Internet-enabled supply chain integration: Prospects and challenges for the South African automotive industry

Abstract

The impetus for supply chain integration (SCI) in the global automotive industry is being driven by the Internet. The article critically explores the potential of the Internet to optimise and streamline the complex supply chains found in the South African automotive industry. The Internet's potential to create seamless, collaborative supply networks could provide the local automotive industry with a distinctive competitive advantage in its pursuit of an 'outward orientation' and 'global connectedness' after a lengthy period of trade isolation and government protection. The findings, however, reveal that domestic automotive firms are generally not using the Internet for substantive interbusiness trade and advanced SCI. By not making the transition to Internet-enabled SCI, South African automotive firms may be placing themselves at risk of becoming less competitive in the globally interconnected market, which will impact on both their current market positions and long-term viability.

Whither business-to-business electronic commerce in developing economies? The case of the South African manufacturing sector

“…In South Africa, the critical importance of B2B e-commerce in shaping the performance of domestic enterprises in the global networked economy, has recently come under the policymaking spotlight [8,10]. The issue of engaging more openly in global production and trade networks has become central to debates on how formerly inwardly-oriented industrial sectors restructure themselves to maintain competitiveness in a more open, trade-liberalised environment [32,34]. The use of the internet to co-ordinate production through domestic and cross-border inter-firm networks is therefore likely to have a significant impact on the competitiveness of South African firms.…”

E‐business in the South African Apparel Sector: A Utopian Vision of Efficiency?

“…The former takes place at various internet-based auctions or exchange sites, whilst the latter occurs either through a firm's website which has an online purchasing function or an EDI-type network. 5 It has been argued that B2B e-commerce is likely to spread globally and grow rapidly primarily because of its potential for: (1) reducing business costs (associated with inventories, sales execution, procurement and distribution); (2) connecting to markets through greater geographical reach; (3) value creation; (4) increasing productivity gains and systemic efficiencies in the value chain; and (5) advanced supply chain management and logistics (Moodley 2002). Senn (1998) and Wiseman (2000) contend that inter-organizational e-business systems are rapidly becoming an essential mechanism for competitive success.…”

“…The small scale and volumes of the SA market perhaps made the viability of fully fledged business information systems questionable (Moodley 2002). However, the current pressures of globalization and the challenge to direct overseas market expansion underscores the importance of e-business for the local apparel sector.…”

“…In the relatively small, captive SA market, competitiveness has previously revolved more around marketing effectiveness and price competition than production and systemic efficiencies. The small scale and volumes of the SA market perhaps made the viability of fully fledged business information systems questionable (Moodley 2002). However, the current pressures of globalization and the challenge to direct overseas market expansion underscores the importance of e-business for the local apparel sector.…”

Intercultural supply chain management: an assessment of the field and future outlook

“…Christopher Columbus was searching to solve a then global supply chain problem only to discover a 'new' world and also to prove that the world was not flat. Global competition was present then, and throughout the decades and centuries to follow, yet during these past few decades we have witnessed a computer technology and internet explosion producing massive research in information technology and its affects on the firm -and now on supply chains (Kehoe and Boughton, 2001;Moodley, 2002;Sharman, 2002;Garcıa-Dastugue and Lambert, 2003;Zank and Vokurka, 2003;Cagliano, Caniato and Spina, 2005). This information explosion has intensified global competition and firms are faced with the complexity of establishing stronger intercultural relationships with a culturally diverse set of channel partners (Harvey and Griffith, 2002).…”