Supply chain risks in the South African manufacturing sector

Abstract

Background: Supply chain operations in many organisations are becoming vulnerable to increasing supply chain risks because of unforeseen events that can disrupt the flow of goods and services across the value chain.
Objectives: The primary objectives of this study were to determine the most significant supply chain risks in the South African manufacturing sector, to ascertain the effects of supply chain risks in the South African manufacturing sector and to determine the risk mitigation measures that the South African manufacturing sector employs to manage supply chain risks.
Method: A quantitative research design was used, and the philosophical paradigm for this study was positivism, with empirical data collected using a self-administered online questionnaire. Exploratory factor analysis, correlation analysis and regression analysis were employed to analyse the research data.
Results: The study’s findings revealed that supply chain risks have a significant relationship to supply chain operations. The correlation analysis revealed a positive correlation between logistics risk, supply risk, financial risk and supply chain operations. In contrast, the findings suggested a weak relationship between environmental and demand risk in supply chain operations.
Contribution: Findings suggest that logistical, supply and financial risks are the most important supply chain risks affecting manufacturers in South Africa and should be prominently featured in risk mitigation strategies.
Conclusion: The findings of this study provide supply chain managers with a better understanding of supply chain risk and its effects on organisational operations.