Innovation in the finished vehicle logistics industry in South Africa.

Abstract

It is generally believed that the Finished Vehicle Logistics (finished vehicle logistics) industry is in desperate need of innovation, not only in South Africa, but worldwide. The level of innovation within the finished vehicle logistics industry is slow, and almost non-existent. Technologies that have been around in other logistics industries are only now garnering a foothold in the finished vehicle logistics industry. Supply chains need to constantly innovate to ensure that costs are kept to a minimum, and that they remain relevant. Industry leaders consider the lack of collaboration to be the major inhibitors of innovation in the industry, yet, it is believed that collaboration is where innovation can be found. This research identifies the external and internal barriers to innovation that are relevant to the finished vehicle logistics industry of South Africa. The challenges facing the industry are ready to drive innovation by stake-holders to develop innovative operational solutions to overcome these challenges. A mono-method qualitative research methodology was followed, with a questionnaire circulated to role-players are the single source of data collection. A purposive sampling technique was used to identify respondents from 3 sub-sections of the South African finished vehicle logistics industry, that being the vehicle manufacturers, logistics service providers and car carrying equipment manufacturers. The resultant sample of 121 potential respondents included management representatives from planning, operational and executive levels from the 3 sub-sections of the industry. A lack of willingness from the vehicle manufacturers to participate significantly reduced the number of potential respondents down to 25. Descriptive statistics were used to analyse the responses received to a questionnaire designed to form an understanding on the barriers to innovation in the finished vehicle logistics industry in South Africa. It was found that most of the general internal and external barriers to innovation are relevant in the finished vehicle logistics industry, with the exclusions of inappropriate infrastructure and a lack of innovative competencies. The failure of vehicle manufacturers to participate in this study not only creates the opportunity for future research to include a more heterogeneous sample, but also highlights the need for a formal platform to discuss and provide further insight in to the barriers to innovation plaguing all role-players within the finished vehicle logistics industry.