UNIVERSITY OF SOUTH AFRICA (UNISA)
College of Economic and Management Sciences
⋄
TRL3707 ASSIGNMENT 01
Semester 1 — 2026
⋄
Module Code: TRL3707
Module Name: Transport Logistics
Student Name: [Insert Your Name]
Student Number: [Insert Student Number]
Assignment No.: 01
Due Date: [Insert Due Date]
Semester: Semester 1, 2026
Unique Number: [Insert Unique Number]
Submitted in partial fulfilment of the requirements for TRL3707: Transport Logistics
at the University of South Africa.
,UNISA | TRL3707 Transport Logistics Assignment 1
Question 1.1: Customer Service Strategy for the South African Automotive Industry
The ongoing silicon shortage, driven by rising geopolitical tensions, has placed the South
African automotive industry under considerable pressure to rethink how it delivers the right
products to consumers at the right time and in the right place. Supply chain disruptions of
this nature call for a deliberate, customer-centred logistics strategy; one that places service
reliability at the core of operational decision-making (Bowersox, Closs and Cooper, 2013).
The most appropriate strategy for the SA automotive industry under these conditions is a
resilient, demand-driven customer service strategy, built on the principles of supply chain
agility, multi-sourcing, and proactive communication.
1.1.1 Theory: What is a Customer Service Strategy?
A customer service strategy in logistics refers to the deliberate set of decisions an organi-
sation makes to ensure that customers receive the correct goods, at the correct time, at the
correct place, in the correct condition, and at an acceptable cost (Coyle, Langley, Novack and
Gibson, 2017). This concept is underpinned by the classic logistics service elements of order
fill rate, delivery speed, delivery consistency, and communication responsiveness (Lambert
and Stock, 2001). During supply disruptions, firms that maintain high customer service levels
do so not by promising what they cannot deliver but by actively managing expectations and
configuring their supply chains to absorb shocks.
The automotive sector is particularly sensitive to component shortages because modern
vehicles contain hundreds of silicon-dependent components, including engine control units,
infotainment systems, and advanced driver-assistance modules (Ivanov and Dolgui, 2024).
A single missing chip can halt vehicle assembly entirely, meaning customer service failures
cascade rapidly from supplier disruption to end-consumer dissatisfaction.
A study by Tazvivanga (2024) in the Journal of Transport and Supply Chain Management ex-
amining supply chain disruptions in South African industries found that geopolitical pres-
sures, including nationalistic tensions and raw material shortages, were among the leading
causes of supply chain instability, with direct consequences for customer service and product
availability. The most resilient organisations in that study were those that had shifted from
reactive crisis management to proactive disruption planning.
Three key elements make up a sound customer service strategy in the context of a disrupted
Page 1 of 15
, UNISA | TRL3707 Transport Logistics Assignment 1
supply chain. First, supply chain agility refers to the organisation’s capacity to reconfigure its
sourcing, production, and distribution in response to disruptions (Coyle et al., 2017). Second,
multi-sourcing involves procuring silicon components from more than one supplier or geo-
graphic region, reducing dependency on a single supply node (Ivanov and Dolgui, 2024). Third,
transparent customer communication ensures that consumers and dealers are informed of
delays early, preventing frustration and reputational damage.
Key Distinction
Agility vs Efficiency: An efficiency-driven supply chain minimises cost by relying on
single sources and lean inventory. An agility-driven supply chain accepts slightly higher
costs in exchange for flexibility and service reliability during disruptions. Given the
silicon shortage, the SA automotive industry must shift its emphasis toward agility.
1.1.2 Application: How the Strategy Applies in the SA Automotive Context
The case study confirms that the silicon shortage is creating supply chain disruptions across
the South African automotive sector. Drawing on this, the demand-driven customer service
strategy should be implemented as follows.
Multi-sourcing of silicon components: Rather than relying on a single Asian supplier for semi-
conductors, SA automotive OEMs and component manufacturers should establish procure-
ment relationships with suppliers in multiple regions. As noted by Ivanov and Dolgui (2024),
chip supply constraints cost Ford Motor Company a production loss of 1.3 million cars over
2021 and 2022 precisely because its sourcing was concentrated. By contrast, Toyota, follow-
ing the 2011 Japanese earthquake, implemented a triple-source model for key components,
ensuring that alternative suppliers were always available. SA manufacturers such as Toyota
South Africa in KwaZulu-Natal and Mercedes-Benz SA in the Eastern Cape could adopt a sim-
ilar model by qualifying at least two additional silicon suppliers to reduce concentration risk
(Barnes and Morris, 2012).
Proactive consumer communication and order management: When silicon shortages make
it impossible to fulfill vehicle orders within the originally quoted lead time, the automotive
industry must immediately update customers. This is a direct application of the customer ser-
vice element of communication responsiveness (Lambert and Stock, 2001). SA dealerships,
for example, should use Customer Relationship Management (CRM) systems to notify buyers
of revised delivery timelines, offering alternatives such as vehicles with slightly different spec-
Page 2 of 15
College of Economic and Management Sciences
⋄
TRL3707 ASSIGNMENT 01
Semester 1 — 2026
⋄
Module Code: TRL3707
Module Name: Transport Logistics
Student Name: [Insert Your Name]
Student Number: [Insert Student Number]
Assignment No.: 01
Due Date: [Insert Due Date]
Semester: Semester 1, 2026
Unique Number: [Insert Unique Number]
Submitted in partial fulfilment of the requirements for TRL3707: Transport Logistics
at the University of South Africa.
,UNISA | TRL3707 Transport Logistics Assignment 1
Question 1.1: Customer Service Strategy for the South African Automotive Industry
The ongoing silicon shortage, driven by rising geopolitical tensions, has placed the South
African automotive industry under considerable pressure to rethink how it delivers the right
products to consumers at the right time and in the right place. Supply chain disruptions of
this nature call for a deliberate, customer-centred logistics strategy; one that places service
reliability at the core of operational decision-making (Bowersox, Closs and Cooper, 2013).
The most appropriate strategy for the SA automotive industry under these conditions is a
resilient, demand-driven customer service strategy, built on the principles of supply chain
agility, multi-sourcing, and proactive communication.
1.1.1 Theory: What is a Customer Service Strategy?
A customer service strategy in logistics refers to the deliberate set of decisions an organi-
sation makes to ensure that customers receive the correct goods, at the correct time, at the
correct place, in the correct condition, and at an acceptable cost (Coyle, Langley, Novack and
Gibson, 2017). This concept is underpinned by the classic logistics service elements of order
fill rate, delivery speed, delivery consistency, and communication responsiveness (Lambert
and Stock, 2001). During supply disruptions, firms that maintain high customer service levels
do so not by promising what they cannot deliver but by actively managing expectations and
configuring their supply chains to absorb shocks.
The automotive sector is particularly sensitive to component shortages because modern
vehicles contain hundreds of silicon-dependent components, including engine control units,
infotainment systems, and advanced driver-assistance modules (Ivanov and Dolgui, 2024).
A single missing chip can halt vehicle assembly entirely, meaning customer service failures
cascade rapidly from supplier disruption to end-consumer dissatisfaction.
A study by Tazvivanga (2024) in the Journal of Transport and Supply Chain Management ex-
amining supply chain disruptions in South African industries found that geopolitical pres-
sures, including nationalistic tensions and raw material shortages, were among the leading
causes of supply chain instability, with direct consequences for customer service and product
availability. The most resilient organisations in that study were those that had shifted from
reactive crisis management to proactive disruption planning.
Three key elements make up a sound customer service strategy in the context of a disrupted
Page 1 of 15
, UNISA | TRL3707 Transport Logistics Assignment 1
supply chain. First, supply chain agility refers to the organisation’s capacity to reconfigure its
sourcing, production, and distribution in response to disruptions (Coyle et al., 2017). Second,
multi-sourcing involves procuring silicon components from more than one supplier or geo-
graphic region, reducing dependency on a single supply node (Ivanov and Dolgui, 2024). Third,
transparent customer communication ensures that consumers and dealers are informed of
delays early, preventing frustration and reputational damage.
Key Distinction
Agility vs Efficiency: An efficiency-driven supply chain minimises cost by relying on
single sources and lean inventory. An agility-driven supply chain accepts slightly higher
costs in exchange for flexibility and service reliability during disruptions. Given the
silicon shortage, the SA automotive industry must shift its emphasis toward agility.
1.1.2 Application: How the Strategy Applies in the SA Automotive Context
The case study confirms that the silicon shortage is creating supply chain disruptions across
the South African automotive sector. Drawing on this, the demand-driven customer service
strategy should be implemented as follows.
Multi-sourcing of silicon components: Rather than relying on a single Asian supplier for semi-
conductors, SA automotive OEMs and component manufacturers should establish procure-
ment relationships with suppliers in multiple regions. As noted by Ivanov and Dolgui (2024),
chip supply constraints cost Ford Motor Company a production loss of 1.3 million cars over
2021 and 2022 precisely because its sourcing was concentrated. By contrast, Toyota, follow-
ing the 2011 Japanese earthquake, implemented a triple-source model for key components,
ensuring that alternative suppliers were always available. SA manufacturers such as Toyota
South Africa in KwaZulu-Natal and Mercedes-Benz SA in the Eastern Cape could adopt a sim-
ilar model by qualifying at least two additional silicon suppliers to reduce concentration risk
(Barnes and Morris, 2012).
Proactive consumer communication and order management: When silicon shortages make
it impossible to fulfill vehicle orders within the originally quoted lead time, the automotive
industry must immediately update customers. This is a direct application of the customer ser-
vice element of communication responsiveness (Lambert and Stock, 2001). SA dealerships,
for example, should use Customer Relationship Management (CRM) systems to notify buyers
of revised delivery timelines, offering alternatives such as vehicles with slightly different spec-
Page 2 of 15
