An exploratory study of factors influencing the supply chain quality in a selected South African company

Abstract

The study explored factors that influenced the supply chain quality in a South African organisation referred to as company X. It was limited to the financial year ended January 2022. The study was motivated by a 6% increase in supply chain costs company X incurred during that period. The study was qualitative in nature with structured questions, and the sample included six participants purposively selected as knowledgeable decision makers. A literature survey was conducted which defined supply chain, explained the history of supply chain, supply chain costs and its drivers as well factors that disrupt the quality of a supply chain. Ten factors were subsequently identified as long lead times, communication issues, inventory problems, production processes delays, ERP Systems/Technology issues, environmental (Acts of God), supplier/sourcing constraints, management issues, labour/teams, and politics. These factors were examined by the Pareto and HSIM (BIM) technique and it was concluded that inventory issues, management, production processes, lead times and sourcing were the major factors that bedevilled the supply chain for Company X. Inventory and management issues were the most sensitive factors. These were the only factors influenced by changes in the other factors. Recommendations were proposed on how to improve the supply chain quality. Dashboards, lean methodologies, vigorous risk assessments and talent management, amongst other initiatives were proposed. It was noted that dashboards would improve processes, communication and inventory issues experienced by the supply chain quality of Company X. A study that focuses on multiple organisations within the same sector is needed to formulate sector-based supply chain quality issues and further studies that can quantify the contribution of each factor to the supply chain is suggested to fully understand the impact of each factor.