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SCH4801 Assignment 3 (248097) (Detailed Answers) DUE 7 OCTOBER 2024

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Read the following and answer the questions that followed. The following question was posted to an AI Tool on 6 July 2023: Describe and discuss eight supply chain management challenges in the South African public sector. Answer by the AI Tool: SCH4801/assignment 03/2024 Supply chain challenges in the South African public sector can significantly impact the efficient delivery of goods and services. Here are eight key challenges that are commonly faced in this context: 1. Procurement inefficiencies: The public sector often struggles with inefficient procurement processes, including lengthy bidding procedures, lack of transparency, and inadequate supplier evaluation mechanisms. These challenges can lead to delays in acquiring necessary goods and services. 2. Limited supplier base: The South African public sector sometimes faces challenges in finding a diverse and capable pool of suppliers. Limited competition among suppliers can result in higher prices, reduced quality, and limited innovation in the delivery of goods and services. 3. Corruption and fraud: Corruption and fraud remain persistent challenges in the South African public sector supply chain. Unethical practices such as bribery, kickbacks, and collusion can undermine the integrity of procurement processes, leading to financial losses and compromised service delivery. 4. Infrastructure constraints: Deficient transportation, logistics, and warehousing infrastructure can hinder the smooth flow of goods and services across the supply chain. Inadequate road networks, limited storage facilities, and poor inventory management can contribute to delays and inefficiencies. 5. Skill shortages and capacity gaps: Insufficient expertise and capacity in supply chain management within the public sector can be a major obstacle. Limited training and development opportunities for supply chain professionals can lead to suboptimal decision-making and inadequate management of supply chain activities. 6. Inaccurate demand forecasting: Accurate demand forecasting is crucial for effective supply chain management. However, the South African public sector often struggles with inadequate data collection, unreliable forecasting methods, and insufficient coordination between demand-side entities, resulting in supply-demand imbalances and wastage of resources. 7. Regulatory compliance: Compliance with public sector procurement regulations and policies is essential for maintaining transparency and fairness. However, navigating complex and evolving regulations can be challenging, and failure to comply can lead to legal complications, delays, and reputational damage. 8. Limited technology adoption: The adoption of advanced technologies, such as automation, data analytics, and digital platforms, is relatively limited in the South African public sector supply chain. This hampers the ability to achieve real-time visibility, streamline processes, and improve decision-making, ultimately impacting the efficiency and effectiveness of supply chain operations. QUESTION 1 [9 marks] Answer the following questions after considering the answers regarding the South African public sector supply chain challenges provided by the AI tool and the prescribed book: 9 1.1 According to the prescribed book, indicate any two challenges correctly identified by the AI tool regarding South African public supply chain management challenges. Find another source for each of the two correctly identified Public SCM challenges by the AI tool. (4) 1.2 Answer the flowing subquestions: (4) (a) Identified two public SCM challenges identified by the AI tool that are not addressed in the prescribed book.{2} (b) In your discussion, provide two examples of how the following statement can be true for the public SCM challenges. The two public SCM challenges identified by the AI tool that are not addressed in the prescribed book are real public SCM challenges. [You are allowed to use articles in your discussion]. {2} List of references (1) ONTHOU, (remember) When answering your questions, make sure to reference the sources in the text and a list of references. END OF SECTION A: QUESTION 1 SECTION B: QUESTION 2 Section B (question 2) consists of short essay-type questions based on the case study - Nando's: A Triumph of Supply Chain Excellence, in addendum C. QUESTION 2 [23 MARKS] Instructions and guidelines for answering question 2. Read the case study and answer the following questions. Pay attention to the marks allocated to a particular question, as this will guide you in terms of how much time you should spend on the question and the amount of detail required. In this question, you must base your answers on the relevant theory appropriate to the questions in correlation with the case study. You will be penalised if you copy and paste theory from any source or your prescribed book. Please note that no other sources are allowed to answer question 2 – all answers should be based on the content of the prescribed book. SCH4801/assignment 03/2024 Question 2 counts 23 marks (5 marks for the technical aspects and 18 marks for the questions you should answer). You are required to write a report on Nando's case study by answering the following six (2.1 to 2.6) questions. You should please structure your report as follows: • Title of the report (case study) • Introduction (2 marks) • Answers to the six questions asked below (2.1 to 2.6) (18 marks) • Conclusion (2 marks) • Reference list (1 mark) Please use the six (6) underlined questions in your report as sub-headings. Please number your answers clearly, for example, 2.1, 2.2, until 2.6. Also, remember to link your answer to the Nando's case study Very important: When referring to Nando's, 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 all the questions. 2.1 Provide two examples of how the following statement can be true for Nando’s: “Nando's describes the quality of standards to their suppliers using market grade

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SCH4801

Assignment 3

Unique No: 248097

DUE 7 October 2024

, QUESTION 1


1.1 Identify Two Challenges Correctly Identified by the AI Tool
The AI Tool highlights several challenges facing supply chain management in the South
African public sector. Two key challenges correctly identified from the AI Tool’s
description include:
1. Procurement Inefficiencies: As stated, the public sector often struggles with
inefficient procurement processes due to lengthy bidding and a lack of transparency.
2. Corruption and Fraud: The persistent issues of corruption and fraud severely
undermine procurement integrity, leading to substantial financial and operational
challenges.
To support these points with external sources:
• For Procurement Inefficiencies:
Source: KPMG’s “Public Sector Procurement Practices in South Africa.”
(KPMG, 2021). This report discusses how laborious procuremen t processes
have led to bottlenecks in public service delivery.


• For Corruption and Fraud:
Source: Transparency International’s report on corruption in South Africa
(Transparency International, 2022) highlights the prevalence of unethical
practices in public procurement, which hinders efficient supply chain
operations.



1.2 Sub-Questions
(a) Identify Two Public SCM Challenges Not Addressed in the Prescribed Book
The following two public supply chain management challenges were identified by the AI
tool but were not specifically addressed in the prescribed book:
1. Limited Technology Adoption: This challenge involves the slow integration of
technology in the public procurement processes, leading to inefficiencies.
2. Skill Shortages and Capacity Gaps: The lack of trained supply chain professionals
in the public sector results in inadequate management and decision -making.
(b) Discussion: Real Public SCM Challenges
To illustrate that the challenges of limited technology adoption and skill shortages are
indeed real, consider the following examples:

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