Sweden-based Hennes and Mauritz (H\&M), one of the leading fast fashion retailers in the world, was staring at an uncertain future in 2018. As of November 2017, the company had unsold stock worth US $4.3 billion. While the CEO, Karl-Johan Persson, said that the problem was due to decreasing traffic to the physical stores and the growing impact of online retailers, analysts were of the view that it was due to H\&M's weak supply chain, which could not keep up with more nimble competitors like Zara. H\&M designed the clothes in-house, but it did not own any production facilities and outsourced its manufacturing to factories located in Asia to reduce costs. It took about three weeks for the clothes to be designed, made, and shipped to stores across the world. Competitors like Zara, however, finished this whole process within a span of ten days to two weeks. There were exclusively online retailers like ASOS which had short supply chains. With H\&M's products not able to keep up with customers' expectations, inventory started to pile up. The company did not make any major changes to its supply chain for over two decades, and continued to produce in Asia without paying any attention to the changing trends in the fast fashion industry. Users said that the offerings from H\&M had become dull and unfashionable. This was because H\&M designed 80% of its clothes before the season and only 20% during the season. As the clothes were not attractive, they remained unsold, leading to a build up of inventory. In the fast fashion era, these clothes went out of fashion within a few weeks, and H\&M was unable to sell them. This only added to its inventory. H8M's supply chain was unable to react to the unsold stocks and it continued to replenish stocks with styles that were not always trendy. It also started facing competition from online retailers who were extremely quick in introducing new styles and fashions. Though H8M went online in the late 1990 s itself, it did not do much to develop its e-commerce capabilities. As a result. the company's unsold inventory swelled to 20% of its total sales. H\&M resorted to markdowns, which adversely impacted its profits. The inventory problem plagued it for seven quarters, and the company appeared to be caught in a vicious circle of low sales, markdowns, and excess inventory. To address these issues, the company went in for an overhaul of its supply chain. But the new supply chain led to more problems as the merchandise could not reach the stores on time. It again went in for a change of the supply chain and also the design process to include analytics to understand demand. It also automated the warehouses and logistics centers. The company announced investments in artificial intelligence, RFID, and omni channel programs. H\&M then announced a transformation that was guided by three action areas to be restless around the core, invest in enablers of new technology and ways of working: and drive growth in both traditional and new. It remained to be seen whether the supply chain transformation would help the company regan the glory it had lost. (Icmrindia, 2020) 1.1 Discuss the key differences between traditional purchasing and strategic sourcing. How does strategic sourcing contribute to an organization's ability to achieve its long-term corporate goals, and why is this- (20 Marks) alignment important in the context of supply chain management? Provide examples in relation to the case study to support your answer. 1.2 In the context of category strategy, explain the role of category managers in strategic sourcing. How can (20 Marks) effective category management support an organization in achieving its corporate objectives? Provide examples of how organizations have successfully implemented category strategies to enhance their supply management practices and make reference to the case study. Scenario based questions. QUESTION 2 (20 Marks) ABC Manufacturing is a global company specializing in the production of high-tech electronic components. The company has been facing several challenges in its supply chain management, including rising material costs, increased competition, and a need to expedite the development of new products to meet market. demands. To address these challenges, ABC Manufacturing decides to implement cross-functional sourcing teams. Cross functional sourcing teams consist of personnel from different functions and increasingly. suppliers who are brought together to achieve supply management tasks. Outline the benefits of cross functional sourcing teams. H\&M, a global fashion retailer known for its commitment to sustainability, has been seeking to enhance its supply chain by selecting new suppliers for its clothing lines. In this scenario, H\&M has faced challenges with one of its newly chosen suppliers, XYZ Textiles, which did not meet all the criteria for a good supplier. Several factors were overlooked during the supplier selection process. With reference to the case, explain the factors that H\&M did not consider when selecting a supplier. QUESTION 4 (20 ABC Motors, a prominent automobile manufacturer, is contemplating the idea of outsourcing certain elements of its production process and supply chain management. As a consultant, identify and elaborate on the potential drivers that might lead ABC Motors to consider outsourcing aspects of its operations, such as manufacturing, logistics, or component sourcing. In your response, consider both the internal and external factors that could influence ABC Motors' decision, and provide examples ar specific circumstances to illustrate these drivers