Checkers memorandum

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Checkers memorandum

  1. 1. Indeoendent Institute of Education - Assessment 201 1OUESTION 3Explain the three (3) levels of decision-making of supply chain management with relevantexamples.(Refer to pp. ll - 12 in Strydom et al (2"d edition) - Distribution Management.Altocate 7 mark for the strategic level, 7 mark for the operational level and 7mark for the tacticat level. Furthermore, allocate marks to a maximum of another3 marks per explanation of each level.) IMark Allocation: 1O]rlilFsTroN 4 ":{rirn{". i,*, iir;.i :ir I 6W,*Nreil"-", ffiWffiffi4.I With the ability to order platters online with Checkers, what do you think the distribution channel would most likelv look like? (4) (Marker to use discretion in awarding marks, The following is an example answer, Please refer to pages 30-34 in Strydom et al,, 2OO9, Distribution Management, Van Schailg Pta.)@ Independent Institute of Education (Pty) Ltd 2011 Page 5 of 7
  2. 2. 20rtIndependent Institute of Education - Assessment Itwou|dmost|ikelystartfromdecentra|isedsources(c|osestfarms/ drop-off points/ warehouses (1) suppliers) (l) sending fresh ingredients to be at the store when the order is and the food would most likely already placed. (1) oncean online order is placed the admin person at Checkers on|inewi||eitherca||theorderinore-mailtheorderthroughoncepayment has been received. (I)4.2 AssumingthatyouaretheMarketingManagerforCheckers,whatmeasureswou|d (6) you put into place to manage customer expectation? (MarkertousediscretioninawardingmarksThefollowingisanexample answer.Awardamaximumof6marks.PleaserefertopagesT6g-776in Van Schaik Pta) Strydom et al, 2Oo+ Distribution Management Making sure that its easy to register on the web site; (l) at all times; (l) Making sure that the web site is functional a MakingsurethatthereisaCheckerswiththeserviceinre|ative|yc|ose proximity anywhere in South Africa; (1) a InventorY availabilitY; (l) a Order lead time; (l) e-mail or smsi (1) a Verifying the order once it has been taken via a Makingsurethatthestoreconfirmsthattheorderhasbeenreceived;(1) Makingsurethatthecustomerisinformedviate|ephoneorsmswhentheir order is going to be late (l) Explain the JIT principle and why it is so relevant to these platters? (5) 4.3 (Pleaserefertopageg&73inStrydometal"2OO9DistributionManagementl Van Schaik, Pta.) TheJust.in-Time(.1)conceptpromotestheideathattherightproducts required (2) Because these arrive in the right quantities just when they are perishable product (l) platters are made up of food, and food being a Checkerswou|dbeabletominimisepotentia|waste(J)iftheyare, operating a functional JIT system as a store and give a reason 4.4 Define the distribution structure relevant to checkers whyitistnemost|ike|ydistributionstructure.A|somentionwhythisdistribution been selected against checkersparticular brand strategy? (5) structure would have @ Independent Institute of Education (Pty) Ltd 2011 Page 6 of 7
  3. 3. 201 1Independent Institute of Education - Assessment(please refer to page 60 in strydom et al, 2oo9, Distribution Management vanSchaik, Pta,) Intensive distribution (2,) invotves placement of products (usually convenience products) in as many locations as possible by using the optimum number of intermediaries (1) It is generally an appropriate objectivewhenacost|eadershipstrategy(1)isemp|oyedasthefirms competitive position and the key features of the target market segment is on purchasing convenience at a low price. checkers mainly sell convenience goodsandhaveaneveryday|owprice/cost|eadershipstrategy strategically. There are vast amounts of stores employed nationwide. (J)4.5 What do you make of the Checkers "Better and Better" positioning relevant to introducing a fine selection of wines, cheeses and meats? Q) checkers is moving into a space, cost and quality wise, between shoprite par and pick n Pay. (and potentially woolies foods) or one could argue on with Pick n Pay between Shoprite and Woolworths (2)4.6 What effect do you think the "Better and Better" positioning has had on the (3) construction and management of Checkers value chain? (Marker to use discretion in awarding marks. The following is an example answef. Award a maximum of 3 marks. Please refer to pages 67 797-794 in Strydom et al., 2OOg, Distribution Management, Van Schaik Pta) Because the campaign or positioning set certain expectations customers would then like to see good quality meats cheeses and wines - as well as a variety of these products (l). This means that products had to be sourced from more suppliers, and more intermediaries would enter the value chain - even imported products in some circumstances with its own sets of laws and regulatory channels to follow (1). To select the right store for the right type of product could be quite a daunting task, This decision is based on the demographics of each store (1). Product innovation i.e. ready prepared meats would also lead to more operational organisation in ensuring that the end product has the desired outcome (J), A positive is certainly the fact that an atready existing supply chain would have helped financially and would have also helped with potential teething problems initially - relationships with existing suppliers now providing more of their product would also have cost saving results. (J) IMark Allocation: 25] END OF PAPER @ Independent Institute of Education (Pty) Ltd 2011 Page 7 of 7

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