Performance measurement framework for the South African wine supply chain: an investigation of packaged products in the local market

Jooste, Corneli (2016-03)

Thesis (MEng)--Stellenbosch University, 2016.

Thesis

ENGLISH ABSTRACT: The South African wine supply chain was investigated to consider improvement of the industry through performance measurement. Private and producer cellars struggle to improve supply chain activities due to the lack of useful information. Managing a supply chain is often challenging due to a lack of clear goals and strategies as well as insufficient knowledge of current performance. This project focused on investigating packaged products in the local market and aimed to develop a performance measurement framework that would provide a practical solution to improvement. The research method that is presented describes how an agile design methodology was used to develop a performance measurement framework. Through a process of interviews, discussion groups and practical measurements, industry and academic feedback continuously provided insight into the research problem and solution. Existing performance measurement frameworks were also used to select metrics from and describe a process for formulating a supply chain strategy. Performance measurement can be used as a tool to collect information for making supply chain decisions and it is also a source of feedback on current performance. The results from the performance measurement process during the project show that challenges regarding the availability of supply chain data exist, but valuable information concerning industry practices and processes was received. The characteristics of the industry could therefore be identified from the process and used to develop a performance measurement framework. The local industry can be described as a complex environment where inventory management is critical. Inventory management drives the strategy of a cellar and impacts cash-flow and customer service. Most cellars therefore decide to keep high levels of finished goods inventory. Outsourcing of transportation and packaging is also a common practice. Performance metrics were selected based on the characteristics of the industry, information required for supply chain decisions and key performance indicators for supply chain management. Metrics of the framework are categorised according to the attributes of the Supply Chain Operations Reference model. As a whole, the project provided a method through which metrics can be used to improve performance by understanding the industry and formulating strategies. The outcome of the process is however dependant on the availability of more information. Implementation of the recommended framework implies that the performance metrics must be measured and used as part of decision making. In this way the success can be achieved in improved customer service, efficiencies, financial returns and other formulated goals.

AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse wyn voorsieningsketting is ondersoek om die verbetering van die bedryf deur middel van prestasiemeting te oorweeg. Privaat- en produsentekelders sukkel om aktiwiteite wat deel vorm van die ketting te verbeter, as gevolg van die gebrek aan toepaslike inligting. Dit is dikwels uitdagend om aktiwiteite van 'n ketting te bestuur weens n tekort aan duidelike doelwitte en strategie, asook onvoldoende kennis van die huidige prestasie. Hierdie projek fokus op die ondersoek van verpakte produkte in die plaaslike mark en mik om 'n prestasie metings raamwerk te voorsien wat 'n praktiese oplossing vir verbetering voorstel. 'n Aanpasbare navorsingsmetode is gebruik vir die ontwerp van die metings raamwerk. Deur 'n proses van onderhoude, besprekingsgroepe en praktiese metings, kon industrie en akademiese terugvoer voortdurend insig lewer tot die navorsingsprobleem en oplossing. Bestaande raamwerke is gebruik om metings te kies asook om aan te dui hoe 'n strategie geformuleer kan word. Deur die huidige prestasie te meet kan inligting beskikbaar gestel word om die huidige situasie te evalueer, maar ook om besluite vir die toekoms te neem. Die resultate van die metings wat tydens die projek geneem is, toon dat uitdagings ten opsigte van data beskikbaarheid bestaan. Waardevolle inligting oor die praktyke en prosesse van die bedryf is wel ontvang. Die kenmerke van die industrie kon dus geïdentifiseer word en is gebruik om 'n prestasie metings raamwerk te ontwikkel. Die plaaslike industrie kan beskryf word as 'n komplekse omgewing waar voorraad bestuur krities is. Die bestuur van voorraad dryf die strategie van 'n kelder en beïnvloed kontantvloei asook dienslewering. Die meeste kelders besluit dus om hoë vlakke van klaarprodukte voorraad te stoor. Uitkontraktering van vervoer en verpakking is ook 'n algemene praktyk. Die prestasie metings is gekies op grond van die eienskappe van die industrie, inligting wat benodig word vir besluitneming en die metings wat as hoof drywers van voorsieningskettings bestuur gesien word. Metings van die raamwerk is ingedeel volgens die eienskappe van die Supply Chain Operations Reference model. In die geheel verskaf die projek 'n metode waardeur metings gebruik kan word om prestasie te verbeter deur toepaslike inligting beskikbaar te stel en strategie te formuleer. Die uitkoms van die proses is egter afhanklik van die beskikbaarheid van meer inligting. Implementering van die aanbevole raamwerk impliseer dat die prestasie statistieke gemeet moet word en gebruik word as deel van besluitneming. Op hierdie wyse kan sukses behaal word in verbeterde kliëntediens, effektiwiteit, finansiële mikpunte en ander doelwitte.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/98735
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