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A conceptual model to limit risk of raw material procurement in the South African wine industry

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: In the highly competitive international wine markets, effective procurement of raw material could prove the difference between success or failure for a wine company. Therefore the researcher embarked on this study to create a model that will assist procurement decision makers in the South African wine industry in the strategic procurement of raw material. In order to create a model for procurement of raw material in the South African wine industry, qualitative research was conducted that included a study of literature, available material, views from experts as well as a content analysis from sample interviews. Procurement officials need to ensure that marketing forecasts are aligned with contracted procurement volumes. Cost, quality and availability should be tightly managed to minimise losses due to unallocated inventory or lack of raw material with sufficient quality or quantity to serve a marketing need. Suppliers should be prioritised in terms of strategic importance and procurement decision-makers should be crystal clear on which strategy to pursue with each quality segment and supplier in order to obtain the right quantity at the desired quantity and most economical price. Procurement decision makers need to evaluate the procurement and market environment for opportunities and threats that might impact on their ability to procure raw material from their supply base, and put measures in place to take control of possible effects of those uncertainties. This includes differentiating between grape procurement and wine procurement to leverage the advantages from both. Procurement officials must establish an action plan to limit the risk of cost, availability and quality by engaging and investing in trusting, loyal relationships with proficient suppliers with capacity. The procurement function should operate in a professional manner, building a track record of pro-active procurement and focus on loyal supplier relationships. / AFRIKAANSE OPSOMMING: In die hoogs kompeterende internasionale wynmarkte kan effektiewe aankope van rou-materiaal die verskil beteken tussen sukses of mislukking vir 'n wynmaatskappy. Daarom het die navorser begin met hierdie studie om 'n model te skep wat besluitnemers van aankope kan bystaan met die strategiese aankoop van roumateriaal in die Suid-Afrikaanse wynbedryf. Om 'n model te skep vir die aankoop van roumateriaal in die Suid-Afrikaanse wynbedryf is kwalitatiewe navorsing gedoen, wat 'n literatuurstudie insluit, sowel as 'n studie van beskikbare materiaal, sienings van kenners en 'n inhoudsanalise van steekproefonderhoude. Aankoopsbeamptes moet verseker dat bemarkingsvooruitskattings en gekontrakteerde aankoopvolumes ooreenstem. Koste, kwaliteit en beskikbaarheid moet streng bestuur word om verliese te beperk wat kan ontstaan deur ongeallokeerde voorraad of 'n tekort aan roumateriaal met genoegsame kwaliteit of hoeveelheid om 'n bemarkingsbehoefte te bevredig. Verskaffers moet prioritiseer word in terme van strategiese belangrikheid en aankoop-besluitnemers moet kristalhelder dink oor watter strategie om te volg met elke kwaliteitssegment en verskaffer, sodat die regte hoeveelheid en volume teen die mees ekonomiese prys aangekoop word. Aankoopbesluitnemers moet die aankoop- en markomgewing evalueer vir geleenthede en bedreigings wat 'n invloed kan hê op hul vermoë om roumateriaal van hul verskaffingskorps aan te koop, en moet maatreëls in plek stel om beheer te neem oor die moontlike effek van daardie onsekerhede. Maatreëls sluit in die differensiasie tussen druifaankope en wynaankope om die voordele van elk maksimaal te benut. Aankoopsbeamptes moet 'n aksieplan vestig om die risiko van koste, beskikbaarheid en kwaliteit te beperk deur in verbintenisse te belê met lojale vertrouensverhoudings met vaardige verkaffers met kapasiteit. Die aankoopsfunksie moet op 'n professionele manier optree, om 'n beeld van pro-aktiewe aankope te bou en 'n fokus op lojale verskafferverhoudings te vestig.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/3149
Date12 1900
CreatorsKoegelenberg, P. D.
ContributorsHerbst, F. J., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Format141 pages
RightsStellenbosch University

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