QUESTION $3(20$ Marks$)$

The strategic sourcing process is broader and more comprehensive than the procurement process. It is a

result of the strategic development of the purchasing function in an organisation that is managed according to

the modern, integrated supply chain management approach. Suppose that H&M a clothing company did not

meet all the criteria for a good supplier, as the purchasing manager for H&M$,$ explain the sourcing process

that H&M did not consider when selecting a supplier.

QUESTION $4(20$ Marks$)$

Successful negotiation planning should be proactive, not reactive, and consist of nine steps, none of which

should be omitted. As the CEO of a baking business, apply the nine steps that you will take when negotiating

the best price with a potential supplier.

QUESTION $5(20$ Marks$)$

ABC Motors, a prominent automobile manufacturer, is contemplating the idea of outsourcing certain elements

of its production process and supply chain management. As a consultant, identify and elaborate on the

potential drivers that might lead ABC Motors to consider outsourcing aspects of its operations, such as

manufacturing, logistics$,$ or component sourcing. In your response, consider both the internal and external

factors that could influence ABC Motors' decision, and provide advantages of outsourcing to ABC Motors.

QUESTION $6(20$ Marks$)$

Purchasing should consider only suppliers that are capable of meeting rigid quality and delivery standards,

although far too often price differentials become the primary criterion behind an offshore sourcing decision. As

the Purchasing manager for Zara Clothing evaluate the importance of worldwide sourcing and explain why

you would consider this.