Read the scenario below and answer ALL five questions that follow:

A typical day in the Life of Purchasing and Supply Management at a shoe manufacturing company:

The Purchasing and Supply Management team works collaboratively to achieve key objectives, including cost reduction,

risk management, process efficiency, on$-$time delivery, and continuous improvement. These objectives collectively

contribute to the overall goal of optimizing the company's operations and ensuring long$-$term success in a dynamic

business environment. Sarah, the Purchasing Manager, kicks off the day with a morning briefing. The objective is clear:

optimize the supply chain to ensure timely and cost$-$effective production. The team discusses inventory levels, supplier

performance, and upcoming production schedules. Sarah emphasizes the importance of negotiating better terms with

suppliers to reduce costs. The team brainstorms ideas for bulk purchasing, exploring discounts, and alternative suppliers

that offer competitive prices without compromising quality. John, the Supply Chain Analyst, conducts a meeting to

evaluate existing and potential suppliers. The objective is to ensure a reliable and efficient network of partners. The team

discusses performance metrics, such as delivery times, quality, and responsiveness. In light of recent supply chain

disruptions, the team strategizes on diversifying suppliers to mitigate risks. They consider geographic locations, explore

dual$-$sourcing options, and analyse the financial stability of key suppliers to minimize the impact of unforeseen events.

Emily, the IT Specialist, works on integrating a new procurement software. The objective is to streamline the purchasing

process, enhance communication with suppliers, and improve data accuracy. The team aims to reduce manual errors,

enhance order processing speed, and improve overall efficiency. The new software allows for real$-$time tracking of orders,

automates routine tasks, and provides valuable data for informed decision$-$making. The Purchasing and Supply

Management team joins a meeting with the Production Manager, Mike. The objective is to synchronize production

schedules with the availability of raw materials. The team discusses lead times, production forecasts, and inventory

levels to ensure that materials are delivered just$-$in$-$time. The goal is to prevent stockouts while minimizing excess

inventory, contributing to on$-$time deliveries and customer satisfaction. As the day wraps up$,$ the team gathers to reflect on

the day's activities. They discuss lessons learned and areas for improvement in their purchasing and supply

management processes. The team emphasizes the importance of staying updated on industry trends, technological

advancements, and changes in the market. The objective is to continuously adapt their strategies to optimize efficiency,

reduce costs, and maintain a competitive edge.QUESTION $1(20$ Marks$)$

With reference to the above scenario, examine any five objectives of purchasing and supply management in a shoe

manufacturing company. Use relevant examples to support your answer.

QUESTION $2(20$ Marks$)$

Use relevant literature and analyse any five benefits of Information Systems Technology to the shoe manufacturing

company. Use practical examples to support your answer.

QUESTION $3(20$ Marks$)$

Critically discuss the cost of inventory and explain how the shoe manufacturing company can transform its inventory

management process to be proactive. Use the relevant examples to justify your answer.

QUESTION $4(20$ Marks$)$

Purchased goods must be transported from the point where they are manufactured to the place where they are needed.

Evaluate any five factors to be considered when selecting mode of shipment, carrier and routing. Use the relevant

examples from the shoe manufacturing company.

QUESTION $5(20$ Marks$)$

Your main job description at the shoe manufacturing company is to measure suppliers performance on a monthly basis.

MR Come Again and Mr Excellent are the two main suppliers of the shoe manufacturing company. Use supplier

performance measurement methods $($Quantity Ordered versus Quantity Received, Advanced Shipment Notifications

$($ASN$)$ Accuracy, Delivery on$-$Time metrics, and Cost $$ Ratio Method$)$ and select the supplier who has performed

exceptionally well compared to the other per each method. Refer to the information in the below table. Show all the

calculations and interpret the results.

Supplier performance measurement Mr Come Again Mr Excellent

Quantity Ordered $45000$ Units $88200$ Units

Quantity Received $($Delivered$)44952$ Units $88152$ Units

ASNs received $44954$ Units $88156$ Units

Deliveries checked in at the receiving

bay within $5$ mins of promised arrival

time

$44945$ Units $88145$ Units

Total delivery cost R $20000$ R $23000$

Total value of purchases R$900,000$ R$1058400$