M.Comm. / The methodology of supply chain optimisation is a fairly new concept in the field of logistics management and is also referred to as value chain optimisation. This short dissertation explores and describes the effects of a national improvement in supply chain processes on the sales and profitability of RS Components SA. The study contains discussions from various theoretical disciplines and includes topics such as customer service, customer satisfaction, customer loyalty, logistics management and supply chain methodology. The link between the performance of the logistics processes and perceived customer service levels is also discussed in detail. Finally the study will show how improved logistical performance can lead to improved levels of customer satisfaction, which in turn leads to customer loyalty and increased profitability. In order to improve the organisation's national supply chain, RS Components SA decided to open a new Trade Counter in the Cape Town sales region. Before the opening of this Trade Counter however, improvements were made to the national logistical network to ensure seamless integration of the new sales branch as a fully operational warehouse. Various financial indicators were measured for the year after the opening of the new Trade Counter in Cape Town, in order to compare such figures to the year prior to the opening of said Trade Counter. The primary results were as follows: Sales for the Cape Town sales region have increased by a greater margin than originally budgeted for. The sales growth target was exceeded by 30.21%. The number of invoices generated for the year after the opening of the Trade Counter in Cape Town has increased steadily while the average invoice value has shown no mentionable growth. This indicates that the Trade Counter in Cape Town has spurned a greater percentage of repeat purchases and that sales have not merely increased due to bigger sales orders. Growth in the number of individual purchasing customers for the Cape Town region also reached a staggering growth of 71.71% compared to the growth target of 45%. Substantial growth was also achieved throughout the year for the number of Trade Counter visits to the Cape Town Trade Counter. Whilst staggering growth rates were achieved in all of the above-mentioned categories, overhead expenses came in lower than was originally budgeted for the Cape Town sales region. A saving of 3.65% was achieved against a sales growth of 75.21%. In conclusion, this study indicated an increase in sales and profitability in the Cape Town sales region. Based on the success achieved through supply chain optimisation, both in terms of increased revenue as well as perceived levels of customer satisfaction, a recommendation is made for further expansion of the supply chain network of RS Components SA through the opening of a new Trade Counter in Durban.

This study determined whether local manufacturers of light vehicles in South Africa employ supply chain best practices and strategies. The research design employed was a combination of exploratory and descriptive research design using qualitative and quantitative approaches based on a survey of light vehicle manufacturers in South Africa. A face-to–face, semi-structured interview questionnaire was used, based on purposive sampling. Descriptive statistics using SPSS software were used for the data analysis and interpretation. The findings of the study revealed that across the supply chain, best practices were implemented to a large extent by all manufacturers. Light vehicle manufacturers in South Africa, however face supply chain challenges, which include technological, infrastructural, cost, market/service and production/skills challenges. The most important supply chain performance indicator that contributes to optimisation of performance is quality, followed by final product delivery reliability, and then cost and supplier reliability. All the manufacturers followed a lean strategy for their inbound supply chain and some had a lean supply chain strategy for their outbound supply chain. A number of them also had an agile supply chain strategy in the outbound supply chain which suggests a leagile supply chain strategy. It was also found that in some instances there was a mismatch between strategies and practices in the area of product characteristics, manufacturing characteristics and the decision drivers of supply chain. One of the conclusions of the study was that local manufacturers of light vehicles do not always make decisions and implement practices in line with their chosen supply chain strategies. The study concluded by developing a framework for determining supply chain best practices in line with a chosen strategy that could guide supply chain managers (in locally manufactured light vehicles) in the automotive in South Africa in their decision making. / Business Management / D. Com. (Business Management)

This study determined whether local manufacturers of light vehicles in South Africa employ supply chain best practices and strategies. The research design employed was a combination of exploratory and descriptive research design using qualitative and quantitative approaches based on a survey of light vehicle manufacturers in South Africa. A face-to–face, semi-structured interview questionnaire was used, based on purposive sampling. Descriptive statistics using SPSS software were used for the data analysis and interpretation. The findings of the study revealed that across the supply chain, best practices were implemented to a large extent by all manufacturers. Light vehicle manufacturers in South Africa, however face supply chain challenges, which include technological, infrastructural, cost, market/service and production/skills challenges. The most important supply chain performance indicator that contributes to optimisation of performance is quality, followed by final product delivery reliability, and then cost and supplier reliability. All the manufacturers followed a lean strategy for their inbound supply chain and some had a lean supply chain strategy for their outbound supply chain. A number of them also had an agile supply chain strategy in the outbound supply chain which suggests a leagile supply chain strategy. It was also found that in some instances there was a mismatch between strategies and practices in the area of product characteristics, manufacturing characteristics and the decision drivers of supply chain. One of the conclusions of the study was that local manufacturers of light vehicles do not always make decisions and implement practices in line with their chosen supply chain strategies. The study concluded by developing a framework for determining supply chain best practices in line with a chosen strategy that could guide supply chain managers (in locally manufactured light vehicles) in the automotive in South Africa in their decision making. / Business Management / D. Com. (Business Management)