, TRL3709 ASSIGNMENT 2 | SEMESTER 2 | MEMO| DUE DATE: 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. [6 marks]
Three key drivers of supply chain performance are facilities, inventory and transportation. These
drivers influence how efficiently a business moves products from suppliers to customers and how
effectively it satisfies customer demand.
1. Facilities
Facilities refer to the physical locations where products are manufactured, stored, sorted and
distributed, such as warehouses, distribution centres and fulfilment centres. The location and
capacity of these facilities directly influence the speed, cost and reliability of supply chain
operations (Chopra, 2019). For Takealot.com, strategically located fulfilment centres and
distribution facilities are important because the company serves customers across South Africa.
Having facilities positioned closer to major customer markets can reduce delivery distances and
improve response times. For example, facilities located near large urban markets such as
Johannesburg, Cape Town and Durban can support faster order processing and delivery. However,
maintaining several facilities also increases operating costs, meaning that Takealot must balance
customer responsiveness with facility and operating expenses.
2. Inventory
Inventory consists of the products held by a business to meet expected customer demand. Effective
inventory management ensures that products are available when customers place orders while
preventing excessive stockholding costs (Chopra and Meindl, 2019). Inventory is particularly
important for Takealot because customers expect products displayed as available on the platform to
be delivered within the promised time. If Takealot holds insufficient inventory, stockouts may occur,
resulting in delayed orders and dissatisfied customers. On the other hand, excessive inventory
increases storage, handling and potential obsolescence costs. Takealot therefore needs to use
demand information and sales patterns to determine appropriate stock levels and ensure that popular
products are available at the right locations.
3. Transportation
Transportation involves moving products between suppliers, fulfilment facilities and customers. It
has a major effect on both supply chain cost and responsiveness because transportation decisions
determine how quickly and economically products can reach customers (Chopra, 2019). For
Takealot, transportation is especially important because the final stage of delivery connects its
fulfilment operations directly with customers. Efficient transportation and last-mile delivery can
reduce delivery times and improve customer satisfaction. For example, Takealot can use
strategically planned delivery routes and appropriate delivery networks to ensure that customer
orders are delivered efficiently across different parts of South Africa. Poor transportation planning,
in contrast, can result in delays, higher fuel and delivery costs and reduced customer satisfaction.
Overall, facilities, inventory and transportation are closely interconnected. Takealot must coordinate
these drivers rather than manage them independently. Increasing the number of facilities may
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. [6 marks]
Three key drivers of supply chain performance are facilities, inventory and transportation. These
drivers influence how efficiently a business moves products from suppliers to customers and how
effectively it satisfies customer demand.
1. Facilities
Facilities refer to the physical locations where products are manufactured, stored, sorted and
distributed, such as warehouses, distribution centres and fulfilment centres. The location and
capacity of these facilities directly influence the speed, cost and reliability of supply chain
operations (Chopra, 2019). For Takealot.com, strategically located fulfilment centres and
distribution facilities are important because the company serves customers across South Africa.
Having facilities positioned closer to major customer markets can reduce delivery distances and
improve response times. For example, facilities located near large urban markets such as
Johannesburg, Cape Town and Durban can support faster order processing and delivery. However,
maintaining several facilities also increases operating costs, meaning that Takealot must balance
customer responsiveness with facility and operating expenses.
2. Inventory
Inventory consists of the products held by a business to meet expected customer demand. Effective
inventory management ensures that products are available when customers place orders while
preventing excessive stockholding costs (Chopra and Meindl, 2019). Inventory is particularly
important for Takealot because customers expect products displayed as available on the platform to
be delivered within the promised time. If Takealot holds insufficient inventory, stockouts may occur,
resulting in delayed orders and dissatisfied customers. On the other hand, excessive inventory
increases storage, handling and potential obsolescence costs. Takealot therefore needs to use
demand information and sales patterns to determine appropriate stock levels and ensure that popular
products are available at the right locations.
3. Transportation
Transportation involves moving products between suppliers, fulfilment facilities and customers. It
has a major effect on both supply chain cost and responsiveness because transportation decisions
determine how quickly and economically products can reach customers (Chopra, 2019). For
Takealot, transportation is especially important because the final stage of delivery connects its
fulfilment operations directly with customers. Efficient transportation and last-mile delivery can
reduce delivery times and improve customer satisfaction. For example, Takealot can use
strategically planned delivery routes and appropriate delivery networks to ensure that customer
orders are delivered efficiently across different parts of South Africa. Poor transportation planning,
in contrast, can result in delays, higher fuel and delivery costs and reduced customer satisfaction.
Overall, facilities, inventory and transportation are closely interconnected. Takealot must coordinate
these drivers rather than manage them independently. Increasing the number of facilities may
