Semester 1 2025 (212628) - DUE 27 March 2025; 100%
correct solutions and explanations.
Read the following case study on Woolworths supply chain
shortages and answer the questions that follow:
Woolworths faces shortages amid supplier issues and heavy
rains
After South African comedian Rory Petzer posted on X
(formerly Twitter) about the concerning lack of meat on
Woolworths’ shelves, the company quickly responded to the
issue. Petzer described the scene in his tweet as “apocalyptic.”
Woolworths replied, “Hey Rory, we’re aware of a supplier issue
that has reduced the meat supply in our stores. Restoring normal
supply is our priority, and we sincerely apologize for any
inconvenience this has caused you during your shopping. We’re
working on it, so please be patient.”
According to a News24 article, the store faces brief red meat and
fresh produce shortages in several locations, particularly in
Gauteng. Woolworths stated that heavy rainfall in Gauteng and
KwaZulu-Natal has significantly impacted the supply of fresh
produce, including lettuce, spinach, and cauliflower.
, The company has tried to source food from other areas and
hopes the shortages will be resolved soon. Woolworths
emphasized that a supplier-related issue was the cause of the
reduced quantity of red meat on its shelves. They reassured
customers that their supplier was addressing the problem, and
the company was optimistic that supplies would return to normal
soon.
Source:
News24 Article
IOL Article
QUESTION 1 [4 marks]
Argue whether Woolworths should use many suppliers or not.
Justify your argument.
Should Woolworths Use Many Suppliers?
Woolworths' supply chain issues raise an important question:
should the company rely on multiple suppliers or maintain a
limited number of key suppliers? This argument examines both
perspectives and provides a justified recommendation.
1. Benefits of Using Multiple Suppliers
1. Supply Chain Resilience
Having multiple suppliers helps Woolworths avoid