Supply chain risk mitigation in South Africa: a case study of Eskom

Abstract

Purpose Interferences to supply chains (SC), regardless of whether they are regular, unplanned or intentional, are progressively distorting SC execution. As such, risk mitigation in SCs has received sufficient attention in the academic literature. However, there is scant research done on this topic within the African context, and none on the SC of electrical energy on that continent. In an effort to address this gap, the purpose of this paper is to focus on the SC department of Eskom, the primary utility company of South Africa and one of the largest on the continent. Design/methodology/approach Adopting a non-probability sampling approach utilising the purposive sampling technique to choose the sampling components from the target population, data were collected through semi-structured interviews as well as additional documentation in various forms. Data interpretation and codification thereof were done using ATLAS.ti 8 from which ten themes emerged. Findings The ten themes that emerged from the analysis of data show that SC risks emanate from value streams, information and affiliations, SC activities and external situations. Furthermore, these are brought into relief within the African context through examples and quotes from Eskom managers. Research limitations/implications Based on the findings, the paper makes five major recommendations that would broadly apply not only to SC risk management (SCRM) in Eskom, but also other African utility companies. Practical implications Companies in emerging economies such as South Africa and other Sub-Saharan countries face a unique set of challenges with regards to SCRM. Some of these are identified in this paper and appropriate recommendations have been made. Social implications Being the largest utility provider in Africa, services offered by Eskom are vital for economic development of South Africa as well as neighbouring countries. As such, the findings of this paper as well as the recommendations have social implications for economic development in that country as well as the region. Originality/value While SC risk management has been studied extensively in the academic literature, to the best of the authors’ knowledge, this is the first paper that attempts to study it within the context of South Africa with focal emphasis on one of the largest corporations in that country.