An evaluation of the procedures required to ensure consistent material supply in the Eastern Cape automotive industry

• Main Authors: GS Horn, F Janse van Rensburg
• Format: Article
• Language: English
• Published: AOSIS 2014-07-01
• Series: South African Journal of Economic and Management Sciences
• Online Access: https://sajems.org/index.php/sajems/article/view/1174

There is a common perception that logistics practice and supply chain management have not yet reached the required international standards among all the supply chain members in the South African automotive industry. This article is based on a research study that investigated possible reasons for the inconsistent supply of materials in the Eastern Cape automotive industry specifically. Problems identified include the fact that suppliers are not evaluated on a regular basis and do not receive sufficient logistics training, while a commitment and will to development local suppliers is lacking. Recommendations made to the South African automotive industry include the improvement of development programmes to assist local suppliers in becoming world-class suppliers, better logistics training, more regular supplier assessments, as well as improved mutual communication among suppliers and motor vehicle assemblers.