Differentiating supply chain strategies: The case of light vehicle manufacturers in South Africa.

Abstract

This article reports on an investigation of supply chain strategies that are employed by light vehicle manufacturers in South Africa. The research method used was an exploratory and descriptive study. A face-to-face, semi-structured interview questionnaire was administered to senior supply chain practitioners, based on purposive sampling and the data was analyzed descriptively using SPSS software. The findings of the study revealed that both lean and agile supply chain strategies are employed by the manufacturers. All the light vehicle manufacturers followed a lean strategy for their inbound supply chain. While a few of them followed a lean supply chain strategy for their outbound supply chain, others followed an agile supply chain which suggests a leagile supply chain strategy. Three important conclusions can be drawn from the study. Firstly, despite the changing business conditions and increased customer demands, lean supply chain strategy is still the dominant strategy for light vehicle manufacturers in South Africa. Secondly, a supply chain strategy is not all about product characteristics as a determining factor. There are other criteria that could be used to determine supply chain strategies. Finally, light vehicle manufacturers do not always make decisions and implement practices in line with their chosen supply chain strategies. Hence, there are mismatch between practices and strategies. It is recommended that the vehicle manufacturers align their practices with their chosen strategy, since mismatching generally leads to problems and challenges in organizations.