SCH4801
Assignment 2
(COMPLETE
ANSWERS)
2024 (248018) -
26 June 2024
CONTACT:
,SECTION A TOTAL:[24 MARKS] Please read the case study below before
answering any questions. SCH4801 ASSIGNMENT 2 2024 Page 7 of 16
Nando’s: A Triumph of Supply Chain Excellence Nando’s, a South African
casual dining restaurant chain renowned for its delectable flame-grilled peri-
peri chicken, has had a remarkable journey that started in 1987 in
Johannesburg, South Africa. From its humble origins as a single restaurant in
Johannesburg, Nando’s has expanded its global footprint to over 1,000
locations in 35 countries, including the UK, Canada, and Australia. Central to
the brand’s enduring success is its unwavering commitment to sourcing high-
quality ingredients, with a particular emphasis on its chicken supply chain.
Complex Supply Chain Management Nando’s South Africa sources various
ingredients, such as chicken locally sourced high-quality chillies, from
suppliers in different countries, such as Mozambique. These products’ fresh
and perishable nature necessitates an intricate supply chain management
system. To guarantee a steady supply of top-notch ingredients, the company
strongly emphasises food safety and quality, collaborating with independent
testing and certification agencies. Managing the delicate balance between
short shelf life and consumer demand is a challenge they have successfully
navigated as they have grown through sophisticated logistics, a computerised
system to track real-time inventory levels across the supply chain, integrated
transport management technology and outsourcing distribution. Thanks to
cold chain management, Nando ensures that fresh chicken remains viable for
up to seven days. Efficiency through collaboration and quality control Nando’s
manages its supply chain as a business within a business, establishing
committed partnerships with suppliers, exemplified by its ‘partnership for
growth’ with chilli farmers in Mozambique. Much effort has gone into working
closely with farmers towards empowering the small farmers. Nando’s has
invested in equipping farmers by providing tools, training, and skills to sustain
their farms. In their drive for efficiency, various functions such as procurement,
logistics, and quality control work together to ensure a seamless supply chain
operation by sharing information across these functions. In their drive for
quality, the company has developed a rigorous quality control process that
includes regular inspections of its suppliers’ farms and processing facilities to
ensure its final product meets strict quality standards. Additionally, Nando’s
requires its suppliers to adhere to strict animal welfare guidelines, ensuring its
chicken is ethically and sustainably sourced. Moreover, Nando’s also actively
promotes a culture of continuous improvement, which requires integration
, across different functions. This involves setting performance metrics and
targets, sharing best practices and lessons learned, and encouraging
innovation and collaboration. Nando’s optimises its supply chain, enhancing
customer service and delivering competitive pricing to remain sustainable in a
highly competitive industry. The company’s strategies, such as benchmarking
and total cost of ownership analysis, further contribute to supply chain
efficiency. SCH4801 ASSIGNMENT 2 2024 Page 8 of 16 Supply chain
challenges Despite its many successes, Nando’s has faced supply chain
challenges. In 2021, the UK experienced a significant shortage of Nando’s
Peri Peri chicken due to supplier staff shortages. The unpredictability of such
disruptions highlights the complexities of managing a global supply chain. In
2022, South Africa confronted chicken shortages due to load shedding,
affecting chicken production and restaurant deliveries. In October 2023, a bird
flu outbreak posed a severe challenge to the poultry industry, impacting
Nando’s supply of poultry and its core menu items. Stringent testing and
monitoring became essential to ensure product safety. Moreover, Nando’s
commitment to animal welfare and ethical sourcing adds another layer of
complexity to their supply chain. Managing a business in South Africa has
unique challenges, including resource constraints and adherence to strict
government and municipality regulations. For example, with the revamping
and redesign of the Nando’s restaurants, Nando’s needed to take into
consideration the rich and cultural heritage of over 11 South African official
languages and needed to make sure that the revamp was culturally sensitive
and resonated with the local communities where the restaurants were located.
Moreover, resource challenges such as electricity (load shedding), water
scarcity, infrastructure, and labour can strain chicken, sauces, bastings, and
marinade ingredients. Another challenge was due to climate change and
droughts, which can impact other essential products, such as potatoes and
greens, which are needed for Nando’s side dishes. Environmental and
sustainability efforts The company’s commitment to sustainability extends to
environmental concerns, with initiatives such as a restaurant recycling
program and eco-friendly packaging. As one of Nando’s managers said: “We
set out to address a business challenge and, in the process, have addressed
several of the United Nations (UN) Sustainable Development Goals. If all goes
according to plan, we will double the number of farmers we work with within
the next three to four years. Therefore, Nando’s alignment with the United
Nations (UN) Sustainable Development Goals (SDGs) underscores its
dedication to empowering farmers, enhancing their living conditions, and
Assignment 2
(COMPLETE
ANSWERS)
2024 (248018) -
26 June 2024
CONTACT:
,SECTION A TOTAL:[24 MARKS] Please read the case study below before
answering any questions. SCH4801 ASSIGNMENT 2 2024 Page 7 of 16
Nando’s: A Triumph of Supply Chain Excellence Nando’s, a South African
casual dining restaurant chain renowned for its delectable flame-grilled peri-
peri chicken, has had a remarkable journey that started in 1987 in
Johannesburg, South Africa. From its humble origins as a single restaurant in
Johannesburg, Nando’s has expanded its global footprint to over 1,000
locations in 35 countries, including the UK, Canada, and Australia. Central to
the brand’s enduring success is its unwavering commitment to sourcing high-
quality ingredients, with a particular emphasis on its chicken supply chain.
Complex Supply Chain Management Nando’s South Africa sources various
ingredients, such as chicken locally sourced high-quality chillies, from
suppliers in different countries, such as Mozambique. These products’ fresh
and perishable nature necessitates an intricate supply chain management
system. To guarantee a steady supply of top-notch ingredients, the company
strongly emphasises food safety and quality, collaborating with independent
testing and certification agencies. Managing the delicate balance between
short shelf life and consumer demand is a challenge they have successfully
navigated as they have grown through sophisticated logistics, a computerised
system to track real-time inventory levels across the supply chain, integrated
transport management technology and outsourcing distribution. Thanks to
cold chain management, Nando ensures that fresh chicken remains viable for
up to seven days. Efficiency through collaboration and quality control Nando’s
manages its supply chain as a business within a business, establishing
committed partnerships with suppliers, exemplified by its ‘partnership for
growth’ with chilli farmers in Mozambique. Much effort has gone into working
closely with farmers towards empowering the small farmers. Nando’s has
invested in equipping farmers by providing tools, training, and skills to sustain
their farms. In their drive for efficiency, various functions such as procurement,
logistics, and quality control work together to ensure a seamless supply chain
operation by sharing information across these functions. In their drive for
quality, the company has developed a rigorous quality control process that
includes regular inspections of its suppliers’ farms and processing facilities to
ensure its final product meets strict quality standards. Additionally, Nando’s
requires its suppliers to adhere to strict animal welfare guidelines, ensuring its
chicken is ethically and sustainably sourced. Moreover, Nando’s also actively
promotes a culture of continuous improvement, which requires integration
, across different functions. This involves setting performance metrics and
targets, sharing best practices and lessons learned, and encouraging
innovation and collaboration. Nando’s optimises its supply chain, enhancing
customer service and delivering competitive pricing to remain sustainable in a
highly competitive industry. The company’s strategies, such as benchmarking
and total cost of ownership analysis, further contribute to supply chain
efficiency. SCH4801 ASSIGNMENT 2 2024 Page 8 of 16 Supply chain
challenges Despite its many successes, Nando’s has faced supply chain
challenges. In 2021, the UK experienced a significant shortage of Nando’s
Peri Peri chicken due to supplier staff shortages. The unpredictability of such
disruptions highlights the complexities of managing a global supply chain. In
2022, South Africa confronted chicken shortages due to load shedding,
affecting chicken production and restaurant deliveries. In October 2023, a bird
flu outbreak posed a severe challenge to the poultry industry, impacting
Nando’s supply of poultry and its core menu items. Stringent testing and
monitoring became essential to ensure product safety. Moreover, Nando’s
commitment to animal welfare and ethical sourcing adds another layer of
complexity to their supply chain. Managing a business in South Africa has
unique challenges, including resource constraints and adherence to strict
government and municipality regulations. For example, with the revamping
and redesign of the Nando’s restaurants, Nando’s needed to take into
consideration the rich and cultural heritage of over 11 South African official
languages and needed to make sure that the revamp was culturally sensitive
and resonated with the local communities where the restaurants were located.
Moreover, resource challenges such as electricity (load shedding), water
scarcity, infrastructure, and labour can strain chicken, sauces, bastings, and
marinade ingredients. Another challenge was due to climate change and
droughts, which can impact other essential products, such as potatoes and
greens, which are needed for Nando’s side dishes. Environmental and
sustainability efforts The company’s commitment to sustainability extends to
environmental concerns, with initiatives such as a restaurant recycling
program and eco-friendly packaging. As one of Nando’s managers said: “We
set out to address a business challenge and, in the process, have addressed
several of the United Nations (UN) Sustainable Development Goals. If all goes
according to plan, we will double the number of farmers we work with within
the next three to four years. Therefore, Nando’s alignment with the United
Nations (UN) Sustainable Development Goals (SDGs) underscores its
dedication to empowering farmers, enhancing their living conditions, and
