,SCH4801 ASSIGNMENT 03 ANSWERS - DUE DATE: 1 OCTOBER 2026
INTRODUCTION
Supply chain management involves the planning and coordination of activities required to
move goods, services and information from suppliers to customers. A strong supply chain
allows an organisation to control costs, maintain product quality and respond to unexpected
disruptions. Modern supply chains also need to consider sustainability, technology and
changing economic conditions (Christopher, 2016).
This assignment examines three important supply chain issues. The first focuses on supplier
localisation at KFC South Africa and how local sourcing can improve supply chain resilience.
The second considers Fourth Industrial Revolution (4IR) technologies, particularly Artificial
Intelligence (AI) and Digital Twins, in manufacturing. The final section discusses how
increased tariffs in the United States can affect supply chains and the strategies businesses
can use to manage these challenges.
QUESTION 1:
1.1 Supplier Localisation
Supplier localisation refers to obtaining goods, raw materials and services from suppliers
within the same country or region where an organisation operates. Local sourcing can reduce
dependence on international suppliers and make it easier for companies to respond to
disruptions.
KFC South Africa provides an example of this approach. The company sources most of its
chicken locally, while products such as tomatoes, coleslaw ingredients and potatoes are also
sourced from South African suppliers. KFC states that local sourcing supports local
communities, employment, supplier development and economic transformation (KFC South
Africa, 2026).
, 1.1(a) Strategic benefits of localisation and their impact on the KFC South Africa supply
chain
Reduced dependence on international suppliers
Local sourcing reduces KFC's dependence on overseas suppliers. International supply chains
can be affected by border closures, political instability, international transport problems and
global shortages. Using local suppliers gives KFC greater control over the availability of
important products and ingredients.
Shorter lead times
Local suppliers are generally closer to KFC restaurants and distribution facilities than
international suppliers. This can reduce transportation distances and delivery times. Shorter
lead times allow restaurants to receive products more frequently and reduce the need to hold
excessive amounts of inventory (Christopher, 2016).
Improved communication
Working with suppliers within the same country makes communication easier. KFC can
communicate its quality requirements, delivery expectations and product specifications
directly with South African suppliers. Problems can therefore be identified and corrected
more quickly.
Better quality control
KFC operates strict standards for food quality and safety. Local suppliers can be monitored
through regular inspections and audits. KFC reports that its chicken goes through numerous
quality checks from the farm to the restaurant (KFC South Africa, 2026). Local supplier
relationships therefore allow the organisation to maintain greater visibility over important
stages of its supply chain.
Support for the South African economy
INTRODUCTION
Supply chain management involves the planning and coordination of activities required to
move goods, services and information from suppliers to customers. A strong supply chain
allows an organisation to control costs, maintain product quality and respond to unexpected
disruptions. Modern supply chains also need to consider sustainability, technology and
changing economic conditions (Christopher, 2016).
This assignment examines three important supply chain issues. The first focuses on supplier
localisation at KFC South Africa and how local sourcing can improve supply chain resilience.
The second considers Fourth Industrial Revolution (4IR) technologies, particularly Artificial
Intelligence (AI) and Digital Twins, in manufacturing. The final section discusses how
increased tariffs in the United States can affect supply chains and the strategies businesses
can use to manage these challenges.
QUESTION 1:
1.1 Supplier Localisation
Supplier localisation refers to obtaining goods, raw materials and services from suppliers
within the same country or region where an organisation operates. Local sourcing can reduce
dependence on international suppliers and make it easier for companies to respond to
disruptions.
KFC South Africa provides an example of this approach. The company sources most of its
chicken locally, while products such as tomatoes, coleslaw ingredients and potatoes are also
sourced from South African suppliers. KFC states that local sourcing supports local
communities, employment, supplier development and economic transformation (KFC South
Africa, 2026).
, 1.1(a) Strategic benefits of localisation and their impact on the KFC South Africa supply
chain
Reduced dependence on international suppliers
Local sourcing reduces KFC's dependence on overseas suppliers. International supply chains
can be affected by border closures, political instability, international transport problems and
global shortages. Using local suppliers gives KFC greater control over the availability of
important products and ingredients.
Shorter lead times
Local suppliers are generally closer to KFC restaurants and distribution facilities than
international suppliers. This can reduce transportation distances and delivery times. Shorter
lead times allow restaurants to receive products more frequently and reduce the need to hold
excessive amounts of inventory (Christopher, 2016).
Improved communication
Working with suppliers within the same country makes communication easier. KFC can
communicate its quality requirements, delivery expectations and product specifications
directly with South African suppliers. Problems can therefore be identified and corrected
more quickly.
Better quality control
KFC operates strict standards for food quality and safety. Local suppliers can be monitored
through regular inspections and audits. KFC reports that its chicken goes through numerous
quality checks from the farm to the restaurant (KFC South Africa, 2026). Local supplier
relationships therefore allow the organisation to maintain greater visibility over important
stages of its supply chain.
Support for the South African economy
