Cholo, Choene Jerry2024-08-292024-08-292023Cholo, Choene Jerry. (2023). Supply chain resilience - South African automotive localisation benefits, post Covid-19 [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.https://hdl.handle.net/10539/40392https://hdl.handle.net/10539/40392A research article submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfillment of the requirements for the degree of Master of Business Administration Johannesburg, 2023Purpose: 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 executionen© 2023 University of the Witwatersrand, Johannesburg. All rights reserved. The copyright in this work vests in the University of the Witwatersrand, Johannesburg. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of University of the Witwatersrand, Johannesburg.LocalisationSupply chain risk managementSupply chain resilienceNearshoringSDG-8: Decent work and economic growthDissertationUniversity of the Witwatersrand, Johannesburg