Abstract
The automotive industry of South Africa is a major role player in the country’s economy. Not only is the vehicle and component manufacturing part of the industry regarded as the largest manufacturing sector in the local economy, it also possesses of a sizable support trade. The world’s main light vehicle manufacturers and component suppliers have a presence in the country, and products are manufactured for the local and export markets. The entire group of locally-based light vehicle original equipment manufacturers (OEMs) comprises of subsidiaries of their multinational parent companies and is integrated into global supply networks. Similarly, many automotive component manufacturers are also owned by foreign companies. The global automotive industry is a very competitive and complex industry and there is a consistent need for the improvement of its global supply chains. Moreover, the local industry further has significant challenges in amongst others, a shortage of local content, lack of scale economies, logistics inefficiencies, currency volatility and a significant number of globally uncompetitive component manufacturers.
Supply chain management is a key driver of competitive advantage for both individual companies and networks of organisations and has been linked to improvements in financial performance, product quality, service delivery, and the ability to create time and place utilities. Central to the concept of supply chain management, is the quality of relationships between key members of the supply chain due to the need to operate as a collective and to compete against other supply chains. The quality of supply chain relationships is therefore a key determinant of supply chain success.
Modern day theory suggests a movement away from the conventional adversarial business relationships to close, collaborative relationships, especially between key members of the supply chain. The potential advantages of close buyer/supplier relationships are well documented and include the typical important drivers of competitive advantage. Supplier relationship management (SRM) is the structure used by organisations to develop and maintain business relationships. SRM is also...
D.Com. (Logistics Management)