TRL3709 ASSIGNMENT 2 2026
DUE AUGUST 2026
1. Identify and discuss three key drivers of supply chain performance and explain
how each impacts the efficiency and effectiveness of the supply chain. Justify
your answer using case study examples. 3 marks theory, 3 marks application
1.1 Three key drivers of supply chain performance
According to the prescribed book and study guide (Learning Unit 3), the main drivers of
supply chain performance are facilities, inventory, transportation, information, sourcing
and pricing. These drivers decide the balance between efficiency (keeping costs low)
and effectiveness (meeting customer needs well, such as speed and product
availability) (Chopra, 2019; Study Guide, Learning Unit 3).
Facilities
Facilities are the physical places where products are stored, packed or handled, such
as warehouses and distribution centres. Having more facilities closer to customers
makes the supply chain more responsive (faster delivery), but it raises costs and the
amount of inventory needed. Fewer, larger central facilities lower costs and improve
efficiency (Chopra, 2019, Chapter 3).
, In the Takealot case, the company expanded its Johannesburg warehouse and
distribution centre to 75 000 m² so it can hold almost 4 million items. It also has large
warehouses in Cape Town and KwaZulu-Natal, plus many smaller branches and 47
pick-up points. This mix of big central facilities and local points lets Takealot store many
products and still reach customers quickly across South Africa.
Inventory
Inventory is all the stock held in the supply chain. Higher inventory improves product
availability and responsiveness because customers can get what they want right away.
Lower inventory improves efficiency by cutting holding costs, but it risks stock-outs
(Chopra, 2019, Chapter 3).
Takealot keeps about 80 % of ordered items already on warehouse shelves. The rest
are ordered from distributors only when customers buy them. Holding large stock of
popular items makes the supply chain effective for most orders, while ordering the rest
only when needed keeps total inventory costs under control.
Transportation
Transportation moves products between facilities and to customers. Faster transport
raises responsiveness but costs more. Slower, fuller loads improve efficiency (Chopra,
2019, Chapter 3).
Takealot has more than 4 500 drivers and its own delivery team that already does over
1.6 million deliveries a month (expected to rise above 2 million in the festive season).
Trucks collect orders from the big warehouses, take them to local branches, and then
either deliver to homes or to pick-up points. This network lets the company ship one
order every second and reach more South African homes than any other courier.
DUE AUGUST 2026
1. Identify and discuss three key drivers of supply chain performance and explain
how each impacts the efficiency and effectiveness of the supply chain. Justify
your answer using case study examples. 3 marks theory, 3 marks application
1.1 Three key drivers of supply chain performance
According to the prescribed book and study guide (Learning Unit 3), the main drivers of
supply chain performance are facilities, inventory, transportation, information, sourcing
and pricing. These drivers decide the balance between efficiency (keeping costs low)
and effectiveness (meeting customer needs well, such as speed and product
availability) (Chopra, 2019; Study Guide, Learning Unit 3).
Facilities
Facilities are the physical places where products are stored, packed or handled, such
as warehouses and distribution centres. Having more facilities closer to customers
makes the supply chain more responsive (faster delivery), but it raises costs and the
amount of inventory needed. Fewer, larger central facilities lower costs and improve
efficiency (Chopra, 2019, Chapter 3).
, In the Takealot case, the company expanded its Johannesburg warehouse and
distribution centre to 75 000 m² so it can hold almost 4 million items. It also has large
warehouses in Cape Town and KwaZulu-Natal, plus many smaller branches and 47
pick-up points. This mix of big central facilities and local points lets Takealot store many
products and still reach customers quickly across South Africa.
Inventory
Inventory is all the stock held in the supply chain. Higher inventory improves product
availability and responsiveness because customers can get what they want right away.
Lower inventory improves efficiency by cutting holding costs, but it risks stock-outs
(Chopra, 2019, Chapter 3).
Takealot keeps about 80 % of ordered items already on warehouse shelves. The rest
are ordered from distributors only when customers buy them. Holding large stock of
popular items makes the supply chain effective for most orders, while ordering the rest
only when needed keeps total inventory costs under control.
Transportation
Transportation moves products between facilities and to customers. Faster transport
raises responsiveness but costs more. Slower, fuller loads improve efficiency (Chopra,
2019, Chapter 3).
Takealot has more than 4 500 drivers and its own delivery team that already does over
1.6 million deliveries a month (expected to rise above 2 million in the festive season).
Trucks collect orders from the big warehouses, take them to local branches, and then
either deliver to homes or to pick-up points. This network lets the company ship one
order every second and reach more South African homes than any other courier.
