scholarly journals Enabling information sharing by establishing trust in supply chains: A case study in the South African automotive industry

2011 ◽  
Vol 13 (1) ◽  
Author(s):  
Roxanne Piderit ◽  
Stephen Flowerday ◽  
Rossouw Von Solms

Background: The significant economic importance of the country’s automotive industry provided the context for this study. The success of the industry relies on the effectiveness and efficiency of the supply chain, which can be significantly affected by the strength of the supply chain relationships. The role of trust and information sharing in relation to two key theories was considered, namely: organisational information processing theory and game theory. Previous studies have recognised the importance of trust and information sharing in supply chain relationships and considered the effect of trust on information sharing, or the effect of information sharing on trust in a single direction. Thus, the potential cyclical relationship between the two factors has been largely ignored.Objectives: This paper explored the relationship between trust and information sharing in South African automotive supply chains, and establishes the importance of nurturing a cyclical relationship between these two factors. In addition, the role of information technology (IT) in supporting this relationship was considered. By improving both trust and information sharing, the performance and competitiveness of the supply chain can be improved.Method: An examination of the effects of a lack of trust in a supply chain relationship, and the consequential lack of information flow, was conducted by means of a case study of an Eastern Cape-based automotive supplier. A case study research method was followed for this study, which made use of multiple data collection methods, including document survey and participant observations. The case selected is an East London based subsidiary of a larger multinational automotive component supplier to both local and international automotive original equipment manufacturers.Results: The findings led to the conclusion that the way forward for competitive supply chains is to build trust in the supply chain in order to improve information flow, and vice versa. Information technology can be used to nurture this cyclical relationship between trust and information sharing.Conclusion: It is proposed that simultaneously improving information flow and trust in an interorganisational relationship leads to improved supply chain performance and competitiveness.

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.


2020 ◽  
Vol 12 (5) ◽  
pp. 1814 ◽  
Author(s):  
Iain J. Fraser ◽  
Martin Müller ◽  
Julia Schwarzkopf

Sustainability in supply chain management (SSCM) has become established in both academia and increasingly in practice. As stakeholders continue to require focal companies (FCs) to take more responsibility for their entire supply chains (SCs), this has led to the development of multi-tier SSCM (MT-SSCM). Much extant research has focused on simple supply chains from certain industries. Recently, a comprehensive traceability for sustainability (TfS) framework has been proposed, which outlines how companies could achieve MT-SSCM through traceability. Our research builds on this and responds to calls for cases from the automotive industry by abductively analysing a multi-tier supply chain (MT-SC) transparency case study. This research analyses a raw material SC that is particularly renowned for sustainability problems—the cobalt supply chain for electric vehicles—and finds that the extant literature has oversimplified the operationalisation of transparency in MT-SSCM. We compare the supply chain maps of the MT-SC before and after an auditing and mapping project to demonstrate the transparency achieved. Our findings identify challenges to the operationalisation of SC transparency and we outline how FCs might set to increase MT-SC transparency for sustainability.


Author(s):  
Amber A. Smith-Ditizio ◽  
Alan D. Smith

Managing supply chain relationships and/or working with suppliers to meet the mutual goals of operational efficiency and profitably can be enhanced through the use of RFID and barcode technologies. It is important in a lean environment to use RFID and related IT-intensive technologies to manage more robust and agile supply chains. The areas of improvement, as demonstrated in a case study of NE Ohio regionally headquartered firms' involvement of positive outcomes from the strategic use of automatic identification and tracking technologies, included successfully implemented applications as well as technological advancements and development.


Agrekon ◽  
1999 ◽  
Vol 38 (4) ◽  
pp. 755-765 ◽  
Author(s):  
N. L. Tregurtha ◽  
N. Vink

Author(s):  
Lincoln C. Wood

Supply chain management has been increasingly seen as a strategic tool to improve the competitiveness of companies. Coopetition, the mingling of competitive and cooperative relationships, has been utilised by New Zealand companies in the horticulture industry to help break into and develop new markets. Using a case study various elements of the supply chain are examined from both strategic and operational perspectives for this group of companies and their customers and suppliers. The connections to the customer are shown to be enhanced through careful implementation, as the group of companies act to adjust their entire supply chains to make them increasingly customer-orientated. Significant benefits that are shown to accrue include improved information flow, increased ability to supply, and flexibility to meet customer requirements.


Author(s):  
Amber A. Smith-Ditizio ◽  
Alan D. Smith

Managing supply chain relationships and/or working with suppliers to meet the mutual goals of operational efficiency and profitably can be enhanced through the use of RFID and barcode technologies. It is important in a lean environment to use RFID and related IT-intensive technologies to management more robust and agile supply chains. The areas of improvement, as demonstrated in a case study of NE Ohio regionally headquartered firms' involvement of positive outcomes from the strategic use of automatic identification and tracking technologies included successfully implemented applications as well as technological advancements and development.


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.


Author(s):  
Yootaek Lee ◽  
Jay Kim ◽  
Jeffery G. Miller

The purpose of this chapter is to enhance our understanding of how web-based applications and complementary resources can work together to create competitive advantages in supply chains. This chapter is organized as follows. First, this chapter introduces the theoretical background of complementary resources. Then, it moves on to report a preliminary result of secondary data analysis that explores the role of complementary resources to the development of web-enabled supply chains. Lastly, this chapter reports a case study that focuses on identifying: 1) the complementary resources that influence the successful implementation of web-based applications for supply chain management, and 2) the degree to which certain types of complementary resources function to support the successful implementation of web-based applications.


Sign in / Sign up

Export Citation Format

Share Document