1. Indeoendent Institute of Education - Assessment 201 1
OUESTION 3
Explain the three (3) levels of decision-making of supply chain management with relevant
examples.
(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 7
mark for the tacticat level. Furthermore, allocate marks to a maximum of another
3 marks per explanation of each level.)
IMark Allocation: 1O]
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4.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.)
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2. 20rt
Independent 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?
(Markertousediscretioninawardingmarks'Thefollowingisanexample
answer.Awardamaximumof6marks.PleaserefertopagesT6g-776in
Van Schaik' Pta')
Strydom et al', 2Oo+ Distribution Management'
Making sure that it's 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"2OO9'DistributionManagementl
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 checkers'particular brand
strategy? (5)
structure would have
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3. 201 1
Independent Institute of Education - Assessment
(please refer to page 60 in strydom et al,' 2oo9, Distribution Management' van
Schaik, 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|oyedasthefirm's
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
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