1st Australian International Conference on Industrial Engineering and Operations Management

Supply chain practices in a South African manufacturing SME

Wasab Negi, Eric Mikobi Bakama & Khathutshelo Mushavhanamadi
Publisher: IEOM Society International
0 Paper Citations
Track: Supply Chain Management

In today's globally integrated and interconnected industry, supply chain management (SCM) has demonstrated a vital aspect of strategies for all enterprises, regardless of size or area. The supply chain is a crucial component of organizational operations, and efficient administration of it will result in a strategic edge. This is true not only for major corporations yet moreover for small and medium-sized enterprises (SMEs). The presence of supply chain concerns may result in inefficiencies, which may ultimately hamper future corporate growth. This research looks at SCM difficulties and how effective it is in overcoming them in small and medium-sized manufacturing enterprises (SMEs) in South Africa (SA). Amongst widely known problems encountered by SA manufacturing SME firms are stockpile concerns, customer support, organizational factors, information management concerns and goods or delivery stream concerns.

Aim – This study aims to analyze the knowledge of supply chain management (SCM) practices in small and medium-sized firms (SMEs). The anchor of this research is to discover supply chain complexities faced by SMEs in the South African manufacturing sector and to assess the intensity of every concern. For this initial investigation, surveys were done with a manufacturing firm located in Johannesburg, a metropolitan city in SA.

Methodology – This paper offers a literature-based study to explore SCM difficulties for manufacturing SMEs. The literature was based on a careful examination of various research publications from high-quality worldwide journal articles—primary data were collected through a questionnaire filled out by 49 employees from the manufacturing firm in Johannesburg. Thus, the study used a case study approach with a quantitative analysis approach. In addition, company visits were also conducted for observation purposes. The survey instrument's main variables include motives, impediments, prioritized investments, procurement strategies, and effectiveness.

Results: The results suggest that the company has a clear channel of SCM which is very good. In addition, the management and floor level employees are familiar with SCM practices, even though some are more used and valued than others. Results showed that a good link between the supply chain concept and the company's logistics operations is essential for a good SCM.

Published in: 1st Australian International Conference on Industrial Engineering and Operations Management, Sydney, Australia

Publisher: IEOM Society International
Date of Conference: December 21-22, 2022

ISBN: 979-8-3507-0542-3
ISSN/E-ISSN: 2169-8767