QUESTION ONE [40] Read the following and answer the questions that follow:

Global Sourcing Challenges

Nowadays, a large number of organisations consider sourcing as a viable option for cutting down their expenses. However, the procurement journey of organisations is not so simple as it may seem. Large-size business firms especially MNCs face numerous hardships when they try to customise their cross-border sourcing activities. The four pillars of global sourcing, namely, people, process, technology, and supply chain play a great hand when it comes to internal procurement operations for an organisation.

Challenges Relating to Global Procurement

The challenges that most business firms face while outsourcing their services include, non-adherence to quality standards, the difference in time zones, long-range logistics, accountability problems, compliance issues, delays in supply and language barriers.

How Companies Should Combat these Challenges

Effective planning is needed before implementation of procurement strategies. If there are issues relating to logistics, companies must focus on their operations and thereby, delivering the required technologies to every location consistently. When organisations select a sourcing destination whose infrastructure and transportation is not up to the mark, delays in supply are a common phenomenon. Sometimes, the lack of a professional mindset among workers also leads to supply delays. There may be other factors in the form of customs inspections, missing paperwork, and local regulatory compliances. More often, companies fail to identify appropriate suppliers while operating in foreign markets. Under such circumstances, organisations may resort to procurement agencies for assistance. Global Procurement Services help business firms in formulating their sourcing strategies. In some cases, the growth strategies of business firms also have a direct impact on their procurement policies. There are instances when mergers and acquisitions delay the supply procedures while creating an intricate web of vendors. It is because of mergers and acquisitions organisations are ready to accept redundant technologies while drifting from corporate technology standards. Business firms have to pay increased prices for products and services in some cases. They have no other option apart from doing so. There are times when companies feel it is better to control costs rather than exploring sourcing opportunities. (Source: https://www.dragonsourcing.com/global-sourcing-challenges-and-solutions/) Page 2 of 4

Questions: With regard to the article, examine how each of the following enablers may contribute to a successful global purchasing network. 1.1 Organisational design 1.2 Information Technology