10.1 If you were involved in pre-qualifying a strategic supplier for the manufacture of high-quality

components for use in an aircraft engine what would be the six most important questions you

want answering about the supplier's procurement department?

1 0.2You purchase tyres for a range of cars, vans and lorries. For many years these have been

sole sourced with a tyre manufacturer. You have been asked to challenge the procurement

strategy. What sources would you use to find other possible sources of supply who would be

invited to tender?

1 0.3Situation analysis is concerned with taking stock of where an organisation or activity within an

organisation has been recently, where it is now and where it is likely to end up using present

policies, plans and procedures. As the executive in charge of the procurement of management

services, including temporary labour, facilities management, consultancy and security you are

asked to effect economies without prejudicing the final service quality. How might an analysis

of market conditions help you make constructive recommendations?

1 0.4One of your major competitors has just appointed an Administrator. They have severe cash flow

problems and many of their contracts have been running at a loss. Your Sales Director has told you

that your company has been offered two of your competitor's contracts, providing your organisation

accept the work at the current contract prices and terms that the failed company had. He

has asked for your opinion on a possible course of action, prior to him talking to the two potential

clients. The value of the work being offered is 10 million. This would represent 24 per cent of

your current turnover. What would be your opinion and what would it be founded upon?

10.11 You have appointed a new supplier for the provision of specialised marketing services. They

have advised you that because of staffing difficulties they are sub-contracting your work to

one of their 'partners'. How would you deal with this situation?