TRL3709 ASSIGNMENT 2 2026
DUE: SEPT 2026
1.1 Identify and discuss three key drivers of supply chain performance and
explain how each impacts the efficiency and effectiveness of the supply chain.
Justify your answer using case study examples
According to Chopra (Chapter 3), the major drivers of supply chain performance are
facilities, inventory, transportation, information, sourcing and pricing. Three key ones
are facilities, inventory and transportation.
Facilities are the physical places where products are stored, made or put together
(warehouses, distribution centres). More facilities make the supply chain more
responsive (faster to customers) but cost more and need more inventory. Fewer central
facilities are more efficient (lower cost) but slower. Takealot uses several distribution
centres (Johannesburg, Cape Town, Durban and others). This helps them deliver faster
in different parts of South Africa while still trying to keep costs under control.
Inventory is the stock of products held. High inventory improves responsiveness
(products are ready when customers order) but raises costs and risk of leftovers. Low
inventory is more efficient but can cause stock-outs. Takealot keeps popular items in
stock at its centres so it can ship quickly, while slower items may come from sellers or
fewer locations. This balances speed and cost.
, Transportation moves products between stages. Faster transport (own fleet or quick
couriers) raises responsiveness but costs more. Slower modes are cheaper but less
responsive. Takealot runs its own logistics network and partners with couriers. This lets
them control delivery times (often 2–5 days in main centres, with same-day or next-day
options) and keep reliability high (reported 99%+ on-time).
These drivers work together. Good decisions on them improve both efficiency (lower
cost) and effectiveness (better service and higher surplus) for Takealot.
1.2 Competitive strategy vs supply chain strategy (6 marks)
Chopra (Chapter 2), a competitive strategy defines the set of customer needs a
company wants to satisfy better than rivals. It focuses on what customers value most for
example low price, fast delivery, wide variety or high quality.
A supply chain strategy decides how the company will get, make, store and deliver
products (and related services). It covers procurement, facilities, inventory, transport,
information and whether work is done in-house or outsourced. It must support the
competitive strategy so the whole firm has strategic fit.
For Takealot:
Competitive strategy: Be South Africa’s leading online retailer by offering wide product
variety, competitive prices, convenient online shopping and reliable, reasonably fast
delivery (including pick-up points and tracking). Customers want choice and
convenience without having to visit many shops.
Supply chain strategy: Own and operate multiple distribution centres, run its own
logistics network (Takealot Fulfilment Solutions), use both own stock and marketplace
sellers, invest in warehouse systems and real-time tracking, and open more centres
(e.g. new Durban facility) to shorten delivery times. These choices support the
competitive goal of reliable national reach and good customer service at manageable
cost.
DUE: SEPT 2026
1.1 Identify and discuss three key drivers of supply chain performance and
explain how each impacts the efficiency and effectiveness of the supply chain.
Justify your answer using case study examples
According to Chopra (Chapter 3), the major drivers of supply chain performance are
facilities, inventory, transportation, information, sourcing and pricing. Three key ones
are facilities, inventory and transportation.
Facilities are the physical places where products are stored, made or put together
(warehouses, distribution centres). More facilities make the supply chain more
responsive (faster to customers) but cost more and need more inventory. Fewer central
facilities are more efficient (lower cost) but slower. Takealot uses several distribution
centres (Johannesburg, Cape Town, Durban and others). This helps them deliver faster
in different parts of South Africa while still trying to keep costs under control.
Inventory is the stock of products held. High inventory improves responsiveness
(products are ready when customers order) but raises costs and risk of leftovers. Low
inventory is more efficient but can cause stock-outs. Takealot keeps popular items in
stock at its centres so it can ship quickly, while slower items may come from sellers or
fewer locations. This balances speed and cost.
, Transportation moves products between stages. Faster transport (own fleet or quick
couriers) raises responsiveness but costs more. Slower modes are cheaper but less
responsive. Takealot runs its own logistics network and partners with couriers. This lets
them control delivery times (often 2–5 days in main centres, with same-day or next-day
options) and keep reliability high (reported 99%+ on-time).
These drivers work together. Good decisions on them improve both efficiency (lower
cost) and effectiveness (better service and higher surplus) for Takealot.
1.2 Competitive strategy vs supply chain strategy (6 marks)
Chopra (Chapter 2), a competitive strategy defines the set of customer needs a
company wants to satisfy better than rivals. It focuses on what customers value most for
example low price, fast delivery, wide variety or high quality.
A supply chain strategy decides how the company will get, make, store and deliver
products (and related services). It covers procurement, facilities, inventory, transport,
information and whether work is done in-house or outsourced. It must support the
competitive strategy so the whole firm has strategic fit.
For Takealot:
Competitive strategy: Be South Africa’s leading online retailer by offering wide product
variety, competitive prices, convenient online shopping and reliable, reasonably fast
delivery (including pick-up points and tracking). Customers want choice and
convenience without having to visit many shops.
Supply chain strategy: Own and operate multiple distribution centres, run its own
logistics network (Takealot Fulfilment Solutions), use both own stock and marketplace
sellers, invest in warehouse systems and real-time tracking, and open more centres
(e.g. new Durban facility) to shorten delivery times. These choices support the
competitive goal of reliable national reach and good customer service at manageable
cost.
