Digitalisation: a transformational approach for productivity improvement in the food industry in South Africa

Abstract

Technological advancements are becoming increasingly significant due to the poor production levels of enterprises in South Africa.  Consequently, businesses use technology modifications in their operations that create chances for enhanced flexibility and productivity enhancement.  This emotion supports a transformative concept of digitisation.  Digitalisation involves the separation of information and technologies designed to transform operational dynamics for enhanced corporate performance.  It serves as both an enabler and a catalyst for enhancing productivity.  This study investigates the impact of digitisation on productivity enhancement within a specific distribution sector of a food manufacturing company in South Africa. The study employed a quantitative approach to investigate production and the associated experiences inside the distribution division of a food manufacturing enterprise that implemented digitalisation to enhance productivity.  The Ordinary Least Squares (OLS) model was employed to analyse data using the Statistical Package for Social Sciences (SPSS).  The corporation functions within the eThekwini Municipality in KwaZulu-Natal, South Africa.  The study was conducted by gathering pre- and post-quarterly data on product picking accuracy, hourly product loading, product replenishment rate, and product release rate.  The results demonstrate a statistically significant association between the product release pace and the company’s production in the post-digitalization period.  Nonetheless, it fails to demonstrate the correlation between product picking accuracy, product loading per hour, or product replenishment rate and productivity.  A targeted organisational strategy on digitisation is expected to enhance the organization's performance. Digitising records enables the tracking of each phase of the production process, so maintaining transparency and instilling confidence in consumers.  Therefore, the primary significance of this study lies in its examination of the strengths and shortcomings of digitalisation for enhancing productivity in South Africa. 

Keywords: {'name': 'Digitalisation, Food Manufacturing, Product Loading, Product Picking, Productivity, South Africa'}

Authors & affiliations

Robert Walter Dumisani Zondo
Affiliation not supplied

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