ASSIGNMENT 2
DUE DATE: SEPTEMBER 2026
, TRL3709 ASSIGNMENT 2 2026
DUE: SEPT 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
According to Chopra (Chapter 3), the major drivers of supply chain performance are
facilities, inventory, transportation, information, sourcing and pricing. Three key ones
are facilities, inventory and transportation.
Facilities are the physical places where products are stored, made or put together
(warehouses, distribution centres). More facilities make the supply chain more
responsive (faster to customers) but cost more and need more inventory. Fewer central
facilities are more efficient (lower cost) but slower. Takealot uses several distribution
centres (Johannesburg, Cape Town, Durban and others). This helps them deliver faster
in different parts of South Africa while still trying to keep costs under control.
Inventory is the stock of products held. High inventory improves responsiveness
(products are ready when customers order) but raises costs and risk of leftovers. Low
inventory is more efficient but can cause stock-outs. Takealot keeps popular items in
stock at its centres so it can ship quickly, while slower items may come from sellers or
fewer locations. This balances speed and cost.