MNP3701
Assignment 1 Semester 2 2025
2 2025
Unique Number:
Due date: 8 September 2025
QUESTION 1 [6 MARKS]
KFC South Africa’s approach illustrates how purchasing has evolved from a narrow,
transactional role into a strategic contributor to supply chain management.
Localisation (2 marks):
By sourcing all poultry locally and reinforcing supplier audits during the 2023 avian flu
outbreak, KFC demonstrates that localisation is not only about convenience but also about
resilience and risk management. According to Monczka et al. (2021), strategic sourcing
aligns supply bases with corporate goals, ensuring supply continuity, cost efficiency, and
customer trust. This localisation strategy positions purchasing as a driver of both supply
security and competitive advantage.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1 [6 MARKS]
KFC South Africa’s approach illustrates how purchasing has evolved from a narrow,
transactional role into a strategic contributor to supply chain management.
Localisation (2 marks):
By sourcing all poultry locally and reinforcing supplier audits during the 2023 avian
flu outbreak, KFC demonstrates that localisation is not only about convenience but
also about resilience and risk management. According to Monczka et al. (2021),
strategic sourcing aligns supply bases with corporate goals, ensuring supply
continuity, cost efficiency, and customer trust. This localisation strategy positions
purchasing as a driver of both supply security and competitive advantage.
Supplier segmentation (2 marks):
The use of a performance-based “star system” to categorise suppliers shows a
deliberate move from simple vendor management to strategic supplier relationship
management. Top-performing suppliers are prioritised for reliability, innovation, and
long-term collaboration. This segmentation reflects a shift toward managing suppliers
as strategic assets, consistent with the study guide’s emphasis on supply
management as an enabler of innovation and value creation.
Ethical sourcing (2 marks):
KFC integrates social compliance through frameworks such as SIZA and WIETA,
aligning procurement with South Africa’s labour and safety laws. This approach
reflects a commitment to sustainability and corporate responsibility, elevating
procurement beyond cost control toward reputational and ethical value creation.
Assignment 1 Semester 2 2025
2 2025
Unique Number:
Due date: 8 September 2025
QUESTION 1 [6 MARKS]
KFC South Africa’s approach illustrates how purchasing has evolved from a narrow,
transactional role into a strategic contributor to supply chain management.
Localisation (2 marks):
By sourcing all poultry locally and reinforcing supplier audits during the 2023 avian flu
outbreak, KFC demonstrates that localisation is not only about convenience but also about
resilience and risk management. According to Monczka et al. (2021), strategic sourcing
aligns supply bases with corporate goals, ensuring supply continuity, cost efficiency, and
customer trust. This localisation strategy positions purchasing as a driver of both supply
security and competitive advantage.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1 [6 MARKS]
KFC South Africa’s approach illustrates how purchasing has evolved from a narrow,
transactional role into a strategic contributor to supply chain management.
Localisation (2 marks):
By sourcing all poultry locally and reinforcing supplier audits during the 2023 avian
flu outbreak, KFC demonstrates that localisation is not only about convenience but
also about resilience and risk management. According to Monczka et al. (2021),
strategic sourcing aligns supply bases with corporate goals, ensuring supply
continuity, cost efficiency, and customer trust. This localisation strategy positions
purchasing as a driver of both supply security and competitive advantage.
Supplier segmentation (2 marks):
The use of a performance-based “star system” to categorise suppliers shows a
deliberate move from simple vendor management to strategic supplier relationship
management. Top-performing suppliers are prioritised for reliability, innovation, and
long-term collaboration. This segmentation reflects a shift toward managing suppliers
as strategic assets, consistent with the study guide’s emphasis on supply
management as an enabler of innovation and value creation.
Ethical sourcing (2 marks):
KFC integrates social compliance through frameworks such as SIZA and WIETA,
aligning procurement with South Africa’s labour and safety laws. This approach
reflects a commitment to sustainability and corporate responsibility, elevating
procurement beyond cost control toward reputational and ethical value creation.
