with the complexity of the product range and the need for high levels of quality, she has found itdifficult to influence sourcing strategy. Formal procurement procedures and systems at PEC arevery limited. Currently, the buyer waits to receive a requisition from the production function toplace orders for equipment, materials and products. This means that orders are usually urgent andthe buyer has little opportunity to review alternative suppliers or sourcing approaches. Lowvalue maintenance, repair and operations (MRO) requirements cause particular problems as therequisitions are difficult to aggregate. This causes excessive and time-consuming administrationfor the buyer.Testing requirementsPressure testing machinery used for testing the quality of seams in the protective work-wear isnearing the end of its life and will soon require replacement. Product testing is essential toconfirm final quality of manufacture and conformance to industry standards. The test equipmentis highly specialised and will be costly to replace. Also, recent machine maintenance highlightedboth the cost and the long lead times of the MRO items required to keep the machine operational.If the equipment is not replaced, the test work will need to be outsourced to a facility specialisingin this type of service provision.Supplier dataRecently, the buyer has become concerned that some of her key suppliers could be facingfinancial difficulties. However, she is uncertain how to investigate the financial position of thesesuppliers. The information left by the previous buyer is several years out of date and the currentbuyer is concerned that their position could now be significantly worse. The buyer believes thatshe needs to research the supply market in order to gather more information on external suppliercapabilities. This will allow her to identify alternative suppliers with the necessary technical andquality standards and good financial stabilityANSWER ALL QUESTIONS( a) Examine three different sourcing approaches that could be used by the buyer at PEC tomore effectively source safety products and materials from suppliers.(b) Explain how the new product development approach at PEC could impact on sourcingeffectiveness.(c) Discuss the actions that the buyer could take to balance technical awardcriteria when selecting suppliers.RISK IN INTERNATIONAL PROCUREMENTREAD THE FOLLOWING AND ANSWER ALL QUESTIONS.The magnitude and the occurrence of risk internationally has pushed many companies to beresilient or sustainable by identifying and evaluating the various sources of risk. Previous casestudies have talked about the challenge in purchasing of looking at both cost and other factors.This raises its head again when we consider purchasing from the locale or region. These haveimpacts on cost and other issues such as quality and delivery. As explained by one independentnursing home in the South West, the impacts may vary depending on what commodities youare purchasing. "We have very different ranges of procurement. Of these ranges, foodconstitutes the largest element. We have a group catering manager who was a former seniorchef within our care facilities and she was promoted to this role to supervise the other chefsand coordinate and oversee the food sourcing, and procurement.” This use of a cateringmanager to take on a significant buying role had a key challenge. "The purchasing went frombeing outsourced through national providers to working with local suppliers. It was thereforeimportant that we also kept a rein on this progression to working with multiple suppliers. Wetry and buy as locally and as fresh as possible now as our policy because in the past we hadused a purchasing agency approach which was fine but the national suppliers were not gettinga great quality, in spite of a good price. Local suppliers began to compete on a price level andsome of the chefs began to revert to locals for the quality and so we made it a policy to sourcelocal. Also with the carbon reduction and decrease in pollution, it fits in superbly with ourcompany ethos."QUESTIONS1- Critically examine the above assertion ?

Question

with the complexity of the product range and the need for high levels of quality, she has found itdifficult to influence sourcing strategy. Formal procurement procedures and systems at PEC arevery limited. Currently, the buyer waits to receive a requisition from the production function toplace orders for equipment, materials and products. This means that orders are usually urgent andthe buyer has little opportunity to review alternative suppliers or sourcing approaches. Lowvalue maintenance, repair and operations (MRO) requirements cause particular problems as therequisitions are difficult to aggregate. This causes excessive and time-consuming administrationfor the buyer.Testing requirementsPressure testing machinery used for testing the quality of seams in the protective work-wear isnearing the end of its life and will soon require replacement. Product testing is essential toconfirm final quality of manufacture and conformance to industry standards. The test equipmentis highly specialised and will be costly to replace. Also, recent machine maintenance highlightedboth the cost and the long lead times of the MRO items required to keep the machine operational.If the equipment is not replaced, the test work will need to be outsourced to a facility specialisingin this type of service provision.Supplier dataRecently, the buyer has become concerned that some of her key suppliers could be facingfinancial difficulties. However, she is uncertain how to investigate the financial position of thesesuppliers. The information left by the previous buyer is several years out of date and the currentbuyer is concerned that their position could now be significantly worse. The buyer believes thatshe needs to research the supply market in order to gather more information on external suppliercapabilities. This will allow her to identify alternative suppliers with the necessary technical andquality standards and good financial stabilityANSWER ALL QUESTIONS( a) Examine three different sourcing approaches that could be used by the buyer at PEC tomore effectively source safety products and materials from suppliers.(b) Explain how the new product development approach at PEC could impact on sourcingeffectiveness.(c) Discuss the actions that the buyer could take to balance technical awardcriteria when selecting suppliers.RISK IN INTERNATIONAL PROCUREMENTREAD THE FOLLOWING AND ANSWER ALL QUESTIONS.The magnitude and the occurrence of risk internationally has pushed many companies to beresilient or sustainable by identifying and evaluating the various sources of risk. Previous casestudies have talked about the challenge in purchasing of looking at both cost and other factors.This raises its head again when we consider purchasing from the locale or region. These haveimpacts on cost and other issues such as quality and delivery. As explained by one independentnursing home in the South West, the impacts may vary depending on what commodities youare purchasing. &#34;We have very different ranges of procurement. Of these ranges, foodconstitutes the largest element. We have a group catering manager who was a former seniorchef within our care facilities and she was promoted to this role to supervise the other chefsand coordinate and oversee the food sourcing, and procurement.” This use of a cateringmanager to take on a significant buying role had a key challenge. &#34;The purchasing went frombeing outsourced through national providers to working with local suppliers. It was thereforeimportant that we also kept a rein on this progression to working with multiple suppliers. Wetry and buy as locally and as fresh as possible now as our policy because in the past we hadused a purchasing agency approach which was fine but the national suppliers were not gettinga great quality, in spite of a good price. Local suppliers began to compete on a price level andsome of the chefs began to revert to locals for the quality and so we made it a policy to sourcelocal. Also with the carbon reduction and decrease in pollution, it fits in superbly with ourcompany ethos.&#34;QUESTIONS1- Critically examine the above assertion ?

Accepted Answer

Introduction to Sourcing-
Sourcing in procurement is characterized as a cycle to find, assess, and…