Supply chain risks, technological and digital challenges facing grocery retailers in South Africa

Abstract

Purpose

The purpose of this paper is to examine the risks, innovations and technological enablers or barriers to the efficiency of the supply chain risk management (SCRM) implementation in the retail sector of South Africa.

Design/methodology/approach

This study applied a qualitative research approach by conducting interviews with grocery retail store managers. Through convenience sampling, 12 representatives from 12 stores (1 representative per store was interviewed at each of the 12 stores) were interviewed.

Findings

This study mainly found that most of the grocery retail stores experience late deliveries, damaged stock, theft, high fuel costs and expired stock from their respective suppliers. It was found that firms are faced with similar supply chain risks. In addition, innovations and technologies such as the internet of things (IoT) and social media are making an impact in wider industrial change.

Practical implications

Adaptation of efficient and effective SCRM has had implications for practice related to improvements in the retail stores’ supply chain, the profitability of retail stores, marketing, promotions and consumer experiences.

Originality/value

This study is unique as it provides new insight into variables that affects the quality of service in the retail sector; customer service in the retail sector; innovations and technology help mitigate SCRM experienced in the retail sector from a developing country perspective.

Citation

Hove-Sibanda, P., Motshidisi, M. and Igwe, P.A. (2021), "Supply chain risks, technological and digital challenges facing grocery retailers in South Africa", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 15 No. 2, pp. 228-245. https://doi.org/10.1108/JEC-05-2020-0104