Challenges of locally manufactured vehicle supply chains in South Africa

Abstract

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.