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, QUESTION 1 [12 MARKS]
1.1
Differentiate between Nando’s supply chain and its value chain. [2]
Nando’s Supply Chain vs. Value Chain**
Supply Chain:
The supply chain at Nando’s refers to the network of activities and entities involved in
the sourcing, production, and distribution of its products, particularly its peri-peri
chicken and other menu items. This includes relationships with suppliers (for ingredients
and packaging), logistics for transporting these goods to restaurants, quality control
measures to ensure ingredient standards, and processes for inventory management. The
focus here is on the flow of goods and services from suppliers to the customer, ensuring
consistent quality and timely availability of products across all locations.
Value Chain:
The value chain, on the other hand, encompasses a broader view of the activities that
add value to Nando’s products and overall business operation. This includes not only the
supply chain activities but also internal processes such as procurement strategies,
marketing efforts, customer service, and restaurant operations. The value chain
emphasizes how Nando's differentiates itself in the marketplace through high-quality
food, customer experiences, branding strategies, and cost efficiencies, aiming to deliver
value to customers while achieving competitive advantages.
In summary, while the supply chain focuses primarily on the logistics and sourcing of
materials for meal preparation, the value chain encompasses the entire process that
creates value from those inputs, including customer interaction and branding strategies.
1.2 As stated in the case study, Nando’s ensures a stable supply of inputs through
numerous initiatives. Discuss five possible benefits Nando’s may gain by managing
their supply base. [10]
Managing a stable supply base is critical for Nando’s successful operations, especially
given their emphasis on high-quality ingredients and consistent service across their
restaurants. Here are five possible benefits Nando’s may gain by managing their supply
base effectively:
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