SUNConferences, Southern African Institute for Industrial Engineering 2014

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INVESTIGATION INTO THE APPLICATION OF THE SYSTEMS-ORIENTATED SUPPLY CHAIN RISK MANAGEMENT MODEL IN MANUFACTURING SMALL AND MEDIUM ENTERPRISES
Prisha Govind, Bernadette Sunjka

Last modified: 2014-06-26

Abstract


In  2012  South African  Small to Medium Manufacturing Enterprises (SMME’s) contributed between 52% and 57% to the Gross Domestic Product (GDP). Ensuring that these businesses remain in operation is crucial to driving economic growth and  stability in the country. SMME’s,  however,  lack the resources to apply risk management, hence leaving their supply chains vulnerable and their businesses susceptible to failure.This research paper verifies the applicability of the System-Orientated Supply  Chain Risk Management (S-O SCRM) model created by Oehmen  et al  (2010)  as a tool  to monitor and mitigate risks for  SMME’s. The model was adapted and tested in 3 SMME’s in SA using semi structured interviews and visual sensemaking techniques to collect all relevant data.Through implementation of the S-O SCRM model several potential risks were identified and suitable mitigation strategies were developed to treat the root cause of these threats. The technique developed can be implemented by the business owner hence proving that this method of analysis is an applicable means to monitor an SMME’s supply chain while not requiring additional resources from the business.

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