CHALLENGES FACING AGRIBUSINESS SUPPLY CHAINS IN SOUTH AFRICA BEYOND 2000

Abstract

The managers of agribusiness supply chains in South Africa face three key challenges beyond 2000—namely the need to manage the drivers of change, to build core competencies to form and manage supply chains, and to overcome barriers to successful supply chains management. Appropriate actions to meet these challenges include having shared visions and compatible goals, flexible market response, cost controls, effective logistics and risk management, information sharing and, critically, building trust and incentives so that playas will invest resources in supply chains, Creative solutions are also needed to handle the potential impacts of HIV/AIDS on market growth and business costs, and to viably integrate communities that were previously denied access to economic opportunities into existing and new supply chains, These issues are likely to create business opportunities for firms that are competent coordinators and customizers. Learning from the “best practices” used by non-agribusiness firms ill South Africa and other countries to successfully perform supply chain activities will also improve cost competitiveness.