South Africa is a well-developed country, which has its economic system organized in such a way that it “allocates its resources and apportions goods and services in the national community. Its common economic systems include capitalism, communism, market system, mixed economy, and socialism. It runs all its economic systems differently with different beliefs on what would best help improve the global management of the state.” (Gattorna 121) The different systems that help the global market in supply chain management be a success includes transportation, political influence, availability of raw materials, environmental and geographical concerns, supplier development and management practices, and logistics. A supply chain management consists of the activities that suppliers engage in to get the right products to the right customers, at the right time and place. A SCM is good and effective in improving the economy of a country because it is cost effective; this means it is cheaper to produce, since the country uses less to make more. It also contributes to the success of a country’s economy because it does not need to rely on external factors for its success (Gattorna 121-134).
With the capital city of South Africa fast growing and offering job opportunities in institutions and upcoming organizations, elements of supply chain management, such as availability of raw materials, are applied efficiently by the inventory methods of production. For example, with the favorable weather, most people can learn to practice greenhouse farming, which involves growing of plants in areas within buildings or in houses as framers ensure the right conditions are provided to proper growth of the plants. In such cases, once the plants are successfully grown, that farmers can allocate various suppliers who can distribute their products to all consumers all over the country. For these goods to be distributed equally, transportation should be readily available to distribute the fresh goods to other suppliers such as food stores and supermarkets. This way, these goods and services would be offered to different people such as individuals or families, to packaging companies. They can also be distributed to schools that have feeding programs. Finally, they would also be offered to co-operate, such as those who work in offices, and do not find time to prepare food except for the available packed foods (Shuibhne 13-16).
When people adapted to this kind of production, they did not have to outsource or rely on other countries for raw materials because they created their own products and were among the list of suppliers worldwide. Environmental and geographical factors such as climate and positioning of the land majorly contributed to the success to supply chain management. This was through the favorable cold and warm weather that covers a longer period of a year, which favors green house farming and other practices. In addition to this, South Africa rarely encounters natural disasters such as hurricanes making all its projects stable and long term. For this reason, the products that suppliers have are attractive and unique to outsiders and neighboring countries because they are fresh. With its success, many outsiders such as Japan and China developed interest in doing business with South Africa that they started supplying farm products. Through this chain of suppliers, many other countries have added to the list of suppliers, creating a bigger chain of suppliers (Fournier 33-34).
When it comes to management and development practices of supply, suppliers try to be creative to ensure they maintain uniqueness in the products they give consumers. This means that occasionally they have to identify new strategies of creating other products that would serve the same purpose to consumers yet still keep them loyal to using their products. On the other hand, political influences such as political clashes would be a disadvantage to the success of the SCM because many people would not want to purchase and transport their products. This is because clashes interfere with the access to resources, the ready market, and co-operate commitment from investors. This means that with a political state that is stable and peaceful, South Africa’s global market of supply chain management can potentially experience far greater and long-term benefits that can lead to a steadier and fast rising economy. Lastly, logistics can turn out to be a major setback if suppliers do not get and understand basic information regarding supply chain management. This means that one must be properly educated in order to make a difference in the global market. This way, he will be skilled and qualified on how to handle whatever challenges he may encounter during supplying. When suppliers achieve all these, the global market can create a massive impact on the economy of the South Africa (Gattorna 121-134).
In conclusion, supply chain mangement in South Africa was beneficial to the global market, investors and consumers because of the rise and drop in supply and demand . With market speculations regarding production of goods, consumers and investors decided to reach a wider market through identifying potential suppliers who could maintain high quality production. As for the other variables influencing the supply chain management such as availability of raw materials and transportation, suppliers also decided to change and introduce different products to their produced goods. In addition to this, suppliers were able to develop alternative strategies for only short term impacts. Significantly, changes in supply chain management will, however, affect the global market in the future, which will also affect the economy of South Africa.
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