Over the past decade there has been an increasing emphasis on supply chain management as a vehicle through which firms can achieve competitive advantage in markets (Collins, 2003, p.8). Supply chain management system in an organization has a greater impact financially on all parties involved in the chain, the supply chain management system rewards organizations positively results from profit increases reflected in all parties involved. Due to that, procedures and implementations of supply chain management are to enhance the supply chain key important factor to global organizational environment in the future as change agents. Supply chain management combines functions of responsibilities of organizations into one functional activity(s).
In other words the chain drives cooperation of two or more organizations to provide a combined effect greater than the sum of their individual. Supply chain system is vital for companies to achieve their objectives and for information sharing. Also, managing the supply chain system eventually becomes a way of improving competitiveness by reducing unwanted inventory and boosting the customer service. Operation function managers are faced with many difficult barriers in implementing the supply chain management system especially in developing South African economy.
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