Challenges of locally manufactured vehicle supply chains in South Africa

• Published in: Journal of transport and supply chain management Vol. 7; no. 1; pp. e1 - e8
• Main Authors: Ambe, Intaher M, Badenhorst-Wess, Johanna A
• Format: Journal Article
• Language: English
• Published: Johannesburg African Online Scientific Information Systems (Pty) Ltd t/a AOSIS 01.01.2013; AOSIS (Pty) Ltd; AOSIS
• Subjects: Adequacy; Automobile industry; Automobile safety; Automobiles; Automotive engineering; Automotive parts; Collaboration; Competition; Data analysis; Economic aspects; Economic growth; GDP; Gross Domestic Product; Industry forecasts; Inventory; Literature reviews; Logistics; Management; Manufacturers; Manufacturing; Market positioning; Market shares; Methods; Motor vehicles; OEM; Quality management; R&D; Rail transportation; Research & development; Studies; Suppliers; Supply chain management; Supply chain management, light vehicle manufacturers, challenges, South Africa; Supply chains; Transportation equipment industry; Vehicles; South Africa
• ISSN: 2310-8789; 1995-5235; 1995-5235
• DOI: 10.4102/jtscm.v7i1.100

Locally manufactured vehicles are destined (partly) for the export market and thus, global competitiveness is important. This article explores the challenges facing supply chains of locally manufactured vehicles in South Africa. The automotive industry is perceived to be the most advanced in supply chain management practices in South Africa. It has embraced technology and management practices that have transformed the manufacturing environment by using cutting-edge design and visualisation tools. However, the industry has fragilities and faces new and emerging supply chain challenges. A survey research design was employed and the data was collected through face-to-face semi-structured interview questionnaires based on the purposive sampling technique. Data analysis and interpretation was based on descriptive statistics using SPSS software. The findings revealed that there are challenges hindering best supply chain practices of local vehicle manufacturers. The research also revealed that there is a perceived difference in supply chain challenges between the different manufacturers of different origins in South Africa. Asian manufacturers felt much stronger about the adequacy of their information systems compared to the European manufacturers. Asian manufacturers tended to agree more than their European counterparts that labour problems were a challenge. European manufacturers, on the other hand, tended to agree more that rail transport is unreliable. This article contributes to the body of knowledge on supply chain practices in South Africa.