Abstract
Background: Despite risk management efforts, supply chains have become increasingly vulnerable to disruptions. Disruptions should be successfully managed if organisations are to thrive in today’s ever-changing world.Purpose: This study explored supply chain disruptions of third-party logistics service providers (3PLs) and their clients based in South Africa by investigating the disruptions these organisations face, and how they go about managing them.Method: A generic qualitative research approach was used to gather data by conducting semi-structured interviews with 22 participants, which comprised 11 3PLs and 11 client organisations operating in South Africa.Findings: This study classified disruptions as intra-, inter- and extra-organisational. South African 3PLs and their clients face the majority of their disruptions either intra- or inter-organisationally. The focus of 3PLs and clients has shifted from risk management to disruption management. The findings show that 3PLs and their clients based in South Africa prefer disruption learning over traditional risk management as a method to better manage future disruptions.Conclusion: This study contributes to existing literature by providing insight into the specific supply chain disruptions that 3PLs and their clients based in South Africa face, according to the disruption location in the supply chain and how 3PLs and clients manage supply chain disruptions.
Highlights
Introduction and problem statementGlobalisation, the reduction of the supply base, just-in-time practices, outsourcing, agile practices and artificial intelligence have been cited as key trends within the supply chain management sphere (Behdani et al 2012; Cerris 2016)
South African 3PLs and their clients face the majority of their disruptions either intra- or interorganisationally
This study contributes to existing literature by providing insight into the specific supply chain disruptions that 3PLs and their clients based in South Africa face, according to the disruption location in the supply chain and how 3PLs and clients manage supply chain disruptions
Summary
Introduction and problem statementGlobalisation, the reduction of the supply base, just-in-time practices, outsourcing, agile practices and artificial intelligence have been cited as key trends within the supply chain management sphere (Behdani et al 2012; Cerris 2016). Several academic articles and industry reports have highlighted the different disruptions that the world as a whole, organisations and supply chains face (Blackhurst, Scheibe & Johnson 2008:143; McKinnon 2006:228; Mitroff & Alpaslan 2003:10; Stecke & Kumar 2009:194; World Economic Forum 2016). From these sources, it is shown that disruptions can take place in various locations relative to the organisation, starting with intra-organisational disruptions, such as strikes; inter-organisational disruptions, such as customs delays; and within the extra-organisational environment, such as new regulations and natural disasters (Behdani 2013; Christopher & Peck 2004:6; Sodhi & Lee 2007:1430). Purpose: This study explored supply chain disruptions of third-party logistics service providers (3PLs) and their clients based in South Africa by investigating the disruptions these organisations face, and how they go about managing them
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