Faculty of Commerce, Law and Management
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Item THE INFLUENCE OF INSTITUTIONAL ISOMORPHISIM IN FREIGHT LOGISTICS(2012-02-10) Rock, KevinIt is a paradox that despite efforts by companies to differentiate themselves from one another, they become more alike. This trend is global, evidenced across the spectrum of industry sectors and can be explained by the theory of institutional isomorphism. Institutional isomorphism consists of three mechanisms – normative, coercive and mimetic; each having some influence on organisational behaviour. This research was conducted to better understand the influence of the phenomenon in the South African freight logistics industry. The methodology employed was initially to contextualise the subject by conducting a comprehensive literature review. The topics covered were; institutional isomorphism, third party logistics, fourth party logistics, the South African road freight industry and strategy. Six propositions were generated based on the learning taken from this literature review. A questionnaire was subsequently designed in order to establish which facets of the freight logistics value chain were influenced by the individual institutional isomorphism mechanisms. The value chain elements chosen were resource procurement, corporate governance, operational issues, supply chain strategy, supply chain integration and strategic drivers. A pilot study was first conducted validating the research instrument and the use of correspondence analysis as appropriate methodology for the work. The questionnaire was then completed by a non-probability sample of thirty one respondents consisting of academics, administrators and practitioners involved in the freight logistics sector. The influence of the individual mechanisms within the different value chain elements was quantified through correspondence analysis. In terms of resource procurement it was found that normative behaviour of an explicit and largely voluntary nature was prevalent. Corporate governance was found to driven by coercive influences and too was explicit in nature. 3 Operational issues, contrary to expectation were subject to obligation and coercion. The significance of this finding is developed in the interpretation section. Both supply chain strategy and integration fell in the ambit of mimetic and implicit behaviour which was consistent with the literature review (and consequently the propositions). Strategic drivers were found to be influenced almost equally by all the mechanisms perhaps indicating a holistic approach to this value chain element. This research report is concluded by proposing areas for additional researchItem Benefits of 3rd Party Logistics Services for South African FMCG Manufacturers(2012-01-19) McCallum, David TravisSouth African organisations are continually faced with challenge of improving their competitiveness in the local and international market; the potential for logistics to enhance their levels of competitiveness was confirmed by the research of Mentzer et al. (2000), who stated that “Logistics excellence has become a powerful source of competitive differentiation” Despite the rapid growth and development of the logistics industry in South Africa, the use of third party logistics service providers in South Africa is a topic in which very little research has been undertaken. This piece of research aims to explore the perceptions of the users of third party logistics service providers, in the manufacturing sector of the South African fast moving consumer goods industry. By applying a structured questionnaire to a random sample of 150 organisations, the research examined the user’s perceptions pertaining to the influence that their contracted 3PL has had, in assisting them to achieve their strategic logistic objectives, and determine what influence the contractual agreement in place has on the relationship between user and 3PLs. Data collected from the 64 usable questionnaires established that the leading reason for contracting the services of a third party logistics service provider, was to enable the user to focus on its core competencies. The data confirmed that users are of the opinion that a third party logistics service provider has the potential to create a competitive advantage for the user. A final key finding was that a formal agreement that contains Key Performance Indicators improves the quality of the relationship between the user and the third party logistics service provider. It also positively influences the longevity and success of the relationship. iii To generate and capture their full potential value, third party logistics service providers need to gain a deeper understanding of why their users have contracted their services. By enhancing their understanding, they would be able to develop and provide services that target the areas in which the user feels they are best suited to create a competitive advantage, thus differentiating the user from its competitors. Third party service providers need to acknowledge the importance of a formal agreement, they must invest the necessary resources required to formulate and implement an agreement that contains relevant, measurable Key Performance Indicators that they are able to directly influence. The existence of such an agreement would enhance the relationship and increase the longevity of the relationship. The research also presents findings related to the demographics of respondents, the decision making process of respondents and the extent to which respondents make use of the various services offered by their third party logistics service providers. These findings are discussed and compared with published studies that were undertaken in various other regions of the world. The research report includes various discussions on the managerial implications of the data collectedItem RELATIONSHIP BETWEEN MANUFACTURING AND MARKETING DEPARTMENTS IN SOUTH AFRICA(2011-03-22) Boninelli, Renato FrancescoThe project research investigated the inhibitors and facilitators of the relationship that exists among the marketing and the manufacturing departments in a South African manufacturing company. The increase in volume of sales due to the construction boom in local markets combined with the expansion of overseas markets, as well as a significant increase in customer demand for ‘made-toorder’ products, has placed unprecedented demand on the manufacturing and logistics functions. More importantly, the already strained relationship between manufacturing and marketing had deteriorated further, requiring some form of intervention. Functional objectives and priorities differed among the divisions and were the cause of conflicts. The aim of the research was to identify opportunities to enhance the relationship between the marketing and manufacturing departments. The research was qualitative in nature and was conducted among a sample population from marketing, manufacturing and senior management using a structured questionnaire. The results were consolidated and analysed to determine the factors. The main findings of the research were that while good communication and personal relationships contributed to the success of the relationship between marketing and manufacturing departments, the lack of common objectives and understanding of each other’s objectives, forecast accuracy and stock policies were the key factors affecting the relationship negatively. One of the key proposals presented by the participants was the need for improvements of the communication factors, although it transpired that the main factors inhibiting the relationship between marketing and manufacturing were of a structural and process nature. Improvements on the definition of aligned objectives and improvements on the level of personal relationship were also high on the list of suggestions. Recommendations based on the information gathered were offered with a view to ameliorate the relationship between marketing and manufacturing departments and hence reduce the potential for conflict and simultaneously improve the effectiveness of the organisation.