SCH4801 Assignment 2 (ANSWERS) 2024 - DISTINCTION GUARANTEED

Well-structured SCH4801 Assignment 2 (ANSWERS) 2024 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!)..... SECTION A TOTAL:[24 MARKS] Please read the case study below before answering any questions. SCH4801 ASSIGNMENT 2 2024 Page 7 of 16 Nando’s: A Triumph of Supply Chain Excellence Nando’s, a South African casual dining restaurant chain renowned for its delectable flame-grilled peri-peri chicken, has had a remarkable journey that started in 1987 in Johannesburg, South Africa. From its humble origins as a single restaurant in Johannesburg, Nando’s has expanded its global footprint to over 1,000 locations in 35 countries, including the UK, Canada, and Australia. Central to the brand’s enduring success is its unwavering commitment to sourcing high-quality ingredients, with a particular emphasis on its chicken supply chain. Complex Supply Chain Management Nando’s South Africa sources various ingredients, such as chicken locally sourced high-quality chillies, from suppliers in different countries, such as Mozambique. These products’ fresh and perishable nature necessitates an intricate supply chain management system. To guarantee a steady supply of top-notch ingredients, the company strongly emphasises food safety and quality, collaborating with independent testing and certification agencies. Managing the delicate balance between short shelf life and consumer demand is a challenge they have successfully navigated as they have grown through sophisticated logistics, a computerised system to track real-time inventory levels across the supply chain, integrated transport management technology and outsourcing distribution. Thanks to cold chain management, Nando ensures that fresh chicken remains viable for up to seven days. Efficiency through collaboration and quality control Nando’s manages its supply chain as a business within a business, establishing committed partnerships with suppliers, exemplified by its ‘partnership for growth’ with chilli farmers in Mozambique. Much effort has gone into working closely with farmers towards empowering the small farmers. Nando’s has invested in equipping farmers by providing tools, training, and skills to sustain their farms. In their drive for efficiency, various functions such as procurement, logistics, and quality control work together to ensure a seamless supply chain operation by sharing information across these functions. In their drive for quality, the company has developed a rigorous quality control process that includes regular inspections of its suppliers’ farms and processing facilities to ensure its final product meets strict quality standards. Additionally, Nando’s requires its suppliers to adhere to strict animal welfare guidelines, ensuring its chicken is ethically and sustainably sourced. Moreover, Nando’s also actively promotes a culture of continuous improvement, which requires integration across different functions. This involves setting performance metrics and targets, sharing best practices and lessons learned, and encouraging innovation and collaboration. Nando’s optimises its supply chain, enhancing customer service and delivering competitive pricing to remain sustainable in a highly competitive industry. The company’s strategies, such as benchmarking and total cost of ownership analysis, further contribute to supply chain efficiency. SCH4801 ASSIGNMENT 2 2024 Page 8 of 16 Supply chain challenges Despite its many successes, Nando’s has faced supply chain challenges. In 2021, the UK experienced a significant shortage of Nando’s Peri Peri chicken due to supplier staff shortages. The unpredictability of such disruptions highlights the complexities of managing a global supply chain. In 2022, South Africa confronted chicken shortages due to load shedding, affecting chicken production and restaurant deliveries. In October 2023, a bird flu outbreak posed a severe challenge to the poultry industry, impacting Nando’s supply of poultry and its core menu items. Stringent testing and monitoring became essential to ensure product safety. Moreover, Nando’s commitment to animal welfare and ethical sourcing adds another layer of complexity to their supply chain. Managing a business in South Africa has unique challenges, including resource constraints and adherence to strict government and municipality regulations. For example, with the revamping and redesign of the Nando’s restaurants, Nando’s needed to take into consideration the rich and cultural heritage of over 11 South African official languages and needed to make sure that the revamp was culturally sensitive and resonated with the local communities where the restaurants were located. Moreover, resource challenges such as electricity (load shedding), water scarcity, infrastructure, and labour can strain chicken, sauces, bastings, and marinade ingredients. Another challenge was due to climate change and droughts, which can impact other essential products, such as potatoes and greens, which are needed for Nando’s side dishes. Environmental and sustainability efforts The company’s commitment to sustainability extends to environmental concerns, with initiatives such as a restaurant recycling program and eco-friendly packaging. As one of Nando’s managers said: “We set out to address a business challenge and, in the process, have addressed several of the United Nations (UN) Sustainable Development Goals. If all goes according to plan, we will double the number of farmers we work with within the next three to four years. Therefore, Nando’s alignment with the United Nations (UN) Sustainable Development Goals (SDGs) underscores its dedication to empowering farmers, enhancing their living conditions, and fostering sustainability within its supply chain. In conclusion Nando’s resilience, strong supplier relationships, and unwavering commitment to quality have allowed it to thrive in the highly competitive fast-food industry. Nando’s journey exemplifies how a dedication to quality, efficient supply chain management, and a commitment to social and environmental responsibility can drive success in a challenging business environment. Moreover, the management team at Nando’s realise they are nothing without their passionate, knowledgeable employees. Nando’s flame-grilled peri-peri chicken remains a South African favourite, and the company’s ongoing efforts ensure that it continues to delight customers worldwide. Adapted from the following sources: Bizcommunity. 2018. How Nando’s creates shared value for farmers in southern Africa. [Online] Available from: SCH4801 ASSIGNMENT 2 2024 Page 9 of 16 Dixon, L. 2020. From street food to high street. [Online] Available from: Fooddigital. 2020. From Street Food to High Street. Report. [online] Available from: Growans, G. 2021. Driver shortage hits Nando’s as supply issues force restaurant closures. [Online] Available from: Singh, K. 2021. Nando’s temporarily shuts over 40 UK outlets. [online] Available from: Supply chain Digital. Nando’s. [online] Available from: Vectorlog. 2018. Going beyond to bring more to the Nando’s table. [online] Available from: Weber, A. 2023. Peri-Peri Power: Unpacking Nando’s South Africa’s recipe for achieving a competitive advantage. Unpublished case study. Wilson, N. 2022. Chicken supply crunch: Nando’s Steers owner also hit by load shedding woes. 29 December News 24. END OF CASE STUDY SECTION A: QUESTION 1 Section A (question 1) consists of short essay-type questions. Please note the questions are based on the case study – Nando’s: A Triumph of Supply Chain Excellence. QUESTION 1 [24 MARKS] Very important: When referring to the case study, please note that you cannot just provide the sentences from the case study; you need to incorporate the examples from the case study in your discussion. This applies to all the questions. 1.1 “Nando’s forms collaborative supplier relationships with their suppliers”. Do you agree with this statement? {1 mark} Defend your answer by providing two examples from the case study that will support your argument {2 marks}. (3) 1.2 The case study mentioned that Nando’s uses benchmarking as a competitive advantage to improve its performance. Describe the two benchmarking improvements and the circumstances under which Nando’s will use these improvements with relevant examples from the case study. (6) 1.3 Briefly discuss any other three challenges (not mentioned in the case study) that can impact the efficiency and effectiveness of Nando’s supply chain if they want to open a Nando’s in Langebaan on the West Coast. Provide a suggestion for each challenge. (6) 1.4 Draw a supply chain Nando’s. Be sure to include the three key supply chain flows, at least one first- and second-tier supplier, and one example of a first-tier customer. [No marks for Googled images of a supply chain]. (9) END OF SECTION A (QUESTION 1) SECTION B; QUESTION 2 Section B (question 2) questions are based on the case study – Nando’s A Triumph of Supply Chain Excellence. A question was posted to an AI Tool. You will need to evaluate the answers provided by the AI tool by comparing them to the relevant section of the prescribed book. SCH4801 ASSIGNMENT 2 2024 Page 10 of 16 QUESTION 2 [6 MARKS] The following question was posted to an AI Tool: Described four most probable key supplier-evaluation criteria for Nando’s, with relevant examples from the case study. Answer by the AI Tool: 1. Quality and Consistency: • Example: Nando’s may evaluate suppliers based on the consistency and quality of the ingredients they provide, such as peri-peri spices and chicken. The supplier must meet strict standards to ensure that Nando’s signature dishes maintain their distinctive flavourflavour across all locations. Regular quality audits and adherence to specific spice blend recipes could be part of the evaluation. 2. Supply Chain Reliability: • Example: Nando’s might prioritize suppliers with a reliable and efficient supply chain to ensure a steady and timely flow of ingredients. This includes assessing a supplier’s ability to meet demand fluctuations, maintain consistent inventory levels, and provide on-time deliveries to all Nando’s restaurants. The supplier’s track record for minimizing disruptions could be a key criterion. 3. Sustainability and Ethical Practices: • Example: Nando’s may emphasize sustainability in its supplier evaluation criteria, evaluating suppliers based on their environmental and social practices. This could involve considerations such as responsibly sourced chicken, environmentally friendly packaging, and adherence to fair labourlabour practices. Certification from recognized sustainability organizations might be a requirement. 4. Cost Competitiveness and Value: • Example: Nando’s is likely to assess the overall cost of ownership rather than just the initial purchase price. Suppliers must offer competitive pricing while maintaining quality. For example, a supplier that provides cost-effective yet high-quality peri-peri chicken, taking into account factors like transportation costs and bulk discounts, would be viewed favorably favourable QUESTION 2 [6 MARKS] 2.1 Evaluate the answers provided by the AI tool by comparing them to the relevant section in the prescribed book by answering the following sub-questions: (a) According to the case study briefly described the two most probable key supplier-evaluation criteria with a relevant example that the AI tool did not mentioned. (4) SCH4801 ASSIGNMENT 2 2024 Page 11 of 16 (b) The AI tool answer covers what was expected from the question instructions. Do you agree with the statement? Defend your point of view. (2) END OF SECTION B (QUESTION 2) SECTION C: QUESTION 3 Section C (Question 3) is not based on the case study; for some questions, students must provide their own examples when asked. It consists of short essay-type questions that are based on scenarios. Instructions and guidelines for answering the questions for Section C Read the questions carefully – ensure your answers cover what was expected. Pay attention to the marks allocated to a particular question, as this will guide you in how much time you should spend on the question and the amount of detail required. Then, structure your answer using headings and underlining (or highlighting) the important elements. In a case study assignment scenario, you must base your answer on the relevant theory appropriate to the circumstances described in the scenario. Next, justify the particular part of your chosen theory and its suitability for the case. Finally, you must justify your answers based on the scenario. Please note that there is no need for an introduction and conclusion. Instead, write down the number and the question, followed by your answer. Also, note that some questions will test your insight and not be taken directly from the study material. KHUMBULA (remember) No marks will be given for theory or an explanation if copied and pasted from the prescribed book or other sources, using any AI Tools, or for listing. All answers should be in a student's own words. This means that if you refer to something in the prescribed book, you need to rewrite it in your own words; you’re understanding with a reference. If you write it as is from the prescribed book with a reference, you will not receive any marks as we test your understanding and not if you can find the correct answer in the prescribed book and copy it. QUESTION 3 [6 MARKS] 3.1 Distell Wineries is a major winery in the Western Cape, Stellenbosch that manufactures various products such as wines, brandies, gins and whiskeys. Inventory management is of the utmost importance throughout the supply chain. Argue the following statement: “Distell Wineries can use the ABC inventory analysis SCH4801 ASSIGNMENT 2 2024 Page 12 of 16 for managing independent finished goods.” In your argument, motivate your viewpoint by providing two (2) reasons. (2) 3.2 One of the key successes of supply chain management is the integration, information sharing, and working together across multiple functions and organisations to add value to the final customer. Provide two examples of how the following statement can be true for Lancewood: “The bullwhip effect will significantly affect the Lancewood supply chain”. (2) 3.3 JT Food and Clothing Distributors experienced declining sales in the last six months. They realise they must return to the drawing board as it all starts with the customer. Suggest and briefly discuss two methods for determining the needs of customers. (2) END OF SECTION C (QUESTION 3) SECTION D: QUESTION 4 Section D (Question 4) is based on the case study Supply Chain Management – A Shoprite Perspective and consists of short essay-type questions. For some questions, students must provide their own examples when asked. Supply Chain Management – A Shoprite Perspective In 1979, Shoprite Holdings Ltd (hereafter called Shoprite) started from a small beginning, purchasing a chain of eight Cape-based supermarkets for R1 million. Shoprite is deemed Africa's largest fast-moving consumer goods retailer, with more than 35 million shoppers per annum. According to Shoprite's 2017 integrated report, they operate a total of 2 689 stores situated both in and outside South Africa. Shoprite's advanced distribution system and highly sophisticated supply chain enable it to control its operations and ultimately provide customers with lower-priced products. In addition, their ongoing investment and recognition of their supply chain's strategic importance enable them to overcome economic challenges and still provide their customers with affordable retail goods. Shoprite's distribution network consists of strategically placed distribution centres that link the flow of products from suppliers to all stores across the African continent. Shoprite is the first South African retailer to obtain the ISO 9001 import and export handling accreditation. Shoprite owns a large fleet of trucks and trailers that operate 24 hours a day, seven days a week. A highly sophisticated transport route planning and scheduling system optimises store deliveries and integrates the distribution centre and transport division operations. Shoprite optimises transportation by reducing the number of trucks on the road. SCH4801 ASSIGNMENT 2 2024 Page 13 of 16 Shoprite's relationship with its supply chain partners directly influences Shoprite's optimisation initiative. Thus, Shoprite places great emphasis on promoting supply chain coordination and integration between the different supply chain partners. Working closely with the different supply chain partners to create mutually beneficial relationships is critical to Shoprite. For example, Shoprite assists small to medium-sized suppliers by allowing them to deliver products directly to their distribution centres. Subsequently, small to medium-sized suppliers do not have to invest heavily in warehousing or transportation and focus on their core competencies. Shoprite focuses on improving product availability to increase its market share. Controlling the whole supply chain has enabled Shoprite to introduce cost-savings, thus providing the mechanism to drive prices down daily. Controlling their supply chain allows merchandise to counter suppliers' out-of-stock and volatile trading patterns while offering an opportunity to buy extra items to provide for price increases. In addition, Shoprite's supply chain presents the opportunity to re-engineer its retail stores and improve the use of space by dedicating the minimum area to storage and the maximum area to trading space. Adapted from: QUESTION 4 [7 MARKS] Very important: When referring to Shoprite, please note that you cannot just provide the sentences from the case study; Your answer should incorporate examples from the case study that reflect your insight into the subject matter". This applies to both questions in question 4. 4.1 "Shoprite places great emphasis on promoting supply chain coordination and integration between the different supply chain partners". Discuss two reasons why the supply chain members will work together and collaborate. (Remember the examples from the case study – refer to the above-mentioned note: very important. (4) 4.2 Although Shoprite’s supply chain promotes and supports collaboration integration, a particular organisation's relative power and position may place it in a position to dominate supply chain operations. In most global industries, power has shifted from manufacturers to retailers. Do you agree or disagree with this statement that power has shifted from SCH4801 ASSIGNMENT 2 2024 Page 14 of 16 manufacturers to retailers? {1 mark} Defend your answer by providing three reasons that will support your argument {2 marks}.