The information technology role in supplier-customer information-sharing in the supply chain management of South African small and medium-sized enterprises

Abstract

Background: The study background looked at the advent of supply chain management in the last generation which ushered in technology that drives information-sharing within, and across enterprises. The information flow facilitates synchronisation of business activities, such as relationship-building, supply chain management among others.Aim: The aim of the study was to investigate how information technology (IT) application in the South African small and medium-sized enterprises (SMEs) enhanced supplier-customer information sharing.Setting: Interviews were conducted with SMEs samples that comprised mixed owner-managers from food, and general trading SMEs in Gauteng Province of South Africa.Methods: A qualitative research methodology was used, and a non-probability sampling process was pursued.Results: The results indicated that IT application in the South African SMEs enhanced supplier-customer information-sharing, as it improved interaction through supply chain collaboration and integration.Conclusion: The conclusion of the study highlighted that IT application in enterprises as obtained from South African SMEs enhanced supplier-customer information-sharing.

Enhancing supply chain information sharing with third party logistics service providers

“…Salam (2017) felt that achieving this frequency of information sharing requires technological mechanisms to exchange information among suppliers, customers and other partners. Mathu (2019) studied the role of information technology (IT) in information sharing within the supply chain management of South African small and medium-sized enterprises (SMEs). The findings indicate that the application of IT in South African SMEs enhanced information sharing by improving interaction between suppliers and customers.…”

“…South African supply chain members remain reluctant to share information with their supply chain partners due to unequal distribution of risks, costs and benefits (Mathu, 2019). Studies by Bothma et al.…”

“…South African supply chain members remain reluctant to share information with their supply chain partners due to unequal distribution of risks, costs and benefits (Mathu, 2019). Studies by Bothma et al (2014), KPMG (2013), Naude (2020), PWC (2016) and Weber (2021) suggest that South African 3PLs lack complete visibility into the supply chain networks in which they are involved.…”

“…Vermeulen et al (2019) define visibility as a supply chain's ability to view its activities from downstream suppliers through to final consumers. Studies by Dominguez et al (2018), Kochan et al (2018) and Mathu (2019) found that the complexity of dealing with too many networks ultimately means that organisations with limited levels of information suffer impaired visibility of their supply chain operations. The McKinsey Global Institute (2020) indicated that large organisations were lacking in information visibility as a result of their many tiers of participating suppliers.…”

Supply Chain Management as a Competitive Advantage of Fast Moving Consumer Goods SMEs in South Africa

“…The adoption of supply chain management (SCM) in the last four decades has enhanced competitiveness of firms including small and medium-sized enterprises (SMEs). The enhancement of supplier/customer information sharing speeded-up product flow through the distribution channels to the end-customers, providing competitiveness to enterprises [15]. An exploration of supply chain management as a competitive advantage of the SMEs trading in grocery and apparel in South Africa was conducted in Gauteng province, which is the leading economic hub in the country [23].…”