Within the procurement process, strategic sourcing is employed to coordinate all procurement activities with a view to move from tactical procurement to strategic procurement and proactive long term planning. For this purpose organisations aim to constantly improve their sourcing process through collaborative relationships with external resources and productive supply markets to reduce their cost base and increase the value of goods and services for their consumers. However, it must be remembered that procurement is not a ‘risk-free’ activity and organisations must take care to ensure that risks are minimised and opportunities maximised in the procurement process.For an organisation of your choice, you are asked:
(a) To demonstrate the key risks that the selected organisation faces in procuring goods and services through the production of a risk assessment. 50%
(b) To critically examine the procurement function and sourcing methods. 50%