UNIVERSITY OF SOUTH AFRICA
Faculty of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL2604: Integrated Logistics
Compulsory Assessment 03 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL2604
Module Code:
Integrated Logistics
Module Name:
Warehousing, Inventory Management and
Assignment Title:
Customer Service
Assessment 03
Assignment Number:
783408
Unique Number:
20 April 2026
Due Date:
30
Total Marks:
Submitted in partial fulfilment of the requirements for Integrated Logistics — UNISA 2026
, UNISA | TRL2604 Integrated Logistics – Assessment 3
Question 1: The Role of Warehouses and Distribution Centres, and the Prob-
lems that can Arise
Warehouses and distribution centres are not optional extras in a supply chain; they are the
structural backbone that keeps goods moving predictably from producer to consumer. Accord-
ing to Govindan et al. (2021), distribution centres serve three core purposes: they reduce the
number of storage points across a network, they shift the primary focus from storage to the
expedient movement of goods, and they support growing trends in outsourced logistics oper-
ations. Understanding why firms build and maintain these facilities, and the challenges that
can undermine them, is central to effective logistics management.
1.1 Why Firms Need Warehouses and Distribution Centres
A firm’s decision to operate a warehouse is fundamentally about managing uncertainty. De-
mand does not arrive in perfectly predictable volumes, suppliers do not always deliver on time,
and production does not always run smoothly. Warehouses act as a buffer between all these
variables, giving firms the flexibility to absorb supply shocks and meet customer demand with-
out disruption (Intechopen, 2024).
Beyond buffering, warehouses serve several concrete operational roles. First, they enable firms
to achieve economies of scale in purchasing and transportation. When raw materials or fin-
ished goods are bought in bulk and held centrally, firms can negotiate better prices and con-
solidate transport runs, reducing per-unit logistics costs (Minehan and Johnston, 2025). Sec-
ond, they support geographic distribution: goods produced in one location can be stored closer
to end markets, cutting delivery times and transport costs for the final leg of the supply chain.
A good example in South Africa is the FMCG sector, where major retailers such as Shoprite
and Pick n Pay operate regional distribution centres to ensure that store shelves in remote
provinces are replenished just as efficiently as those in Johannesburg.
Third, value-added services are increasingly performed at the warehouse level. Activities such
as labelling, kitting, quality inspection, returns processing, and even light assembly now hap-
pen inside distribution centres rather than at the factory (Maersk, 2023). This consolidation
of activities reduces the number of touchpoints a product passes through before reaching the
customer, improving both speed and accuracy.
Fourth, distribution centres are essential for managing reverse logistics. In an era where e-
Page 2 of 12
Faculty of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL2604: Integrated Logistics
Compulsory Assessment 03 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
TRL2604
Module Code:
Integrated Logistics
Module Name:
Warehousing, Inventory Management and
Assignment Title:
Customer Service
Assessment 03
Assignment Number:
783408
Unique Number:
20 April 2026
Due Date:
30
Total Marks:
Submitted in partial fulfilment of the requirements for Integrated Logistics — UNISA 2026
, UNISA | TRL2604 Integrated Logistics – Assessment 3
Question 1: The Role of Warehouses and Distribution Centres, and the Prob-
lems that can Arise
Warehouses and distribution centres are not optional extras in a supply chain; they are the
structural backbone that keeps goods moving predictably from producer to consumer. Accord-
ing to Govindan et al. (2021), distribution centres serve three core purposes: they reduce the
number of storage points across a network, they shift the primary focus from storage to the
expedient movement of goods, and they support growing trends in outsourced logistics oper-
ations. Understanding why firms build and maintain these facilities, and the challenges that
can undermine them, is central to effective logistics management.
1.1 Why Firms Need Warehouses and Distribution Centres
A firm’s decision to operate a warehouse is fundamentally about managing uncertainty. De-
mand does not arrive in perfectly predictable volumes, suppliers do not always deliver on time,
and production does not always run smoothly. Warehouses act as a buffer between all these
variables, giving firms the flexibility to absorb supply shocks and meet customer demand with-
out disruption (Intechopen, 2024).
Beyond buffering, warehouses serve several concrete operational roles. First, they enable firms
to achieve economies of scale in purchasing and transportation. When raw materials or fin-
ished goods are bought in bulk and held centrally, firms can negotiate better prices and con-
solidate transport runs, reducing per-unit logistics costs (Minehan and Johnston, 2025). Sec-
ond, they support geographic distribution: goods produced in one location can be stored closer
to end markets, cutting delivery times and transport costs for the final leg of the supply chain.
A good example in South Africa is the FMCG sector, where major retailers such as Shoprite
and Pick n Pay operate regional distribution centres to ensure that store shelves in remote
provinces are replenished just as efficiently as those in Johannesburg.
Third, value-added services are increasingly performed at the warehouse level. Activities such
as labelling, kitting, quality inspection, returns processing, and even light assembly now hap-
pen inside distribution centres rather than at the factory (Maersk, 2023). This consolidation
of activities reduces the number of touchpoints a product passes through before reaching the
customer, improving both speed and accuracy.
Fourth, distribution centres are essential for managing reverse logistics. In an era where e-
Page 2 of 12
