, Question 1
1. Core logistics activities Pick n Pay could carry out to fulfil orders
To fulfil customer and store orders effectively, Pick n Pay must perform several core logistics
activities within its supply chain. Logistics activities refer to the processes involved in planning,
implementing, and controlling the efficient flow and storage of goods from suppliers to customers.
Based on its retail operations and supply chain structure, the following activities are relevant.
Procurement and inbound logistics
One key logistics activity is sourcing and receiving goods from suppliers. Pick n Pay collaborates
with suppliers to maintain consistent production and distribution of products and ensure stock
availability, particularly during disruptions such as the Covid-19 pandemic. The company has also
increased inventory levels and worked closely with suppliers to ensure the steady supply of
essential goods (Studocu, undated). Goods procured locally and internationally are received at
distribution centres, where imported containers are offloaded before being moved into storage
facilities (Future Trucking & Logistics, 2016). This demonstrates inbound logistics involving supplier
coordination, material handling, and receiving.
Warehousing and inventory management
Warehousing is another core activity, involving storage, handling, and control of goods before
distribution. Pick n Pay operates numerous distribution centres that store groceries, fresh produce,
and general merchandise, acting as central hubs linking suppliers to retail stores (Business Day,
2022; Enterprise Africa, undated). These facilities use warehouse systems and fine-picking areas to
manage large product volumes and enable deliveries to stores up to seven times a week (Studocu,
undated). Efficient warehousing allows the company to manage stock levels, maintain product
availability, and reduce waste.
Order processing and fulfilment
Order processing includes receiving store orders, picking items, packing, and preparing shipments.
Distribution centres play a crucial role in order fulfilment by consolidating products, ensuring
correct quantities are selected, and enabling efficient replenishment of stores (Enterprise Africa,
undated). Improved layouts and systems at facilities such as the Eastport distribution centre are
designed to maintain high levels of order fulfilment and supply efficiency (Pick n Pay Investor
Circular, 2024). This ensures accurate and timely delivery of stock to retail outlets.
Transportation and distribution
Transporting goods from distribution centres to stores or export markets is a fundamental logistics
activity. Pick n Pay outsources much of its transportation to third-party service providers rather
than operating its own fleet (Pick n Pay Investor Circular, 2024). External partners distribute
products nationally and across neighbouring countries through dedicated fleets and logistics
networks (Future Trucking & Logistics, 2016). Distribution centres are strategically located near
transport routes to minimise delivery time and improve efficiency (Startup Magazine, 2023).
Transportation ensures goods move through the supply chain to meet customer demand.
1. Core logistics activities Pick n Pay could carry out to fulfil orders
To fulfil customer and store orders effectively, Pick n Pay must perform several core logistics
activities within its supply chain. Logistics activities refer to the processes involved in planning,
implementing, and controlling the efficient flow and storage of goods from suppliers to customers.
Based on its retail operations and supply chain structure, the following activities are relevant.
Procurement and inbound logistics
One key logistics activity is sourcing and receiving goods from suppliers. Pick n Pay collaborates
with suppliers to maintain consistent production and distribution of products and ensure stock
availability, particularly during disruptions such as the Covid-19 pandemic. The company has also
increased inventory levels and worked closely with suppliers to ensure the steady supply of
essential goods (Studocu, undated). Goods procured locally and internationally are received at
distribution centres, where imported containers are offloaded before being moved into storage
facilities (Future Trucking & Logistics, 2016). This demonstrates inbound logistics involving supplier
coordination, material handling, and receiving.
Warehousing and inventory management
Warehousing is another core activity, involving storage, handling, and control of goods before
distribution. Pick n Pay operates numerous distribution centres that store groceries, fresh produce,
and general merchandise, acting as central hubs linking suppliers to retail stores (Business Day,
2022; Enterprise Africa, undated). These facilities use warehouse systems and fine-picking areas to
manage large product volumes and enable deliveries to stores up to seven times a week (Studocu,
undated). Efficient warehousing allows the company to manage stock levels, maintain product
availability, and reduce waste.
Order processing and fulfilment
Order processing includes receiving store orders, picking items, packing, and preparing shipments.
Distribution centres play a crucial role in order fulfilment by consolidating products, ensuring
correct quantities are selected, and enabling efficient replenishment of stores (Enterprise Africa,
undated). Improved layouts and systems at facilities such as the Eastport distribution centre are
designed to maintain high levels of order fulfilment and supply efficiency (Pick n Pay Investor
Circular, 2024). This ensures accurate and timely delivery of stock to retail outlets.
Transportation and distribution
Transporting goods from distribution centres to stores or export markets is a fundamental logistics
activity. Pick n Pay outsources much of its transportation to third-party service providers rather
than operating its own fleet (Pick n Pay Investor Circular, 2024). External partners distribute
products nationally and across neighbouring countries through dedicated fleets and logistics
networks (Future Trucking & Logistics, 2016). Distribution centres are strategically located near
transport routes to minimise delivery time and improve efficiency (Startup Magazine, 2023).
Transportation ensures goods move through the supply chain to meet customer demand.
