4. Electronic Theses and Dissertations (ETDs) - Faculties submissions
Permanent URI for this communityhttps://hdl.handle.net/10539/37773
Browse
2 results
Search Results
Item The Role of Localisation of the Supply Chain in the South African Automotive Industry(University of the Witwatersrand, Johannesburg, 2024) Mohlala, Masingita Onica; Munkuli, BonganiPurpose/Introduction- The South African automotive industry plays a pivotal role in the country's economic landscape, and the increasing emphasis on supply chain localisation has prompted a need for comprehensive research. This study addresses three primary research objectives: understanding the influence of institutional dynamics on localisation adoption, identifying effective strategies for supply chain enhancement, and analysing specific impacts on the industry's supply chain networks. As globalization continues to impact industries worldwide, the role of localisation in the automotive sector becomes a critical area for exploration. Design/methodology/approach- To achieve the research objectives, a mixed-methods approach was employed. Quantitative data was gathered through surveys using a Likert scale distributed across various organisational sizes within the South African automotive industry. The surveys focused on opinions and perceptions related to localisation policies, government regulations, and the impact of such measures on supply chain performance. Additionally, qualitative insights were gathered through questionnaires using open-ended questions, providing a more nuanced understanding of the industry's localisation dynamics. Findings/Results- The quantitative analysis revealed a significant correlation between the implementation of localisation policies and organisational structure and size. Larger organisations exhibited higher agreement on the effective implementation of localisation policies. Government regulations were identified as significantly associated with the organisational structure during the implementation of supply chain localisation. Findings also underscored variations in perceptions based on organisational size, emphasizing the need for tailored strategies. Furthermore, the study explored the impact of government regulations on localisation measures and their adoption within organisations. Research limitations/implications - While the study provides valuable insights, certain limitations should be considered. The sample size, though representative, might not capture the entire diversity of the South African automotive industry. Additionally, self- reported data from surveys may introduce biases, and the study's cross-sectional nature limits its ability to capture dynamic changes over time. Despite these limitations, the research lays a foundation for understanding the complexities of supply chain localisation in the South African automotive context and offers avenues for future, more in-depth investigations. Practical implications- The study's practical implications include the need for targeted policy interventions, size-specific organisational strategies, active engagement in enterprise and supplier development, informed decisions on import taxation, promotion of local content for enhanced competitiveness, and continued collaboration between the government and industry stakeholders. Adhering to these implications is crucial for fostering sustainable development in the South African automotive supply chainItem Supply chain resilience - South African automotive localisation benefits, post Covid-19(University of the Witwatersrand, Johannesburg, 2023) Cholo, Choene Jerry; Oba, PiusPurpose: The supply chain (SC) literature has made extensive use of localization and itsvariants, nearshoring and reshoring, which all involve moving (a supply or supplier) from one location to one that is closer to the primary manufacturer. Although the subject is only marginally present, it receives significant attention whenever a significant global event that has the potential to disrupt supply chains, such as a tsunami, an earthquake, or an outbreak of Ebola, occurs. It should come as no surprise that the literature that developed in the wake of the COVID-19 nation lockdown periods extensively covered the subject. Additionally, this played a sizable role in exercise. Older literature primarily looked at it from a financial standpoint. Although some claim that the decision-making process involved in localizing an imported supply has many complexities and could initially be expensive, current literature suggests it has the potential to mitigate against risks of supply chain disruptions. Localization (nearness of supply) can be a method to lessen reliance on global sourcing (heavily distributed SCs) and improve resilience in light of the COVID-19-imposed shutdowns of many areas of the economy. This study sought to determine whether the pandemic is influencing localization choices and whether, looking ahead, the pandemic will truly influence businesses' decisions to localize or nearshore some of their material supplies in an effort to reduce the risk of SC disruptions. The aim of this paper was to ascertain whether the COVID-19 pandemic is influencing localization decisions, particularly for the future (in the event of a recurrence or the emergence of a new SC disturber, whether natural or man-made), and whether this will in fact cause businesses to localize or near-shore some of their production materials in an effort to reduce the risks of SC disruptions. Design/methodology/approach: The literature on supply chain risks, resilience, and localization/nearshoring was examined in this essay. As the industry continues to reevaluate their decision-making around SC risk responses, post COVID-19 and into the future, the authors used a qualitative approach and critically engaged with senior level personnel of the local car manufacturing concerns. They used a combination of in- person and virtual methods to perform semi-structured interviews with senior employees from South Africa's automotive industry who represented one OEM and Tier 1 suppliers. Additionally, the author quizzed the speakers during a webinar on "How localization affects investments" about their research on the topic. Secondary data was 7 compiled using information from business reports, policy manuals, and other online resources. Then, a thorough literature review of respected journals was added to the task. Findings: As a potential solution to the post-COVID-19 induced SC networks halts, localization (nearshoring) has been actively considered by numerous manufacturing sectors of the economy, both locally and internationally. Prior to the pandemic, neither companies nor university researchers gave localization or nearshoring of supplies much thought. Companies have begun diversifying their supply bases away from the major usual players like China, Southeast Asia, and other low-cost jurisdictions in reaction to the US-China tariff and the Russia-Ukraine wars, for example, but only through the creation of alternative global sources (basically substituting import with another import) (Hedwall, 2020). Companies currently use a wide range of cutting-edge supply chain risk management tools, like supplier collaborations, which primarily operate in the short- and medium-term. It should be understood that because localization has so many facets, making decisions about it is a difficult process that takes time for planning, decision-making, and execution