Assessing the impact of supplier and customer relationships and third-party logistics on stock availability in Mahikeng grocery small and medium-sized enterprises

Abstract

Background: Grocery small and medium-sized enterprises (SMEs) in Mahikeng face significant challenges in maintaining competitive advantage due to limited resources and inefficient supply chain practices. The integration of third-party logistics (3PL) services, along with strong supplier and customer relationships, has been proposed as a potential driver of operational efficiency and faster stock availability.

Objectives: This study aimed to assess whether effective supplier-customer relationships, when integrated with outsourced transportation through 3PL providers, can accelerate stock replenishment and improve the competitiveness of grocery SMEs in Mahikeng.

Method: Employing an exploratory qualitative case study design, the research collected primary and secondary data through semi-structured interviews with SME owners and managers, and analysis of operational records. A deductive approach was used to develop theoretical insights into the role of inter-organisational collaborations in expediting inventory turnaround times.

Results: Findings indicate that grocery SMEs with strong supplier and customer relationships and strategic 3PL partnerships experienced reduced lead times and improved inventory management. Improved coordination facilitated more timely stock availability, which, contributed to increased customer satisfaction and stronger competitive positioning. However, limitations such as 3PL capacity constraints and communication challenges were also identified.

Conclusion: The study concludes that integrating 3PL services with effective supplier and customer relationships is a critical enabler of supply chain responsiveness among grocery SMEs in Mahikeng.

Contribution: This study contributes to the existing literature by providing a port-specific, contextually grounded analysis of how 3PL integration can improve competitiveness in emerging markets, offering a novel framework for operational improvement in the grocery sector.