Freight Logistics Practices Impact on Supply Chain Robustness and Performance in South Africa
DOI:
https://doi.org/10.51137/wrp.ijarbm.309Keywords:
Freight Logistics Practices, Supply Chain Management, Supply Chain Robustness, Non-Financial Performance, South AfricaAbstract
This study investigated the impact of freight logistics' supply chain management (SCM) on supply chain robustness (SCR) and non-financial performance (NFP), namely customer-oriented performance (COP) and supplier-oriented performance (SOP). The primary data was collected using a survey questionnaire among 500 professionals specialising in supply chain, operations, and finance from freight logistics firms across the Gauteng, North-West, and Mpumalanga provinces of South Africa. The study assessed various SCM practices, specifically focusing on demand management (DM), core competence internal business (CCIB), cash flow management (CFM), and information technology management (ITM) as independent variables. SCR was the mediating variable, while COP and SOP were the dependent variables. Hypotheses were tested using Partial Least Squares structural equation modelling (PLS-SEM). The PLS-SEM findings revealed that DM and ITM had a significantly positive influence on SCR. Conversely, both CCIB and CFM revealed no significant impact on SCR. Moreover, SCR has a significantly positive effect on COP and SOP. The significant positive outcomes are consistent with dynamic capability, contingency and information processing theories. This study established that DM and ITM impact SCR, which in turn positively impacts NFP, specifically COP and SOP. There is a need for freight logistics firms in South Africa to implement integrated SCM practices to influence SCR and NFP adequately.
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