EXPLORING VALUE PROPOSITION FOR UPSTREAM SUPPLY CHAIN PARTICIPATION ON IMPORTERS IN SOUTH AFRICA

Abstract

Thesis (MCom)--Stellenbosch University, 2024.Many South African importers experience uncertainty in optimally structuring and managing their upstream supply chains to secure a competitive advantage. They face various local challenges that hinder operational efficiency, whilst also needing to respond to random global events that can influence service delivery and pricing. If not managed effectively, these challenges can impose a substantial economic burden on importers, ultimately affecting their profitability and market positioning. This complex landscape has prompted an investigation into strategies that importers can adopt to enhance the management of their upstream supply chains to unlock additional value. The research aims to provide actionable insights through a toolkit and makes recommendations grounded in data extracted from the study, focusing on best practices and proactive measures that can bolster the resilience and efficiency of South African import supply chains. A traditional literature review, alongside a systematic literature review, were conducted to establish a theoretical foundation for this research and to establish the existence of any relevant advisory models, toolkits, or frameworks in the field. This process aimed to identify whether similar research has previously been undertaken. A stakeholder analysis was then performed to identify key stakeholders involved in upstream supply chain management and the importation of goods into South Africa, as well as to assess their levels of engagement. The research methodology adopted an exploratory nature and followed an inductive approach to theory development. Data collection involved conducting qualitative, semi-structured interviews with stakeholders, who provided valuable knowledge and insights to contribute to the dataset. A thematic analysis was done on the data, resulting in the formulation of five grounded theories. As a result, a toolkit was developed, comprising four principal guidelines for importers to consider when structuring their upstream supply chain processes. The research concludes by offering five recommendations that are theoretically underpinned, providing a robust framework for importers aiming to enhance their supply chain management practices. All research questions were successfully answered, and the study achieved its aim and objectives. The study revealed that South African importers can achieve a competitive advantage through effective participation in upstream supply chain activities by preferably favouring the main carriage unpaid groups of Incoterms®. To realise this potential, importers must strategically structure their organisational departments and adopt a shared platform for measuring the total landed cost of goods. Investment in skills and competencies within the fields of international logistics, freight forwarding and customs clearing is critical. This can be attained either through outsourcing agreements or by recruiting skilled personnel for key functions. Furthermore, a comprehensive understanding of associated risks and liabilities is essential, as is the awareness of how specific service components can influence downstream costs.Master

    Similar works