Key Indicators For Optimising Supply Chain Performance: The Case Of Light Vehicle Manufacturers In South Africa

Abstract

This article investigates key indicators for optimising supply chain performance of light vehicle manufacturers in South Africa. The article is based on a survey conducted among light vehicle manufacturers in South Africa with origins in Asia and Europe. Semi-structured interview questionnaire was used based on purposive sampling technique and the data was analysed using SPSS. The findings revealed that quality, final product delivery reliability and cost were highly rated and the most important indicators for the South African automotive market. Innovation (radical and incremental changes) was the least important among the indicators sampled. The article further revealed that there is a perceived difference on the importance of supply chain indicators between manufacturers of Asian and European origins. Final product delivery reliability and order delivery lead time tended to be more important to European manufacturers compared to Asian manufacturers. The article attests to the fact that competitiveness in cost, quality and product offerings are paramount to automotive manufacturers in today’s turbulent environment. It also reveals key competitive criteria used by European and Asian manufacturers based in South Africa. The article contributes to literature on SCM and reveals the way in which vehicle manufacturers in South Africa do business.