,SCH4801 ASSIGNMENT 3
DUE DATE: 1 OCTOBER 2026
INTRODUCTION
Supply chain management is an important part of business operations because it
involves the planning and coordination of activities required to obtain materials,
produce goods and deliver products or services to customers. A supply chain normally
includes suppliers, manufacturers, warehouses, transportation providers, distributors,
retailers and customers. When these activities are properly coordinated, businesses can
reduce unnecessary costs, improve product availability and respond more effectively to
changes in customer demand (Christopher, 2016).
Modern supply chains also need to be resilient. Supply chain resilience refers to the
ability of a business to prepare for disruptions, respond to problems and continue
operating when unexpected events occur. Disruptions may include transport delays,
shortages of raw materials, supplier failures, extreme weather, labour problems,
international trade restrictions and increases in costs. Businesses therefore need to
consider not only efficiency, but also their ability to continue operating when normal
supply conditions are interrupted (Christopher, 2016).
Supplier localisation is one approach that can contribute to supply chain resilience.
Instead of depending heavily on suppliers in distant countries, businesses can develop
suppliers within their own country or region. KFC South Africa provides an example of
this approach because the company sources most of its chicken locally and also uses
local suppliers for other fresh produce. KFC states that local sourcing supports local
communities, supplier development, employment and transformation (KFC South
Africa, 2026).
,Technology is another important part of modern supply chain management. The Fourth
Industrial Revolution has introduced technologies such as Artificial Intelligence (AI),
the Internet of Things, automation, robotics and digital twins. These technologies can
allow manufacturers to collect and analyse information more quickly, identify
operational problems and improve production decisions (Schwab, 2016).
International trade policies can also influence supply chains. Increased tariffs can raise
the cost of imported products, components and raw materials. Businesses affected by
tariffs may have to reconsider their suppliers, production locations, inventory levels
and pricing strategies. The impact can therefore extend beyond the importing company
and affect other businesses and consumers throughout the supply chain.
This discussion examines supplier localisation, the Sustainable Development Goals
(SDGs) and transportation at KFC South Africa. It also discusses Fourth Industrial
Revolution technologies, particularly Artificial Intelligence and digital twins, at JT
Manufacturers. Finally, it examines how increased tariffs can affect supply chains in the
United States.
QUESTION 1:
KFC SOUTH AFRICA – RESILIENCE THROUGH SUPPLY CHAIN PROCESSES
1.1 Supplier Localisation
Supplier localisation involves obtaining products, raw materials, components or
services from suppliers within the same country or a nearby geographical area. The
purpose is not necessarily to eliminate international suppliers completely, but to
reduce unnecessary dependence on distant supply sources and develop reliable
domestic supply capacity.
KFC South Africa provides a useful example of supplier localisation. KFC states that the
majority of its chicken is sourced locally and that fresh produce such as coleslaw,
tomatoes and potatoes is also sourced locally. The company explains that local sourcing
, helps support communities, develop suppliers, increase employment and contribute to
transformation in South Africa (KFC South Africa, 2026).
KFC has also demonstrated localisation through its cheese supply. According to KFC
South Africa, the company moved away from relying on imported cheese slices in 2020
and worked with Sundale Schreiber to develop local manufacturing capacity in the
Eastern Cape. The partnership was intended to strengthen local supply capacity,
improve resilience and maintain consistent product quality (KFC South Africa, 2026).
a) Strategic benefits of localisation and their impact on the KFC South Africa
supply chain
Reduced dependence on international suppliers
One of the major strategic benefits of supplier localisation is that it can reduce a
company's dependence on international suppliers. When products are imported from
another country, the business is exposed to additional risks such as international
shipping delays, port congestion, customs procedures, exchange-rate changes and
international trade restrictions (Christopher, 2016).
For KFC South Africa, sourcing important food products locally can reduce some of
these risks. Chicken, fresh produce and other locally produced ingredients do not have
to travel across international borders before reaching KFC's restaurants. This gives KFC
greater control over parts of its supply chain and reduces its exposure to disruptions in
international trade.
This does not mean that local supply chains are completely protected from disruption.
South African suppliers can still experience problems involving electricity, transport,
labour, production capacity or raw material shortages. However, localisation can
remove some of the additional risks associated with international sourcing.
Shorter transportation distances
DUE DATE: 1 OCTOBER 2026
INTRODUCTION
Supply chain management is an important part of business operations because it
involves the planning and coordination of activities required to obtain materials,
produce goods and deliver products or services to customers. A supply chain normally
includes suppliers, manufacturers, warehouses, transportation providers, distributors,
retailers and customers. When these activities are properly coordinated, businesses can
reduce unnecessary costs, improve product availability and respond more effectively to
changes in customer demand (Christopher, 2016).
Modern supply chains also need to be resilient. Supply chain resilience refers to the
ability of a business to prepare for disruptions, respond to problems and continue
operating when unexpected events occur. Disruptions may include transport delays,
shortages of raw materials, supplier failures, extreme weather, labour problems,
international trade restrictions and increases in costs. Businesses therefore need to
consider not only efficiency, but also their ability to continue operating when normal
supply conditions are interrupted (Christopher, 2016).
Supplier localisation is one approach that can contribute to supply chain resilience.
Instead of depending heavily on suppliers in distant countries, businesses can develop
suppliers within their own country or region. KFC South Africa provides an example of
this approach because the company sources most of its chicken locally and also uses
local suppliers for other fresh produce. KFC states that local sourcing supports local
communities, supplier development, employment and transformation (KFC South
Africa, 2026).
,Technology is another important part of modern supply chain management. The Fourth
Industrial Revolution has introduced technologies such as Artificial Intelligence (AI),
the Internet of Things, automation, robotics and digital twins. These technologies can
allow manufacturers to collect and analyse information more quickly, identify
operational problems and improve production decisions (Schwab, 2016).
International trade policies can also influence supply chains. Increased tariffs can raise
the cost of imported products, components and raw materials. Businesses affected by
tariffs may have to reconsider their suppliers, production locations, inventory levels
and pricing strategies. The impact can therefore extend beyond the importing company
and affect other businesses and consumers throughout the supply chain.
This discussion examines supplier localisation, the Sustainable Development Goals
(SDGs) and transportation at KFC South Africa. It also discusses Fourth Industrial
Revolution technologies, particularly Artificial Intelligence and digital twins, at JT
Manufacturers. Finally, it examines how increased tariffs can affect supply chains in the
United States.
QUESTION 1:
KFC SOUTH AFRICA – RESILIENCE THROUGH SUPPLY CHAIN PROCESSES
1.1 Supplier Localisation
Supplier localisation involves obtaining products, raw materials, components or
services from suppliers within the same country or a nearby geographical area. The
purpose is not necessarily to eliminate international suppliers completely, but to
reduce unnecessary dependence on distant supply sources and develop reliable
domestic supply capacity.
KFC South Africa provides a useful example of supplier localisation. KFC states that the
majority of its chicken is sourced locally and that fresh produce such as coleslaw,
tomatoes and potatoes is also sourced locally. The company explains that local sourcing
, helps support communities, develop suppliers, increase employment and contribute to
transformation in South Africa (KFC South Africa, 2026).
KFC has also demonstrated localisation through its cheese supply. According to KFC
South Africa, the company moved away from relying on imported cheese slices in 2020
and worked with Sundale Schreiber to develop local manufacturing capacity in the
Eastern Cape. The partnership was intended to strengthen local supply capacity,
improve resilience and maintain consistent product quality (KFC South Africa, 2026).
a) Strategic benefits of localisation and their impact on the KFC South Africa
supply chain
Reduced dependence on international suppliers
One of the major strategic benefits of supplier localisation is that it can reduce a
company's dependence on international suppliers. When products are imported from
another country, the business is exposed to additional risks such as international
shipping delays, port congestion, customs procedures, exchange-rate changes and
international trade restrictions (Christopher, 2016).
For KFC South Africa, sourcing important food products locally can reduce some of
these risks. Chicken, fresh produce and other locally produced ingredients do not have
to travel across international borders before reaching KFC's restaurants. This gives KFC
greater control over parts of its supply chain and reduces its exposure to disruptions in
international trade.
This does not mean that local supply chains are completely protected from disruption.
South African suppliers can still experience problems involving electricity, transport,
labour, production capacity or raw material shortages. However, localisation can
remove some of the additional risks associated with international sourcing.
Shorter transportation distances
