AN EMPIRICAL STUDY TO IDENTIFY CRITICAL SUCCESS FACTORS FOR SUSTAINABLE CONTRACT MANUFACTURING IN THE CONSUMER PRODUCTS SUPPLY CHAIN IN SOUTH AFRICA

• Trust Mahove Department of Industrial Engineering, Stellenbosch University, Stellenbosch, South Africa https://orcid.org/0009-0009-7787-210X
• Stephen Matope Department of Industrial Engineering, Stellenbosch University, Stellenbosch, South Africa https://orcid.org/0000-0001-5598-1027

DOI:

https://doi.org/10.7166/35-2-2998

Abstract

Outsourcing manufacturing to a contract manufacturer is a growing practice that has gained global prominence since the turn of the century. This business practice is common in pharmaceutical and electronics industries, and has now also become common practice in consumer product supply chains. This practice has many challenges; in most cases it does not achieve its intended objectives, with a number of contract manufacturing companies (CMCs) in South Africa going out of business. Research and the literature on contract manufacturing is predominantly focused on the aspects of contract manufacturing and its role and impact in the supply chain. However, there are very few, if any, scholarly articles on the factors that make CMCs in the consumer products supply chain in South Africa succeed and become sustainable businesses and strategic partners to their brand owner customers. This study aimed to fill this gap by identifying, through empirical research of experts in contract manufacturing, the factors that are critical for contract manufacturers to succeed and to be sustainable businesses that can contribute to the success of their clients. Several critical success factors were identified using a Delphi survey of experts who had experience working with CMCs.