Managing Risk and Complexity in the South African Automotive Supply Chain in A Black Economic Empowerment (Bee) Environment: A Case Study

• Gideon Horn

The success of the South African automotive industry has resulted in it becoming a benchmark for the other prioritised sectors in the country. However, the industry is now challenged to maintain and improve on its successes. In addition, the South African government’s general policies and charters with regard to Black Economic Empowerment (BEE), equity and redress, make this challenge even more daunting. The reason for this is that in terms of these BEE policies, pressure is put on large and financially strong enterprises, including Original Equipment Manufacturers (OEMs), also referred to as motor vehicle assemblers, to procure to a greater extent from BEE or previously disadvantaged suppliers. The latter, however, experience various problems and do not always meet the criteria demanded by OEMs.

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