The effect of outsourcing a South African automotive company's material handling activities on its operational performance
- Authors: Dolley-Ryneveld, Mieshkah
- Date: 2014
- Subjects: Contracting out -- South Africa , Industrial management -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8936 , http://hdl.handle.net/10948/d1021202
- Description: Outsourcing has become a popular trend in the last two decades and has been applied in both non-essential and critical business functions. It has been viewed as a vital source of competitive advantage and is expected to remain an important component in future business strategies. Over the past few years, the outsourcing of logistics functions in particular has shown strong growth. Thus, an abundance of research on the outsourcing of logistics is available. However, there has been little research on the outsourcing of material handling activities as a sub-component of logistics, nor its effect on a company’s operational performance. The purpose of this treatise is to determine the effects of outsourcing a South African automotive company’s material handling activities on its operational performance. It further aims to compare the company’s expected outcomes for outsourcing with actual outcomes. In addition, the factors which contributed positively and negatively to the operation of the outsourced material handling activities at the company, are established. The automotive company in this study is situated in Port Elizabeth, but due to confidentiality reasons the name of the company is not mentioned in the study. The study consists of a literature review on the background of outsourcing, outsourcing theories, outsourcing trends, important outsourcing considerations and gaps in outsourcing research. Primary data, collected through the use of a questionnaire to determine the effects outsourcing has on the company’s operational performance, is collected, reported and analysed in the study. The performance criteria used to determine these effects are: cost; delivery speed and reliability; flexibility; quality; the outsourcing relationship and the management of the outsourcing relationship. The study results reveal that the operational performance of the company remained the same after outsourcing.
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- Date Issued: 2014
The evolution of the function and role of finance within the current South African business envionment
- Authors: Sonjica, Siphokazi Nondumiso
- Date: 2014
- Subjects: Business enterprises -- Finance , Industrial management -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8925 , http://hdl.handle.net/10948/d1021144
- Description: The objective of this study was to determine the extent to which the finance function has evolved from being mere transactional – into one being more value-adding and business-partnering. The main focus of this study is on the role of finance as a business partner. Its main function is to add value to the business and the operations, and to offer the required support, in order for management to be able to make the right decisions. In this role, finance is regarded as part of the management team – and not just an external support function providing number ‘crunching’ – but a member that provides valuable input in the processes that the business follows. They become an in-house consultant for the business, thereby providing technical knowledge, which is aligned to the manner in which the business conducts its operations. The activities that are to be done by finance in this role comprise the following: Alignment of the functions of finance with those of the business, and what is thereby required; Providing information to the business on a timely basis; Providing information that assists and is relevant in the decision-making process of the business; Having a balance between providing governance support, as well as ensuring adequate control of the assets of the organisation. Reducing non-value adding activities that can be outsourced, such as standard reports, which can be developed and housed within a linked IT system. In order to be able to perform these activities effectively, there needs to be adequate support from the organisation’s IT environment, where standard templates can be developed, which are linked, and which lead to the availability of time for the analysis of the data. The resources also needs to have the required soft skills – of which communication and the ability to influence are important aspect – as there would be times when the people in operations would need to align their business decisions to the right finance decision – without becoming an obstruction to the business. A survey was carried out involving the accountants, whose role was to support the business in the South African environment, and which provided information on the following research questions: (i) Are finance professionals moving towards becoming business partners and away from transactional back-office work? (ii) What are the main reasons for the lack of transformation of the finance function? (iii) Is the size of the organisation a factor in its transformation? (iv) Does the fact that a company is a multinational or a South African organisation have any impact on the transition? The results of the survey were used to draw a conclusion on the extent of the change in the role of finance. The research concluded that there had been some change in the role that finance was performing in regard to the business. However, there were still areas where more could be done to move the change along, and to arrive at a position where finance becomes a full business partner.
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- Date Issued: 2014