Supplier-customer relationships : weaknesses in South African automotive supply chains

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 k...

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Bibliographic Details
Published inJournal of transport and supply chain management Vol. 6; no. 1; pp. 91 - 106
Main Authors Naude, M.J, Badenhorst-Weiss, J.A
Format Journal Article
LanguageEnglish
Published Johannesburg University of Johannesburg 01.01.2012
AOSIS (Pty) Ltd
AOSIS
Subjects
Automobile industry
Automobiles
Automotive engineering
Automotive parts
Automotive parts industry
Automotive supplies
Business competition
Customer satisfaction
Efficiency
OEM
Suppliers
Supply chain management
Supply chains
Vendor supplier relations
South Africa
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Summary: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.
ISSN:2310-8789
1995-5235
DOI:10.4102/jtscm.v6i1.33