Green sourcing strategy challenges faced by Automotive Component Manufacturers in Durban, South Africa.

Abstract

There is a growing need to protect the environment mainly because a clean environment is of essence for healthy living. One of the means by which automotive component manufacturers (ACMs) may protect the environment is by implementing green supply chains. Demand for motor vehicles has been intensified by continued increase in the world’s overall population. Original equipment manufacturers (OEMs) are producing more vehicles to meet demand and ACMs are in turn required to produce more component parts to meet OEMs’ demand. The significance of making sustainable sourcing strategy decisions cannot be overstressed. This is because sourcing is the backbone of any organisation, with its main aim being to procure critical components at the lowest possible cost from consistent and reliable suppliers at the best quality. The adoption of Kraljic’s (1983) purchasing portfolio model is presumed to be used as a sourcing strategy. The main aim of this research is to understand how ACMs incorporate green elements in sourcing and to identify drivers and barriers to the implementation of green supply chain. This cross-sectional study made use of mixed method and data were collected using personally administered questionnaires to purchasing and logistics employees as well as managers in ACMs in Prospecton, Durban. Qualitative and quantitative data was analysed using the Statistical Package for the Social Sciences (SPSS) version 23 and Nvivo 11, respectively. Participation in the study was voluntary and anonymity of participants was maintained. Green sourcing is not yet a priority to ACMs and those that are practicing it confirmed that greening requirements have influenced sourcing. Kraljic’s (1983) model is used extensively by ACMs in Durban and the model is considered crucial when conducting sourcing. Recommendations based on findings include; a thorough understanding of the consequences of the deteriorating environment and contributions ACMs make, ACMs providing trainings and courses to educate employees on green sourcing and its significance, mitigating barriers to implementing green sourcing by involving suppliers, customers and government when conducting sourcing.