Assignment 3 - Supplier and Contract Management (2500 Words) Element: PD10-3 Managing Risk and Spend in Relations to Customer and Supplier Requirements PD10-4 Performance Measurement in Sourcing and Supply Your organisation is in a difficult situation where order quantities and stock levels are perceived to represent high financial costs to the organisation, whilst at the same time customer service levels are not increasing proportionally. a) Analyse the strategic sourcing options that an organisation can adopt in addressing the above contradictions, showing how subsequent risks can be managed. b) Critically evaluate your role as a procurement specialist and why you should be aware of the essential elements of a contract in terms of contract management. c) Supplier relationships represent a significant part of the activities for the procurement function especially for large corporations. Describe a process which an organisation of your choice can use to ensure that appropriate relationships are maintained effectively and efficiently.