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Exam (elaborations)

Exam (elaborations) Logistics Management (TRL3701) Managing Transport Operations

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The Pick n Pay Stores Limited, through its subsidiaries and associates, operates in the retail sector on the African continent. Pick n Pay is the quintessential family store focused on the customer. Since 1967 when consumer champion Raymond Ackerman purchased the first few stores, the Ackerman fami...

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  • March 7, 2024
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TRL3701
Assignment 1 Semester 1 2024
Due Date : 8 March 2024

Unique Number : 518784
This document contains questions and step by step solutions.

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1. Discuss the possible core logistics activities that Pick n Pay could carry out to fulfil orders. (15)
2. Briefly explain how Pick n Pay could improve their image through customer relation
management. (5)
3. Pick n Pay want to expand their business operations. Identify and discuss any 5 (five)
organisational activities that they should not outsource give reasons for your answers. (15)
4. Discuss any 2 major forces that may affect Pick n Pay’s pricing strategy. (5)
Total [40]

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, 1.
Pick n Pay, a prominent retail chain operating across the African continent, relies on
robust logistics operations to fulfil customer orders efficiently. This essay delves into
the core logistics activities undertaken by Pick n Pay to ensure seamless order
fulfilment, considering factors such as procurement, inventory management,
warehousing, transportation, and distribution.


Procurement:


Procurement plays a crucial role in Pick n Pay's supply chain, encompassing the
sourcing of products from suppliers. The company must negotiate contracts, place
orders, and ensure timely delivery of goods to maintain adequate stock levels in its
stores. By partnering with reliable suppliers and leveraging economies of scale, Pick n
Pay can secure competitive pricing and high-quality products for its customers.


Inventory Management:


Effective inventory management is essential for Pick n Pay to optimize stock levels and
meet customer demand efficiently. The company utilizes advanced inventory
management systems to track inventory levels, forecast demand, and implement
replenishment strategies. By maintaining an optimal balance between demand and
supply, Pick n Pay minimizes stock outs while avoiding overstocking, thus maximizing
profitability and customer satisfaction.


Warehousing:


Warehousing is a critical component of Pick n Pay's logistics infrastructure, providing
storage facilities for inventory before distribution to stores. The company strategically
locates warehouses to ensure proximity to suppliers and minimize transportation costs.
Additionally, Pick n Pay invests in modern warehousing technologies and equipment
to streamline operations and enhance inventory visibility and control.


Transportation:

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