, TRL3709
ASSIGNMENT 2 SEMESTER 2
2026
DUE SEPTEMBER 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.
Supply chain performance is fundamentally driven by the strategic management of key operational
drivers, a principle clearly illustrated by the evolution of Takealot.com, South Africa's leading
e-commerce platform. Three critical drivers are facility infrastructure, inventory management, and
information technology, each significantly impacting the efficiency and effectiveness of the supply
chain (Chopra and Meindl, 2016). The first driver, facility infrastructure, refers to the number,
location, and capacity of warehouses and distribution centres within the network. The number and
location of facilities directly determine the network's ability to respond to customer demand, with
a higher number of strategically placed facilities reducing transportation distances and enabling
faster delivery times. However, this responsiveness comes at the cost of increased capital
expenditure and operational complexity (Chopra and Meindl, 2016). Takealot's investment in new
distribution centres, such as the 43,000 square metre facility in Durban, exemplifies this driver, as
the company explicitly stated this expansion was a "strategic enhancement of our delivery network
to better service the people of the province" (MyBroadband, 2024).
This allows the company to offer faster deliveries in KwaZulu-Natal, South Africa's second most
populated region, thereby improving its competitive position against international entrants like
Amazon (BusinessTech, 2024). The second driver, inventory management, involves balancing the
costs of holding stock against the need for product availability to meet customer demand. Effective
inventory management impacts efficiency by reducing carrying costs and obsolescence, while
impacting effectiveness by ensuring that the right products are available when customers want
them (Christopher, 2016). By implementing a hybrid push-and-pull model, Takealot can achieve
both efficiency and responsiveness. For its own stock of high-volume, predictable items, it employs
a push model where inventory is forecasted and stored in its warehouses, ensuring immediate
availability. Conversely, for its extensive network of third-party sellers, the company utilises a pull
model, where inventory is acquired only after a customer places an order, minimising holding costs
and risks for slow-moving items (Christopher, 2016).
ASSIGNMENT 2 SEMESTER 2
2026
DUE SEPTEMBER 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.
Supply chain performance is fundamentally driven by the strategic management of key operational
drivers, a principle clearly illustrated by the evolution of Takealot.com, South Africa's leading
e-commerce platform. Three critical drivers are facility infrastructure, inventory management, and
information technology, each significantly impacting the efficiency and effectiveness of the supply
chain (Chopra and Meindl, 2016). The first driver, facility infrastructure, refers to the number,
location, and capacity of warehouses and distribution centres within the network. The number and
location of facilities directly determine the network's ability to respond to customer demand, with
a higher number of strategically placed facilities reducing transportation distances and enabling
faster delivery times. However, this responsiveness comes at the cost of increased capital
expenditure and operational complexity (Chopra and Meindl, 2016). Takealot's investment in new
distribution centres, such as the 43,000 square metre facility in Durban, exemplifies this driver, as
the company explicitly stated this expansion was a "strategic enhancement of our delivery network
to better service the people of the province" (MyBroadband, 2024).
This allows the company to offer faster deliveries in KwaZulu-Natal, South Africa's second most
populated region, thereby improving its competitive position against international entrants like
Amazon (BusinessTech, 2024). The second driver, inventory management, involves balancing the
costs of holding stock against the need for product availability to meet customer demand. Effective
inventory management impacts efficiency by reducing carrying costs and obsolescence, while
impacting effectiveness by ensuring that the right products are available when customers want
them (Christopher, 2016). By implementing a hybrid push-and-pull model, Takealot can achieve
both efficiency and responsiveness. For its own stock of high-volume, predictable items, it employs
a push model where inventory is forecasted and stored in its warehouses, ensuring immediate
availability. Conversely, for its extensive network of third-party sellers, the company utilises a pull
model, where inventory is acquired only after a customer places an order, minimising holding costs
and risks for slow-moving items (Christopher, 2016).
