The impact of supply chain management practices on industry competitiveness: A mixed-methods study on the Zimbabwean petroleum industry

Abstract

Effective supply chain management practices can enhance competitiveness along the supply chain. Fuel supply chain competitiveness requires a reliable flow of product and customer satisfaction. Competitiveness eluded the Zimbabwean petroleum industry over time and so this research looked at the impact of supply chain management practices on industry competitiveness. Owing to the complex nature of the petroleum industry’s supply chain, the concurrent parallel mixed methods research design was adopted for its robustness and suitability for researching complex situations. In the qualitative research, in-depth interviews were held with six experienced and knowledgeable executives who were strategically positioned in the petroleum industry. In the quantitative research, data were collected through objective questionnaires from 57 managers who were in charge of supply chain practices in the participating petroleum companies. The research results revealed that the unfriendly business environment that was driven by the shortage of foreign currency, a restrictive tax regime, a weak regulatory system and the lack of stable government policy on fuel industry operations resulted in financial, procurement, inventory, logistics and communication challenges and the weakening of all the supply chain practices. Therefore, the resultant high cost of products, expensive and bureaucratic logistics, lack of investment in fuel distribution technology and poor customer service negatively impacted the petroleum industry’s competitiveness. The study recommends the strengthening of the petroleum industry’s supply chain management strategies, international benchmarking of industry processes, adopting international best practices and carrying out further research in the industry’s supply chain areas like procurement and pricing models for landlocked states.

Keywords:

• impact
• competitiveness
• customer satisfaction
• supply chain management
• supply chain strategy
• Zimbabwe petroleum industry