Read the statement below and answer all the FIVE 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 1 (20 MARKS) Analyse any FIVE (5) challenges facing purchasing and supply management making reference to Food Lovers in Durban, South Africa. Use practical examples to support your answer.

NB select 5 from the listed challenges below to talk about.

1.7 Challenges facing Purchasing and supply management Johnson (2020:19) had identified the following seven key challenges that are facing the supply profession:

1. Supply chain management: every organisation needs to decide on how to extend its scope within the supply chain and how to react to supply chain initiatives by others.

2. Measurement: Capable of accessing the profits of several supply experiments.

3. Risk management: Supply chains face risks namely supply disruptions, exchange rate variations, lead-time inconsistency, etc.

4. Sustainability: organisations have to cut the effect of their supply chains activities on the environment. For instance, greenhouse gas reductions and cut overall energy consumption. They have to work hand in hand with their suppliers in finding solutions for the environmental issues.

5. Growth and influence: allows supply to spread its wings, influence creation in organisation, and increase the value of its contribution.

6. Technology: new technology offers exciting opportunities to improve effectiveness and efficiency of supply management

7. Effective contribution to corporate success: The main challenge for supply is to be acknowledged as an active team member in the organisation.