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INTRODUCTION
Supply chain resilience has become an important strategic consideration for organisations operating
in environments characterised by disruptions, changing customer expectations, technological
development and geopolitical uncertainty. A resilient supply chain is not limited to the ability to
continue operating during a disruption; it also involves the ability to anticipate risks, absorb shocks,
adapt operations and recover while maintaining an acceptable level of service. Recent research
shows that supply-chain localisation can strengthen resilience by reducing lead times and improving
responsiveness, although localisation is not automatically superior to global sourcing and may itself
create concentration risks (Ivanov, 2026; McDougall & Davis, 2024).
For large organisations such as KFC South Africa, resilience depends on the coordinated
management of suppliers, procurement, transportation, food quality, inventory and restaurant
operations. At the same time, manufacturing organisations such as JT Manufacturers can use Fourth
Industrial Revolution (4IR) technologies, including artificial intelligence (AI) and digital twins, to
improve visibility, productivity, quality and predictive decision-making. The effects of international
trade policies also demonstrate that supply chains cannot be considered independently from the
wider economic environment. Increased tariffs can raise input costs, alter supplier relationships and
encourage organisations to restructure their sourcing networks (IMF, 2026; BIS, 2025).
QUESTION 1: KFC SOUTH AFRICA – RESILIENCE THROUGH SUPPLY CHAIN
PROCESSES
1.1 Supplier localisation
Supplier localisation refers to the strategic sourcing of products, raw materials and services from
suppliers located within the same country or geographical region as the organisation's operations. In
supply-chain management, localisation can reduce geographical distance between suppliers and
customers, thereby reducing lead times and increasing responsiveness. However, localisation should
not be confused with complete self-sufficiency. A resilient supply chain generally requires an
appropriate balance between local sourcing, geographical diversification, inventory and alternative
suppliers (Ivanov, 2026).
KFC South Africa provides a useful example of supplier localisation. KFC states that it sources its
chicken locally from farms that supply major South African retailers and that its poultry and other
ingredients are sourced from Halaal-accredited suppliers. The company also reports that extensive
quality checks are performed from farm to restaurant (KFC South Africa, 2026).
a) Strategic benefits of localisation and their impact on the KFC South Africa supply chain
Reduced lead times and improved responsiveness
Local suppliers can reduce the physical distance between production facilities, distribution centres
and restaurants. This allows KFC to replenish restaurants more quickly than would be possible if
major food inputs had to be imported over long international routes. Shorter lead times are
, particularly important for a quick-service restaurant because food demand can fluctuate
considerably according to day of the week, promotions, holidays and local events.
Research indicates that one of the main resilience benefits of localisation is the reduction of lead
times and the improvement of service levels through closer positioning of suppliers and facilities
(Ivanov, 2026).
For KFC, this means that localisation can contribute directly to product availability and
restaurant continuity. If a restaurant requires additional stock, a domestic supplier or distribution
network can potentially respond more rapidly than an overseas supplier.
Reduced exposure to international transportation disruptions
Import-dependent supply chains are exposed to international shipping delays, port congestion,
customs procedures, exchange-rate fluctuations and geopolitical disruptions. Local sourcing reduces
exposure to some of these risks because the movement of goods occurs within the domestic
economy.
This is particularly relevant to KFC because its business model depends on maintaining continuous
availability of core products. A disruption affecting imported chicken or another critical food
ingredient could potentially affect numerous restaurants simultaneously. Local sourcing therefore
reduces some international logistics dependencies.
McDougall and Davis (2024) found that local supply chains can contribute to resilience during
disruptions because they provide additional capacity and flexibility when global supply networks
become difficult to operate.
Improved supply-chain visibility and control
Geographical proximity can make it easier for KFC to communicate with suppliers, conduct audits,
monitor quality and respond to operational problems. This is particularly important in the food
industry, where product quality, hygiene, animal welfare and food safety must be maintained
throughout the supply chain.
KFC South Africa reports that its supply chain is supported by strict quality and welfare standards
and that more than 1,000 KFC restaurants undergo independent audits throughout the year (KFC
South Africa, 2026).
Localisation therefore does more than reduce transportation distance. It can improve managerial
visibility, allowing KFC to maintain closer relationships with suppliers and intervene more rapidly
when quality or supply problems occur.
Development of strategic supplier partnerships
Localisation can encourage KFC to move away from purely transactional purchasing towards long-
term supplier relationships. This is important because resilience depends not only on having
suppliers but also on having suppliers with sufficient capabilities, capacity and commitment.
A current example is KFC South Africa's partnership with Sundale Schreiber. KFC explains that in
2020 it moved from imported cheese slices towards a locally manufactured solution developed with
Sundale Schreiber. The partnership involved building local manufacturing capacity in the Eastern
Cape and strengthening the domestic supply relationship (KFC South Africa, 2026).
INTRODUCTION
Supply chain resilience has become an important strategic consideration for organisations operating
in environments characterised by disruptions, changing customer expectations, technological
development and geopolitical uncertainty. A resilient supply chain is not limited to the ability to
continue operating during a disruption; it also involves the ability to anticipate risks, absorb shocks,
adapt operations and recover while maintaining an acceptable level of service. Recent research
shows that supply-chain localisation can strengthen resilience by reducing lead times and improving
responsiveness, although localisation is not automatically superior to global sourcing and may itself
create concentration risks (Ivanov, 2026; McDougall & Davis, 2024).
For large organisations such as KFC South Africa, resilience depends on the coordinated
management of suppliers, procurement, transportation, food quality, inventory and restaurant
operations. At the same time, manufacturing organisations such as JT Manufacturers can use Fourth
Industrial Revolution (4IR) technologies, including artificial intelligence (AI) and digital twins, to
improve visibility, productivity, quality and predictive decision-making. The effects of international
trade policies also demonstrate that supply chains cannot be considered independently from the
wider economic environment. Increased tariffs can raise input costs, alter supplier relationships and
encourage organisations to restructure their sourcing networks (IMF, 2026; BIS, 2025).
QUESTION 1: KFC SOUTH AFRICA – RESILIENCE THROUGH SUPPLY CHAIN
PROCESSES
1.1 Supplier localisation
Supplier localisation refers to the strategic sourcing of products, raw materials and services from
suppliers located within the same country or geographical region as the organisation's operations. In
supply-chain management, localisation can reduce geographical distance between suppliers and
customers, thereby reducing lead times and increasing responsiveness. However, localisation should
not be confused with complete self-sufficiency. A resilient supply chain generally requires an
appropriate balance between local sourcing, geographical diversification, inventory and alternative
suppliers (Ivanov, 2026).
KFC South Africa provides a useful example of supplier localisation. KFC states that it sources its
chicken locally from farms that supply major South African retailers and that its poultry and other
ingredients are sourced from Halaal-accredited suppliers. The company also reports that extensive
quality checks are performed from farm to restaurant (KFC South Africa, 2026).
a) Strategic benefits of localisation and their impact on the KFC South Africa supply chain
Reduced lead times and improved responsiveness
Local suppliers can reduce the physical distance between production facilities, distribution centres
and restaurants. This allows KFC to replenish restaurants more quickly than would be possible if
major food inputs had to be imported over long international routes. Shorter lead times are
, particularly important for a quick-service restaurant because food demand can fluctuate
considerably according to day of the week, promotions, holidays and local events.
Research indicates that one of the main resilience benefits of localisation is the reduction of lead
times and the improvement of service levels through closer positioning of suppliers and facilities
(Ivanov, 2026).
For KFC, this means that localisation can contribute directly to product availability and
restaurant continuity. If a restaurant requires additional stock, a domestic supplier or distribution
network can potentially respond more rapidly than an overseas supplier.
Reduced exposure to international transportation disruptions
Import-dependent supply chains are exposed to international shipping delays, port congestion,
customs procedures, exchange-rate fluctuations and geopolitical disruptions. Local sourcing reduces
exposure to some of these risks because the movement of goods occurs within the domestic
economy.
This is particularly relevant to KFC because its business model depends on maintaining continuous
availability of core products. A disruption affecting imported chicken or another critical food
ingredient could potentially affect numerous restaurants simultaneously. Local sourcing therefore
reduces some international logistics dependencies.
McDougall and Davis (2024) found that local supply chains can contribute to resilience during
disruptions because they provide additional capacity and flexibility when global supply networks
become difficult to operate.
Improved supply-chain visibility and control
Geographical proximity can make it easier for KFC to communicate with suppliers, conduct audits,
monitor quality and respond to operational problems. This is particularly important in the food
industry, where product quality, hygiene, animal welfare and food safety must be maintained
throughout the supply chain.
KFC South Africa reports that its supply chain is supported by strict quality and welfare standards
and that more than 1,000 KFC restaurants undergo independent audits throughout the year (KFC
South Africa, 2026).
Localisation therefore does more than reduce transportation distance. It can improve managerial
visibility, allowing KFC to maintain closer relationships with suppliers and intervene more rapidly
when quality or supply problems occur.
Development of strategic supplier partnerships
Localisation can encourage KFC to move away from purely transactional purchasing towards long-
term supplier relationships. This is important because resilience depends not only on having
suppliers but also on having suppliers with sufficient capabilities, capacity and commitment.
A current example is KFC South Africa's partnership with Sundale Schreiber. KFC explains that in
2020 it moved from imported cheese slices towards a locally manufactured solution developed with
Sundale Schreiber. The partnership involved building local manufacturing capacity in the Eastern
Cape and strengthening the domestic supply relationship (KFC South Africa, 2026).
