Exam (elaborations)
SCH4801 Assignment 2 2024 (248018) - 26 June 2024
- Course
- SCH4801 (SCH4801)
- Institution
- University Of South Africa (Unisa)
SCH4801 Assignment 2 2024 (248018) - QUESTIONS AND ANSWERS
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SCH4801ASSIGNMENT 2 2024
(248018) - 26 JUNE
2024
[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
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