Mr Bonolo is a businessman who bought ten (10) Cash and Carry wholesalers in various locations in KwaZulu-Natal named BONOLO CASH AND CARRY (PTY) LTD. As the business grew, he established other franchises, four (4) in the Western Cape and six (6) in Gauteng. BONOLO CASH AND CARRY (PTY) LTD supply customers such as small grocery stores, convenience stores, and even some larger retail chains. Restaurants, cafes, hotels and other foodservice establishments often source their ingredients and supplies from cash and carry wholesalers. They buy in larger quantities to meet their operational needs. Various small businesses, such as caterers, event planners, and even some offices, may purchase items from cash and carry wholesalers for their business operations or events. Some individuals or businesses buy from cash and carry wholesalers to resell the products in other markets. They also include online sellers, flea market vendors, or even exporters who buy in bulk and then distribute the products through various channels. BONOLO CASH AND CARRY (PTY) LTD allows individual shoppers to purchase products, particularly if they have a membership card or meet specific criteria. The wholesale across the regions sells a wide range of food and non-food products, primarily in bulk or wholesale quantities. The products offered includes the following:

Fresh produce: Fruits, vegetables and herbs are commonly available in bulk quantities at Cash and Carry stores.
Meat and seafood: You can find various cuts of meat, poultry and seafood, often packaged in larger quantities for businesses or families stocking up.
Dairy products: Items like milk, cheese, yogurt and butter may be available in larger sizes or packages.

Canned and packaged goods: Canned vegetables, fruits, sauces, condiments and other pantry staples are typically sold in bulk.
Bakery items: Cash and Carry stores often offer a selection of bread, rolls and pastries.

Frozen foods: Frozen vegetables, fruits, meats and prepared meals are commonly found in Cash and Carry stores.
Snacks and beverages: Bulk quantities of snacks like chips, nuts and candies, as well as various beverages including soft drinks and juices.
Cleaning supplies: Cleaning products like detergents, disinfectants and paper products are usually available in larger sizes.

Kitchen equipment: Some Cash and Carry stores may sell kitchen equipment and utensils for restaurants and other foodservice businesses.
Disposable tableware: Items like paper plates, cups and plastic utensils may also be in stock.

Personal care and health products: Some Cash and Carry stores carry personal care items like shampoo, soap and over-the-counter medications.
Alcohol: Depending on local laws and regulations, some Cash and Carry stores may sell alcoholic beverages, particularly beer and wine.
Tobacco and smoking products: Some stores may carry tobacco products such as cigarettes and cigars.
Office supplies: In addition to food-related items, some Cash and Carry stores stock office supplies and stationery.
Bulk spices and herbs: You can often find a wide variety of spices and herbs sold in bulk.

BONOLO CASH AND CARRY (PTY) LTD built a central warehouse in KwaZulu-Natal that service all wholesalers owned by the company.

Warehouse operations typically involve the following key processes:

Receiving and unloading: Products are delivered to the warehouse from suppliers. Warehouse staff receive and unload the products, checking them for accuracy and quality.
Sorting and storage: Products are sorted and organised in the warehouse. They are typically stored on shelves, in bins, or on pallets. Proper organisation and storage are essential for efficient order fulfillment.
Inventory management: Warehouse staff use inventory management systems to track the quantity and location of each product in the warehouse. This helps ensure accurate stock levels and timely reordering.
Picking and packing: When a franchises customer places an order, warehouse workers pick the required items from their designated storage locations. They then pack these items into boxes or containers for shipment. The warehouse has different picking methods, such as batch picking or zone picking, to optimise efficiency.
Quality control: Quality control measures are in place to ensure that products leaving the warehouse meet the required standards and are not damaged.
Returns and exchanges: If customers return items, the warehouse may handle the processing of returns, inspecting returned items, and restocking them if appropriate.

Maintenance and safety: Regular maintenance of equipment and safety protocols are crucial to ensure a safe working environment for warehouse staff.
Technology integration: Many warehouses use technology like barcoding, RFID (Radio-Frequency Identification), and warehouse management systems (WMS) to streamline operations, track inventory and improve accuracy.
Continuous improvement: Warehouses often engage in continuous improvement initiatives to optimize processes, reduce waste and increase efficiency.

Once orders are packed, they are ready for shipment. The warehouse manages the loading of delivery trucks or arrangements with third-party logistics companies for transportation to various cash and carry franchises for transportation to retail stores, restaurants, cafes, hotels or directly to customers.

1.1 Explain the significance of forecasting in achieving timely results within BONOLO CASH AND CARRY (PTY) LTD. Provide three relevant examples to support your argument.

(1½ mark for discussions, 1½ mark for case study examples)

1.2 Discuss the risk of holding inventory that may affect BONOLO CASH AND CARRY (PTY) LTD. Give examples from the case study.

(1½ mark for discussions, 1½ mark for case study examples)

1.3 Advise BONOLO CASH AND CARRY (PTY) LTD on the role of inventory management in planning and mitigating uncertainties. Give examples from the case study.

(1½ for theory, 1½ mark for case study application)

1.4 Discuss the customer service level strategy that BONOLO CASH AND CARRY (PTY) LTD should follow to ensure that consumers receive the right products at the right time, at the right place, and in the right condition. Give

examples from the case study to substantiate your answer.

  (3 marks for theory, 3 marks for case study application)  
Total 15 marks
2.1 Discuss the functionality of transport, with specific reference to the case study.

(1½ marks for discussions, 1½ mark for case study examples)

2.2 Discuss material handling that BONOLO CASH AND CARRY (PTY) LTD may use to reduce human labour, give examples in relation to the case study.

(2 marks for discussions, 3 marks for case study examples)

2.3 There are seven economic drivers influencing transportation costs. Discuss how each factor impact determination of freight rate on food and non-food products at BONOLO CASH AND CARRY (PTY) LTD.

(3 marks for discussions, 4 marks for application)

Total 15 marks
3.1 Advise BONOLO CASH AND CARRY PTY. about the 7 principles of material handling and give an example of one of the principles. Gives examples from the case study

(3 marks for discussions, 3 marks for case study examples)

3.2 Discuss the service and economic benefits of establishing a central warehouse in KwaZulu-Natal. Relate your discussion to the case study.

(2 marks for discussions, 3 marks for case study examples)

3.3 Advise BONOLO CASH AND CARRY (PTY) LTD about the benefits of sorting inventory in a warehouse.

(1½ mark for discussions, 1 ½ mark for case study examples)

Total 15 marks
GRAND TOTAL 45 marks

Answers to Above Questions on Bonolo Case Study

Answer 1: Forecasting plays an important role in any type of business and in the given case of Bonolo Cash and Carry Pty Ltd, the importance of forecasting is identified from the fact that it is quite significant in the effective inventory management of the company. An analysis indicates that the company deals in a diverse range of products which includes perishable goods as well. Accurate forecasting is therefore highly essential especially in managing the demand for such perishable products.


Get answers on assignment above on Bonolo case study from the do my assignment South Africa experts of Student Life Saviour.

Content Removal Request

If you believe that the content above belongs to you, and you don’t want it to be published anymore, then request for its removal by filling the details below. It will only be removed if you can provide sufficient evidence of its ownership.