Abstract

Supply chain inefficiencies remain a major challenge affecting operational performance and competitiveness in resource-intensive industries, particularly within the mining sector. The purpose of this study was to explore and identify the underlying causes of inefficiency in supply chain processes in the South African mining sector. Understanding these inefficiencies is important because supply chains play a critical role in coordinating procurement, production, logistics, and distribution activities that sustain mining operations and contribute significantly to national economic development.
The study adopted an interpretivist qualitative research design using a deductive exploratory approach. Data were collected from 31 supply chain professionals, including managers from 16 mining organisations and practitioners from related downstream sectors, through semi-structured interviews. The data were analysed using thematic analysis supported by ATLAS.ti software, guided by an integrated theoretical framework incorporating Transaction Cost Economics, the Resource-Based View, Dynamic Capabilities Theory, Systems Theory, and the Bullwhip Effect Theory.
The findings revealed that supply chain inefficiencies in the South African mining sector arise from a complex interaction of organisational, operational, institutional, and environmental factors. Key causes include strategic and operational planning deficits, communication and coordination breakdowns, human capital and leadership challenges, technological and systemic deficiencies, financial and resource constraints, and inventory and quality control problems. Additional contributing factors include supplier and vendor management challenges, infrastructure and logistics limitations, external market volatility, operational disruptions, governance failures and corruption, social and community tensions, internal resistance to organisational change, and regulatory compliance pressures.
The study concludes that supply chain inefficiency in the mining sector is systemic rather than isolated, resulting from the interaction between internal organisational capabilities and external environmental conditions. By integrating multiple theoretical perspectives, the study contributes to the literature by providing a comprehensive framework for understanding the structural drivers of inefficiency in mining supply chains within developing economies.
The findings have important managerial implications, suggesting that mining organisations should adopt integrated supply chain management strategies that strengthen planning capabilities, enhance communication and collaboration, invest in technological modernisation, develop human capital, improve governance structures, and foster stronger stakeholder engagement to improve supply chain performance and competitiveness.