QUESTION 1

(A) Procurement Key Performance Indicators (KPIs) are management tools designed to monitor the performance of procurement department. Using practical examples, discuss the fours (4) major groups of KPIs used by the purchasing department to ensure best total cost of ownership.

(B) The benefits of Information Communication Technology (ICT) permeate across every business function. Practically, discuss five (5) impacts of ICT on procurement and supply performance functions.

(C) In performance management, each function delivers the performance requirement in order to achieve the organisational objectives. Explain five (5) activity areas in the organization where the contributions of procurement functions could be measured.

(D) You were recently appointed the procurement manager of A&A Company limited, producers of Kitchen Stools. From your experience and role as an astute Procurement Manager with practical examples, discuss the following criteria as used in evaluating suppliers in the supply chain:

I) Pricing

II) Quality

III) Delivery

IV) Service