The objective of this research is to determine if the generally accepted supply chain competency frameworks are in fact applicable to dynamic markets. Many studies into supply chain competencies have been conducted but these have largely focussed on developed markets. With the onset of globalisation and emerging economies competing for a bigger piece of the global economy, supply chain skills have become even more critical as supply chains, rather than organisations, compete. A survey was done amongst supply chain practitioners in both dynamic and developed markets. The survey was issued to test the extent to which the widely accepted supply chain competencies are important to supply chain practitioners in dynamic markets. After confirming the reliability of the results, it was found that respondents in dynamic markets accepted that the competencies as articulated in supply chain competency frameworks were in fact applicable and relevant to supply chain practitioners in dynamic markets. The study also found that while there is strong dynamic market alignment with the competencies, supply chain practitioners differed with their developed world counterparts about the importance of some of the individual competencies. Even though this research has some limitations due to a relatively small sample that is essentially localised to the mining industry, its implications for supply chain practitioners should not be ignored. Also, there is a possibility that the APICS competency model may not have accurately reflected the competency requirements that are characteristic of the supply chain practitioners in dynamic markets. This study can be used as a basis for future research; for example: the perceptions of supply chain practitioners across multiple industries and organisations can be compared. Also, a mix of qualitative and quantitative data collection and analysis could be used to gain an in-depth understanding of the requisite supply chain skills and competencies / Dissertation (MBA)--University of Pretoria, 2013. / pagibs2014 / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

M.Comm. / The concepts of logistics and supply chain management are relatively new in South Africa. The concept of logistics management was more commonly known in the 1960s and 1970s as physical distribution. In the late 1970s, the concept evolved to logistics management and in the late 1980s and early 1990s, it evolved into supply chain management. It was only after the end of apartheid in 1994 when South Africa was able to compete globally that there was great interest in supply chain management in South Africa. There is virtually no business or industry untouched by the business of logistics and supply chain management. Getting the right product to the right customer at the right time as efficiently and cost-effectively as possible is the main objective of logistics and supply chain management (Gordon, 2000a: 14). Logistics is “the process of strategically managing the acquisition, movement and storage of materials, parts and finished inventory (and the related information flows) through the organization and its marketing channel in such a way that current and future profitability is maximised through the cost-effective fulfillment of orders” (Anon1. ,2002). The term supply chain is described by Lummus and Vokurka (1999) as “all of those activities associated with moving goods from raw materials stage through to the consumer. This includes procurement, production scheduling, order processing, inventory control, transportation, warehousing, and customer service. The information systems necessary to monitor all of these activities are also included. All these activities are then integrated and coordinated into a seamless process to involve all the partners in the supply chain”. With every step in the supply chain management process, there are costs involved and two of the major cost drivers in the supply chain according to Palmieri and Africk (1999) are inventory holding and transportation. Stout is of the opinion that this is more than a valid statement from a South African business perspective and emphasizes that unnecessary inventory costs money as does inventory that is distributed inefficiently (Gordon, 2000b: 21). Excessive inventory holding together with under-utilization of transport can lead to a major negative financial impact on total supply chain costs (Cooke, 2000: 12; Lambert, Stock & Ellram, 1998: 165; Hankanson, 1999). Therefore, the reciprocal relationship between inventory holding and transportation cost is very important. Christopher (1992: 25) also stipulates that the ultimate purpose of any supply chain is to satisfy customers. The importance of customer service in total supply chain functioning must therefore always be considered in a logistics supply chain system design. In South Africa, transport and inventory are two of the main cost drivers in the supply chain. Factors that make inventory and transport two of the main cost drivers in the supply chain are, among others: high fuel prices, high interest rates, poor road conditions, security concerns and the weak performance of the rand against major foreign currencies. It can therefore be said that inventory and transport are just as important in obtaining an optimized supply chain in South Africa as in the rest of the world. / Mr. P. Kilbourn Prof. J. Walters

This research focuses on the degree of implementation of modularity and module supply by the automobile manufacturers in South Africa and the benefits they experience. Special attention was paid to the effect the modularity has on the local supplier base and the ability of small South African companies to support this supply concept. Lastly the factors influencing the car manufacturers’ outsourcing decision process was uncovered. The semi-structured face to face interviews with representatives of all light vehicle manufacturing companies operating in South Africa provided rich data for setting the background for further quantitative researches. Copyright / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

The introduction of the Internet has challenged numerous value chain propositions and processes. Its low cost, low barrier of entry and timely distribution of information provides a seamless extension of processes across company borders. Especially in the business-to-business (828) realm, its introduction has however sparked criticism and controversy and many companies are still weary of trading on-line. e-Procurement is a sound solution for companies to initiate the e-wave as it promises high cost savings. Savings promised include a reduction in processing cost, reduction in the supply base (which leads to cost savings) as well as negotiating better prices through the availability of sufficient post-purchase information. Maverick spending (off contract purchasing) is also reduced through better-controlled purchases. A framework is developed in this research to assist in the evaluation of the suitability and scope of a proposed e-procurement implementation. Due to the numerous aspects involved in procurement and therefore also e-procurement, the following five dimensions are addressed in the framework: 1. Procurement and Processes. Although e-procurement does not address all procurement related aspects, such as strategic sourcing of supply, it has an operational focus and reduces processing time and costs. 2. Products. Products can be categorised by means of many different aspects, but the following main characteristics influence the categorisation decision: i) Its function within the organisation, ii) Product characteristics (homogenous or heterogeneous), iii) Product value and iv) Number of suppliers. Indirect goods with a low unit value, supplied by a large number of homogenous suppliers are regarded as susceptible for e-procurement. 3. Purchasing role players. Many different role players function within the purchasing arena, each influencing the purchasing function. The main aspects to be considered when considering e-procurement are: i) Buyer characteristics (demography and background), ii) Supplier characteristics and channel strategy (the supplier's position in the value chain as well, as if the relationship is cohesive or conflicting), iii) Market forces (supply and demand laws as well as market competitiveness) and iv) Industry related purchasing (the product purchased and its significance). 4. Purchasing and Supply Chain Management. The introduction of the Internet has opened up the possibility for planning across the supply chain planning, using techniques such as CPFR. This will result in a pull rather than a push model. For products to be ordered electronically, the following information should be available: i) Stock levels and ii) Current or forecasted demand. Absence of accurate information of any or both of the above would result in a preference for manual ordering. 5. Trading and Information Exchange. Each buying situation may require a different e-procurement solution It is important that users firstly establish the commerce arena requirements (the product characteristics, sophistication of the buyers as well as inefficiencies of current transactions) which will influence the choice in e-procurement business model, trading platform, data format, etc. Thereafter the aspects necessary for consideration are: i) The data format (XML vs. EDIFACT, etc.), ii) Information platform (Internet vs. Intranet, etc.), iii) Integration needs (integrating with back end systems such as an ERP system) and iv) Different e-procurement solutions. Using a qualitative model considering dimensions 1 to 3 above, the susceptibility of different products or commodity groups (products with similar characteristics grouped together) should be examined. For each of these products or commodity groups the preferred e-procurement solution should be crafted by applying dimensions 4 and 5 above. Combining the qualitative ratings with the preferred solution should provide the most feasible e-procurement solution, while simultaneously rating which of the products should be purchased through the solution. / Dissertation (MIng (Industrial Engineering))--University of Pretoria, 2006. / Industrial and Systems Engineering / unrestricted

In today's global economy the need for an efficient and optimised supply chain is increasing. Recent studies showed that supply chain management is one of the areas that have a great impact on the financial well being of an organization as well as customer satisfaction. The recognition of the importance of efficient and optimised supply chains has led to increasing investments in supply chain planning and execution systems. In order to compete in the global market place organizations want to develop systems that enable fast and effective on time delivery of products to customers. Therefore generating the necessary customer satisfaction. Today there are APS (Advanced Planning&Scheduling) systems available to help "manage" the supply chains. These tools were specifically designed to have the ability to rapidly and simultaneously plan and schedule customer demand while considering material and capacity constraints. Not only does these systems provide the ability to increase revenues, but it can also increase the customer service and cut costs by synchronized management of the complete supply chain. Although these systems help to improve the system, it is restricted to the static part and it does not incorporate the dynamic part. The result therefore is that a lot of "noise" still exists within the system once the results are achieved. This opened the way for solutions that can provide insight to the uncertainty and interdependency of processes and customer demand within the supply chain. One way of gaining insight into the system variation and interdependencies is through the use of simulation technology. This type of technology allows organizations to predict future behaviour and test future designs or do redesigns of their current supply chains. The scope of this dissertation is to develop a supply chain planning methodology, which will help to improve the understanding of the uncertainty and interdependency of processes within the supply chain. To design this methodology different steps are taken in order to introduce the final solution. Therefore, four main methods were used; literature research, market research, supply chain planning methodology development and a case study. The literature research brought to light the reasons for the inefficiencies and variations in supply chain planning and why the need for change exists. During the supply chain market research several supply chain planning and execution systems were under study. From this it was quite clear that the only way that organisations can ensure one optimal answer is when the demand is constant and there is a zero percent chance that it could change. In real world systems it is virtually impossible to accurately predict future demand 100 percent of the time, and therefore variability and randomness cannot be excluded from a supply chain solution. This paved the way for the introduction of simulation technology as a possible solution for this variability and randomness. The market research was concluded with the analyses of the current simulation solutions in the market. The next step in the design phase was the introduction of the new supply chain planning methodology. The main purpose of this new methodology is to use the power of modelling and simulation to improve the initial supply chain performance. This methodology focuses on initial supply chain design, analyses and optimisation. By introducing this methodology organisations are now able to compare current supply chains with an unlimited realm of possible future configurations .... and without disrupting the initial day-to-day operations of an actual supply chain. The methodology is also designed to help predict the supply chain performance in terms of throughput, tardiness, utilisation, profitability, and other key performance indicators ... In order to experience real-life supply chain problems a case study has been done. This case study is about the automotive industry, which will include the ordering of parts assembly of vehicles, warehousing and distribution of vehicles. Different problems and difficulties were experienced. In conclusion, this case study provided a better insight into the behaviour of a supply chain. The case study was used to evaluate the use of this new methodology and as a result certain inefficiencies were recognized. As a result of the evaluation certain improvements need to be made to the supply chain methodology in order to make it more suitable for the market. These improvements would focus on inventory planning, supply chain analysis as well as database integration. The result of the case study also showed that the supply chain planning methodology is now set to develop a supply chain solution on the lowest level. There is however a need to be able to grow this supply chain methodology from a low level to a relatively high level. These functions are among others higher-level planning modules, which focus on transportation, production, demand and distribution and performance measurements. The focus will be to introduce these functions as objects. Every object will have the ability to design a supply chain solution on a high level or low level depending on the detail and requirements. ••• I also believe that the one who adapts his policy to the times prospers, and likewise that the one whose policy clashes with the demands of the times does not. 11 Niccolo Machiavelli, 1525 / Dissertation (MEng (Industrial Engineering))--University of Pretoria, 2006. / Industrial and Systems Engineering / unrestricted

The main research problem addressed in this study was to determine the key factors required by purchasing and supply departments in the automotive manufacturing industry to be efficient and effective. To achieve this objective, it was necessary to identify five sub-objectives which were, firstly, to determine the extent to which the purchasing and supply departments in the automotive industry believe that certain key factors in pricing, quality and supplier management are required to achieve excellence. Secondly, to identify if the purchasing and supply departments in the automotive industry actually implement the key factors on pricing, quality and supplier management in practice. Thirdly, to determine if there are any additional factors other than these key factors that business firms regard as key factors to be classified as worldclass purchasing and supply departments. Fourthly, to analyse why purchasing and supply departments in the automotive manufacturing industry do not always implement these key factors. Lastly, to identify any other factors that could have a significant negative impact on the performance of purchasing and supply departments. The study commenced with an analysis and review of relevant literature from various text books, journals, publications and internet sources. The literature study covered issues such as price determination, cost management, basic negotiation strategies, managing supplier quality and the supplier base, as well as a general overview of the latest developments in purchasing and supply management in business. The purpose of the literature analysis was to establish a theoretical basis for the design of the questionnaire which was used as a research instrument in this study. A survey was conducted among selected automotive assemblers and their first and second tier manufacturing suppliers in the automotive industry. The main areas of focus in the questionnaire were pricing, quality, and supplier management. As the questions in the questionnaire related to the purchasing and supply department of a business firm, a qualified and experienced buyer in the purchasing and supply department was identified in each firm to complete the questionnaire. The empirical results from the study conducted indicated that the respondents were in strong agreement with the proposed importance of the factors of pricing, quality, and supplier management required to achieve xcellence. However, the respondents also indicated that there were various obstacles which prevented the firms from implementing these key factors. Some of the obstacles mentioned were long lead times, late deliveries from suppliers, too few competitors in the market place, supplier capacity constraints and the sustainability of suppliers. Additional obstacles that the study identified were the high workload of buyers in general, incompetent staff and insufficient manpower that affected the performance of a purchasing and supply department. The buyers were not only performing buying activities, but were also involved in logistics related activities, which increased their workload and negatively affected their performance. Lack of specialised purchasing and supply chain knowledge was identified as another obstacle to achieving excellence. The empirical study highlighted some recommendations to assist purchasing and supply departments in the automotive industry to achieve excellence and become world-class departments. Examples of these recommendations are that suppliers need to be educated on how to understand their costing models and to check their own sustainability; local purchasing and supply departments require training in the purchasing skills such as incoterms, delivery times, minimum and maximum order quantity; as well as the payment terms. Buyers should be trained to become experts in their products and packaging, as well as the manufacturing process of the product they are purchasing The business firm should only employ qualified buyers who have financial and administrative skills, as well as the ability to adapt to change and work in teams. Buyers also need to master the in-house systems and work procedures involved in purchasing a product. The empirical study also identified that the majority of buyers in the automotive manufacturing industry are senior buyers, male in gender and between the ages of 40-49. The implementation of the recommendations based on the study’s empirical findings will assist in improved pricing, quality and supply management in the automotive manufacturing industry.

There is a great need for a pharmaceutical manufacturer to provide its customers with the right product at the right time, place and price and also to deliver the product in the right quantity and quality. Should pharmaceutical customers not receive their orders on time from the pharmaceutical manufacturer, the customers might face out-of-stock situations. As a result, the patients or customers might turn to an alternative product from a different pharmaceutical manufacturer, which has the required stock readily available. This could lead to loss in sales and even death amongst its customers. The main objective of this study was to determine the key factors that form part of the demand and operations planning strategies to ensure that these factors are in place to effectively manage and execute the supply chain and logistics processes to reduce possible out-of-stock situations amongst its customers. As a starting point to the study, an analysis was performed based on the review of relevant research and literature from various text books, journals, publications, as well as internet sources. The literature study covered various aspects such as demand planning, production planning, the use of different demand and operations planning strategies, as well as the importance of continuous internal and external customer service levels to ensure that customer orders are delivered on time. The analysis of the literature review was used to establish a theoretical basis for the design and structure of the questionnaire that was used as a research instrument in this study. A survey was conducted amongst the employees that are responsible for executing the supply chain and logistics processes within Aspen Pharmacare. These employees resided within the three main departments of the pharmaceutical manufacturer, namely, the Demand and Operations Planning, Production and Packing, as well as the Warehouse and Distribution departments. Each question posed in the questionnaire related to the role of each employee within these departments that are responsible for the logistics processes within Aspen Pharmacare. The empirical results from the study indicated that the respondents were in support that specific key factors are important for a pharmaceutical manufacturer to manage incoming customer orders efficiently and effectively to reduce possible out-of-stock situations amongst its end customers. However, the respondents also highlighted that there were a number of obstacles preventing them from implementing the key factors that are required to manage incoming customer orders more efficiently within the pharmaceutical manufacturer. Some of these obstacles include: the lack of pro- activeness; lack of accountability; and the lack of constant communication between the employees from the three main departments. Furthermore, incomplete hand-over information during shift changes amongst the employees of the Production and Packing department created unnecessary down-time. Also, the employees from the Warehouse and Distribution department were not informed timeously when changes to the production schedule were made. These obstacles will have a negative impact on the ultimate customer delivery dates and need to be addressed. The empirical results highlighted some recommendations to assist pharmaceutical manufacturing companies to more effectively and efficiently manage their incoming customer orders to reduce or eliminate any possible out-of-stock situations amongst its end customers. Some recommendations include: improved communication between the three main departments; to react immediately to out-of-stock products; and to ensure that internal and external customer service levels are adhered to at all times. The implementation of the recommendations based on the empirical findings of the study will assist the pharmaceutical manufacturing company to achieve excellence and to become a world-class supplier of generic pharmaceutical products. In this way, all incoming customer orders can be fulfilled on time.

Much research work has assessed the construction process and discovered that the process is ineffective and besieged with problems. Analysis of these problems has shown that a major part of them are related to the state and workings of the supply chains. Prior research justifies that waste and problems in construction supply chains are extensively present and persistent. This anomaly may be ascribed to the nature of the industry. Horizontal integration that is common place in the construction industry tends to fragment the supply chain, resulting in an unstable production environment occasioned by high unpredictability, much rework, low profits and eventual low level of value creation in the process. Therefore, an increased level of integration of interfaces and processes has been canvassed. The purpose of supply chain management is to achieve the expected increased level of integration of the whole supply chain. Supply chain management is a concept that has flourished in the manufacturing industry through Just in Time production and logistics. Supply chain management represents an autonomous managerial tool, though still largely dominated by logistics. Supply chain management has long been advocated as a means of improving the performance of supply chains in construction. This research study reports on an investigation into the impact of supply chain management on value creation in the South African construction industry. The research discovered that collaborative working is already in the industry and contractors consider supply chain management important for project success. Here construction supply chains were approached from the relationship view point. All issues are encouraged to be viewed and resolved in the supply chain from the relationship perspective.

El presente trabajo muestra el análisis que se debe realizar para ver la implicancia que tienen las actividades logísticas dentro de una empresa y con esa base justificar que toda empresa comercial debe tener dentro de su estructura organizativa un área de logística y operaciones como área independiente, encargada de planificar, diseñar y dirigir todas las actividades relacionadas con el correcto y oportuno abastecimiento de todas y cada una de las estaciones de trabajo involucradas en el mejor trato a los clientes tanto internos como externos, constituyéndose en el principal socio de la Gerencia de Ventas para la consecución de los objetivos organizaciones de la empresa. / Trabajo de investigación

This dissertation includes four independent essays. Essay one (chapter two) considers a two-echelon, two-supply chain (SC) system in which manufacturers supply a generic product to their exclusive retailers, who then use service level and retail price to compete for heterogeneous consumers. We question: how do varied consumer preferences get reflected not only in differentiated products/services, but through them to the choice of SC structure that delivers them? We find that SCs can strategically manipulate the product/service strategy and SC structure to hedge themselves from horizontal competition. The key finding is that in a market where consumers have stronger diminishing marginal utility on service, then less differentiated products/services will be observed, and only decentralized supply chains can be the market equilibrium. This is in contrast to the well-known result in marketing that choosing vertical integration is always a Nash equilibrium, and that choosing decentralization can only be a Nash equilibrium when product substitutability is high. Essay two (chapter three) explores the classical revenue management problem in a competitive context, with both price and seat inventory competition. The main question is how should management make strategic marketing (pricing) and operational (seat allocation) decisions in such a competitive market? Do the conventional approaches (models and algorithms based on a monopoly market) give us the appropriate strategies? We find that in a market where price competition dominates, managers should set a lower price and safety protection level for full fare customers than in a monopoly or alliance market. In a market where seat inventory competition dominates, managers should set a higher price and safety protection level than a monopoly or alliance would. Interestingly, in a market where the two levels of competition are more evenly matched, managers should set a lower price and a higher safety protection level than a monopoly. We also explore the effect of the degree of competition and the market structure on the strategic decisions, and whether there is a first adopter advantage or second adopter disadvantage with revenue management. Essay three aims to extend the understanding of the Newsvendor model to a competitive framework. In a market with both price and inventory competition, newsvendors can gain customers with price and secure the sales with availability. We find that the newsvendors should adjust their inventory (safety stock or total inventory) and pricing strategies responsively to the nature of the competitive market. The profits of the newsvendors and their suppliers are also different under different competitive contexts. Both the Nash equilibrium strategy and the players' profits are influenced by the demand correlation and variability, but in different ways under different competitive scenarios. These observations provide some theoretical basis for the strategic selection made by newsvendors operating in certain competitive markets. Essay four (chapter five) explores the issue of competitors cooperating. It is a commonplace observation that even the most competitive firms often find it in their best interests to cooperate. An example of cooperation in operations management is when two supply chains agree in advance to transship or 'pool' surplus product for use by another. The alternative is to let their customers switch unsatisfied demand to a competitor. Which is preferable, and how does such a preference depend on the many parameters, prices, the nature of competition, the degree of competition, wholesale prices etc? To get answers, we study a stylized model under three market environments: a market with an exogenous retail price, an endogenous retail price, and with price competition. The summary answer is that strong price competition between substitutable goods should lead to caution in signing transshipment contracts. But with little price competition and particularly where retailers are free to set the transshipment price, then transshipment is probably the way to go. We also address the issue of an optimal transshipment price in each scenario, and compare the Nash equilibrium strategies between competing and transshipping. / Business, Sauder School of / Graduate