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Procurement Management
Jun 2025 Examination
Q1. BuildLink Solutions is a medium-sized construction procurement firm specializing in sourcing raw materials, equipment, and services for infrastructure and real estate projects. The company recognizes the potential benefits of adopting e-procurement strategies to enhance efficiency, reduce costs, and streamline supplier collaboration. However, it faces challenges in understanding the evolution of e-procurement, establishing effective pricing models, integrating digital catalogs, and leveraging online bidding platforms. Describe the evolution of e-procurement, including its various stages and technological advancements. Also, explain how understanding this evolution can help BuildLink Solutions develop a robust e-procurement strategy to optimize operations, enhance transparency, and improve supplier relationships. (10 Marks)
Q2. GreenPower Inc. is a renewable energy company specializing in large-scale solar power projects, frequently partnering with government agencies to develop sustainable energy infrastructure. The company faces challenges in devising effective pricing strategies, managing government influences on pricing, and mitigating risks related to contract cancellations due to unforeseen circumstances. Recommend strategies for GreenPower Inc. to manage and negotiate government impacts on pricing while fostering a fair and collaborative relationship. Additionally propose a comprehensive contingency plan along with specific contractual clauses that GreenPower Inc. should include in its agreements to minimize risks associated with contract cancellations and unexpected project disruptions. (10 Marks)
Q3 (A). FashionForward Inc. is a multinational fashion brand that sources fabrics, accessories, and production services from diverse international markets for its manufacturing operations. The company is committed to maintaining high ethical standards and complying with global legal regulations in its procurement processes. However, the purchasing department faces complex challenges regarding the legal authority and responsibilities of purchasing managers, along with navigating international buying ethics and contract law. Explain the legal authority and responsibilities of a purchasing manager and discuss the importance of ethical considerations in global sourcing decisions for FashionForward Inc. (5 Marks)
Q3 (B). Describe different methods of global sourcing that FashionForward Inc. can adopt to procure materials and services from international suppliers, and outline the factors they should consider when evaluating potential global suppliers. (5 Marks)
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