PurposeCircular economy denotes future sustainability that allows optimum utilization of resources. In the present era of technology, plenty of innovations are happening across the world, and digital manufacturing is one of such innovations. However, there are several barriers which are impeding adoption of digital manufacturing in circular economy environment. The study explores the barriers of digital manufacturing initiatives in a circular economy and develops a methodological model to prioritize the identified challenges for automotive parts manufacturing industry.Design/methodology/approachSeven categories of challenges namely process, human resources, financial, collaboration, technological, security and leadership challenges were identified from literature and further validated with subsequent discussions with experts from the industry. The study is conducted in two phases, where in the first phase, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique is used to define the priority and importance of seven categories of challenges. In second phase, the barriers are ranked using a Fuzzy Performance Important Index (FPII), taking into account contextual factors associated with the challenges and linked barriers, to determine the extent to which they impede the adoption of digital manufacturing in the sample automotive parts manufacturing company.FindingsThe “risk of data security and information privacy in connection with use of external data and protecting customer data” appeared as the most significant barrier to digital manufacturing in circular economy. Furthermore, technological challenges emerged as the most significant category of challenges followed by financial challenges in adoption of digital manufacturing in circular economy.Practical implicationsIdentification of the identified barriers and understanding the interrelationships will lead to easier adoption of digital manufacturing in circular economy.Originality/valueDespite all the potential benefits of implementing Industry 4.0 technologies in manufacturing industries, the adoption thereof is still in nascent phase with significant challenges yet to be overcome to accelerate the pace of adoption. Hence, this study explores the barriers preventing companies from adopting and benefiting from digital manufacturing initiatives and develops a methodological model.
The COVID-19 pandemic has resulted in major disruptions to businesses, supply chains and economies alike. The negative effects of the pandemic are yet to be fully realised. In this study, we aimed to reflect on and explore strategies for supply chain sustainability in the face of business downturn caused by the COVID-19 pandemic. The focus of this study is the heavy engineering industry in South Africa as it relies on a global supply chain network. The paper begins with a brief introduction of negative effects of COVID-19 on supply chains followed by the research questions that drives this study. We used a literature review to select the critical success factors which were further refined using experts' opinion. These factors subsequently, were used as input to an interpretive structural modeling (ISM) technique. The ISM model yielded some interesting findings that can aid organizations in building resilient supply chains that are sustainable in nature. We conclude that organizations need to develop a culture of collaboration; since greater collaboration among value chain members is required to create a more resilient supply chain.
Background: In South Africa, deemed the ‘gateway to Africa’, there is limited evidence of the existence of a survey ranking third-party logistics providers (3PLs). This lack of comparative information of the major 3PLs based on key outsourcing and ranking criteria complicates the selection process for companies that intend to contract 3PLs.Objective: The purpose of this article was to determine the critical selection and ranking criteria for the creation of an index to evaluate 3PLs in South Africa for developing a 3PL benchmarking index.Method: Survey data were collected from 103 of the Top 500 Companies in Africa that use 3PLs and operate within the sectors that mostly outsource logistics services in South Africa. A factor analysis method was employed.Results: Three factors for 3PLs selection converged: service quality, information management and compliance, and collaboration. The top three ranked categories for 3PLs selection are cost and price structure, service delivery and the relationship with the 3PL provider. Most respondents (90%) confirmed a need for a 3PLs index in South Africa.Conclusion: The results help managers with the strategic selection of 3PLs as these critical logistics outsourcing selection criteria can be used to evaluate and rank 3PLs prior to contracting. Based on the selection criteria for logistics outsourcing identified and ranked in this article, a ranking index for 3PLs in South Africa can be developed.
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