,SCH4801 Assignment 3 (COMPLETE ANSWERS)
Semester 2 2025 – DUE 10 October 2025 ; 100%
correct solutions and explanations.
SECTION A: QUESTION 1
Question 1.1: Identify and explain the main supply chain risks
Toyota South Africa faced between 2019 and 2022. (10 marks)
Toyota South Africa encountered two major supply chain risks
during this period:
1. Supplier dependency risk (2019 component shortage):
o Toyota over-relied on a single supplier, Auto Parts
South Africa (ASA), for critical components such as
brake pedals, catalytic converters, and fuel tanks.
o The strike at ASA created a supply disruption risk,
which halted production of 500 vehicles per day,
resulting in losses of about 6,000 vehicles.
o This demonstrates the risk of single-sourcing and
labour unrest, which directly affects continuity of
operations.
2. Environmental and climate-related risk (2022 KwaZulu-
Natal floods):
o Severe flooding damaged Toyota’s Prospecton plant,
destroying approximately 88% of on-site vehicles
and halting production.
, o Logistics were also disrupted due to congestion at
the Durban port, delaying imports and exports.
o Toyota lost around 45,000 vehicles, showing the
vulnerability of supply chains to natural disasters
and climate change.
3. Market and competitive risk:
o During both disruptions, competitors like Ford and
VW could capture market share by fulfilling
customer orders that Toyota could not meet.
o This reflects a strategic risk tied to reputation and
customer loyalty.
In summary, Toyota’s risks were operational (supplier failure),
environmental (flooding/climate change), and strategic (loss
of competitiveness).
Question 1.2: Discuss the resilience strategies Toyota South
Africa applied, and evaluate their effectiveness. (10 marks)
Toyota used several resilience strategies:
1. Diversifying suppliers and onboarding new ones:
o After the ASA strike, Toyota sourced alternative
suppliers to reduce reliance on a single partner.
Semester 2 2025 – DUE 10 October 2025 ; 100%
correct solutions and explanations.
SECTION A: QUESTION 1
Question 1.1: Identify and explain the main supply chain risks
Toyota South Africa faced between 2019 and 2022. (10 marks)
Toyota South Africa encountered two major supply chain risks
during this period:
1. Supplier dependency risk (2019 component shortage):
o Toyota over-relied on a single supplier, Auto Parts
South Africa (ASA), for critical components such as
brake pedals, catalytic converters, and fuel tanks.
o The strike at ASA created a supply disruption risk,
which halted production of 500 vehicles per day,
resulting in losses of about 6,000 vehicles.
o This demonstrates the risk of single-sourcing and
labour unrest, which directly affects continuity of
operations.
2. Environmental and climate-related risk (2022 KwaZulu-
Natal floods):
o Severe flooding damaged Toyota’s Prospecton plant,
destroying approximately 88% of on-site vehicles
and halting production.
, o Logistics were also disrupted due to congestion at
the Durban port, delaying imports and exports.
o Toyota lost around 45,000 vehicles, showing the
vulnerability of supply chains to natural disasters
and climate change.
3. Market and competitive risk:
o During both disruptions, competitors like Ford and
VW could capture market share by fulfilling
customer orders that Toyota could not meet.
o This reflects a strategic risk tied to reputation and
customer loyalty.
In summary, Toyota’s risks were operational (supplier failure),
environmental (flooding/climate change), and strategic (loss
of competitiveness).
Question 1.2: Discuss the resilience strategies Toyota South
Africa applied, and evaluate their effectiveness. (10 marks)
Toyota used several resilience strategies:
1. Diversifying suppliers and onboarding new ones:
o After the ASA strike, Toyota sourced alternative
suppliers to reduce reliance on a single partner.
