Browsing by Author "Jooste, Corneli"

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    Performance measurement framework for the South African wine supply chain: an investigation of packaged products in the local market
    (Stellenbosch : Stellenbosch University, 2016-03) Jooste, Corneli; Van Eeden, Joubert; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
    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.