FULL NAMES:
STUDENT NUMBER:
UNIQUE NUMBER: 201122
MODULE CODE: TRL3701
MODULE NAME: TRANSPORT MANAGEMENT II
ASSIGNMENT: 01
SEMESTER 1_2025
, Question 1
Core Logistics Activities for Pick n Pay
Efficient logistics management is essential for Pick n Pay to maintain a steady supply
chain that ensures customers receive their desired products without disruptions.
Logistics involves various interconnected processes that facilitate the movement of
goods from suppliers to the final point of sale. One of the most crucial logistics activities
is procurement, which involves acquiring products from suppliers based on demand
forecasts. Procurement requires negotiations with suppliers to secure competitive prices
while ensuring timely deliveries. This process directly impacts the availability of goods in
stores, as delays in procurement can lead to stock shortages that affect customer
satisfaction (TRL3701 Study Guide, 2018:15). To optimize procurement, Pick n Pay can
use just-in-time (JIT) inventory systems, which reduce excessive stockholding and
minimize storage costs. Sourcing products closer to the time of sale, the company can
reduce waste and enhance efficiency.
Another key logistics activity is inventory management, which ensures that Pick n Pay
maintains an adequate balance of stock in its distribution centers and retail stores.
Managing inventory effectively involves tracking sales trends, monitoring stock levels,
and forecasting future demand. If stock levels are not managed well, the company risks
either overstocking, which increases storage costs, or understocking, which results in
lost sales opportunities. The use of advanced inventory tracking systems, such as
barcode scanning and automated stock replenishment, can help improve accuracy and
streamline stock control (Rodrigue, 2020:42). Additionally, adopting demand forecasting
models can enable Pick n Pay to predict seasonal changes and adjust inventory levels
accordingly. For instance, increased sales of certain products during festive seasons
require a proactive approach to ensure sufficient stock availability.
Transportation and distribution form another essential component of Pick n Pay’s
logistics. The company must ensure that products move efficiently between suppliers,
warehouses, and retail stores. An optimized transportation system minimizes delivery
delays, reduces costs, and ensures product freshness, particularly for perishable goods.
Pick n Pay operates both company-owned and third-party logistics services, depending
STUDENT NUMBER:
UNIQUE NUMBER: 201122
MODULE CODE: TRL3701
MODULE NAME: TRANSPORT MANAGEMENT II
ASSIGNMENT: 01
SEMESTER 1_2025
, Question 1
Core Logistics Activities for Pick n Pay
Efficient logistics management is essential for Pick n Pay to maintain a steady supply
chain that ensures customers receive their desired products without disruptions.
Logistics involves various interconnected processes that facilitate the movement of
goods from suppliers to the final point of sale. One of the most crucial logistics activities
is procurement, which involves acquiring products from suppliers based on demand
forecasts. Procurement requires negotiations with suppliers to secure competitive prices
while ensuring timely deliveries. This process directly impacts the availability of goods in
stores, as delays in procurement can lead to stock shortages that affect customer
satisfaction (TRL3701 Study Guide, 2018:15). To optimize procurement, Pick n Pay can
use just-in-time (JIT) inventory systems, which reduce excessive stockholding and
minimize storage costs. Sourcing products closer to the time of sale, the company can
reduce waste and enhance efficiency.
Another key logistics activity is inventory management, which ensures that Pick n Pay
maintains an adequate balance of stock in its distribution centers and retail stores.
Managing inventory effectively involves tracking sales trends, monitoring stock levels,
and forecasting future demand. If stock levels are not managed well, the company risks
either overstocking, which increases storage costs, or understocking, which results in
lost sales opportunities. The use of advanced inventory tracking systems, such as
barcode scanning and automated stock replenishment, can help improve accuracy and
streamline stock control (Rodrigue, 2020:42). Additionally, adopting demand forecasting
models can enable Pick n Pay to predict seasonal changes and adjust inventory levels
accordingly. For instance, increased sales of certain products during festive seasons
require a proactive approach to ensure sufficient stock availability.
Transportation and distribution form another essential component of Pick n Pay’s
logistics. The company must ensure that products move efficiently between suppliers,
warehouses, and retail stores. An optimized transportation system minimizes delivery
delays, reduces costs, and ensures product freshness, particularly for perishable goods.
Pick n Pay operates both company-owned and third-party logistics services, depending
