,SCH4801 ASSIGNMENT 3 - DUE DATE: 1 OCTOBER 2026
INTRODUCTION
Supply chain management is an important part of how a business operates. It involves
getting materials and products from suppliers, moving them through the supply chain and
making sure that the final products reach customers. A well-managed supply chain helps a
business control costs, avoid unnecessary delays and make sure that products are available
when customers need them (Christopher, 2016).
Businesses also need supply chains that can handle unexpected problems. These problems
can include supplier shortages, transport delays, poor infrastructure, extreme weather,
labour disruptions and changes in government policies. Supply chain resilience refers to a
business's ability to prepare for these disruptions, respond to them and continue operating
when problems occur (Christopher, 2016).
Supplier localisation is one way that businesses can strengthen their supply chains. It
involves buying products, materials or services from suppliers within the same country or
region. KFC South Africa uses local suppliers for many of its products, including chicken and
fresh produce. Local sourcing can help reduce dependence on international suppliers while
also supporting South African businesses and employment (KFC South Africa, 2026).
Technology is another important part of modern supply chain management. The Fourth
Industrial Revolution has introduced technologies such as Artificial Intelligence, automation,
the Internet of Things and digital twins. These technologies allow businesses to collect
information, identify problems and make better decisions based on data (Schwab, 2016).
Changes in international trade policies can also affect supply chains. For example, higher
tariffs can increase the cost of imported products and raw materials. Companies may then
, have to change their suppliers, production processes or prices. This can affect businesses at
different stages of the supply chain.
This assignment discusses supplier localisation, the Sustainable Development Goals and
transportation in relation to KFC South Africa. It also examines the use of Artificial
Intelligence and digital twins at JT Manufacturers. The final section explains how increased
tariffs can affect supply chains in the United States.
QUESTION 1: KFC SOUTH AFRICA – RESILIENCE THROUGH SUPPLY CHAIN PROCESSES
1.1 Supplier Localisation
Supplier localisation means obtaining goods, materials and services from suppliers within
the same country or a nearby area. Instead of depending heavily on suppliers from other
countries, a business can develop relationships with local suppliers.
KFC South Africa is an example of a company that uses local sourcing. The company states
that most of its chicken is sourced locally and that products such as potatoes, tomatoes and
coleslaw ingredients are also obtained from local suppliers. KFC explains that local sourcing
helps support communities, create employment and develop local suppliers (KFC South
Africa, 2026).
Localisation does not mean that a business must stop using international suppliers. Instead,
it means that businesses can increase their use of reliable local suppliers where this is
practical and beneficial.
a) Strategic benefits of localisation and their impact on the KFC South Africa supply chain
Less dependence on international suppliers
A major advantage of localisation is that it reduces a company's dependence on suppliers
from other countries. International supply chains can be affected by shipping delays, port
INTRODUCTION
Supply chain management is an important part of how a business operates. It involves
getting materials and products from suppliers, moving them through the supply chain and
making sure that the final products reach customers. A well-managed supply chain helps a
business control costs, avoid unnecessary delays and make sure that products are available
when customers need them (Christopher, 2016).
Businesses also need supply chains that can handle unexpected problems. These problems
can include supplier shortages, transport delays, poor infrastructure, extreme weather,
labour disruptions and changes in government policies. Supply chain resilience refers to a
business's ability to prepare for these disruptions, respond to them and continue operating
when problems occur (Christopher, 2016).
Supplier localisation is one way that businesses can strengthen their supply chains. It
involves buying products, materials or services from suppliers within the same country or
region. KFC South Africa uses local suppliers for many of its products, including chicken and
fresh produce. Local sourcing can help reduce dependence on international suppliers while
also supporting South African businesses and employment (KFC South Africa, 2026).
Technology is another important part of modern supply chain management. The Fourth
Industrial Revolution has introduced technologies such as Artificial Intelligence, automation,
the Internet of Things and digital twins. These technologies allow businesses to collect
information, identify problems and make better decisions based on data (Schwab, 2016).
Changes in international trade policies can also affect supply chains. For example, higher
tariffs can increase the cost of imported products and raw materials. Companies may then
, have to change their suppliers, production processes or prices. This can affect businesses at
different stages of the supply chain.
This assignment discusses supplier localisation, the Sustainable Development Goals and
transportation in relation to KFC South Africa. It also examines the use of Artificial
Intelligence and digital twins at JT Manufacturers. The final section explains how increased
tariffs can affect supply chains in the United States.
QUESTION 1: KFC SOUTH AFRICA – RESILIENCE THROUGH SUPPLY CHAIN PROCESSES
1.1 Supplier Localisation
Supplier localisation means obtaining goods, materials and services from suppliers within
the same country or a nearby area. Instead of depending heavily on suppliers from other
countries, a business can develop relationships with local suppliers.
KFC South Africa is an example of a company that uses local sourcing. The company states
that most of its chicken is sourced locally and that products such as potatoes, tomatoes and
coleslaw ingredients are also obtained from local suppliers. KFC explains that local sourcing
helps support communities, create employment and develop local suppliers (KFC South
Africa, 2026).
Localisation does not mean that a business must stop using international suppliers. Instead,
it means that businesses can increase their use of reliable local suppliers where this is
practical and beneficial.
a) Strategic benefits of localisation and their impact on the KFC South Africa supply chain
Less dependence on international suppliers
A major advantage of localisation is that it reduces a company's dependence on suppliers
from other countries. International supply chains can be affected by shipping delays, port
