Collaboration of Buying Suppliers in South African Automotive Industry

636 WordsFeb 24, 20182 Pages
While there is a varied amount of sectors and/or industries that have major issues and concerns, the automotive industry in South Africa is a present issue that needs to be considered, (Naude & Weiss, 2011). The OEMs in South Africa are BMW (3 series), Ford (Ranger pickup from 2011), GM (Corsa pickup, Isuzu pickup), Mercedez Benz (C-Class), Nissan/Renault (various sedans and pickups), Toyota (Corolla 4-door and Hilux pickup), Volkswagen (new and old Polo), (Pitot, 2010). Government persuade and pressurize automotive assemblers to increase local content but the reality of the situation is that there local manufacturers aren’t as competitive as they would like to be or they aren’t as competitive as those suppliers and automotive assemblers internationally. The reason being is supply chain issues cause inefficiencies that impact a local automotive assembler to gain competitiveness, (Naude & Weiss, 2011). The most common drivers of demand distortion are unforeseen sales promotion which have a ripple effect on the supply chain, lack of customer confidence and cancellations of orders, (Lysons, 2003). To remain competitive, the automotive industry needs to decrease costs and enhance customer service levels. Some complexities they may face is rising fuel prices and high manpower costs which negatively influences the cost of living in today’s society. The reason South Africa is not competitive is due to the low percentage of local content in a final product), (Pitot, 2010). If
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