Supply chain integration as a driver of performance in the South African rail industry
Abstract
The rail industry in South Africa faces various performance-related challenges that are often associated with ineffective supply chain management. This study proposes that an integrated rail supply chain is likely to be more resilient and achieve superior performance. To investigate the impact of supply chain integration on the resilience and performance of the rail industry in South Africa. A quantitative approach based on deductive reasoning was followed. The sample consisted of 350 purposively selected supply chain professionals drawn from the rail industry in South Africa. The collected data were analysed using descriptive statistics and structural equation modelling. All three components of supply chain integration, namely internal, supplier and customer integration positively influenced supply chain resilience. Significant positive relationships were also observed between supply chain resilience and the tangible and intangible dimensions of supply chain performance. An integrated supply chain is essential for driving the resiliency and performance of the rail industry in South Africa. The study directs supply chain management research to the rail industry, an important economic sector where many emerging issues require empirical attention. Practically, the study showcases two of the major benefits of an integrated supply chain in the rail industry: enhanced resilience and performance of the supply chain.
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