MNP3701
Assignment 1 Semester 2 2025
Unique #:
Due Date: 8 September 2025
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, QUESTION 1 [6 MARKS]
KFC South Africa’s approach illustrates how purchasing has evolved from a narrow,
transactional role into a strategic contributor to supply chain management.
Localisation (2 marks):
By sourcing all poultry locally and reinforcing supplier audits during the 2023 avian
flu outbreak, KFC demonstrates that localisation is not only about convenience but
also about resilience and risk management. According to Monczka et al. (2021),
strategic sourcing aligns supply bases with corporate goals, ensuring supply
continuity, cost efficiency, and customer trust. This localisation strategy positions
purchasing as a driver of both supply security and competitive advantage.
Supplier segmentation (2 marks):
The use of a performance-based “star system” to categorise suppliers shows a
deliberate move from simple vendor management to strategic supplier relationship
management. Top-performing suppliers are prioritised for reliability, innovation, and
long-term collaboration. This segmentation reflects a shift toward managing suppliers
as strategic assets, consistent with the study guide’s emphasis on supply
management as an enabler of innovation and value creation.
Ethical sourcing (2 marks):
KFC integrates social compliance through frameworks such as SIZA and WIETA,
aligning procurement with South Africa’s labour and safety laws. This approach
reflects a commitment to sustainability and corporate responsibility, elevating
procurement beyond cost control toward reputational and ethical value creation.
Varsity Cube 2025 +27 81 278 3372
Assignment 1 Semester 2 2025
Unique #:
Due Date: 8 September 2025
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, QUESTION 1 [6 MARKS]
KFC South Africa’s approach illustrates how purchasing has evolved from a narrow,
transactional role into a strategic contributor to supply chain management.
Localisation (2 marks):
By sourcing all poultry locally and reinforcing supplier audits during the 2023 avian
flu outbreak, KFC demonstrates that localisation is not only about convenience but
also about resilience and risk management. According to Monczka et al. (2021),
strategic sourcing aligns supply bases with corporate goals, ensuring supply
continuity, cost efficiency, and customer trust. This localisation strategy positions
purchasing as a driver of both supply security and competitive advantage.
Supplier segmentation (2 marks):
The use of a performance-based “star system” to categorise suppliers shows a
deliberate move from simple vendor management to strategic supplier relationship
management. Top-performing suppliers are prioritised for reliability, innovation, and
long-term collaboration. This segmentation reflects a shift toward managing suppliers
as strategic assets, consistent with the study guide’s emphasis on supply
management as an enabler of innovation and value creation.
Ethical sourcing (2 marks):
KFC integrates social compliance through frameworks such as SIZA and WIETA,
aligning procurement with South Africa’s labour and safety laws. This approach
reflects a commitment to sustainability and corporate responsibility, elevating
procurement beyond cost control toward reputational and ethical value creation.
Varsity Cube 2025 +27 81 278 3372
