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MNP3701 Assignment 4 Due 14 May 2024
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MNP3701 Assignment 4 Semester 1 2024
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MNP3701ASSIGNMENT 4 14 MAY 2024
QUESTION 1
Considering Pepkor's dedication to sourcing locally and its focus on developing
strategic partnerships with suppliers, assess the feasibility of introducing a low-cost
country sourcing strategy (LCCS) into Pepkor’s supply chain framework. In
particular, analyse whether such a strategy would (a) support or inhibit Pepkor's
sustainability objectives [2] and (b) outline any regulatory and compliance hurdles
that might arise during its implementation
(a) Support or Inhibit Sustainability Objectives:
Support: LCCS could potentially support Pepkor's sustainability objectives by reducing
costs, which may allow for investments in sustainable practices elsewhere in the supply
chain. Lower production costs in low-cost countries could translate to more affordable
products for consumers, aligning with Pepkor's commitment to offering value-for-money
products. Also, if the chosen low-cost countries have less stringent environmental
regulations, this could inadvertently lower the carbon footprint associated with
manufacturing.
Inhibit: However, LCCS may also inhibit sustainability objectives. Introducing long-distance
transportation to source products from low-cost countries could increase carbon emissions
and contribute to environmental degradation. More to that, if the chosen low-cost countries
have lax labor regulations or poor working conditions, sourcing from these regions could
conflict with Pepkor's ethical sourcing and responsible business practices.
(b) Regulatory and Compliance Hurdles:
Labor Standards and Implementing LCCS may encounter regulatory hurdles related to labor
standards. Pepkor would need to ensure that suppliers in low-cost countries adhere to labor
laws and standards, such as fair wages, safe working conditions, and no child labor. Failure
to comply with these regulations could result in reputational damage and legal
ramifications.
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