Application of Agile/Lean to Supply Chains in a Small, Medium and Micro Enterprise (SMME) in South Africa: A Case Study

Abstract

Managing an organisation's manufacturing and supply chain capabilities remains a challenge at the best of times; in the highly competitive Small, Medium and Micro Enterprise (SMME) sector, it is even more important. It is no different in South Africa. Senior management and owners of organisations should treat the issue as a strategic imperative in their organisations. Failure to do so might render an enterprise uncompetitive, with the result that its market share starts diminishing within the sector. The planners in an enterprise must recognise that each of the products manufactured will require a different strategy to compete with competitors' products. Various factors influence the capabilities of an enterprise in the SMME sector, the most important being supply and demand insecurity, life cycle of products and capacity. It could have a detrimental effect on an organisation's competitiveness. Awareness of the strategic importance of Agile/lean supply chain management is essential if an enterprise within the SMME sector is to remain competitive. Consequently, planners in the sector must achieve the correct balance between the competing factors described above. Implementation of agile/lean strategies for supply chain management within the enterprise concerned would enable it to deal with any fluctuations it might experience. The paper will attempt to illustrate the applicability of a hybrid agile/lean approach in the enterprise concerned.