Exam (elaborations)
SCH4801 Assignment 2 2024 (248018) - 26 June 2024
- Course
- SCH4801 (SCH4801)
- Institution
- University Of South Africa
SCH4801 Assignment 2 2024 (248018) - 26 June 2024 QUESTIONS WITH COMPLETE ANSWERS
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SCH4801 Assignment2 2024 (248018) - 26
June 2024
QUESTIONS WITH COMPLETE ANSWERS
[School]
[Course title]
,SCH4801 Assignment 2 2024 (248018) - 26 June 2024
SECTION A TOTAL:[24 MARKS]
Please read the case study below before answering any questions. SCH4801
ASSIGNMENT 2 2024 Page 7 of 16 Nando’s: A Triumph of Supply Chain
Excellence Nando’s, a South African casual dining restaurant chain renowned
for its delectable flame-grilled peri-peri chicken, has had a remarkable
journey that started in 1987 in Johannesburg, South Africa. From its humble
origins as a single restaurant in Johannesburg, Nando’s has expanded its
global footprint to over 1,000 locations in 35 countries, including the UK,
Canada, and Australia. Central to the brand’s enduring success is its
unwavering commitment to sourcing high-quality ingredients, with a
particular emphasis on its chicken supply chain. Complex Supply Chain
Management Nando’s South Africa sources various ingredients, such as
chicken locally sourced high-quality chillies, from suppliers in different
countries, such as Mozambique. These products’ fresh and perishable nature
necessitates an intricate supply chain management system. To guarantee a
steady supply of top-notch ingredients, the company strongly emphasises food
safety and quality, collaborating with independent testing and certification
agencies. Managing the delicate balance between short shelf life and consumer
demand is a challenge they have successfully navigated as they have grown
through sophisticated logistics, a computerised system to track real-time
inventory levels across the supply chain, integrated transport management
technology and outsourcing distribution. Thanks to cold chain management,
Nando ensures that fresh chicken remains viable for up to seven days.
Efficiency through collaboration and quality control Nando’s manages its
, supply chain as a business within a business, establishing committed
partnerships with suppliers, exemplified by its ‘partnership for growth’ with
chilli farmers in Mozambique. Much effort has gone into working closely with
farmers towards empowering the small farmers. Nando’s has invested in
equipping farmers by providing tools, training, and skills to sustain their
farms. In their drive for efficiency, various functions such as procurement,
logistics, and quality control work together to ensure a seamless supply chain
operation by sharing information across these functions. In their drive for
quality, the company has developed a rigorous quality control process that
includes regular inspections of its suppliers’ farms and processing facilities to
ensure its final product meets strict quality standards. Additionally, Nando’s
requires its suppliers to adhere to strict animal welfare guidelines, ensuring its
chicken is ethically and sustainably sourced. Moreover, Nando’s also actively
promotes a culture of continuous improvement, which requires integration
across different functions. This involves setting performance metrics and
targets, sharing best practices and lessons learned, and encouraging
innovation and collaboration. Nando’s optimises its supply chain, enhancing
customer service and delivering competitive pricing to remain sustainable in a
highly competitive industry. The company’s strategies, such as benchmarking
and total cost of ownership analysis, further contribute to supply chain
efficiency. SCH4801 ASSIGNMENT 2 2024 Page 8 of 16 Supply chain
challenges Despite its many successes, Nando’s has faced supply chain
challenges. In 2021, the UK experienced a significant shortage of Nando’s Peri
Peri chicken due to supplier staff shortages. The unpredictability of such
disruptions highlights the complexities of managing a global supply chain. In
2022, South Africa confronted chicken shortages due to load shedding,
affecting chicken production and restaurant deliveries. In October 2023, a
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