Part 3. Strategic sourcing is a key value add that Purchasing people can provide to their company. As mentioned in class when going for interviews in Purchasing, knowledge of this concept will be a key differentiator for you to outline the merits with examples as to the ability to differentiate between strategic versus non-strategic/routine sourcing. Scenario: You are in purchasing at a IT hardware producing company. Your role is to source-purchase parts for products manufactured in-house such as laptop accessories, hard drives, IT based security devices which will be sold both in retail and online (ecommerce). Your company has decided to shift production of its most popular laptop cases with 100% sustainable and recycled material. This is a very strategic shift considering laptop cases have been one of the top sellers and going into a fully sustainable product means likely sourcing new suppliers for the components. The estimated price point for the new laptop cases would be $10.00 to manufacture and sell for $20.00 Sales are ramping up as you are this unique product supplier in the marketplace. Sales on previous laptop cases are currently running at 3,000 a month. The future forecast is for each month to grow by plus 500 a month (3,500 new monthly total) for the next 12 months at least. You have decided to confirm with your existing supplier (s) first as to whether they can meet the requirements for supplying recycled components or you will have to go out to market to secure new suppliers to quote as to their ability to meet new demand increases (plus 500 units a month, starting in 3 months (day 1 month 4) for at least a year's supply). Question 1 Outline Purchasing steps you would take in terms of who would you consult with from within your organization to prepare and execute on this supply change? What are the key considerations you would be looking from each person/group? Outline the value add in terms of the Profit Leverage Effect on behalf of your organization. Question 2 Outline some of the sustainable requirements the existing and or new suppliers would have to demonstrate for the material components? What sustainable considerations would you be asking your suppliers should your organization grow its product lines into more sustainable materials?