Difficulty To Overcome Supply Chain Challenges Faced By Vehicle Manufacturers In South Africa

Abstract

This article explores supply chain challenges faced by light vehicle manufacturers in South Africa and determines how difficult the challenges are to overcome. A mixed research design was employed. The supply chain challenges revealed in the findings were categorised into technological, infrastructure, cost, market/service, relationship and production/skills challenges. Most are difficult to quantify, such as road freight volumes, port delays, rail unreliability, high fuel costs, high operating costs and high port charges. Nevertheless, addressing some of the challenges could help manufacturers to become more competitive, for example by replacing outdated assembly/manufacturing tools, finding new markets, preventing or reducing the effect of cancellation of customer orders and improving the level of service in general. This article provides an understanding of the challenges in the supply chain, which is paramount not only for locally manufactured vehicle supply chain practitioners, but also for the automotive industry and South Africa as a whole.