Read the statement below and answer all the FIVE (5) questions that follow:

The earnings of the organization can be considerably impacted by buyers and supply chain management. An organization may spend up to 50% of its sales revenue on the acquisition of goods and services, including raw materials.

You are employed as a purchasing director at Food Lovers in Durban, South Africa. Answer all the following five questions based on the above statement:

QUESTION 5

The selection of a supplier establishes the crucial issues that will determine whether the organization's procurement process is successful or unsuccessful.

Critically examine how Food Lovers will detect which supplier is able to supply its requirements satisfactorily, both strategically and operationally in the short and long term. Make use of relevant examples to illustrate your answer. (20 MARKS)