CASE 2 An important feature of a world class organisation is the way the organisation has been able to develop and link its suppliers with its external processes (Pitman, 1994). Supplier relationship management can be defined as the relationship that exists between the supplier and its buyer based on long term commitments and trust with the ultimate aim to maximise the potential value of the relationship. This will include the management of different forms of supply relationships such as partnership, joint venture and vertical integration. Coupled with this, Purchasing requires strategy. Goals must always be defined on the basis of hard facts and figures. For that reason, it is important to collect extensive findings from internal and external data at the outset in order to give them due consideration when strategies are developed. Requirement: i) Drawing from your knowledge in procurement management, discuss how you will evaluate your companys suppliers. (6 marks) ii) Discuss how you will develop your suppliers to ensure a lasting bond. (6 marks) iii) Prior to placing orders from suppliers, it is required of the company buyer to strategically perform a SWOT analysis of the procurement exercise to determine the companys internal strength and weaknesses and external opportunities and threat. Using your chosen case study, examine what could be considered as strength, weakness, opportunities and threat in its procurement. (8 marks) iv) It would also be imperative for the company buyer to conduct an analysis of the industry structure and supplier structure for each commodity group. Examine the relevance of these analysis. (6 marks) v) Discuss three (3) e-procurement tools and examine how the application of e-procurement will impact a firms cost, supply sustainability and procurement risk. (6 marks) vi) During a negotiation meeting, the supplier offers a price and payment terms that are on offer today only and the buyer can take or leave this deal. The buyer explains that more discussion is required because the price is above the buyers budget and the payment terms are shorter than the buying organisations standard terms. The supplier listens selectively and then repeats his ultimatum. The buyer does not want an impasse to end the meeting. (a) Using the scenario outlined above suggest THREE different types of questions that the buyer can use and explain why these questions might be effective. (15 marks) (3 marks) (b) Discuss how effective listening skills could improve the suppliers contribution to the negotiation.