus Ambe
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Descriptive Statistics ◽  
Production Lines ◽  
Supply Chain Strategy ◽  
Agile Supply Chain ◽  
Light Vehicle ◽  
The Postponement ◽  
Lean Supply Chain ◽  
Made In

This article investigates the use of postponement decisions in determining the supply chain strategies of light vehicle manufacturers in South Africa. The article is exploratory and descriptive in nature. A survey was conducted among light vehicle manufacturers and the findings analysed by means of descriptive statistics. The results revealed that postponement decisions could be used to determine the supply chain architecture used by light vehicle manufacturers in South Africa. With regard to postponement decisions, the study found that all the light vehicle manufacturers made use of a lean supply chain strategy, while a few made use of an agile supply chain strategy. The results also revealed that all the production lines engaged in full speculation based on projected forecasting, and therefore employed a lean supply chain strategy. In terms of the postponement decisions made in line with the parent company of origin, European manufacturers 1 and 2 kept a work-in-progress inventory of stock to be customised for a particular customer. These manufacturers thus employed a lean and agile supply chain strategy, while most of the manufacturers adopted a lean supply chain strategy. All the manufacturers, except Asian manufacturer 1 and the American manufacturer, employed both lean and agile supply chain strategies. Therefore, the majority of the light vehicle manufacturers employed lean supply chain strategies in their inbound and outbound supply chain, while a few employed an agile supply chain strategy in their outbound supply chain, there by indicating leaglity. The article provides evidence of some form of postponement practice being followed by light vehicle manufacturers.

scholarly journals The use of Postponement Decisions in Determining Supply Chain Strategies of Light Vehicle Manufacturers in South Africa

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 180-191
Author(s):  
Intaher Marcus Ambe
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Descriptive Statistics ◽  
Production Lines ◽  
Supply Chain Strategy ◽  
Agile Supply Chain ◽  
Light Vehicle ◽  
The Postponement ◽  
Lean Supply Chain ◽  
Made In

This article investigates the use of postponement decisions in determining the supply chain strategies of light vehicle manufacturers in South Africa. The article is exploratory and descriptive in nature. A survey was conducted among light vehicle manufacturers and the findings analysed by means of descriptive statistics. The results revealed that postponement decisions could be used to determine the supply chain architecture used by light vehicle manufacturers in South Africa. With regard to postponement decisions, the study found that all the light vehicle manufacturers made use of a lean supply chain strategy, while a few made use of an agile supply chain strategy. The results also revealed that all the production lines engaged in full speculation based on projected forecasting, and therefore employed a lean supply chain strategy. In terms of the postponement decisions made in line with the parent company of origin, European manufacturers 1 and 2 kept a work-in-progress inventory of stock to be customised for a particular customer. These manufacturers thus employed a lean and agile supply chain strategy, while most of the manufacturers adopted a lean supply chain strategy. All the manufacturers, except Asian manufacturer 1 and the American manufacturer, employed both lean and agile supply chain strategies. Therefore, the majority of the light vehicle manufacturers employed lean supply chain strategies in their inbound and outbound supply chain, while a few employed an agile supply chain strategy in their outbound supply chain, there by indicating leaglity. The article provides evidence of some form of postponement practice being followed by light vehicle manufacturers.

scholarly journals Key Indicators For Optimising Supply Chain Performance: The Case Of Light Vehicle Manufacturers In South Africa

2013 ◽  
Vol 30 (1) ◽  
pp. 277 ◽  
Author(s):  
Intaher Marcus Ambe
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Sampling Technique ◽  
Structured Interview ◽  
Supply Chain Performance ◽  
Automotive Market ◽  
Product Delivery ◽  
Delivery Reliability ◽  
Light Vehicle ◽  
Key Indicators

This article investigates key indicators for optimising supply chain performance of light vehicle manufacturers in South Africa. The article is based on a survey conducted among light vehicle manufacturers in South Africa with origins in Asia and Europe. Semi-structured interview questionnaire was used based on purposive sampling technique and the data was analysed using SPSS. The findings revealed that quality, final product delivery reliability and cost were highly rated and the most important indicators for the South African automotive market. Innovation (radical and incremental changes) was the least important among the indicators sampled. The article further revealed that there is a perceived difference on the importance of supply chain indicators between manufacturers of Asian and European origins. Final product delivery reliability and order delivery lead time tended to be more important to European manufacturers compared to Asian manufacturers. The article attests to the fact that competitiveness in cost, quality and product offerings are paramount to automotive manufacturers in todays turbulent environment. It also reveals key competitive criteria used by European and Asian manufacturers based in South Africa. The article contributes to literature on SCM and reveals the way in which vehicle manufacturers in South Africa do business.

scholarly journals Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust

2015 ◽  
Vol 9 (1) ◽  
Author(s):  
Aletta S. Tolmay ◽  
Johanna A. Badenhorst-Weiss
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Supply Chains ◽  
South African ◽  
Automotive Industry ◽  
Collaborative Relationships ◽  
Supply Chain Relationships ◽  
Second Tier ◽  
Automotive Supply ◽  
High Degree

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.

A SOFT SYSTEMS METHODOLOGY APPROACH TO IMPROVING THE SUPPLY CHAIN OF A CONSTRUCTION PROJECT IN GAUTENG PROVINCE, SOUTH AFRICA

2020 ◽  
Vol 10 (1) ◽  
pp. 86-99
Author(s):  
Lewis Tsuro ◽  
Stan Hardman
Keyword(s):  
South Africa ◽  
Supply Chain ◽  
Construction Project ◽  
Soft Systems Methodology ◽  
Project Planning ◽  
Suitable Model ◽  
Senior Managers ◽  
Good Tool ◽  
Systems Methodology ◽  
Soft Systems

The Soft Systems Methodology (SSM) was developed as a set of tools for identifying and making incremental steps to improve situations with poorly defined causes or solutions. The supply chain forms a key process of any construction project; however, on any given construction site, supply chain inefficiencies could arise from many different avenues. Opinions vary, though, on which of these avenues is more important for increasing supply chain efficiencies; whether any problem even exist across the different aspects of the supply chain; as well as what steps should be taken to resolve them. It was therefore studied, here, whether SSM could be employed as a useful tool to systematically apply in the supply chains of a construction project in South Africa, for understanding and targeting the problematic situations that arise. Following thorough cyclical open-ended interviews with 17 workers, supervisors, foremen, site clerks, senior managers, and the CEO of the principal contractor at a new office park construction project in Rosebank, Johannesburg, and a thematic analysis of the data, SSM was performed to understand the existing challenges, and develop a suitable model for improvement. The study found that SSM was a good tool for understanding the ‘messy’ circumstances surrounding the chosen construction project supply chain, as well as actions that could be taken to improve the supply chain’s efficiency on site. The findings add weight to the argument that SSM could be a good tool for project managers to systematically introduce into their project planning regimens

scholarly journals Monitoring the technological processes in the wood industry in order to make them more efficient through technical overhauling

2019 ◽  
Vol 290 ◽  
pp. 02007
Author(s):  
Radu Dan Paltan ◽  
Cristina Biriş ◽  
Loredana Anne-Marie Rădulescu
Keyword(s):  
Automotive Industry ◽  
Operating Mode ◽  
Solid Wood ◽  
Production Costs ◽  
Operating Costs ◽  
Future Research ◽  
Wood Industry ◽  
Research Article ◽  
State Of Research ◽  
The Cost

Of many techniques that are used to optimize production and costs, the studies conducted within a profile company lead to our choice for testing the 6Sigma method (the most used method in the automotive industry) in view of the economic efficiency applied in the wood Industry company. This method measures how many flaws exist in a process and determines in a systematic way how to improve it by technical overhauling and eliminating or minimizing the process for efficiency. This research article aims to study the state of research on the optimization of the production process through technical overhauling for panels reconstituted from solid wood and ways to make production more efficient by cutting costs through technical overhauling. From preliminary research, we estimate that all the items founded and others that will result from further research will result in a significant decrease in production costs that are reflected in the cost of the finished product and consequently in increasing the yield of the company by maximizing its profit. At the same time it may be the basis of future research studies in the field. The easier it is to maximize profits, the lower the operating costs are and the higher recovery rate of investments are, that will result a change in the operating mode: “working smarter not harder”.

Dissolving the paradox: toward a Yin–Yang perspective on the power and trust antagonism in collaborative business relationships

2018 ◽  
Vol 23 (6) ◽  
pp. 573-590 ◽  
Author(s):  
Sven Horak ◽  
Chris P. Long
Keyword(s):  
Supply Chain ◽  
Automotive Industry ◽  
Business Relationships ◽  
Apparent Contradiction ◽  
Content Type ◽  
Trust Relationships ◽  
Yin Yang ◽  
Management Paradigms ◽  
Research Stream ◽  
Practical Implications

PurposeBy challenging the typical antagonistic view of the informal institutions power and trust, this paper aims to explore the interrelatedness of the two through the Yin–Yang lens.Design/methodology/approachThe data for this research stem from extensive group and one-to-one interviews with Toyota and its domestic and international suppliers.FindingsContrary to the conventional antagonistic view of power and trust, the study finds a different relationship between power and trust in Japan, namely, a rather natural, mutually integrative and dependent one. The paper assumes that Taoist ideals, in particular the forces of Yin–Yang, explain this apparent contradiction.Practical implicationsGuided by the Yin–Yang perspective on power and trust balancing, the study proposes six management paradigms regarding how power and trust relationships can be developed and managed to increase collaboration performance.Originality/valueWhile this research contributes to the research stream considering power and trust as complements rather than substitutes, it introduces the Yin–Yang view of business collaboration into the field of supply chain management in the automotive industry. Furthermore, it proposes practical measurements for the management of collaborative business relationships in a supply chain by taking advantage of the Yin–Yang view of putative contradictions.

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