Fully$-$owned fleet Techuology

The Group's technological platforms are continuouslybeing refreshed to keep abreast of

technological developments. A new ERP system and investments in digital transformation

have led to increased efficiencies, more collaboration and better innovation across the

Group's businesses. Continuous investment in customer science and big data allows for

improved decision making in terms of promotions, products, store layouts and pricing.

Social responsibility

Shoprite acknowledges its responsibility to manage the impact of its operations to ensure

long$-$term economic, social and ervironmental sustainability. Although Shoprite operates in

diverse African countries, most face similar challenges to South Africa, namely,

significant levels of unemployment and food insecurity at the household and community

level. Climate change will exacerbate these challenges and potentially disrupt production

patterns, as well as increase operational costs for the food retail sector. Shoprite is committed

to fighting hunger, supporting food$-$insecure and disaster$-$struck communities, enabling

access to the economy $-$ particularly for women $-$ and developing the skills needed to

support its growth and that of the broader South African economy.

Given the high levels of food insecurity at the community and household level, Shoprite focuses a

significant portion of its corporate social investment spend on hunger relief $(39\%$ of spend$).$ Shoprit

fights hunger by providing food to thousands of people each day through FoodFonward South A frica,

which works through $600$ beneficiary organisations to feed $250000$ South A fricans a daywith surplus

food collected from retailers.

Shoprite recognises the significant role that women play in South A frica and in Shoprite as customers,

employees and suppliers. The Group works to empower women who have or are starting small

businesses or home industries and to identify opporturities for those with the potential to supply

Shoprite, helping them develop the relevant skills to grow their businesses into successful operations.

In addition to formalised initiatives, the Groupruns a variety of annual fundraising events that aim to

resolve specific challenges faced bySouth A fricans. These include the following: Question

Discuss Shoprite's competitive advantage in the South African retail market.

Elaborate on at least four specific capabilities that were instrumental in creating

it $(25$ marks$).$

A 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 optimise store deliveries and reduce 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 centres and avoid the need to invest in either warehousing or vehicles. Trading

partners are a vital link in the supply chain and the Group works closely with partners to create mutually

beneficial relationships that go beyond simple supply$-$and$-$demand management. The Group has been

pioneering reverse logistics initiatives that erhance its sustainability and environmental position, in line

with international best practices. The focus is on re$-$use, recycle and the reduction of waste to landfill.

Centralised distribution

The Group has invested in an extended centralised distribution network that enables it to seamlessly

manage the supply of products to stores across the continent.

As the first South A frican retailer to receive the renowned ISO $9001$ accreditation for import

and export handling, the Group continues to pursue their strategic lead in supply chain

management. The Group's International Trade Department sources products from anywhere

in the world with extreme efficiency, assuring its customers of choice, availability of products

and value for money. The Group has invested substantially in creating a network of advanced

distribution centres. Its 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 its

distribution network.