Post-recession sales and operations planning of companies in the South African manufacturing sector.

Phalanndwa, Simon Avhaneti

Post-recession sales and operations planning of companies in the South African manufacturing sector.

Date

2016

Authors

Phalanndwa, Simon Avhaneti

Abstract

The South African manufacturing industry is critical to country‟s economic growth. The industry is considered to be one of the six major wealth-producing sectors of the economy. This industry alone contributes about 20% to the country‟s Gross Domestic Product. Since the lifting of the International Trade Embargo, the South African economy has been considerably opened up to international trade. This exposure has led to suffocation of the South African Manufacturing industry due to lack of competitiveness. Since then the industry‟s contribution to GDP has shrunk from 20% to about 17%. This has had catastrophic economic and social consequences. It is therefore necessary to understand the levers that the industry should pull in order to improve competitiveness. The purpose of this research is therefore to determine how effectively South African manufacturers are executing their Sales and Operations planning processes as they seek to improve their competitive positions. This effectiveness is evaluated using S&OP maturity levels that compare current practices against best practice. The results of this study will provide insight into what local manufacturers can do to outperform rivals. This study is of a qualitative nature and was carried out by conducting face to face detailed interviews with senior managers from ten different organisations who operate in the industry. The data collected on the current Sales and Operations Planning (S&OP) practices was analysed and results compared to best practice. The results revealed that the majority of companies had ineffective Sales and Operations planning practices. The results also showed that even organisations that seemed to have all by-the-book elements had inefficient practices that rendered their Sales and Operations Planning (S&OP) processes ineffective. The information systems elements were not robust enough to support the S&OP process. It is therefore recommended that companies improve the effectiveness of their business planning process then determine and implement appropriate information systems to support the Sales and Operations planning (S&OP) process requirements.

Description

MBA

Keywords

Manufacturing industries -- South Africa. Production planning -- South Africa. Production management -- South Africa.Sales management -- South Africa.