Read the statement below and answer the questions that follow.

Business is becoming more and more competitive, and organisations have realised that purchasing and Supply Chain Management (SCM) are key factors in satisfying customers. Buyers and supply chain managers can contribute significantly to the organisation's profits. An organisation can spend as much as 50% of its sales revenue on purchasing parts, services, components and raw material. Therefore, efficient, mutually beneficial and constructive relationships with suppliers are very important to the organisation's short-term financial position and long-term competitive power.

Suppose that you are appointed as a purchasing manager at Shoprite in your area and answer all the following five questions based on the above statement:

Question 1

1.1 Critically discuss any five challenges facing purchasing and supply management making reference to Shoprite. (10 marks)

1.2 In a critical discourse, analyse the internal and external dimensions influencing the purchasing function's role at Shoprite. Make reference to relevant theory in your answer. (10 marks)