A performance measurement framework for the South African bulk export wine supply chain

• Main Authors: Johan B. Smit, Joubert van Eeden, Frances E. van Dyk
• Format: Article
• Language: English
• Published: AOSIS 2017-09-01
• Series: Journal of Transport and Supply Chain Management
• Subjects: wine supply chain; performance measurement framework; benchmarking; supply chain maturity
• Online Access: https://jtscm.co.za/index.php/jtscm/article/view/318

Background: Many participants in the South African wine industry still exhibit low supply chain maturity in the management of their supply chains. This hampers export performance and ultimately client satisfaction. The development and tracking of appropriate metrics are key steps in improving supply chain performance. Objectives: The purpose of this study was to develop a performance measurement framework for the South African wine industry, focussing on the bulk export segment. Method: The framework was developed using an emergent multi-phased exploratory approach. The approach was implemented in two distinct phases, namely qualitative research followed by quantitative research in each of three iterations to develop and refine the framework. In each iteration, the qualitative research phase consisted of a literature survey, semi-structured and unstructured interviews and case studies, while the quantitative research phase consisted of the development, distribution, completion and analysis of the framework questionnaire, each iteration building on the framework outputs from the previous iteration. Results: The research highlighted that the wine supply chain performance of bulk exports is hindered by the lack of a measurement culture, hampering the identification and prioritisation of interventions. The creation of a performance measurement framework in conjunction with industry, and informed by the Supply Chain Operations Reference framework, creates a platform for the industry to address these challenges. Conclusion: The implementation of this framework will provide performance visibility for cellars in the wine industry. This would enable them to improve their logistics processes and increase their supply chain maturity, ultimately enabling benchmarking against competing supply chains both within South Africa and abroad, such as in Australia, Argentina and Chile.