Explain the control process that Massmart’s management need to use to ensure that resources are meaningfully deployed so that the mission and objectives of the organisation can be achieved.

Important: You are required to consult the case study provided, additional reading as well as your own research.

Scenario:

Read the case study provided and conduct additional research on Massmart before compiling your report.

Massmart supply chain optimisation on track and delivering results

Massmart’s supply chain optimisation journey has formed a crucial part of its turnaround efforts by focusing on the consolidation of logistics, warehousing and stock control across its brands. The revised model is more centralised and is enabling Massmart to experience several benefits at group level. The model also benefits suppliers with consolidated delivery drop off points. These consolidated drop-off points are primarily three mega distribution centres located across South Africa – Brackengate in the Western Cape, Northfields in KwaZulu-Natal and Riversands in Gauteng. Ultimately, this improves in-store stock availability and sales.

“The steps taken in our supply chain optimisation journey and the benefits thereof were tested most acutely during the July unrest last year,” explains Khethokuhle Nyawose, Group Supply Chain Operations Vice President. “Not only did our new streamlined model play a critical role in Massmart’s response and recovery to the crisis, including the setup and operation of a temporary distribution centre in record time, but also the agility and optimisation of our logistics fleet. “For example, the Builders fleet transported care packages containing essential items from Makro to communities in need in KwaZulu-Natal as soon as the N3 highway re-opened.”

Perhaps more telling, and especially after the loss of two distribution centres during the unrest, was that the supply chain team needed to fast-track the completion of the aforementioned Northfields and Riversands distribution centres, six months ahead of schedule (the Brackengate location launched in May 2021). Having all three mega distribution centres up and running sooner than expected has significantly benefitted Massmart’s recovery from the unrest. Moreover, it has proven to be invaluable in managing continued Covid-19 related disruption to international supply chains. Looking forward, new technology is also playing a role in Massmart’s supply chain optimisation journey. The Group is in the process of launching Trackmatic, a supplier platform that provides a data-led approach to improving stock forecast accuracy. “The end goal is to generate collaborative planning and forecasting for Massmart and our suppliers. Having a central data repository allows us to see changing trends in stock and we can respond to market demand more appropriately,” said Lyle Brady, Group Supply Chain Development Vice President. “Furthermore, in phase 2 of the

project, we will be able to proactively manage constrained supply ahead of planned or known outages.”

“We truly believe the journey already taken to optimise our supply chain helped us through the crisis of last year and will play an important role in our future growth objectives,” Nyawose concluded.

Adapted from:

Retail Brief Africa. 2022. Massmart supply chain optimisation on track and delivering results. [Online]. Available at: https://retailbriefafrica.co.za/massmart-supply-chain-optimisation-on-track- and-delivering-results.