An assessment of supply chain risk management in Africa : the case of UNKI Platinum mine in Zimbabwe

Abstract

An ever-increasing number of companies have bought into the Africa investment proposition, and are now focusing on how to effectively execute a growth strategy in what remains an inherently complex environment to do business. African markets are progressively open for business. Despite perceptions of elevated risk, in many ways, the continent is no different to others. Sound business practices enable well-run firms to convert business strategies into actual results, regardless of where these firms are placed. The research shows that AngloAmerican Platinum investment decisions were based on more than cost-benefit returns. There was more to Anglo’s case for investing in Zimbabwe. Political knowledge and organisational structure and national culture were implicitly part of AngloAmerican Platinum decision making. Political criteria have become increasingly entwined with business decisions in emerging economies in Africa where medium-to-long-term stability is questioned. Supply Chain Risk Management (SCRM) plays a major role in successfully managing business processes in a proactive manner. Supply chain risk has multiple sources including process, control, demand, supply and environment. Supply chain management, faced with these risks, requires specific and adequate responses such as techniques, attitude and strategies for management of risk. Since every organisation strives for success and uninterrupted operations, efficient supply chain risk management is crucial. Supply chain risk management has the ability to achieve a competitive advantage where a risk is identified, estimated, managed and controlled. The study assesses development and implementation of supply chain risk management strategies in African markets, by using UNKI Platinum mine in Zimbabwe as a case study. This approach provides insight to a real-world setting that could be applied in a broader context. The aim was met by interviewing nine senior managers and executives who directly or indirectly participated in the development and implementation of supply chain risk management at UNKI Platinum mine. Furthermore, two suppliers and two industry experts were interviewed to ensure validity of the research case study. The data from the interviews were combined with data from the literature review. The study concludes with a list of factors that can be deemed to be important to the development of entry-strategies into Zimbabwe. Moreover, another list of themes emphasizing the elements of importance in the development and implementation of supply chain risk management strategy were identified. In essence, the leanings are used to propose a conceptual framework for supply chain risk management strategies in Africa.