THE SHOPRITE STORY

We pursue efficiency in everything that we do. By streamlining our supply chain, upgrading our operations and driving down costs, we are better able to deliver the lowest prices in a first-world shopping environment to consumers across Africa. Shoprite improved its competitive advantage and sustainability by taking control of its supply chain in line with international best practices in retail and today, not only does it command a leadership position in the industry but has also become the African continents largest distributor of grocery products.

Our state-of-the-art distribution centres and supply line infrastructure give us greater control over our inventory across 15 African countries. This empowers us to introduce a number of cost-saving efficiencies without decreasing margins or compromising on quality. Our large fleet of trucks and trailers operates 24 hours a day, seven days a week to ensure maximum availability of goods that are delivered on a time schedule. Sophisticated transport route planning and scheduling software optimises store deliveries and reduces the number of trucks on the road, thereby reducing congestion, lowering our carbon footprint and saving costs.

This efficient supply chain infrastructure also empowers small-to-medium sized suppliers to deliver merchandise directly to our centres and avoid the need to invest in either warehousing or vehicles. Our trading partners are a vital link in our supply chain and we work closely with them to create mutually beneficial relationships that go beyond simple supply and demand management. We have been pioneering reverse logistics initiatives that enhance our sustainability and environmental position, in line with international best practices. Our focus is on re-use, recycle and the reduction of waste to landfill. Our advanced supply chain also presents the opportunity to re-engineer our retail stores and optimise the use of retail space by dedicating the minimum area to storage and the maximum area to trading space. Our technological platforms are continuously being refreshed to keep us abreast of technological developments. A new ERP system and investments in digital transformation have led to increased efficiencies, more collaboration and better innovation across our businesses. Continuous investment in customer science and big data allows for improved decision making in terms of promotions, products, store layouts and pricing. The Group has invested in an extended centralised distribution network that enables us to seamlessly manage the supply of products to our stores across the continent.

As the first South African retailer to receive the renowned ISO 9001 accreditation for import and export handling, we continue to pursue our strategic lead in supply chain management. Our International Trade Department sources products from anywhere in the world with extreme efficiency, assuring our customers of choice, availability of products and value for money. We have invested substantially to create a network of advanced distribution centres. Their accompanying transport operations are supported by sophisticated information management systems. A substantial portion of the investment in information technology and logistics infrastructure has been devoted to upgrading and expanding our distribution network. (Shoprite Holdings Ltd -Website)

a) Critically analyse the above case study, and discuss any five (5) supply chain strategies that Shoprite Zambia is using to manage its supply chain in such a way that it has commanded a leadership position in its industry and is one of the biggest retail distributors in Africa.[10 marks]

b) With practical examples, explain how retail chain stores like Shoprite Zambia would use the business level strategies to leverage their competitiveness in the market. [9 marks]

c) Provide an assessment of any five (5) external business environmental forces that may have an impact on Shoprite Limiteds supply chain performance. [10 marks]