How Toyota Manages Its Procurement and Strategic Sourcing Processes, Singapore

Question 1

Consider your organisation (or one that you are familiar with) and how it manages its procurement and strategic sourcing processes, in the context of its business (or organisational) strategy. You should relate your answers specifically to the organisation you have in mind, and provide relevant examples from the organisation to support each of your answers.

(a) Describe the profile of this organisation, including the industry in which it operates, the nature of the goods and services which it requires as part of its business, a general estimate of the number of its suppliers and employees, and the role of the organisation in the supply chain. (5 marks)

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(b) Examine whether it is appropriate or otherwise, feasible for this organisation to adopt (or as the case may be, to continue to do so) global sourcing. In your answer, you should analyse two (2) possible benefits and two (2) possible issues related to global sourcing for this organisation. Conclude with your views on how the adoption (or lack of adoption) by this organisation would affect the efficiency and effectiveness of its P2P process. (20 marks)

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