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Strategic Sourcing - MNP3701 (MNP3701)
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MNP3701
Assignment 4 Semester 1 2024
Unique #:528413
Due Date: 14 May 2024
Detailed solutions, explanations, workings
and references.
+27 81 278 3372
, QUESTION 1
a.
Introducing a low-cost country sourcing strategy (LCCS) into Pepkor’s supply chain
framework could potentially inhibit their sustainability objectives. While LCCS may
offer cost savings through cheaper labor and production costs, it may also lead to
increased transportation and environmental impact due to longer supply chains.
This could contradict Pepkor's commitment to sustainability and responsible
sourcing practices. Additionally, LCCS may not align with their focus on local
manufacturing and promoting economic empowerment within the communities they
serve.
b.
Implementing LCCS may pose regulatory and compliance hurdles for Pepkor,
especially given their commitment to sourcing locally and supporting the South
African government’s 2030 Retail–Clothing, Textile, Footwear, and Leather Master
Plan (R-CTFL Master Plan). Introducing LCCS may require navigating trade
agreements, import regulations, and compliance with labor and environmental
standards in the countries where the sourcing takes place. Additionally, it may
necessitate ensuring that suppliers abroad adhere to the same ethical and
sustainable practices that Pepkor upholds, posing challenges in monitoring and
enforcing compliance across geographically dispersed supply chain operations.
QUESTION 2
Porter’s Five Forces competitive position analysis for Pepkor’s locally sourced
products:
1. Threat of new entrants:
Pepkor’s dedication to sourcing locally creates a barrier to entry for new
competitors who may not have established relationships with local suppliers. By
working closely with local manufacturers and raw material suppliers, Pepkor has a
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