MNP3701 Assignment 1
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 8
September 2025
For assistance contact
Email:
, Localization, in the context of KFC South Africa's supply chain, refers to the strategic
decision to source materials, ingredients, and services from local suppliers within South
Africa rather than relying on international imports. This approach has transformed purchasing
from a purely administrative function into a strategic one that adds value to the entire supply
chain.
By localizing its purchasing, KFC South Africa achieves several key benefits:
• Reduces Costs and Enhances Efficiency: Sourcing from local suppliers can lower
transportation costs and shorten lead times. This allows for more predictable delivery
schedules and reduces the risk of stockouts or overstocking, which ultimately
improves operational efficiency.
• Builds Supply Chain Resilience: A localized supply chain is less susceptible to
global disruptions such as trade disputes, shipping delays, or geopolitical tensions. By
having a robust network of local partners, KFC can mitigate external shocks and
ensure a more stable supply of essential goods.
• Supports the Local Economy: This strategy directly contributes to job creation,
economic development, and increased in-country value. By investing in local
suppliers, KFC builds a positive public image and strengthens its brand reputation
within the community.
• Improves Quality Control and Communication: Working with nearby suppliers
facilitates closer collaboration and oversight. This makes it easier to conduct on-site
inspections, address quality issues promptly, and develop stronger relationships with
suppliers, which is crucial for maintaining the quality of KFC's products.
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 8
September 2025
For assistance contact
Email:
, Localization, in the context of KFC South Africa's supply chain, refers to the strategic
decision to source materials, ingredients, and services from local suppliers within South
Africa rather than relying on international imports. This approach has transformed purchasing
from a purely administrative function into a strategic one that adds value to the entire supply
chain.
By localizing its purchasing, KFC South Africa achieves several key benefits:
• Reduces Costs and Enhances Efficiency: Sourcing from local suppliers can lower
transportation costs and shorten lead times. This allows for more predictable delivery
schedules and reduces the risk of stockouts or overstocking, which ultimately
improves operational efficiency.
• Builds Supply Chain Resilience: A localized supply chain is less susceptible to
global disruptions such as trade disputes, shipping delays, or geopolitical tensions. By
having a robust network of local partners, KFC can mitigate external shocks and
ensure a more stable supply of essential goods.
• Supports the Local Economy: This strategy directly contributes to job creation,
economic development, and increased in-country value. By investing in local
suppliers, KFC builds a positive public image and strengthens its brand reputation
within the community.
• Improves Quality Control and Communication: Working with nearby suppliers
facilitates closer collaboration and oversight. This makes it easier to conduct on-site
inspections, address quality issues promptly, and develop stronger relationships with
suppliers, which is crucial for maintaining the quality of KFC's products.
