Track: Supply Chain and Logisitcs Competition

Abstract

Manufacturing remains a critical driver for economic development particularly in developing countries. Outsourcing of production or manufacturing to contract manufacturers is a global phenomenon that has gained global prominence in the last three decades, particularly in the electronics and pharmaceutical products supply chains. This practice has extended to other product supply chains in South Africa, including the consumer products supply chain. Literature is rife with examination of aspects of contract manufacturing and their role and impact in the supply chain but there is very little, if any, scholarship on what are the factors that make contract manufacturing companies (CMCs) succeed and become successful and sustainable businesses and important links of the supply chain, particularly in the consumer products space, and what frameworks are available to assist the CMCs identify and put into practice these critical success factors, (CSFs). This study aims to fill this gap by identifying, through research, the factors that are critical for contract manufacturers to succeed and be sustainable businesses that can contribute to the success of their clients and the economy. Once these critical success factors have been identified a sustainability framework will be developed from these CSFs, which will be tested in identified CMCs in South Africa. This framework will assist customers of CMCs to know how to select and appoint the appropriate CMC partner to work with, it will also act as a blueprint for existing CMCs and aspiring CMCs to build an organisation with the correct systems and practices for success and sustainability.