SECTION A

$[40$ MARKS$]$

Read the case study below and answer ALL the questions that follow.

CHARTING TOWARDS PROCUREMENT MATURITY

Effective procurement organizations can make or break a company's bottom line. While that's always been true, business leaders understand procurement has become even more crucial amid the turbulence of inflation, a global pandemic, supply chain disruptions, and changing customer demands. But what is striking is that most companies still are not getting procurement right. Nearly $80\%$ of companies across industries say that their procurement capabilities are not mature enough to meet their business requirements, according to a Bain & Company survey of $300$ chief procurement officers and other procurement leaders last year $($see Figure $1).$ Respondents self$-$assessed their procurement organization's maturity across capabilities including procurement strategy, category and supplier management, and use of digital tools, as well as best practices such as closed$-$loop budgeting, advanced analytics, and environmental, social, and governance $($ESG$)$ management.

Figure $1$

Companies indicated the maturity of their procurement organization by assessing whether multiple capabilities meet the business's needs

While most respondents say procurement has greater visibility and importance for their companies than in the past, the figure above makes it clear that most procurement organizations are failing to deliver on what their organizations need. Why? Our analysis of the mature organizations points to the critical importance of a procurement strategy that links back to the company's overall strategy. In a time of tight budgets and a challenging economy, having aligned strategies enables the procurement team to invest its limited resources in the right capabilities that will deliver what the company truly needs to meet its business objectives$-$and not waste time developing capabilities that do not matter. The result is procurement can create more value than would otherwise be possible.

It will come as no surprise to chief procurement officers and the rest of the C$-$suite, but the survey found that, on average, mature procurement organizations expect to realize $1\mathrm{.}5$ times the savings of their less mature peers $($see Figure $2).$ And, increasingly, mature procurement organizations are creating value beyond savings, in areas such as

product innovation, quality, and delivery performance.

Figure $2$

Average expected savings

Note: Mature organizations reported being in the top quartile of maturity across all surveyed capabilities

Source: Bain Chief Procurement Officer Survey, $2022(n=300)$

As companies look to enhance their procurement maturity, these leaders hold lessons in how to set the right strategy, identify sources of value to pursue, and prioritize capabilities in which to invest. One size does not fit all when it comes to procurement. For a company with multiple business lines that have different product characteristics and market dynamics, linking the procurement strategy to the company's overall strategy may mean deploying a different procurement strategy for each business unit. This will be quite common, given that many companies have multifaceted businesses that require juggling multiple procurement approaches. A key lesson from mature procurement organizations is they do not try to be great at all capabilities. The procurement archetypes framing is a tool that can be used to prioritize and sequence an overall procurement capability transformation.

$1\mathrm{.}1$ You have recently been assigned a new project within your organisation and part of the priorities is to

$(10$ Marks$)$ ensure that quality is achieved at all costs. After reviewing the case study discuss the internal and external attributes that can potentially affect your project procurement. Make reference to relevant examples.

$1\mathrm{.}2$ As defined by PMBOK $(2023)$ a procurement management plan is a strategic document that outlines the

$(15$ Marks$)$ processes and procedures for acquiring goods, services, or works from external sources for a project. Identify and discuss ANY FIVE $(5)$ factors that could contribute to the development of a project procurement plan.

$1\mathrm{.}3$ Based on the provided case study, describe procurement maturity and highlight its benefits in project

$(15$ Marks$)$

management.

SECTION B

MARKS$]$

QUESTION $2$

$(20$ Marks$)$

Care Construction, a leading construction company, has been awarded a contract to build a new $10$ kilometer highway connecting Meadowville and Rivertown. The project aims to improve transportation efficiency and support local economic development, with a timeline of $18$ months and a budget of R$25$ million. Halfway through the project, the project manager, Jason, wants to assess the performance of stakeholders and make amends if needed, particularly to key suppliers and contractors. Advise Jason on the methods he can use to achieve this.

QUESTION $3$

$(20$ Mark