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Final Paper 3

This document contains instructions for a procurement and supply exam with 17 sections and multiple questions in each section. The sections cover topics such as competitive forces in supply chains, external environmental factors, supplier relationship management, supplier performance measurement, contract management, and sourcing. Students are instructed to write their answers in the provided booklet and not to open the paper until told by the invigilator.

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Shane Sookraj
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155 views5 pages

Final Paper 3

This document contains instructions for a procurement and supply exam with 17 sections and multiple questions in each section. The sections cover topics such as competitive forces in supply chains, external environmental factors, supplier relationship management, supplier performance measurement, contract management, and sourcing. Students are instructed to write their answers in the provided booklet and not to open the paper until told by the invigilator.

Uploaded by

Shane Sookraj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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L4M8 PROCUREMENT AND SUPPLY IN PRACTICE

QUESTION PAPER 3

INSTRUCTIONS FOR CANDIDATES

This examination has compulsory SECTIONS worth

1. Do not open this question paper until instructed by the invigilator.


2. All answers must be written in the answer booklet provided.
3. All rough work and notes should be written in the answer booklet.

Harvesthouse Consulting& Training South Africa Pty Ltd Web: www.harvesthouse.co.za


595 Thabo Sehume Street Email: enquiries@harvesthouse.co.za
Signal House Building Tel: 012 753 8007
Pretoria, Gauteng, South Africa 0002 Cell: 073 209 3309, 082 079 1866, 073 277 7489
Email: enquiries@harvesthouse.co.za
CHAPTER 1

1. (a) Explain, using examples, the following competitive forces in supply chains:

(i) Threat of new entrants to a market


(ii) Power of suppliers
(iii) Power of buyers
(iv) Potential product or service substitutes
(v) Competitive rivalry
Page 4
(b) Discuss with a matrix in terms of determining whether to make or buy in terms of
decision? (10marks) page 5

2. (a) Explain, using an example of each, how the following external environmental
factors impact on competition in supply chains:

(i) Social
(ii) Technological
(iii) Economic
(iv) Political
(v) Environmental.
pg 26 (v) Competitive rivalry (25marks) page 7

pg 5-6 (b) Discuss FOUR advantages and FOUR disadvantages of an outsourced


relationship for an organisation. (16 marks) page 5-6

3. (a) Explain FOUR elements that might be included in a service level agreement
between a purchaser and a service provider. (12)
(b) Explain the stages of the relationship life cycle using examples. (13 marks) page
53

Harvesthouse Consulting& Training South Africa Pty Ltd Web: www.harvesthouse.co.za


595 Thabo Sehume Street Email: enquiries@harvesthouse.co.za
Signal House Building Tel: 012 753 8007
Pretoria, Gauteng, South Africa 0002 Cell: 073 209 3309, 082 079 1866, 073 277 7489
Email: enquiries@harvesthouse.co.za
4. Supplier relationship management includes the measurement of supplier performance.
Explain how supplier performance might be measured and assessed as the basis for
improvement. (25 marks) page 56 and 120

5. (a) Explain Four KPIs (Key Performance Indicators) that can be applied to measure a
supplier’s performance. (15 marks) page 57 table 1.5

(b) Explain TWO ways in which the use of KPIs can enhance the relationship
between a purchaser and supplier. (10marks) answer from page 57

10. Supplier evaluation is an important part of the procurement process. Discuss details
that must be on the pre-qualification questionnaire and why the information has to be
requested. (15marks) page 37 or 38 table 1.12

11. Analysing and testing the market includes pull and push methods. Discuss the
difference between push and pull methods? (25marks) page 30 table 1.8

12. Offshoring is a strategic decision that involves moving manufacturing of either part of
all the process to another country. Explain advantages and disadvantages of using
offshoring. (25marks) page 36 table 1.11

13. MRP systems generate requisitions for procurement based on activity within the
manufacturing organization. Discuss elements that might be used by MRP system to
generate requisitions for procurement.(25marks) page 20 table 1.5

14. (a) Explain TWO ways of measuring supplier performance. (10 marks) page 56 and
120
(b) Explain THREE ways in which an existing supplier’s performance might be
improved. (15 marks)

Harvesthouse Consulting& Training South Africa Pty Ltd Web: www.harvesthouse.co.za


595 Thabo Sehume Street Email: enquiries@harvesthouse.co.za
Signal House Building Tel: 012 753 8007
Pretoria, Gauteng, South Africa 0002 Cell: 073 209 3309, 082 079 1866, 073 277 7489
Email: enquiries@harvesthouse.co.za
(c) Outline FIVE benefits of an effective service level agreement (SLA) between a
buyer and supplier. (10 marks)
(d) Discuss THREE methods of monitoring the service levels achieved in the
performance of a contract. (15marks)
(e) Discuss advantages and disadvantages of early supplier involvement (25marks)
page 34

15. (a) Define ‘Benchmarking’. (5 marks) page 43


(b) Discuss, with examples, FOUR types of benchmarking. (12 marks) page 43

16. (a) Draw the relationship spectrum indicating the likely position of an outsourced
relationship. (9 marks) page 45

(b) Discuss FOUR advantages and FOUR disadvantages of an outsourced relationship


for an organisation. Repeat page 5
c) Which tool can you use to manage stakeholders (10 marks?) Mendelow /RACI
page 62
d) Discuss elements of effective stakeholder management (15marks) page 63

17. Procurement professionals will carry supplier audits as part of supplier management.
Discuss areas that needs to be reviewed during the audit, (25marks) page 60

Harvesthouse Consulting& Training South Africa Pty Ltd Web: www.harvesthouse.co.za


595 Thabo Sehume Street Email: enquiries@harvesthouse.co.za
Signal House Building Tel: 012 753 8007
Pretoria, Gauteng, South Africa 0002 Cell: 073 209 3309, 082 079 1866, 073 277 7489
Email: enquiries@harvesthouse.co.za
CHAPTER 2

1. Explain FIVE essential elements of a legally binding agreement. (25 marks) page 67
2. Discuss the stages of the ordering process and sourcing. (25marks) page 66 or 65on
sourcing
3. Explain factors that determine the type of sourcing to be used. (25marks) page 66
second paragraph
4. Explain the purpose of a liquidated damages clause in a contract. (10 marks) 79-80
(b) Discuss FIVE disadvantages of using litigation as a means of resolving disputes.
(15 marks) page 84

5. Discuss five ways of terminating a contract? Page 84

Harvesthouse Consulting& Training South Africa Pty Ltd Web: www.harvesthouse.co.za


595 Thabo Sehume Street Email: enquiries@harvesthouse.co.za
Signal House Building Tel: 012 753 8007
Pretoria, Gauteng, South Africa 0002 Cell: 073 209 3309, 082 079 1866, 073 277 7489
Email: enquiries@harvesthouse.co.za

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