Abstract

This paper sought to investigate the alignment between supply chain strategies and practices of local manufacturers of locally made light vehicles in South Africa. The research design employed was a combination of exploratory and descriptive research design using a qualitative approach. A face-to-face, semi-structured interview questionnaire was used, based on purposive sampling. Descriptive statistics using SPSS software was used for the data analysis and interpretation. The findings of the research revealed that across the supply chains of locally made models, all the manufacturers followed a lean strategy for their inbound supply chain and some had a lean supply chain strategy for their outbound supply chain. A number of them also had an agile supply chain strategy in the outbound supply chain, which suggests a leagile supply chain strategy. It was also found that in some instances there was a mismatch between strategies and practices in the area of product characteristics, manufacturing characteristics, and the decision drivers of the supply chain. Local manufacturers of locally made light vehicle models in South Africa do not always make decisions and implement practices in line with their chosen supply chain strategies.

Highlights

  • T he turbulent market conditions today have heightened the need for alternative strategies for growth to be developed (Sanchez & Perez, 2005, p. 681)

  • This section of the paper discusses supply chain strategies employed by light vehicle manufacturers in South Africa

  • Because of the complex nature and challenges of the South African automotive industry, there was a need to investigate the alignment between supply chain strategies and practices of local manufacturers of locally made light vehicles in South Africa

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Summary

Introduction

T he turbulent market conditions today have heightened the need for alternative strategies for growth to be developed (Sanchez & Perez, 2005, p. 681). Chain scholars have agreed that a supply chain strategy should be chosen on the basis of the type of product and by matching the strategy to the unique characteristics of different products or markets (Fisher, 1997; Lee, 2002; Sebastiao & Golicic, 2008). Despite the well-recognised importance of research into supply chain strategy, there are limited empirical studies in developing economies, especially South Africa. While these studies have opened debate and discussion on supply chain strategies, generating new insights into Fisher’s (1997) model, there remains a need to provide empirical evidence of supply chain strategies in developing economies. Supply chain management (SCM) is a well-known concept in South Africa and in the automotive industry in particular, there is limited research into supply chain strategies

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