Analysis of strategic risk management practices in the Gauteng automotive sector supply chain

Abstract

In the past, due to reactive planning, supply chain managers used to conventionally focus on cost reduction only, consequently becoming more exposed to risk and failing to achieve the desired continuity. More recently, proactive planning now mandates managers to investigate, identify and remedy the inherent risks which threaten the existence of their businesses to survive. The increased complexity of supply networks requires application of principles and techniques to re-engineer the chain to ensure that risk sources are identified and mitigated for minimum impact. The purpose of the study is to understand and assess and analyse Strategic risk management practices in the Gauteng Automotive sector supply chain. The qualitative semi-structured interviews took place during the period 20 May 2017 to the 15th of July 2017. Participants involved in the interviews were supply chain and logistics professionals and procurement managers. The research findings and results were generated using qualitative thematic content analysis. The findings were comprised of: identified inherent risks, employed strategic risk management practices in the industry and further effort was invested in finding out whether some of these risk management strategies are reaping the intended benefits. The report drew to a conclusion that there is a fair level of applied strategic risk management across the sector which can, and should definitely be improved. Key recommendations are to implement more supplier development programs that aid in setting up integrated, resilient, green and strategic supply chains within the automotive sector, which are technically competent and foster full cross collaboration, on product and information flow, with all supply chain members.