The implementation of e-business in the South African automative industry

• Main Author: Khayundi, Silas Imende
• Format: Others
• Language: English
• Published: Nelson Mandela Metropolitan University 2010
• Subjects: Electronic commerce > South Africa
• Online Access: http://hdl.handle.net/10948/1446

Globally, the automotive industry has progressed through various stages of manufacturing paradigms over many decades. The automotive industry is one of South Africa's most important sectors, with many of the major automotive multinationals using South Africa to source components and assemble vehicles for both the local and international markets. Lean production has been recognised as the most effective manufacturing strategy that generates high quality products at low costs, while still producing different varieties of products. The effectiveness of the lean production lies in the relationships that exist between the original equipment manufacturer and its suppliers. Klopping and McKinney (2004) state that the evolution of the Internet as a business tool enhanced by the development of the World Wide Web has led to the emergence of the fast growing e-commerce applications. This quantitative research study aims at investigating the e-business relationships that exist between a selected Eastern Cape Original Equipment Manufacturer and its first tier suppliers. The primary objective of the study was to obtain and document direct feedback from the South African Automotive Manufacturing Industry about their perceptions, opinions, plans and activities in respect to Business to Business Electronic Commerce - called "e-Business" for the remainder of this study. The study shows that most automotive suppliers are comparatively heavy users of e-business. Many of these suppliers are also using e-mail and have a website, but comparatively few engage in more complex e-business operations. The greater majority of respondents reported that e-business has facilitated efficiency of their operations. However, e-business is not being utilised effectively between the OEM and its suppliers even with the introduction of Covisint which is a common e-business interface that was created through collaboration between major OEMs and their suppliers to ease e-business in the automotive industry.