MNP3701
Assignment 4 Semester 1 2024
Unique Number: 528413
Due Date: 14 May 2024
QUESTION 1
a.
Introducing a low-cost country sourcing strategy (LCCS) into Pepkor’s supply chain framework
could potentially inhibit their sustainability objectives. While LCCS may offer cost savings
through cheaper labor and production costs, it may also lead to increased transportation and
environmental impact due to longer supply chains. This could contradict Pepkor's commitment
to sustainability and responsible sourcing practices. Additionally, LCCS may not align with their
focus on local manufacturing and promoting economic empowerment within the communities
DISCLAIMER & TERMS OF USE
they serve.
1. Educational Aid: These study notes are designed to serve as educational aids and should not be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conduct their own extensive research and consult with their instructors or academic advisors for specific
assignment requirements.
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
information provided in these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying it to their assignments.
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and inspiration, but any direct reproduction of the content without proper acknowledgment and
citation may constitute academic misconduct.
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses, or consequences arising from the use of the notes. This includes, but is not limited to, poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
provided.
]
, For additional support +27 81 278 3372
QUESTION 1
a.
Introducing a low-cost country sourcing strategy (LCCS) into Pepkor’s supply chain framework
could potentially inhibit their sustainability objectives. While LCCS may offer cost savings
through cheaper labor and production costs, it may also lead to increased transportation and
environmental impact due to longer supply chains. This could contradict Pepkor's commitment
to sustainability and responsible sourcing practices. Additionally, LCCS may not align with their
focus on local manufacturing and promoting economic empowerment within the communities
they serve.
b.
Implementing LCCS may pose regulatory and compliance hurdles for Pepkor, especially given
their commitment to sourcing locally and supporting the South African government’s 2030
Retail–Clothing, Textile, Footwear, and Leather Master Plan (R-CTFL Master Plan). Introducing
LCCS may require navigating trade agreements, import regulations, and compliance with labor
and environmental standards in the countries where the sourcing takes place. Additionally, it
may necessitate ensuring that suppliers abroad adhere to the same ethical and sustainable
practices that Pepkor upholds, posing challenges in monitoring and enforcing compliance across
geographically dispersed supply chain operations.
QUESTION 2
Porter’s Five Forces competitive position analysis for Pepkor’s locally sourced products:
1. Threat of new entrants:
Pepkor’s dedication to sourcing locally creates a barrier to entry for new competitors who may
not have established relationships with local suppliers. By working closely with local
manufacturers and raw material suppliers, Pepkor has a competitive advantage in terms of cost
efficiency, lead times, and stock turnover, making it difficult for new entrants to compete on a
similar level.
2. Bargaining power of buyers:
Assignment 4 Semester 1 2024
Unique Number: 528413
Due Date: 14 May 2024
QUESTION 1
a.
Introducing a low-cost country sourcing strategy (LCCS) into Pepkor’s supply chain framework
could potentially inhibit their sustainability objectives. While LCCS may offer cost savings
through cheaper labor and production costs, it may also lead to increased transportation and
environmental impact due to longer supply chains. This could contradict Pepkor's commitment
to sustainability and responsible sourcing practices. Additionally, LCCS may not align with their
focus on local manufacturing and promoting economic empowerment within the communities
DISCLAIMER & TERMS OF USE
they serve.
1. Educational Aid: These study notes are designed to serve as educational aids and should not be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conduct their own extensive research and consult with their instructors or academic advisors for specific
assignment requirements.
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
information provided in these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying it to their assignments.
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and inspiration, but any direct reproduction of the content without proper acknowledgment and
citation may constitute academic misconduct.
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses, or consequences arising from the use of the notes. This includes, but is not limited to, poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
provided.
]
, For additional support +27 81 278 3372
QUESTION 1
a.
Introducing a low-cost country sourcing strategy (LCCS) into Pepkor’s supply chain framework
could potentially inhibit their sustainability objectives. While LCCS may offer cost savings
through cheaper labor and production costs, it may also lead to increased transportation and
environmental impact due to longer supply chains. This could contradict Pepkor's commitment
to sustainability and responsible sourcing practices. Additionally, LCCS may not align with their
focus on local manufacturing and promoting economic empowerment within the communities
they serve.
b.
Implementing LCCS may pose regulatory and compliance hurdles for Pepkor, especially given
their commitment to sourcing locally and supporting the South African government’s 2030
Retail–Clothing, Textile, Footwear, and Leather Master Plan (R-CTFL Master Plan). Introducing
LCCS may require navigating trade agreements, import regulations, and compliance with labor
and environmental standards in the countries where the sourcing takes place. Additionally, it
may necessitate ensuring that suppliers abroad adhere to the same ethical and sustainable
practices that Pepkor upholds, posing challenges in monitoring and enforcing compliance across
geographically dispersed supply chain operations.
QUESTION 2
Porter’s Five Forces competitive position analysis for Pepkor’s locally sourced products:
1. Threat of new entrants:
Pepkor’s dedication to sourcing locally creates a barrier to entry for new competitors who may
not have established relationships with local suppliers. By working closely with local
manufacturers and raw material suppliers, Pepkor has a competitive advantage in terms of cost
efficiency, lead times, and stock turnover, making it difficult for new entrants to compete on a
similar level.
2. Bargaining power of buyers:
