UNIVERSITY OF SOUTH AFRICA
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3707: Transport and Logistics Management
Assignment 1 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3707
Module Code:
Transport and Logistics Management
Module Name:
Supply Chain Disruptions: Silicon Shortage
Assignment Topic:
[Student Full Name]
Student Name:
[Student Number]
Student Number:
Assignment 1
Assignment Number:
30
Total Marks:
Submitted in partial fulfilment of the requirements for TRL3707 — UNISA 2026
, UNISA | TRL3707 Transport and Logistics Management
Question 1.1: Customer Service Strategy for the South African Automotive Industry Amid
Silicon Shortages
The silicon shortage, driven by escalating geopolitical tensions, has placed the South African
automotive industry under significant pressure to deliver the right products to customers at
the right time and in the right place. In supply chain management, this obligation is central to
what is called a customer service strategy: a deliberate plan that aligns supply chain activities
with customer expectations regarding availability, timeliness, and delivery reliability (Ambe
and Badenhorst-Weiss, 2011). The strategy most suited to current conditions in South Africa’s
automotive industry is a responsive and agile customer service strategy anchored in supply
chain diversification and multi-sourcing.
1.1.1 Theory: The Responsive and Agile Customer Service Strategy
A responsive supply chain strategy prioritises speed, flexibility, and availability over pure cost
efficiency. It is designed specifically to handle volatile demand and unpredictable supply
conditions (Ambe and Badenhorst-Weiss, 2011:339). Where a lean strategy sacrifices stock
flexibility in favour of cost reduction, a responsive strategy deliberately maintains higher ser-
vice levels, safety stocks, and supplier redundancy to protect customer delivery commitments
(Tazvivinga, 2024). This distinction is critical in an environment where component shortages
can halt vehicle production entirely.
The agile dimension adds the ability to reconfigure supply chain relationships rapidly in re-
sponse to disruption (Ambe and Badenhorst-Weiss, 2011). Agility is not simply about moving
fast; it is about structural flexibility, the capacity to shift between suppliers, transportation
modes, and product configurations without compromising the end customer’s experience.
Together, responsiveness and agility form a hybrid strategy that keeps service levels intact
even when upstream supply is compromised.
Key Distinction
Responsive vs Lean Strategy: A lean strategy reduces waste and inventory, making
it highly cost efficient under stable supply conditions. A responsive strategy accepts
higher holding costs in exchange for service level protection during disruption. In the
context of the silicon shortage, a lean approach would leave automotive firms exposed;
responsiveness offers the necessary buffer.
Page 2 of 15
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3707: Transport and Logistics Management
Assignment 1 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL3707
Module Code:
Transport and Logistics Management
Module Name:
Supply Chain Disruptions: Silicon Shortage
Assignment Topic:
[Student Full Name]
Student Name:
[Student Number]
Student Number:
Assignment 1
Assignment Number:
30
Total Marks:
Submitted in partial fulfilment of the requirements for TRL3707 — UNISA 2026
, UNISA | TRL3707 Transport and Logistics Management
Question 1.1: Customer Service Strategy for the South African Automotive Industry Amid
Silicon Shortages
The silicon shortage, driven by escalating geopolitical tensions, has placed the South African
automotive industry under significant pressure to deliver the right products to customers at
the right time and in the right place. In supply chain management, this obligation is central to
what is called a customer service strategy: a deliberate plan that aligns supply chain activities
with customer expectations regarding availability, timeliness, and delivery reliability (Ambe
and Badenhorst-Weiss, 2011). The strategy most suited to current conditions in South Africa’s
automotive industry is a responsive and agile customer service strategy anchored in supply
chain diversification and multi-sourcing.
1.1.1 Theory: The Responsive and Agile Customer Service Strategy
A responsive supply chain strategy prioritises speed, flexibility, and availability over pure cost
efficiency. It is designed specifically to handle volatile demand and unpredictable supply
conditions (Ambe and Badenhorst-Weiss, 2011:339). Where a lean strategy sacrifices stock
flexibility in favour of cost reduction, a responsive strategy deliberately maintains higher ser-
vice levels, safety stocks, and supplier redundancy to protect customer delivery commitments
(Tazvivinga, 2024). This distinction is critical in an environment where component shortages
can halt vehicle production entirely.
The agile dimension adds the ability to reconfigure supply chain relationships rapidly in re-
sponse to disruption (Ambe and Badenhorst-Weiss, 2011). Agility is not simply about moving
fast; it is about structural flexibility, the capacity to shift between suppliers, transportation
modes, and product configurations without compromising the end customer’s experience.
Together, responsiveness and agility form a hybrid strategy that keeps service levels intact
even when upstream supply is compromised.
Key Distinction
Responsive vs Lean Strategy: A lean strategy reduces waste and inventory, making
it highly cost efficient under stable supply conditions. A responsive strategy accepts
higher holding costs in exchange for service level protection during disruption. In the
context of the silicon shortage, a lean approach would leave automotive firms exposed;
responsiveness offers the necessary buffer.
Page 2 of 15
