Question 1

• Multiple sourcing

To give the buyer a choice, preserve competition, and manage demand fluctuations, pre-qualification
and the usage of more than two suppliers are used. Frequently used for low-cost, low-risk products and
services. The buyer at PEC could respond better to urgent requirements for less critical products and
materials by having a number of vendors pre-qualified.

• Sole sourcing

Where the requirement can only be met by one supplier A monopoly supply market with high entry
barriers and no near substitutes is typical. In terms of price and supply security, this poses a significant
risk to the customer. There may be only one approved source due to the technological nature of some
of the safety materials.

• Partnership sourcing

Both the client and the supplier have made a commitment to a long-term relationship based on
continuous improvement. High-spending/high-risk needs, technological complexity, and rapidly
changing technology, for example. This can be a viable strategy for PEC to ensure that their products and
materials keep up with the latest innovations and quality standards.

Question 2

Cost Savings

When it comes to pure business terms, outsourcing should help your company's bottom line by lowering
operational costs. If you don't see this happening anytime soon, you'll probably wind up spending more
than you save.

Pricing

One of the most prevalent reasons why firms outsource is to save money by employing personnel at a
low cost. You'll find a number of suppliers offering their services at a reasonable price.

The Resources and Technology

When it comes to outsourcing, two factors must be considered: technology and resources. Inquire about
the tools and technology the vendor plans to employ for your project, as well as their ability to handle
all of your outsourcing requirements.

The Ability to Meet Deadlines

The importance of timeliness in outsourcing is equal to the importance of cost. For example, if a vendor
misses a deadline, it might cause substantial bottlenecks. That alone will negate whatever cost-cutting
gains you had hoped for when you hired them.

Minimal Supervision
When you choose an outsourcing vendor to handle your business needs, you can rest assured that they
will handle everything from the ground up. They should be able to achieve the results and there should
be no place for sloppy or bad work.

Limit the Liabilities

There are specific functional areas that, more often than not, might accumulate liabilities for a company.
This consumes time and money that could be better spent elsewhere. Certain functions can be cleverly
outsourced to lessen liability to some extent.

Trustworthiness

Make a point of visiting the vendor's website before signing on the dotted line. Aside from that, do some
internet research to learn more about the company, its infrastructure, safety procedures, and the
people who work there.

Question 3

1. Identifying a Supplier
Gathering stakeholder viewpoints and defining the criteria for the selection process are crucial steps to
consider before choosing a supplier. This list of stakeholders could include people from R&D,
purchasing, marketing, quality assurance, and any other department in your company that has a hand in
the supplier selection process.

2. Measuring Supply Performance

The development of an audit and assessment program is another crucial phase in the supplier
management process. Audits are conducted at various phases of the manufacturer/supplier relationship
in best-in-class supplier programs. Before signing a contract, you should always undertake an audit to
ensure that the supplier has no severe compliance or quality system flaws that could jeopardize your
capacity to create high-quality products. Another reason to do the audit ahead of time is to gain a better
understanding of the supplier's strengths and limitations before the partnership is formalized.

3. Gaining Supplier Feedback

A self-assessment questionnaire is another tool you can use with suppliers. The supplier self-assessment
can be used to uncover performance gaps and learn how the supplier views their own business.

4. Achieving Certification
The supplier may be able to attain certified status when your relationship with them develops stronger
and both sides believe they are receiving great results. This happens when you create a list of specific
criteria that your providers must meet. Certification is earned via consistent, successful performance,
and it can be lost through bad performance or a negative audit compliance outcome.

5. Developing Partnerships
Finally, when a strategic alliance is formed, the manufacturer/supplier connection is at its optimum,
allowing full understanding of the source of materials and ensuring good quality.
6. Ensuring Quality for Consumers
Developing a supplier quality management program can be a complex and upfront commitment,
depending on the amount of materials and ingredients required. You'll have piece of mind knowing
you're offering top quality to your customers if you opt to create solid relationships with dependable
suppliers.

Question 4

1. Poor communication

Financial difficulties is often accompanied by poor communication. If your clients aren't returning your
calls or responding to your emails, it's a sign that something isn't quite right. If you have a good working
relationship but can't get in touch with management about billing, you can consider filing a formal
complaint.

2. Disputing invoices

Your clients may try to avoid paying you by filing a dispute over an invoice. These disagreements could
be about performance, stock, or an attempt to get rid of underperforming contracts in order to save
money. Again, the tone of their correspondence could imply that something is wrong with your clients,
and they could be laying the groundwork for an investigation. Clients disputing invoices also provide the
company some breathing room, so be aware of clients disputing invoices where there don't appear to
be any obvious difficulties. 

3. Loss of reputation

The importance of reputation in business cannot be overstated. A deterioration in reputation,

particularly when it comes to payment, should raise multiple red flags. If you hear that the company is
losing trust with other customers, it's time to sit down and figure out what's going on. A significant loss
in reputation might be irreparable, as it takes time and money to regain consumer trust.

4. Relaunch and rebranding

Companies that rebrand under identical names on a regular basis should always be avoided. Why have
they had to sell and rebrand in the past should raise red flags. Is the rebranding just a band-aid solution
to the cash flow problems? Similarly, if a corporation relaunches but continues to supply the same trade
to its customers without any more revenue, they are likely to encounter the same challenges. In the
worst-case scenario, the association could harm your company's reputation.

5. Clients refusing to trade with the company

If you notice any of these warning signals in your clients, you should contact professionals’ right once to
explore your alternatives. We recommend that you try to engage with your client to determine the
problem and, if possible, negotiate a payment plan. Companies House can also be used to watch their
company's progress and acquire accounts.
Question 5

Balance Sheet. 

The balance sheet shows a supplier's financial situation at a specific point in time. Organizations can
examine a supplier's current capitalization and liquidity position, total assets, and outstanding debt and
liabilities using the balance sheet.

Income Statement. 

The income statement summarizes a supplier's financial status over a set period of time, usually a
month, quarter, or year. Key statistics such as total revenue, gross profit, operational expenses, and
operating profit are detailed or calculated in a supplier's income statement. These metrics and pieces of
information work together to show how well a supplier is doing in terms of sustaining and maintaining
healthy operations to support product and/or service delivery levels.

Cash Flow Statement. 

In order to be financially healthy, you must be "liquid," or have cash on hand. The cash flow statement
depicts the components of cash inflows and outflows, as well as the efficiency with which a provider
generates or consumes cash. Major industry shifts, economic volatility, and worldwide events (such as a
pandemic) can all have a significant impact on cash flow, which can provide critical insight into a
supplier's financial health in a variety of market conditions.

Question 6

Decide on the objective of your SWOT analysis

To get the most out of your SWOT analysis, you should start with a question or goal in mind. A SWOT
analysis, for example, could be used to determine whether you should introduce a new product or
service or improve existing operations.

Research your business, industry and market

You should conduct some preliminary research to gain a better understanding of your company,
industry, and market before beginning the SWOT analysis. Talk to your coworkers, business partners,
and clients to get a variety of viewpoints. Do some market research and learn about your rivals as well.

List your business's strengths

The first step is to identify and list the qualities you believe your company has. Employees, financial
resources, your business location, cost advantages, and competitiveness are all examples of strengths.

The list does not need to be definitive at this level of the SWOT analysis. Any and all suggestions and
ideas are welcomed. In step 7, the list is prioritized.
List your business's weaknesses

Make a list of the items in your business that you regard to be flaws (i.e. that put your business at a
disadvantage to others). A lack of new products or clients, staff absenteeism, a lack of intellectual
property, diminishing market share, and a long distance to market are all potential weaknesses.

Make sure you solve the flaws that your SWOT analysis revealed. The list of flaws might show how your
company has evolved over time. After a year, you may discover that your vulnerabilities have been
addressed in your SWOT analysis. While you may discover new flaws, the fact that the old ones are no
longer present is an indication of progress.

List potential opportunities for your business

Consider the possibilities for your company's external growth. These are not the same as your internal
strengths, and they aren't always certain — an opportunity for one part of your company could be a
threat to another (e.g. you may consider introducing a new product to keep up with consumer trends,
but your competitors may already have a similar product). Keep in mind that the same item should not
be labeled as an opportunity and a danger in the SWOT analysis.

New technology, training programs, partnerships, a diversified marketplace, and a change of

government are all possibilities.

List potential threats to your business

Make a list of external elements that could pose a threat to your company or cause an issue. Rising
unemployment, increased competition, higher interest rates, and global market uncertainty are all
potential risks.

Establish priorities from the SWOT

When you've finished the steps above, you'll have four different lists. These lists should ideally be
displayed side by side so you can get a clear sense of how your firm is performing and what concerns
need to be addressed. You can then determine which concerns are the most pressing and which can
wait (i.e. develop 4 prioritised lists).

Develop a strategy to address issues in the SWOT

Review your four prioritized lists and ask:

• How can we use our strengths to take advantage of the opportunities identified?

• How can we put these assets to work against the risks we've identified?

• What do we need to do to overcome the shortcomings indicated in order to seize the opportunities?

• How will we minimize our flaws in order to overcome the risks that have been identified?
Question 7

• If the supply is halted for any reason, the firm will be in a lot of trouble since it was a single-sourcing
choice;

• If the supply is interrupted for any reason, the business will be in a lot of trouble because it was a
single-sourcing option.

• When there is no healthy competition, the provider loses interest since there is nothing to keep them
on their toes.

• If there is just one source from which the buyer may obtain items during times of strong demand, the
customer may experience difficulties.

• If a company sticks to its single-sourcing policy, other vendors lose interest and stop attempting to
compete for future contracts.

• If the sole supplier encounters an unexpected difficulty or event, the buyer will be forced to deal with
major consequences.

Question 8

Cash-in-Advance

An exporter can avoid credit risk using cash-in-advance payment arrangements because payment is paid
before ownership of the products is transferred. Wire transfers and credit cards are the most typical
cash-in-advance solutions offered to exporters for foreign transactions. Escrow services are becoming
another cash-in-advance option for small export deals as the Internet advances. Payment in advance, on
the other hand, is the least appealing choice for the buyer because it produces an unfavorable cash flow.
Foreign customers are also concerned that if payment is made in advance, the items may not be
delivered. As a result, exporters that insist on using this payment method as their primary mode of
operation may lose out to competitors who offer more appealing payment terms.

Letters of Credit

Letters of credit (LCs) are one of the safest financial tools available to international businesspeople. An
LC is a promise made by a bank on behalf of a buyer that payment will be given to the exporter if the
LC's terms and conditions are followed, as evidenced by the presentation of all requisite documentation.
To obtain this service, the buyer establishes credit and pays his or her bank. When obtaining solid credit
information about a foreign buyer is challenging, but the exporter is confident in the trustworthiness of
the buyer's foreign bank, an LC is useful. The buyer is likewise protected by an LC because no payment is
due until the products are delivered as promised.

Open Account

An open account transaction is one in which the items are transported and delivered before payment is
due, which is commonly in 30, 60, or 90 days in international sales. Obviously, this is one of the most
cost-effective and cash-flow-friendly solutions for the importer, but it is also one of the riskiest ones for
the exporter. Because of the fierce rivalry in export markets, overseas buyers frequently demand
exporters for open account terms, as seller-to-buyer credit is more widespread in other countries. As a
result, exporters that are hesitant to issue financing risk losing a sale to their rivals.

Factors that influence the choice of a payment method.

1. Payment options
The days of cash, cards, and cheques are long gone. Payments are more diverse than they've ever been,
thanks to the Internet's proliferation of Web- and mobile-assisted payment options. Businesses can no
longer rely on a limited number of options to keep them afloat. When it comes to payments, every
consumer has their own preferences, so shops and service providers must do their best to
accommodate as many as possible in order to satisfy the most people and maximize income.

2. Security
Since the introduction of electronic payments, data has been a key focus of retailers, service providers,
and card companies. E-commerce has brought this focus to the forefront. Criminals were able to commit
credit card fraud and identity theft more easily than ever before due to a lack of regulation around
internet payment processing. The Payment Card Industry Data Security Standards, established around
the turn of the century by five major card companies, are a set of principles for safeguarding consumer
information.

3. Customer-focused
More than only the businesses they partner with are important to the finest payment services. They're
also concerned with the needs of their partners' customers. These businesses understand that customer
retention is critical to their clients' success, so they provide services that are user-friendly and minimize
cancellations. These services include effective client communication and measures to prevent or address
payment issues.

Question 9

Smarter Spending

Your firm will be able to totally overhaul your team's spending practices by tracking expenditures, costs,
and warranty information in real-time using an e-procurement system. This motivates everyone to
spend more wisely and save money on day-to-day expenses. Conducting a spend analysis with a
procurement service is significantly easier because you can see the whole expenditure picture.

Improved Cost Savings

You'll have better visibility into your purchase order and non-buy order expenditures across your firm if
you use a dedicated e-procurement platform. It makes it easier to need buy requisitions and authorized
POs for all purchases, allowing you to spend more time developing strategic purchasing strategies and
less time reducing operating costs. You'll also save money by reducing your maverick spending.

Stronger Supplier Relationship Management (SRM)

Using the correct e-procurement technology to streamline your supply chain and automate your
business processes saves transaction costs and reduces supply chain risks. Because you can engage more
directly with them and boost openness, you can develop stronger and more strategic collaborations.
Your company's overall risk will be reduced with good supplier management.

1. Precoro - Total purchasing control

Precoro describes itself as "buying ground control." It enables you to quickly build bespoke purchase
orders, track manager approvals, and assign each payment to the appropriate budget. This is a great
solution for companies with complex and ongoing buying needs.

2. Promena e-Sourcing - Easier RFQs

Promena, as the name implies, assists businesses in sourcing and managing suppliers. Especially for
those companies that need to issue RFQs (requests for quotation). Promena will handle each bid and
keep them all organized when you issue an RFQ. Many procurement teams' jobs are time-consuming
(and thus expensive) because of this.

3. TradeGecko - A well-managed inventory

TradeGecko is an inventory management solution that aids in the integration of your supply chain and
your customers. It's best for "multi-channel or multiregional wholesaler[s] or distributor[s]," which
means companies that acquire and sell stock on a regular basis and at scale.

Question 10

1. Control

e-Procurement platforms give you more flexibility and control throughout the entire purchase process.
Control is fundamental to the contemporary e-Procurement system, from who can input an order
through who can approve and purchase it, and lastly who can receive against or pay it. You may even
control who has access to transaction details and which details they have access to after the fact. An
advanced digital e-procurement system is what you need if you want control over not only what your
firm spends, but also who can spend it, authorize it, and view it.

2. Automation

Human error is a major issue with legacy procurement systems. In a spreadsheet, someone enters
inaccurate data or fails to save their modifications. A vacationing employee fails to approve a purchase
order before departing.

To overcome these obstacles, modern e-Procurement systems rely on automation. You can utilize one of
the following solutions instead of having one of your employees manually enter a PO or invoice:

• Templates

• Automated PO generation

• PunchOut catalogs
• Internal catalogs

3. Budgeting

Budgets are a fact of life for any business and a hallmark of a successful e-procurement system. Budget
calculations are done by hand or in spreadsheets with a legacy system. There's little visibility, no
mechanism to enforce approvals for over-budget purchases, and a single click can spell disaster.

All of this will be automated by modern e-procurement systems, which will inform authorized users of
the available budget and the potential impact of spending before it occurs. Not only will best-of-breed
systems warn approvers if a request is beyond budget, but they will also activate additional routing rules
or approval workflows for over-budget spending to guarantee they're properly accounted for.

4. Easy vendor management

You can strategize significant cost reductions when you can see all of your orders for a vendor in one
spot.

• Consolidating comparable orders in order to take advantage of bulk discounts.

• Using a spreadsheet to show vendors how much you spend with them in order to negotiate
reductions.

• Monitor the utilization of non-preferred vendors (and even put a stop to those orders to save money
there, too).

5. Reduced rogue spending

For many businesses, rogue spending is a major problem. Around 40% of employees admit to going
rogue at some point, either by purchasing an item without proper approvals or by purchasing a different
item than what was approved. It's simple to hide or mask a rogue purchase with paper and
spreadsheets. This is not the case with e-Procurement systems. In fact, having an electronic audit trail
that cannot be destroyed is a tremendous deterrent to rogue spending, so you'll not only catch it easier,
but you'll have fewer cases to begin with.