scholarly journals Antecedents of trust among buyer and seller within the South African automotive supply chains

2019 ◽  
Vol 13 ◽  
Author(s):  
Aletta S. Tolmay
Keyword(s):  
Supply Chains ◽  
South African ◽  
The South ◽  
Automotive Supply

scholarly journals Supplier–customer relationships: Weaknesses in south african automotive supply chains

2012 ◽  
Vol 6 (1) ◽  
Author(s):  
M. J. Naude ◽  
J. A. Badenhorst-Weiss
Keyword(s):  
Supply Chains ◽  
South African ◽  
Automotive Industry ◽  
Customer Relationships ◽  
The South ◽  
Collaborative Relationships ◽  
Automotive Components ◽  
Optimal Efficiency ◽  
Automotive Supply ◽  
Original Equipment Manufacturers

The South African automotive industry, which is an important sector in the South African economy, needs to function efficiently if it is to compete internationally. However, South African automotive components manufacturers (ACMs) are not internationally competitive and automotive assemblers, also known as original equipment manufacturers (OEMs), often import cheaper components from abroad. All parties in the South African automotive supply chains need each other to ensure optimal efficiency and competitiveness. Furthermore, it is vital that good relationships exist between customers and suppliers in the automotive supply chains in South Africa. ACMs are central to automotive supply chains. A survey was conducted among ACMs to determine the nature of relationships that exist between buyers and suppliers in South Africa’s automotive supply chains. The results showed that collaborative relationships do indeed exist between members of the supply chain but that communication, understanding of the parties’ situations and cooperation can improve this relationship and so create total alliance between OEMs and ACMs.

scholarly journals Relationship value antecedents in the South African automotive component supply chain

2017 ◽  
Vol 17 (1) ◽  
Author(s):  
Aletta S. Tolmay ◽  
Peet Venter
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
South African ◽  
Three Dimensions ◽  
The South ◽  
Value Drivers ◽  
Automotive Component ◽  
Personal Interaction ◽  
Relationship Value ◽  
Automotive Supply

Orientation: Although literature agrees on the importance of ‘relationship value’, the term is still seen as ambiguous and authors fail to agree on its antecedents. Within a challenging global arena, relationship value is believed to result in business retention. It is therefore critical to have a better understanding of this value to ensure business sustainability within supply chains. Literature suggests that relationship value drivers comprise three dimensions, namely a core offering, sourcing process and customer operations.Research purpose: The contribution of the research reported on in this paper is an enhanced conceptual understanding of relationship value and its salient drivers within the South African automotive supply chains.Motivation for the study: Literature invites more research on relationship value and its drivers. Therefore, the research reported on tested the antecedents of relationship value.Research design, approach and method: Relationship value drivers were tested through empirical research within the South African automotive supply chains by means of a path analysis. The research utilised a closed-ended questionnaire, and targeted managers among Tier 1 buyers and asked them about the relationship value traits of their best Tier 2 suppliers.Main findings: It was found that personal interaction, which forms part of the sourcing process, is viewed as the strongest antecedent of relationship value within the South African automotive supply chains, followed by product quality and delivery.Practical/managerial implications: It is suggested that superior supply chain practices within the South African automotive industry might secure business retention. Automotive component suppliers are therefore advised to implement relationship value strategies to promote higher value through personal interaction.

scholarly journals The correlation between relationship value and business expansion in the South African automotive supply chains

2017 ◽  
Vol 11 ◽  
Author(s):  
Aletta S. Tolmay
Keyword(s):  
Supply Chain ◽  
Linear Regression ◽  
Supply Chains ◽  
South African ◽  
Automotive Industry ◽  
Tier 2 ◽  
The South ◽  
Tier 1 ◽  
Relationship Value ◽  
Automotive Supply

Background: The South African automotive industry includes complete supply chains. The South African automotive supply chain stakeholders operating within the global arena are faced with opportunities as well as challenges. The South African government supports the automotive industry and encourages the vision to drastically expand the industry by the year 2020. However, having to adhere to strict prescriptions from customers regarding product quality and logistics, automotive component suppliers have only the actual relationship with customers through which value can be added. Literature acknowledges the importance of relationship value and agrees that it results in business retention. However, literature fails to prove whether relationship value can result in business expansion where more business is generated.Objectives: The objective of this article was to provide a better understanding of how to optimise relationship value within the South African automotive supply chains between Tier 1 and Tier 2 suppliers. Furthermore, the correlation between relationship value and business expansion was tested through a linear regression model. It was also important to determine whether supply chain stakeholders from different countries of origin and cultural backgrounds attach the same importance to relationship value.Method: This article reports on research which followed a positivistic paradigm, through a quantitative study undertaken in the South African automotive supply chains. Members of the National Association for Automobile Component and Allied Manufacturers of South Africa (NAACAM), defined as Tier 1 suppliers, were approached to describe their best Tier 2 suppliers. Questions relating to relationship value and business expansion were asked via a closed-ended questionnaire. The aim was to obtain the perceptions of Tier 1 suppliers of their best Tier 2 suppliers in terms of relationship value and business expansion. The data were analysed through a linear regression model.Results: It was found that relationship value directly correlates with business expansion and is therefore highly regarded as important by Tier 1 suppliers in terms of their Tier 2 suppliers in the South African automotive supply chains. Notwithstanding the different countries of origin, respondents are in agreement regarding the importance of relationship value.Conclusion: As the South African automotive industry plays an important role in the South African economy, all efforts should be made to retain and expand the industry. The industry is characterised by a difficult economy, and supply chain role players should constantly investigate new strategies to gain a competitive advantage. It was found that there was a high regard for relationship value which could result in business expansion. Automotive component suppliers are encouraged to invest in a relationship value governance strategy to actively pursue added benefits for all stakeholders.

scholarly journals Counterfeiting: Exploring mitigation capabilities and resilience in South African pharmaceutical supply chains

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Christine Terblanche ◽  
Wesley Niemann
Keyword(s):  
Supply Chains ◽  
South African ◽  
Risk Mitigation ◽  
Developed Countries ◽  
The South ◽  
Structured Interviews ◽  
Illicit Trade ◽  
Pharmaceutical Firms ◽  
Managerial Implications ◽  
Pharmaceutical Supply Chains

Orientation: Pharmaceutical supply chains (SCs) are experiencing a growing emergence of illicit trade of counterfeited products. This threat is amplified because of global distributed SC networks, increased access to the Internet and challenging economic conditions.Research purpose: The purpose of this study was to explore risk mitigation capabilities and SC resilience (SCRES) to reduce the effects of counterfeiting in the South African pharmaceutical industry.Motivation for the study: Developing countries such as South Africa tend to be more vulnerable to counterfeiting, as these countries do not have established responses that are seen in more developed countries, such as SC regulation, track-and-trace technology and enforcement regimes.Research design, approach and method: This study employed a generic qualitative research design. Semi-structured interviews were used to collect data from 12 pharmaceutical manufacturers, distributors and retailers in the South African pharmaceutical industry. A thematic analysis approach was followed to analyse the collected data.Main findings: The findings show that the sources of counterfeiting stem from the local and outsourced manufacturing of counterfeited products, presence of unauthorised distributors and importing of counterfeit products. Risk awareness can be enhanced by collaborating with industry members, training members to identify counterfeits and by developing authentication technologies. The industry actively combats counterfeiting by using SCRES enablers including visibility, collaboration, information sharing and by developing an SC risk management culture.Practical/managerial implications: South African pharmaceutical firms have limited resilience. Therefore, managers should develop flexibility, agility, sensing and redundancy as resilience enables firms to combat counterfeiting.Contribution/value-add: This study expands the current literature by identifying the unique sources of counterfeiting and risk mitigation capabilities to combat counterfeiting in pharmaceutical firms in a developing country context.

scholarly journals Impediments to the structural development of South African maritime supply chains

2007 ◽  
Vol 1 (1) ◽  
Author(s):  
Yolanda Fourie
Keyword(s):  
Supply Chains ◽  
South African ◽  
Best Practice ◽  
Public Private Partnerships ◽  
Global Markets ◽  
Structural Development ◽  
The South ◽  
The Government

The progress of the South African economy relies heavily on earnings from physical exports, which depend increasingly on the competitiveness in global markets of the maritime supply chains that serve the country. World best practice requires that those chains should function as entities structured to serve their logistical purpose, while the development of such structured chains requires chain leadership. Transnet fulfils a prominent role in South Africa’s maritime supply chains, but that role, in accordance with the declared policy of the Government, constitutes an impediment to restructuring the chains as competing entities under private leadership. The solution may be found in leadership by public-private partnerships.

scholarly journals A performance measurement framework for the South African bulk export wine supply chain

2017 ◽  
Vol 11 ◽  
Author(s):  
Johan B. Smit ◽  
Joubert Van Eeden ◽  
Frances E. Van Dyk
Keyword(s):  
Qualitative Research ◽  
Supply Chain ◽  
Performance Measurement ◽  
Supply Chains ◽  
South African ◽  
Quantitative Research ◽  
Wine Industry ◽  
The South ◽  
Measurement Framework ◽  
A Performance

Background: Many participants in the South African wine industry still exhibit low supply chain maturity in the management of their supply chains. This hampers export performance and ultimately client satisfaction. The development and tracking of appropriate metrics are key steps in improving supply chain performance.Objectives: The purpose of this study was to develop a performance measurement framework for the South African wine industry, focussing on the bulk export segment.Method: The framework was developed using an emergent multi-phased exploratory approach. The approach was implemented in two distinct phases, namely qualitative research followed by quantitative research in each of three iterations to develop and refine the framework. In each iteration, the qualitative research phase consisted of a literature survey, semi-structured and unstructured interviews and case studies, while the quantitative research phase consisted of the development, distribution, completion and analysis of the framework questionnaire, each iteration building on the framework outputs from the previous iteration.Results: The research highlighted that the wine supply chain performance of bulk exports is hindered by the lack of a measurement culture, hampering the identification and prioritisation of interventions. The creation of a performance measurement framework in conjunction with industry, and informed by the Supply Chain Operations Reference framework, creates a platform for the industry to address these challenges.Conclusion: The implementation of this framework will provide performance visibility for cellars in the wine industry. This would enable them to improve their logistics processes and increase their supply chain maturity, ultimately enabling benchmarking against competing supply chains both within South Africa and abroad, such as in Australia, Argentina and Chile.

Relationship Value, Trust And Supplier Retention In South African Automotive Supply Chains

2016 ◽  
Vol 32 (5) ◽  
pp. 1329 ◽  
Author(s):  
J.A. Badenhorst-Weiss ◽  
A.S. Tolmay
Keyword(s):  
South Africa ◽  
Supply Chains ◽  
South African ◽  
Extra Effort ◽  
Best Value ◽  
Relationship Value ◽  
Second Tier ◽  
Automotive Supply ◽  
The Relationship

Suppliers have a particular role to play in assuring competitiveness in supply chains. This article investigates the relationship between first and second tier suppliers in automotive supply chains in South Africa. Automotive component suppliers (first tier suppliers to assemblers (OEMS) such as Toyota) should make an extra effort to retain their suppliers (second tier), particularly suppliers of strategic parts, to assure the best value adding by the suppliers in the highly competitive supply chain landscape. To assure best value from suppliers they need to be retained in an active trusting, long term, collaborative relationship.  The more the customer trusts the supplier, the higher the perceived value of the relationship and the more likely parties will work together to retain the business relationship. The aim of this quantitative study amongst first tier suppliers is to obtain more insight into the relationships and the hierarchical correlation between the relationship value, trust and supplier retention in automotive supply chains in South Africa. With a regression analysis it was found that both trust and relationship value are substantial predictors of supplier retention, but trust is more important for supplier retention.

Interdependence analysis of supplier relationship challenges in the South African automotive industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohita Gangwar Sharma ◽  
Micheline Juliana Naude
Keyword(s):  
South African ◽  
Automotive Industry ◽  
Rapid Change ◽  
Ripple Effect ◽  
The South ◽  
Content Type ◽  
Automotive Supply Chain ◽  
Automotive Supply ◽  
Supplier Relationship ◽  
Relationship Challenges

Purpose The South African automotive industry, which is the most significant sector in the South African economy, needs to function efficiently to compete globally. The purpose of this paper is to report on a study that investigated the challenges faced by the South African automotive component manufacturers and their suppliers and provide a structure and identify the dependencies between these challenges. Design/methodology/approach Interpretive structural modelling (ISM) was adopted to explore the supplier relationship challenges and the dynamics and interlinkages between these challenges. ISM was deemed appropriate, as it is a multi-criterion decision-making technique suited for complex problems and provides an ordered, directional framework. Findings The findings revealed that advanced communication, rapid change in demand and dependence on a single customer are independent problems but have a lesser feedback loop and do not create instability by ripple effect. Interdependencies, on the other hand, create lesser ripples when tackled. Research limitations/implications Findings of this study will be able to guide all the stakeholders: the policymakers and the automotive industry players to target the driving issue which can bring efficiency in the South African automotive supply chain. If the automotive components manufacturers (ACMs) are able to have more than one customer, their reliance on one will decrease and the systems will improve which shall benefit the industry. This methodology can also be used in future for determining the roadmap for complex issues. Originality/value The framework presented in this paper provides decision makers with a realistic picture of their situation by providing insight into the interrelationships, ranking them by importance and aiding in creating a roadmap for addressing identified challenges.

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.

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