Question 1

1. (a) As we have discussed in the class, procurement is considered as one of the most important strategic functions in many world-class companies. In many SMEs in Singapore, however, procurement is still considered not much more than a mere administration service. First, discuss the key objectives of procurement. Then, show why procurement is considered an important function in world-class companies but not in some SMEs.

   (15 marks)

2. (b) No matter the size of the companies, worldwide sourcing is a norm for procurement officers rather than an option. However, worldwide sourcing imposes unique challenges to procurement, compared to local sourcing. Examine the challenges in worldwide sourcing. In your answer, you must discuss at least three barriers to worldwide sourcing.

   (10 marks)