Supply chain management as a competitive advantage for grocery small and medium-sized enterprises in Mahikeng, South Africa

Abstract

Background: The adoption of supply chain management (SCM) strategy in the last four decades has transformed enterprises, prompting them to take a more customer-centric approach in their operations. Addressing the customer’s needs through coordinated SC networks is a competitive advantage for enterprises. The purpose of this study was to explore SCM as a competitive advantage for small and medium-sized enterprises (SMEs), specifically grocery stores in Mahikeng, South Africa.

Research objectives: The investigation sought to explore the role of supply chain collaboration in enhancing constant flow of products for business continuity and cost-saving for SMEs from third-party logistics (3PL) transport optimisation, and it was discovered that the practice of reverse logistics by SMEs recovered value and reduced waste.

Research methodology: A qualitative research method with descriptive design and a nonprobability sampling strategy was followed to conduct the study. The recorded interviews were transcribed, translated, coded and analysed via thematic data analysis to determine the outcome of the study.

Results: The study established that SCM improved cost-effectiveness through cost-saving on shared (3PL) transportation between SMEs and improved efficiency through enhanced supplier–customer relationships by maintaining continuous flow of products and services. The optimisation of transportation, continuous flow of products and services and recovery of value through reverse logistics reduced waste and increased efficiency, which enhanced competitiveness and sustainability of the retailers.

Conclusion: It is apparent that enterprises that streamlined operations through SCM also reduced waste, thereby enhancing competitiveness and sustainability. The findings indicated that owners and managers will understand the benefits of adopting SCM strategies.