Internet-enabled supply chain integration: Prospects and challenges for the South African automotive industry

Abstract

The impetus for supply chain integration (SCI) in the global automotive industry is being driven by the Internet. The article critically explores the potential of the Internet to optimise and streamline the complex supply chains found in the South African automotive industry. The Internet's potential to create seamless, collaborative supply networks could provide the local automotive industry with a distinctive competitive advantage in its pursuit of an 'outward orientation' and 'global connectedness' after a lengthy period of trade isolation and government protection. The findings, however, reveal that domestic automotive firms are generally not using the Internet for substantive interbusiness trade and advanced SCI. By not making the transition to Internet-enabled SCI, South African automotive firms may be placing themselves at risk of becoming less competitive in the globally interconnected market, which will impact on both their current market positions and long-term viability.