QUESTION THREE Discuss the cost of inventory and explain how eThekwini Municipality can transform its inventory management process to be proactive. Use the relevant examples to justify your answer. Read the statement below and answer ALL five questions that follow: Material costs play a crucial role in determining the overall cost structure of an organization. Effective management of material costs involves a combination of strategic sourcing, risk management, supplier relationships, and continuous monitoring of market trends. Organizations that can adapt to fluctuations in material costs and proactively manage their supply chains are better positioned to maintain competitiveness and financial health. You are managing the purchasing department of eThekwini Municipality, in KwaZulu Natal, Durban-South Africa. Answer the following questions focusing on how your position will assist in creating value to the Municipality in terms of cost reduction when buying its goods and services. QUESTION THREE Discuss the cost of inventory and explain how eThekwini Municipality can transform its inventory management process to be proactive. Use the relevant examples to justify your answer. Read the statement below and answer ALL five questions that follow: Material costs play a crucial role in determining the overall cost structure of an organization. Effective management of material costs involves a combination of strategic sourcing, risk management, supplier relationships, and continuous monitoring of market trends. Organizations that can adapt to fluctuations in material costs and proactively manage their supply chains are better positioned to maintain competitiveness and financial health. You are managing the purchasing department of eThekwini Municipality, in KwaZulu Natal, Durban-South Africa. Answer the following questions focusing on how your position will assist in creating value to the Municipality in terms of cost reduction when buying its goods and services