Original Research

Supply chain challenges in the South African automotive sector: do location, size and age matter?

Micheline Juliana Naude
South African Journal of Economic and Management Sciences | Vol 16, No 4 | a411 | DOI: https://doi.org/10.4102/sajems.v16i4.411 | © 2013 Micheline Juliana Naude | This work is licensed under CC Attribution 4.0
Submitted: 09 July 2012 | Published: 29 November 2013

About the author(s)

Micheline Juliana Naude, University of KwaZulu-Natal, South Africa

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The South African automotive industry makes an important contribution to the South African economy. However, there are deficiencies within the local automotive component manufacturers’ (ACMs) supplier base and therefore automotive assemblers, or original equipment manufacturers (OEMs), have to import many of their parts requirements. These deficiencies are caused by ACMs’ lack of technology, global supply capability, cost competitiveness and their geographic location (ACMs are scattered across the country). A study was conducted to explore the supply chain challenges South African ACMs face and whether the location, size and age of participating ACMs have a bearing on whether they face the same challenges. The results revealed that the most significant supply chain challenges in South Africa were in the customer relationship category. From the hypotheses testing, the conclusion could be drawn that, in general, participating ACMs face common supply chain challenges, irrespective of their location, age and size.This article contributes to the published research on the topic and the findings reveal that business opportunities in the automotive industry exist for entrepreneurs aspiring to enter into the automotive component industry. 


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Crossref Citations

1. Managing the dependency of focal firms on innovative suppliers: A qualitative study of automotive manufacturers in South Africa
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