Savanna Harvest Supermarket — Supply Chain Management

Section 12 · Business Plan

Supply Chain Management

12.1 Sourcing Strategy

Savanna Harvest Supermarket will implement a diversified sourcing strategy that balances cost efficiency with supply reliability. Products will be procured from four primary channels: national FMCG distributors and manufacturers for branded grocery products, regional wholesale markets for competitive pricing on high-volume items, local farmers and agricultural cooperatives for fresh produce (supporting community development and reducing logistics costs), and direct-to-retail arrangements with selected manufacturers for higher margins on key categories.

12.2 Key Supplier Relationships

Category	Primary Sources	Terms
Branded Groceries	National distributors (e.g., Tiger Brands, Pioneer Foods)	30-day credit
Fresh Produce	Local farmers, Johannesburg Fresh Produce Market	Cash / 7-day
Meat & Poultry	Regional abattoirs, national processors	14-day credit
Bakery Inputs	Flour mills, ingredient wholesalers	30-day credit
Household & Personal Care	Unilever, Procter & Gamble, local distributors	30-day credit
Beverages	Coca-Cola, SAB, Distell, national distributors	30-day credit

12.3 Inventory Management

Effective inventory management is critical to supermarket profitability, given the perishable nature of many products and the need to minimise shrinkage and waste. Savanna Harvest will implement a perpetual inventory system supported by POS-integrated stock tracking, enabling real-time visibility of stock levels across all departments. Target inventory turnover is 18–22 times per annum for dry groceries and 30–40 times for fresh produce and perishable products. The inventory management system will incorporate automated reorder points, minimum stock levels by SKU, and vendor-managed inventory arrangements with key suppliers.

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