This article reports on an exploration of challenges experienced in the field of procurement within the South African public sector. To institute procurement best practices, a supply chain management system was adopted in South Africa in 2003. The procurement process was granted constitutional status and has been used to address past inequitable policies and practices. It promotes aims which are, arguably, secondary to the primary aim of procurement. For the exploration, a conceptual analytical approach was employed and some of the key guiding pillars of public procurement in South Africa divulged. The challenges restraining effective and efficient implementation of public procurement are also revealed. The article concludes by recommending the development of competency through customised (separate) training materials and programmes, the involvement of stakeholders in the bidding process and the employment of good strategic sourcing practices.
Background: The intense competition between grocery retailers to access new revenue streams has seen brick-and-mortar retailers broadening their services to offer consumers the option of ordering their groceries over the Internet. This is implemented through the implementation of different platforms such as their computer or mobile application − known as omnichannel retailing. Omnichannel grocery retailers are facing several challenges with the last mile of their online supply chain, especially with relation to the home delivery of groceries.Objectives: The purpose of the article was to gain an understanding of the nature of last-mile logistical challenges hindering the efficiency of an omnichannel grocery retailer in South Africa.Method: A qualitative methodology was employed; data were collected through an interview with the e-commerce operation manager of a well-known omnichannel grocery retailer in South Africa as well as through two focus group discussions conducted with consumers who regularly purchase items online and those who have never purchased any item online. Data were analysed using thematic analysis.Results: The findings suggested that there are four major last-mile logistical challenges facing the South African omnichannel grocery retailer considered in this study. The challenges are reliable order fulfilment, cold distribution chain requirements, physical distribution and reverse logistics.Conclusion: The findings of this article suggest that many of the last-mile challenges experienced by the omnichannel grocery retailer stem from the inefficient management of information (data) along the supply chain. To alleviate the last-mile logistical challenges identified in this article, emphasis should be placed on implementing a fully integrated information sharing system.
The purpose of this article is to demonstrate the development of a supply chain model for the automotive industry that would respond to changing consumer demand. Now more than ever, businesses need to improve the efficiency of their supply chains in order to maintain a competitive advantage. The principles of lean manufacturing and just-intime (JIT) inventory control that were renowned for helping companies like Toyota, Dell and Walmart to rise to the top of their respective industries are no longer adequate. Leading companies are applying new technologies and sophisticated analytics to make their supply chains more responsive to customer demand. This challenge is driven by fierce competition, fluctuating market demand and rising customer requirements that have led to customers becoming more demanding with increased preferences. The article is based on theoretical reviews and suggests guidelines for the implementation of an automotive supply chain model for a demand-driven environment.
Background: One-third of wine producers in South Africa are experiencing negative net farming revenues. The wine industry is close to the heart of South Africans and South Africa is known for its production of quality wine in the world. However, the wine-producing sector faces many difficulties that threaten its survival. Besides the possible impact of the land reform drive of the government, the industry is experiencing financial and operational pressures, which have been exacerbated by drought and high temperatures affecting the crops. These factors affect not only the wine producers but also the complete wine supply chain.Objectives: This article provides insight into the supply chain risks of producing wine. The study was conducted among wine producers in the Stellenbosch region of the Western Cape province of South Africa.Method: An exploratory, qualitative, case-study approach was adopted in this study. Data were collected through in-depth semi-structured interviews with 10 participants at five wine producers’ sites selected on a non-probability convenience sample basis. Thematic analysis was used to process the data.Results: The most critical supply chain risks factors identified through this study centre around the sourcing of dry goods, agricultural activities, wine-making activities and financial risks. It also came to light that the wine farmers do not formally analyse their risks.Conclusion: Wine producers can put in a greater effort to improve the relationship with suppliers of dry goods and they will more efficiently mitigate some risks if they actively analyse and manage their risks on an ongoing basis.
For any business to compete successfully in the modern, globalised business environment, it needs to mobilise its suppliers and customers to co-operate in order to reduce unnecessary costs and inefficiencies between them and to ensure the best value for the final customer. The focus is on management of the supply chain as a whole (or a system) and maximum value for the final customer of the supply chain, instead of on management for the maximum benefit of one of the parties in the supply chain. If the supply chain is seen as a system of organisations with one aim (value for the final customer), it is logical that a problem in one part of the supply chain must affect the workings and efficiency of the system or supply chain as a whole.This article reports on an exploratory empirical study to illustrate the effect of problems at one party in the supply chain on the whole supply chain. The study was done at automotive component manufacturers. To determine how problems at one place permeate through the whole supply chain, correlation testing was done between supply-side, internal operations, and distribution or customer-side problems. The study found that problems experienced at one place in the supply chain had a negative impact throughout the supply chain. Automotive supply chains should therefore be managed more as a system, taking into consideration the effect of decision making and actions at one part of the supply chain on other parts of the supply chain. There should be a supply chain wide co-operative effort to find solutions to inefficiencies at all places in the supply chain.
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