History of ASCCI
The Automotive Supply Chain Competitiveness Initiative (ASCCI) was established in December 2013, with the mandate of coordinating supply chain development activities within the South African automotive industry. ASCCI is a collaborative initiative between the suppliers, OEMs, government and labour, with the objectives of increasing supplier manufacturing value-add, enabling local supply chain capabilities, increasing local content, growing employment and advancing transformation.
Vision, Mission and Objectives
To advance the competitiveness of the South African automotive industry, thereby supporting industry growth, creating employment, and progressing transformation.
Planning, coordinating and giving strategic direction to supply chain competitiveness improvement activities and initiatives.
Increase supplier competitiveness and local content.
* Competitiveness – MVA per Rand of employee cost
* Local content – value of vehicle ex-factory less all imported content
8 critical needs
As a sector specific initiative, ASCCI aims to respond to eight critical needs within the South African automotive industry that were identified through an intensive stakeholder engagement process:
- Uncompetitive operating efficiencies
- Uncompetitive input costs and in particular material costs
- Limited investment in new process and product technology
- Inadequate economies of scale
- Insufficient economic transformation
- Maintaining an enabling policy and regulatory environment
- Availability and quality of skills
- Globalisation and global sourcing policy
3 year business plan
A three year business plan was developed to guide ASCCI in respect of addressing these challenges. The programme of activity that is included in ASCCI’s initial three year business plan will become the blueprint for coordinating and aligning automotive supply chain development initiatives in South Africa. Accordingly, three strategic priorities were identified:
Activities focused on bolstering suppler production capabilities
Activities to increase local content, spanning competitive local material inputs through to investment in new supplier process technologies
Activities to develop insight into critical policy, regulatory and related issues that influence growth in supplier Manufacturing Value Add (MVA)
Increasing local content in South African manufactured vehicles
Based on the deployment of projects and initiatives aligned to one or more of these strategic thrusts, ASCCI intends to address constraints and impediments to local competitiveness and enable supply chain capabilities, thereby increasing local content in South African manufactured vehicles. The achievement of these specified objectives will assist the industry in addressing the broader economic challenges of growing industry employment, while at the same time advancing industry transformation.
Paramount to assessing the effectiveness of the above interventions from an ASCCI point of view is the development of measurement systems that can be used to monitor and assess progress over the three year period, to March 2017, for which the current ASCCI business plan runs.