,Supply Chain Management
A BALANCED APPROACH
Second edition
EDITORS
JA Badenhorst-Weiss
EHB van Biljon
IM Ambe
CONTRIBUTORS
S Adendorff
C Bothma
O Cilliers
WMJ Hugo
MJ Naude
JD Nel
JW Strydom
J Walters
BJ Waugh
Van Schaik
PUBLISHERS
,Published by Van Schaik Publishers
A division of Media24 Books
1059 Francis Baard Street, Hatfield, Pretoria All rights reserved
Copyright © 2017 Van Schaik Publishers
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means – electronic,
mechanical, photocopying, recording or otherwise – without written permission from the publisher, except in accordance with the
provisions of the Copyright Act 98 of 1978.
, PREFACE
In an effort to adjust to an ever-changing global market environment, businesses have realised that depending
purely on their own resources of skills, knowledge and capacity is no longer sufficient. The drive to create and to
deliver customer value while maintaining the financial integrity, viability and competitiveness of the organisation
has compelled management to look for competitive leverage outside the traditional organisational boundaries.
It is against this background that traditional thinking on issues such as purchasing, materials management and
certainly also logistics management has become outdated. Supply chain management seeks to integrate the whole
chain of organisations (all suppliers and customers) and processes that contribute to ultimate customer value. It is
a systems approach to managing the entire flow of information, materials and services from the suppliers’ suppliers
to the customers’ customer. Supply chain thinking is in essence a management philosophy aimed at integrating a
network of upstream linkages (supply sources), internal linkages inside the organisation, and downstream linkages
(distribution and ultimate customers) in order to create customer value.
South Africa, as one of the emerging economies, is certainly not isolated from supply chain thinking. In contrast
to the more traditional concepts of purchasing management, materials management, logistics and physical
distribution management in South African organisations have evolved, and supply chain management as a concept
has taken root. A main reason for the dynamic growth of supply chain management in South African businesses
is the globalisation of businesses and the pressure of global competition. However, the astonishing success of
progressive organisations such as SA Breweries and Sasol in the international marketplace is built in no small part
on their early adoption of the supply chain philosophy.
Since the first edition of this book was published in 2004, the supply chain management approach has become
even more generally adopted by businesses and even government in South Africa. The supply chain management
approach also evolved further with new innovations, technology and practices. It is against this background that
the book is updated in the second edition. It serves a dual purpose. Firstly, it provides context about the application
of supply chain management in the manufacturing, retailing and government sectors. Secondly, it is essential that
advanced management concepts such as supply chain management should be introduced into the curricula of
higher education institutions at an early stage, in order to prepare managers of the future for a very competitive
business environment and an increasing pressurised and complicated government environment.
This book aims to identify the strategic impact and evolutionary direction of supply chain management in a global
market environment and to emphasise the changes in processes and management thinking required to introduce
and improve supply chain management in South African organisations.
In addition to the previous authors (editors), academics with established reputations in this field, a few younger
rising stars in the field have contributed to this edition. This book would not have seen the light without the vision,
tenacity and leadership of Prof. Willem Hugo, who is now retired. A large proportion of the previous edition is
still applicable and was retained in the new edition.
The editors and contributors to this book are the following:
Editors:
Prof. Hannie Badenhorst-Weiss, Unisa
Dr Ernst van Biljon, Process IQ
Prof. Marcus Ambe, Unisa
Contributors:
Prof. Susan Adendorff, University of Pretoria
Prof. Jackie Walters, University of Johannesburg
A BALANCED APPROACH
Second edition
EDITORS
JA Badenhorst-Weiss
EHB van Biljon
IM Ambe
CONTRIBUTORS
S Adendorff
C Bothma
O Cilliers
WMJ Hugo
MJ Naude
JD Nel
JW Strydom
J Walters
BJ Waugh
Van Schaik
PUBLISHERS
,Published by Van Schaik Publishers
A division of Media24 Books
1059 Francis Baard Street, Hatfield, Pretoria All rights reserved
Copyright © 2017 Van Schaik Publishers
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means – electronic,
mechanical, photocopying, recording or otherwise – without written permission from the publisher, except in accordance with the
provisions of the Copyright Act 98 of 1978.
, PREFACE
In an effort to adjust to an ever-changing global market environment, businesses have realised that depending
purely on their own resources of skills, knowledge and capacity is no longer sufficient. The drive to create and to
deliver customer value while maintaining the financial integrity, viability and competitiveness of the organisation
has compelled management to look for competitive leverage outside the traditional organisational boundaries.
It is against this background that traditional thinking on issues such as purchasing, materials management and
certainly also logistics management has become outdated. Supply chain management seeks to integrate the whole
chain of organisations (all suppliers and customers) and processes that contribute to ultimate customer value. It is
a systems approach to managing the entire flow of information, materials and services from the suppliers’ suppliers
to the customers’ customer. Supply chain thinking is in essence a management philosophy aimed at integrating a
network of upstream linkages (supply sources), internal linkages inside the organisation, and downstream linkages
(distribution and ultimate customers) in order to create customer value.
South Africa, as one of the emerging economies, is certainly not isolated from supply chain thinking. In contrast
to the more traditional concepts of purchasing management, materials management, logistics and physical
distribution management in South African organisations have evolved, and supply chain management as a concept
has taken root. A main reason for the dynamic growth of supply chain management in South African businesses
is the globalisation of businesses and the pressure of global competition. However, the astonishing success of
progressive organisations such as SA Breweries and Sasol in the international marketplace is built in no small part
on their early adoption of the supply chain philosophy.
Since the first edition of this book was published in 2004, the supply chain management approach has become
even more generally adopted by businesses and even government in South Africa. The supply chain management
approach also evolved further with new innovations, technology and practices. It is against this background that
the book is updated in the second edition. It serves a dual purpose. Firstly, it provides context about the application
of supply chain management in the manufacturing, retailing and government sectors. Secondly, it is essential that
advanced management concepts such as supply chain management should be introduced into the curricula of
higher education institutions at an early stage, in order to prepare managers of the future for a very competitive
business environment and an increasing pressurised and complicated government environment.
This book aims to identify the strategic impact and evolutionary direction of supply chain management in a global
market environment and to emphasise the changes in processes and management thinking required to introduce
and improve supply chain management in South African organisations.
In addition to the previous authors (editors), academics with established reputations in this field, a few younger
rising stars in the field have contributed to this edition. This book would not have seen the light without the vision,
tenacity and leadership of Prof. Willem Hugo, who is now retired. A large proportion of the previous edition is
still applicable and was retained in the new edition.
The editors and contributors to this book are the following:
Editors:
Prof. Hannie Badenhorst-Weiss, Unisa
Dr Ernst van Biljon, Process IQ
Prof. Marcus Ambe, Unisa
Contributors:
Prof. Susan Adendorff, University of Pretoria
Prof. Jackie Walters, University of Johannesburg
