MNP3701/001/3/2021

Tutorial Letter 001/3/2021

Strategic Sourcing
MNP3701

Semesters 1 & 2
Department of Applied Management

IMPORTANT INFORMATION
Please activate your myLife e-mail address, register on myUnisa and make sure
that you have regular access to the myUnisa module websiteMNP3701-2021-
S1.

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Open Rubric
 CONTENTS
Page

1 ASSESSMENT CHANGES for 2021 ACADEMIC YEAR .............................................................. 3

2 ASSIGNMENT DUE DATES .......................................................................................................... 3
2.1 Submission of assignments ........................................................................................................ 3
2.2 Compulsory assignments ............................................................................................................ 3
3 ASSIGNMENTS FOR 2021 ............................................................................................................ 3
4 EXAMINATION ............................................................................................................................... 4
5 REVISED STUDY PLAN ................................................................................................................ 4
6 CONCLUDING REMARKS ............................................................................................................ 5
ADDENDUM A: COMPULSORY ASSIGNMENT 01 ................................................................................. 6
ADDENDUM B: COMPULSORY ASSIGNMENT 02 ................................................................................. 9
ADDENDUM C: CASE STUDY FOR COMPULSORY ASSIGNMENT 01 .............................................. 12
ADDENDUM D: COVER PAGE ............................................................................................................... 14
ADDENDUM E: HONESTY DECLARATION .......................................................................................... 15
 MNP3701/101/3/2021

Dear Student

1 ASSESSMENT CHANGES for 2021 ACADEMIC YEAR

Due to the ministerial request to extend the 2021 registration dates, Unisa had to amend both the
semester dates and the assessment arrangements for the 2021 academic year.

During 2021 we will have only one semester and only one tuition and assessment period. The
purpose of this TL001 is to inform you of the new assessment requirements for MNP3701 for
students registered during 2021 for the one semester period.

2 ASSIGNMENT DUE DATES

2.1 Submission of assignments

We advise you NOT to wait until the last minute before you start with your assignments for
this module. At this stage the system is not yet open for submission of assignments. You will be
notified by means of an announcement as soon as the system opens and you are able to submit
your assignment on myUnisa.

PLEASE NOTE:
You cannot submit or post a paper copy of your assignment.

2.2 Compulsory assignments

There are TWO compulsory assignments for this module. There are non-negotiable submission
deadlines for each of these two assignments. Although it is open book assignments, you will need
to study the work before attempting to complete the assignments.

Specific due dates have been determined for the assignments. A few weeks after the due dates
of these assignments, tutorial letters (201 and 202) will be made available on myUnisa with the
answers and guidelines for those assignments. The due dates of the compulsory assignments
are reflected below.

Type of Contribution to
Due date Assessment Feedback final mark

01 11 May 2021 Written Tutorial letter 201 10%

02 14 July 2021 Written Tutorial letter 202 10%

3 ASSIGNMENTS FOR 2021

Refer to Addendum A for assignment 01

Refer to Addendum B for assignment 02

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Refer to Addendum C for the case study, “Shoprite Holdings Ltd – staying competitive”, for the
compulsory assignments (both semesters).

Please note that more details regarding the submission of assignment 02 will be
communicated in due course.

4 EXAMINATION
The examination is your opportunity to demonstrate that you have achieved the outcomes of this
module. During the year, the Examination Department will provide you with information regarding
the examination in general, dates and times. Please note that there will only be ONE exam period
for this year, which is Sep-Nov 2021.

5 REVISED STUDY PLAN

You should plan your personal study programme in such a way that you are able to go through
all the workbooks and have time to complete the assignments. Given the limited time you have
to do this, we have drawn up a study plan for you, which you may use as a guideline for studying
this module.

Remember that this study plan serves as a guideline only. You should work at your own pace and
you may even prefer to draw up your own time management schedule, which is better suited to
your particular situation. If you intend on drawing up your own schedule please remember that
the assignment dates cannot change. Thus, you need to plan your schedule around these dates.
You can also use the electronic schedule on myUnisa or the study plan document in the Study @
Unisa brochure to compile a comprehensive plan for all your modules, if you prefer. Please refer
to this brochure for guidelines on general time management and planning.

Week Study-related activities

Week 1 View study material on myUnisa; read tutorial letters

Week 2 Learning unit 1
Week 3 Work through the assessement question at the end of learning unit 1
Week 4 Learning unit 2; prepare Assignment 01 for submission
Week 5 Work through the assessement question at the end of learning unit 2
Week 6 Learning unit 3; prepare Assignment 01 for submission
Week 7 Work through the assessement question at the end of learning unit 3
Week 8 Learning unit 4; prepare Assignment 01 for submission
Week 9 Work through the assessement question at the end of learning unit 4
Week 10 Submit assignment 01 (11 May 2021)
Learning unit 5
Week 11 Work through the assessement question at the end of learning unit 5
Week 12 Learning unit 6; prepare Assignment 02 for submission
Week 13 Work through the assessement question at the end of learning unit 6
Week 14 Learning unit 7; prepare Assignment 02 for submission
Week 15 Work through the assessement question at the end of learning unit 7
Week 16 Learning unit 8; prepare Assignment 02 for submission
Week 17 Work through the assessement question at the end of learning unit 8
 MNP3701/101/3/2021

Week 18 Submit assignment 02 (14 July 2021)

Learning unit 9
Week 19 Work through the assessement question at the end of learning unit 9
Week 20 Learning unit 10
Week 21 Work through the assessement question at the end of learning unit 10
Week 22 + Revision for the examination

6 CONCLUDING REMARKS

For all other module related information please refer to Tutorial Letter 101.

You are now ready to begin the module Strategic Sourcing. We trust you will approach your
studies with enthusiasm and commitment. You are welcome to contact me should you experience
any problems with your studies.

I wish you a very successful semester!

EG Trollip
Lecturer in Purchasing and supply chain management
DEPARTMENT OF APPLIED MANANAGEMENT
UNISA

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 ADDENDUM A: COMPULSORY ASSIGNMENT 01
Assignment 01 is based on the case study called “Shoprite Holdings Ltd – staying
competitive” (Addendum C).

This assignment consists of THREE essay-type questions with application to the case study.

Assignment 01 20 MARKS
(Study units 2 and 10)
Due date Unique number
11 May 2021 775459

Learning outcome:
The objective of this assignment is to focus your attention on sustainability and supply chain
management activities.

Follow the steps below to ensure that you fulfil all the requirements for Assignment 01:

1. Complete the cover page by filling in your details (see Addendum D).
(Please note that you could also find the cover page and declaration as an
announcement titled "Declaration of own work and cover page" (in MS Word format)
under the Announcements tab on myUnisa.) Your answers to the questions below
must follow the cover page and the declaration.
2. Answer the three questions on page 7.
3. Complete the declaration (see Addendum E).
When you finished the assessment, you must declare that this assignment is your own
work. You need to sign the declaration or type in your details – no assignments will
be marked without the signed declaration. (Please note that you can also find the
cover page and declaration as an announcement titled "Declaration of own work and
cover page" (in MS Word format) under the Announcements tab on myUnisa).
By signing the declaration, you agree that this assignment is your own work and that
no one has done it on your behalf, nor did you copy the answers from someone else's
work (i.e. commit plagiarism).
In addition, you declare that you have not plagiarised any author's work, but have
referenced the relevant material correctly and responsibly by acknowledging the
sources in the text, as well as in the reference list. Refer to section 8.4 for more
information on student plagiarism, policies and rules in tutorial letter 101.
Please note that no assignments will be marked without the declaration form.
4. Convert your answers and the report to PDF before uploading them.
Please note the sequence of your portfolio – cover page, declaration followed by your
answers. Also note that if you save your answers as a protected file, - we will not be
able to mark you answers and the marks you receive for your portfolio will be zero.
 MNP3701/101/3/2021

Also note that your cover page, declaration and answers should be included in one
PDF document.
5. Submit your answers and the report on the Info Assessment tool via the
myUnisa platform.

Instructions and guidelines for answering the questions for assignment 01

Read the case study in Addendum C in order to answer the questions below.

Pay attention to the marks allocated to a particular question, as this will guide you in terms of
how much time you should spend on the question and the amount of detail that is required.
Structure your answer by using headings and bullets, and by underlining (or highlighting) the
important elements.

In a case study assignment, you must base your answer on the relevant theory appropriate to
the circumstances described in the case. Justify the particular part of the theory that you select
in relation to its suitability for the case. You must justify your answers based on the case study
or make relevant assumptions. You will be penalised if you copy and paste the theory out
of your prescribed book.

Please note that there is no need for an introduction and conclusion. You need to write down
the number and the question followed by your answer. Your assignment should not exceed
three pages. Also, note that some of the questions will test your insight and will not be
taken directly from the study material.

ASSIGNMENT 01 25 MARKS

1 Identify and briefly discuss any four purchasing objectives in which Shoprite excels.
Substantiate your answer with relevant examples from the case study. (12)

2 Defend the use of long-term supplier relationships with critical suppliers. Substantiate your
answer with relevant examples from the case study. (6)

3 One of the supplier representatives who is in negotiation for more shelf space at Shoprite
bought coffee and lunch for the Shoprite purchasing manager. Explain whether this behaviour
by the supplier was ethical or unethical and give reasons for your answer. (2)

Five (5) marks will be allocated for the presentation of your assignment (structure, cover page,
table of contents, neatness, paragraphs, headings and declaration form).

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 KHUMBULA (remember)

that you need to apply your knowledge of the theoretical work you have studied to
either this case study. Do not forget to include the cover page and declaration with
your answers in ONE pdf document.

____________________________________________________________________________
The answer to this assignment will be provided in Tutorial Letter MNP3701/201/1/2021, which will
ONLY be available on myUnisa after the due date of Assignment 01. Please note that you will not
receive a hard copy of Tutorial Letter 201.
 MNP3701/101/3/2021

ADDENDUM B: COMPULSORY ASSIGNMENT 02

Please note that this is a written assignment. Although Assignment 02 consists of multiple-
choice questions, it should not be answered on mark-reading sheets. It must be done in a written
format. The assignment consists of five multiple-choice questions, which count two to four marks
each. No “negative” marking will be applied. Make sure that you submit the correct assignment
for the semester you are registered for.

Learning outcome:
After completing this assignment, you should have an overview of the topic of strategic
sourcing.

Assignment 02
[20 MARKS]
(Study units 3, 5, 7 and 9)
Due date Unique number
14 JULY 2021 668773

Guidelines to answer Assignment 02:

Instructions for answering the multiple-choice questions:

Write down:
(a) the number of the question,
(b) the option representing your answer,
(c) reasons for choosing that option, and
(d) reasons why each of the other options are incorrect.
Example:
Question 1
Under which market structure is there only one supplier that can provide a product or
services?
[a] oligopoly
[b] perfect competition
[c] monopoly
[d] recession

Question 1: Option [c] monopoly is correct, as this market structure is characterised by a

single seller selling unique products in the market. In a monopoly market, the sellers face no
competition, as they are the sole seller of goods, with no substitutes. They enjoy the power
of setting the price of their goods.

Option a, oligopoly is incorrect, because as in this market structure there are …

Option b, perfect completion is incorrect because as this market structure there are…
Option d, recession is incorrect as it …..

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 Please note – no marks will be given for the theory or explanation if it is copied and
pasted out of the prescribed book. Your answers should not exceed two pages in total.
Some of the multiple-choice questions will test your insight and will not be directly from the
study material. Your assignment should not exceed three pages.

QUESTION 1
An organisation finds out that items have been produced without any orders and that some
employees are idling. Which one of the following tools can help an organisation to identify waste
in a project or processes? [4]
[a] process mapping
[b] value analysis
[c] value stream mapping
[d] programme evaluation and review technique

QUESTION 2
According to the Institute of Supply Chain Management (ISM), … is defined as the ability to meet
current needs without hindering the ability to meet the needs of future generations regarding
economic environmental and social challenges. [4]
[a] sustainability
[b] scenario analysis
[c] social responsibility
[d] supply chain risk management

QUESTION 3
The most common reason why an organisation buys from local suppliers is … [4]
[a] community goodwill and quick replenishment.
[b] the use of the JIT system and dramatic price savings.
[c] improved quality and cost benefits.
[d] access to current technology.

QUESTION 4
Which one of the following options could be used by an organisation to achieve a rapid reduction
in the number of its suppliers? [4]
[a] “Improve or else” approach
[b] Triage approach
[c] Competency staircase approach
[d] Eighty-twenty rule approach

QUESTION 5
The … requires a purchaser to identify and measure costs beyond the standard unit price,
transportation and tooling when evaluating purchase proposals or supplier performance. [4]
[a] break-even analysis
[b] total cost of ownership
[c] cost mark-up pricing model
[d] market-share model
 MNP3701/101/3/2021

The answers to this assignment will be provided in Tutorial Letter MNP3701/202/1/2021, which
will ONLY be available on myUnisa after the due date of Assignment 02. Please note that you will
not receive a hard copy of Tutorial Letter 201.

HOPOLA, KHUMBULA, TSUNDZUKA, ONTHOU,

REMEMBER
to log on to myUnisa and check for new announcements, and other online
activities.
We are halfway there! 😊
Time to start preparing for your examinations!
Good luck! Ask your lecturer to assist you if you need help.

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 ADDENDUM C: CASE STUDY FOR COMPULSORY ASSIGNMENT 01
Shoprite Holdings Ltd – staying competitive
Shoprite Holdings consists of Shoprite, Checkers, Usave and OK Bazaars. They have invested
significantly in the correct positioning of all their brands, as they aim to provide their customers
with a variety of options in their choice of products and also value for money. These supermarkets
cover various demographic and geographic profiles to meet the needs of the various customers
of different income groups/living standards measure (LSM) categories. For example, Checkers
and Checkers Hyper stores focus on the affluent high-end consumer, while Shoprite focuses on
the broad middle-to-lower market end segment. The OK Bazaars franchise caters for the smaller
convenience-oriented markets in rural towns, whereas Shoprite Usave is used as a tool to
penetrate the economically disadvantaged communities in Africa. Shoprite is the largest in terms
of turnover and with regard to the number of stores. Shoprite Holdings’ main strategy is to be and
maintain its position as South Africa’s largest African retailer.

Shoprite Holdings has been at the forefront of strategic planning, owing to its substantial
investment in infrastructure. The expansion of the company into franchises allowed it to seize
market share from its competitors locally as well as across the border into many parts of Africa.
The use of centralised distribution centres allows small- to medium-sized suppliers to deliver
directly to the distribution centres. These distribution centres enable them to increase their market
share by offering the consumer a variety of locally manufactured products. Furthermore, the
centralised distribution centres allow stockpiling during a time of rising prices, which enables them
to keep their prices as low as possible for extended periods.

In their drive to have a variety of products at the lowest possible price, Shoprite Holdings uses
efficient consumer response (ECR) as one of its strategic weapons. ECR assists them in
increasing their level of services and enables them to provide products at the lowest possible
price. It also assists build win-win collaborative relationships, which includes long-term contacts
with their various suppliers. Through long-term relationships, the utilisation of new information
systems and ECR succour, Shoprite Holdings aims to have the right product, at the right place,
at the right time, in the right quantity, and in the most efficient manner possible. Because of its
large market share and competitive advantages, market penetration is more difficult, and costly,
for newcomers. Shoprite Holdings has managed to stay ahead of its local competitors by staying
innovative and not being afraid to take risks.

Shoprite Holdings’ innovative journey includes complementary services such as in-store

pharmacies, and liquor outlets close to the entrances of the various supermarkets. Another
innovative approach is Freshmark, the international and national procurement, purchase and
distribution arm of Shoprite Holdings that supplies fruit and vegetables to its stores. Freshmark
imports fruit and vegetables when needed. However, they buy mostly from large and medium- to
small-scale local farmers, as they are committed to the principles of broad-based black economic
empowerment (B-BBEE) and social upliftment. Therefore, they equip emerging farmers with
knowledge and skills to produce products that meet international standards such as
GLOBAL.G.A.P, which is a farm assurance programme, translating consumer requirements into
good agricultural practice. International Food Safety Auditors audit farmers regularly. The Hazard
Analysis of Critical Control Points (HACCP) principles, quality standards and food safety
assurance programmes are applied in all the distribution and production facilities.
 MNP3701/101/3/2021

Shoprite’s quality drive paid off, as it is the first South African retailer to receive the ISO 9001
certification for its freight-forwarding and clearing processes. Shoprite invested in expert-based
route planning and scheduling solutions, which focus on night deliveries, thereby leading to
reduced traffic congestion on the roads and at receiving bays. The benefits obtained through this
environmentally-friendly approach include a reduction in their carbon footprint and operating
costs. Shoprite applies international benchmarking to all aspects of the business such as waste
management, recycling and the management of distribution equipment, which enables them to
strengthen their low pricing position. Shoprite has remained true to its commitment to provide
quality, refreshing products at the lowest possible pricing.

Shoprite believes that the reason behind their success is the time spent on learning about long-
distance trade, information technology capabilities, long-term supplier relationships, international
acquisition skills, their centralised operating bases and the development of inventory chains. They
also believe that, through continuous market research, international benchmarking, and their
experience in management and extensive operations skills, they can face any challenge that the
food retailing industry may offer as a result of new entrants that may infringe on their market.

SOURCES
http://www.shopriteholdings.co.za/files/1019812640/About-our-Company/Shoprite_Group_services_SupplyChain_2009.pdf
https://www.shopriteholdings.co.za/group/brands/Freshmark.html
https://www.shopriteholdings.co.za/search-results/sustainability-documents.html
https://www.shopriteholdings.co.za/content/dam/MediaPortal/documents/shoprite-holdings/Sustainability-
Report/2018/Shoprite_Holdings_2018_Sustainability_Report_FINAL.pdf
https://www.sgs.co.za/en/agriculture-food/food/gfsi-certification/globalgap

(All the above resources were accessed on 25 March 2019.)

___________________________________________________________________________

HOPOLA, KHUMBULA, TSUNDZUKA, ONTHOU

REMEMBER
Do not forget about your lecturer and to participate on myUnisa.

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 ADDENDUM D: COVER PAGE

MNP3701
ASSIGNMENT

STRATEGIC SOURCING
STUDENT NUMBER

IDENTITY NUMBER

Marks
Question No
Examiners
1 2 3

……………………………………………………….
Name and surname

……………………………………………………….
Number of papers

Total
 MNP3701/101/3/2021

ADDENDUM E: HONESTY DECLARATION

STUDENT NUMBER: __________________

I, ___________________________________________ declare that this assignment is my

own work and that no one has done it on my behalf, nor did I copy answers from someone
else’s work, and that all the sources that I have used or quoted have been indicated and
fully acknowledged using complete references.

Signed Date

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