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
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SCH4801Assignment 2 2024
(248018) - 26 June
2024
QUESTIONS WITH COMPLETE ANSWERS
[DATE]
[COMPANY NAME]
[Company address]
,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 bird flu outbreak posed a severe
challenge to the poultry industry, impacting Nando’s supply of poultry and its core menu
items. Stringent testing and monitoring became essential to ensure product safety.
Moreover, Nando’s commitment to animal welfare and ethical sourcing adds another layer
of complexity to their supply chain. Managing a business in South Africa has unique
challenges, including resource constraints and adherence to strict government and
municipality regulations. For example, with the revamping and redesign of the Nando’s
restaurants, Nando’s needed to take into consideration the rich and cultural heritage of
over 11 South African official languages and needed to make sure that the revamp was
culturally sensitive and resonated with the local communities where the restaurants were
located. Moreover, resource challenges such as electricity (load shedding), water scarcity,
infrastructure, and labour can strain chicken, sauces, bastings, and marinade ingredients.
Another challenge was due to climate change and droughts, which can impact other
essential products, such as potatoes and greens, which are needed for Nando’s side dishes.
Environmental and sustainability efforts The company’s commitment to sustainability
extends to environmental concerns, with initiatives such as a restaurant recycling program
and eco-friendly packaging. As one of Nando’s managers said: “We set out to address a
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