one differently? SECTION B Answer ANY THREE (3) questions in this section. QUESTION 2 [60 MARKS] (20 Marks) The procurement process involves a number of interrelated activities that need to be structured and executed in a manner that adds value. Quite often, price is of least concern in the greater scheme of the process. However, the issue of total cost of ownership (TCO) must be considered in the context of creating more favourable, win-win supply relationships. 2.1. 2.2. Critically analyse the factors that shape the decisions around pricing. Make use of a diagram to lend support to your discussion. Analyse how collaborative procurement can drive out the unnecessary costs in pricing. QUESTION 3 (10 marks) (10 marks) (20 Marks) Outsourcing has become a standard practice in the pursuit of more efficient procurement regimes. A number of non- core and recently, even core, activities have become outsourced functions. Provide a critical evaluation of the rationale supporting outsourcing including a discussion on the matrix proposed by Savelkoul (2008). QUESTION 4 (20 Marks) The task of procurement and supply chain management has been made more challenging with the proliferation of goods and services demanded by customers. As the categories of products increases, so too does the challenge of managing each category more efficiently and effectively. As a result, category management has grown in its popularity and extent of application. 4.1. 4.2. (15 marks) Assess the cost-savings potential of implementing procurement spend category management. Provide a brief overview of why category sourcing plans need to be linked to business strategy. (5 marks) 2 M -M