Question 4 Read the case below and answer the questions that follows after Assessing Risks and Maximizing Profits You have just taken responsibility for purchasing at a major international logistic company, and you are reviewing all of the fuel purchases over the past two years. Fuel is such a necessary commodity for this logistics company and consequently the company spends a fortune on fuel, and it hired you, in part to look for ways to cut costs. However the availability of this commodity (fuel) is quite limited in supply. The problem is that, because of the diverse nature of your company's transportation methods (which cover air, ground and ocean freight), each individual department purchases fuel separately. So, their air division purchases its own jet fuel, the trucking division purchases its own diesel, and the shipping freight division purchases its own oil. Source: https://www.mindtools.com/pages/articleewSTR_49.htm 4.1 (a) What type of purchasing and supply organizational structure are we observing in the case above? Motivate your answer with evidence from the case (4 Marks) decentralise Structure (b) Draw Kraljic portfolio purchasing model. (6 Marks) Pg29 Question 4 Read the case below and answer the questions that follows after Assessing Risks and Maximizing Profits You have just taken responsibility for purchasing at a major international logistic company, and you are reviewing all of the fuel purchases over the past two years. Fuel is such a necessary commodity for this logistics company and consequently the company spends a fortune on fuel, and it hired you, in part to look for ways to cut costs. However the availability of this commodity (fuel) is quite limited in supply. The problem is that, because of the diverse nature of your company's transportation methods (which cover air, ground and ocean freight), each individual department purchases fuel separately. So, their air division purchases its own jet fuel, the trucking division purchases its own diesel, and the shipping freight division purchases its own oil. Source: https://www.mindtools.com/pages/articleewSTR_49.htm 4.1 (a) What type of purchasing and supply organizational structure are we observing in the case above? Motivate your answer with evidence from the case (4 Marks) decentralise Structure (b) Draw Kraljic portfolio purchasing model. (6 Marks) Pg29