No mark shall be given to the listing.

$$ You are expected to create your company, not choose an existing one, and demonstrate your application of the above concepts.

$$ Marks shall be earned for practical illustration of points$/$ideas$.$

$$ No mark shall be granted for copying ideas$/$points from external sources without adequate substantiation $($plagiarism$).$

ASSESSMENT ONE

As the owner of a firm that operates in the manufacturing sector, you want to diversify your product portfolio by introducing a new category of item to be targeted to a potentially lucrative niche market. You are tasked with your procurement department to carry out the process of sourcing suitable suppliers or service providers to execute this task. Given the presented case, provide a detailed discussion on how your procurement team will undertake the following procurement process phases to select the suitable candidate who will be able to execute the highlighted task $(80$ marks$)$:

$$ Step $1$: Specification phase $(15$ marks$)$

$$ Step $2$: Supplier selection and assessment $(15$ marks$)$

$$ Step $3$: Negotiation and contracting $(10$ marks$)$

$$ Step $4$: Ordering process $(10$ marks$)$

$$ Step $5$: Expediting process $(15$ marks$)$

$$ Step $6$: Follow$-$up and evaluation $(15$ marks$)$

Having selected your supplier, you need to decide on two $(2)$ appropriate incoterms to use to ensure the effective delivery of your products given the fact that your supplier is not based locally. Provide a sound rationale or explanation for the suitability of the two identified incoterms. In other words, justify the selection of those two incoterms.