In South Africa, the risk of protracted labour disputes is 2,5 times higher than the world average.

This is according to the second phase of the Massachusetts Institute of Technology (MIT) Centre for Transportation and Logistics Global Risk Survey, a joint initiative in South Africa by the Association for Operations Management of Southern Africa and Imperial Logistics, in collaboration with the MIT.

Comparatively, the local survey found that extended loss of electricity is a risk that is five times higher than the world average. Employee theft/executive misdeeds come in four times higher, and disease 2,3 times higher.
 
“We acknowledge that strike action is a fundamental right within the South African regulatory context,” says Imperial Logistics CEO Marius Swanepoel. “It is also important, however, to consider the negative impact that protracted labour negotiations have on South Africa’s economic performance.”
 
For example, the lengthy industrial strike action immediately following the 2010 FIFA World Cup watered down the positive perceptions formed of South Africa.
 
Within the supply chain context, last year’s Transnet-related strike action by the South African Transport and Allied Workers’ Union and the United Transport and Allied Trade Union, led to major companies being unable to supply customers.

“Some shipping lines were required to divert vessels from Durban, which resulted in the delay of imports and exports and, in some cases, cancelled orders,” says Swanepoel.
 
On a more positive note, the survey found that in South Africa, civil unrest/terrorism, product tampering and counterfeit products have less of an impact on the supply chain.

The study also benchmarks how the country fares against developed and developing countries.

“It confirms that South Africa has similar supply chain risks to those of developed countries,” says Swanepoel.
 
The MIT Global Risk Survey, which explores supply chain risk attitudes and supply chain risk management practices, has already been completed in 70 countries.