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Trl3709 Assessment 3 Semester 2 2026 Pmt.

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TRL3709 ASSESSMENT 3 SEMESTER 2 2026 pmt.

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DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE FRAMEWORK IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A POSSIBLE
SOLUTION TO THE TASK CONSISTENT WITH THEORY. THIS ASSIGNMENT IS
INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH THEIR ASSIGNMENT,
AND IN NO CASE THIS DOCUMENT SHOULD BE USED FOR CHEATING. WE BELIEVE
THIS WILL BE A GOOD STARTING POINT AS IT WAS PREPARED BY OUR TEAM OF
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HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF
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Introduction

Supply chain network design involves the strategic arrangement of facilities, sourcing
locations, production capacities, transportation routes and inventory points to enable
organisations to meet customer demand while balancing cost, responsiveness and risk.
In today’s global business environment, designing effective supply networks has become
increasingly challenging because organisations must consider factors that extend beyond
conventional cost efficiency. These factors include geopolitical tensions, supply
disruptions, labour and skills shortages, technological advancements and the need to
strengthen the resilience of critical supply networks. The case study Shifting Supply Chain
Winds Favour Regionalism, Restructuring highlights the growing shift from highly
globalised production systems towards more regional and nationally focused
manufacturing networks. This transformation has been influenced by geopolitical tensions
between China and Taiwan, the war in Ukraine, semiconductor shortages, labour and
skills constraints, supply chain disruptions and rising investment costs associated with
higher interest rates. As a result, organisations can no longer assess supply chain
network decisions solely in terms of cost minimisation. Instead, they must also consider
resilience, flexibility and the ability of their supply networks to adapt quickly and effectively
to unexpected disruptions.

1.1 Identify and discuss the non-quantifiable factors influencing network design
decisions, with reference to the case study. [7 marks]

Non-quantifiable factors, also known as qualitative factors, are considerations that are
difficult to measure precisely in monetary or numerical terms but can significantly
influence the attractiveness and long-term sustainability of a supply-chain location.
Although supply-chain network design relies heavily on quantitative analysis, location
decisions should not be based on cost alone. Managers must also consider factors such
as political stability, supply risk, infrastructure reliability, labour availability, government
policies, security and the strategic importance of specific locations (Chopra, 2019).




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Four important qualitative factors are political and geopolitical stability, availability of
skilled labour, government and regulatory conditions, and strategic supply-chain
resilience.

1. Political and Geopolitical Stability

Political and geopolitical stability is an important consideration in supply-chain network
design because political conflict, trade restrictions, sanctions and changes in international
relations can disrupt the movement of raw materials, components and finished products.
A location that appears cost-effective under normal conditions may become less attractive
when geopolitical developments increase the likelihood of supply disruptions.

This factor is particularly relevant to the case because organisations are increasingly
concerned about their dependence on China in the context of growing geopolitical
tensions and the potential for conflict involving Taiwan. The case highlights the need for
organisations to examine their supply chains carefully and identify which components are
sourced from China (IndustryWeek, 2023). Political risk should therefore be regarded as
an integral part of network-design decisions rather than simply an external threat. As a
result, companies may choose regional or alternative suppliers even when their unit
production costs are higher, because regionalisation can reduce exposure to geopolitical
disruptions and improve overall supply-chain resilience.

2. Availability of Labour and Skills

The availability, quality and long-term sustainability of labour are also important qualitative
considerations when selecting supply-chain locations. A large workforce does not
necessarily guarantee access to the specialised skills required for advanced
manufacturing and other supply-chain activities.

The case highlights labour and skills shortages in North America and Europe. Mexico is
identified as an attractive alternative because, despite challenges within its labour market,
its universities continue to produce engineering graduates. This gives Mexico a potentially
strong foundation for developing its role as a regional manufacturing hub serving the



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Uploaded on
August 21, 2026
Number of pages
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Written in
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Type
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