Exam (elaborations)
SCH4801 Assignment 2 2024 (248018) - 26 June 2024
- Course
- SCH4801 (SCH4801)
- Institution
- University Of South Africa (Unisa)
SCH4801 Assignment 2 2024 (248018) - 26 June 2024 QUESTIONS WITH DETAILED ANSWERS
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[Company name]SCH4801
Assignment 2 2024
(248018) - 26 June
2024
QUESTIONS WITH DETAILED ANSWERS
,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
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