An exploration of supply chain risk management in the South African third-party logistics industry

Abstract

Orientation: The management of supply chain risks, disruptions and vulnerabilities has become a significant issue in supply chain management research in recent times.Research purpose: The purpose of this study was threefold, namely to (1) determine whether there is a clear understanding of supply chain risk management (SCRM) within the South African third-party logistics service providers (3PL) industry, (2) investigate the primary sources that lead to disruptions and vulnerabilities within the supply chains of South African 3PL organisations and (3) establish the current tools or methods used by supply chain practitioners to mitigate supply chain risks within the 3PL industry in South Africa.Motivation for the study: Supply chain risks are ever increasing and evolving which may have a substantial influence on organisational and supply chain performance.Research design, approach and method: A generic qualitative research method was used to gather data. A total of 20 purposively selected participants drawn from 20 3PL organisations with headquarters located in Gauteng province participated in semi-structured interviews.Main findings: The findings indicate a juxtaposition regarding South African 3PL supply chain practitioners’ understanding of SCRM compared to literature, as the participants were found to only identify certain tenets of SCRM with no single participant comprehensively describing SCRM according to the literature. External disruptions, namely customer- and supply-side disruptions within the South African 3PL industry were found to be the primary sources of supply chain disruptions. The findings further indicate that supply chain vulnerabilities emanate predominantly from labour strikes and cyberattacks.Practical/managerial implications: The implementation of SCRM is constrained by the high costs of implementation, the unwillingness of supply chain partners to buy into SCRM, power imbalances in supply chain relationships and other uncontrollable factors between different supply chain members.Contribution/value-add: Supply chain practitioners in the 3PL industry should realise the significance of effective SCRM practices, as well as the positive impact proactive SCRM practices could have on their organisations as well as on supply chain partners.

Third-party logistics providers’ strategic development in Sweden: Learning from a crisis

“…Moreover, Karl Weick's concept of sensemaking offers insights into how TPL providers think and act together with customers during a crisis (Weick 1988;Weick et al 2005). This resonates with South African TPL actions, that is, in terms of collaborative sensemaking related to future actions (Meyer et al 2019). While the sensemaking concept is widely recognised in management and organisation studies in general (Christianson & Barton 2021;Sandberg & Tsoukas 2015), its potential has not yet been developed in the logistics and transport management literature.…”

“…Third-party logistics providers' ability to learn from experience is key, not only in response to crises such as the COVID-19 pandemic in relation to developing necessary adaptations (Dovbischuk 2022;Hohenstein 2022) but also in strategic development and organising for business development (Flint et al 2005;Halldórsson & Skjøtt-Larsen 2004;Sornn-Friese 2005). Actual management is performed through close internal and external collaboration, communication, control and standard operating procedures (Blom & Niemann 2022;Meyer et al 2019). Actual TPL robustness and agility depend upon TPL providers' degree of collaboration, communication, company culture for action, digital communication and information sharing and human resources that enact and manage risk (Hohenstein 2022).…”

“…This line of argumentation implies that the strugglers' adaptability, such as their dynamic flexibility, decreased because of their adaptation, which was not necessarily a problem before the pandemic crisis, when customers were reluctant to facilitate integration (Mortensen & Lemoine 2008). However, the dynamic and complex context of the pandemic crisis demanded collaborative meaning-making of actions and management through close internal and external collaboration, communication, control and standard operating procedures (Blom & Niemann 2022;Meyer et al 2019).…”

“…Thus, we see the enacted sensemaking of TPL providers during a crisis as an opportunity to explore their strategic operations. Third-party logistics providers can be expected to use control, standard procedures and communication to mitigate disruptions in a dynamic and complex context, as evidenced by the South African TPL sector (Blom & Niemann 2022;Meyer et al 2019). Moreover, Karl Weick's concept of sensemaking offers insights into how TPL providers think and act together with customers during a crisis (Weick 1988;Weick et al 2005).…”

Supply chain risk management and operational performance in the food retail industry in Zimbabwe

“…The few available studies in Africa were mostly conducted in South Africa (e.g. Meyer et al 2019;Mhelembe & Mafini 2019;Simba et al 2017), and provide inadequate answers to questions concerning the influence of SCRM on OP in the food retail industry, which this study seeks to answer. To the researchers' knowledge, no other study fits the description which this study addresses within the retail industry in Zimbabwe.…”