Abstract
The request for manufactured steel products always varies and is difficult to anticipate. The users of manufactured steel products in South Africa are known to request products within a short time frame that disrupts the supply chain management (SCM). To cope with the disruption, numerous models have been developed for the steel manufacturing industry to achieve a competitive advantage. Despite the development of the models, the steel manufacturing supply chain is still confronted with numerous disruptions, delays and fragmentations. The delays and disruptions have been associated with the global nature of steel products, which calls for the adoption of fourth industrial revolution technologies. Hence, this study developed a model for managing the supply chain of steel manufacturing in the era of the fourth industrial revolution in South Africa.
A mixed methodology was used in developing the model. Delphi study was used for the qualitative aspect and was supported by using theories identified from literature in developing the model. The quantitative aspect was used in validating the developed model using structural equation modelling (SEM) via SmartPLS software. The findings from the Delphi study in conjunction with the literature review revealed that the SCM model for the South African steel manufacturing industry is a seven-construct model. The construct used for developing the model includes collaboration, integration, communication, supply chain structure, fourth industrial revolution technologies, organisational culture and trust. The findings from the questionnaire survey revealed that a combination of the constructs is sufficient in ensuring the performance of steel manufacturing supply chain management in South Africa. It was also discovered that the performance indicators for SCM in the South African steel manufacturing supply chain are attributed to the benefit of adopting SCM in the manufacturing industry.
The findings from this study contribute to the existing knowledge based on three levels. The levels are theoretical, methodological and practical contribution. The mixed methodology adopted in this study further contributed to the research methodology associated with the steel manufacturing supply chain. The Delphi study provided the opportunity for professionals in the manufacturing industry to provide indicators and constructs from practice that were not previously identified in the literature. The methodology adopted provided the ability to establish an all-inclusive model for SCM in the South African steel manufacturing industry. The study contributed to theory as it revealed that the existing constructs adopted for modelling SCM in the steel manufacturing
vi
industry are not complete without including the technologies driven by the fourth industrial revolution and organisational culture. A further contribution to theory was also discovered as the model revealed the construct that is crucial for ensuring the performance of SCM in the steel manufacturing industry. The study contributes to practice as it provides a model that will guarantee the proper planning and structuring of the manufacturing supply chain in the fourth industrial revolution era.
The study recommends that a similar study be conducted in other developing countries. The study also recommended that focus and emphasis should be placed on encouraging supportive organisational culture and allowing integration of supply chain activities. The manufacturing stakeholders managing the manufacturing supply chain should embrace the culture that allows cooperation, control and client satisfaction. Steel manufacturing stakeholders should also embrace the fourth industrial revolution technology to manage the manufacturing supply chain. The supply chain structure (lean, agile, and leagile) of the supply chain to be adopted in managing the manufacturing activity should be dependent on the objective and aim of the manufacturing project; this is because the structure has a low impact on determining the performance of steel manufacturing supply chain.
Keywords: Collaboration, Fourth Industrial Revolution, Integration, Organisational culture, Steel manufacturing, Supply chain management.