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PROCUREMENT AND SUPPLY MANAGEMENT ASSIGNMENT 2023

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PROCUREMENT AND SUPPLY MANAGEMENT ASSIGNMENT 2023

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PROCUREMENT AND SUPPLY MGT 2023
0612521185/0717513144/0680538213

DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS NOT
PREPARED NOR APPROVED BY MANCOSA, RATHER REPRESENTS A POSSIBLE
SOLUTION TO THE TASK CONSISTENT WITH THEORY OF PROCUREMENT AND
SUPPLY MGT. THIS ASSIGNMENT IS INTENDED TO ASSIST STUDENTS IN GETTING
STARTED WITH THEIR ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE
USED FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD STARTING POINT AS IT WAS
PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO ARE EXPERTS
IN THE FIELD, AND IT WAS PREPARED USING VARIOUS SOURCES. ANY SIMILARITY
WITH ANY EXISTING THEORY OR DISCUSSION BY OTHER AUTHORS IS EXCUSED.
THE AUTHORS HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE
MODIFICATION OF THE ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT BE
PROHIBITED AS IT CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY
FURTHER GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE
MODULE IN GENERAL, CONTACT PASSMATE TUTORIALS.

WE ASSIST WITH OTHER MODULES INCLUDING:

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CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144 or
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, PROCUREMENT AND SUPPLY MGT 2023
0612521185/0717513144/0680538213

1.1 You have been advised that a 500ml can of appletiser costs R25.00 in Gauteng,
South Africa while the same product costs approximately R29.00 (equivalent) in
Harare, Zimbabwe. John Bunn the General Manager of the Southern African
operations has attributed these costs differentials to be entirely contributed by
procurement inefficiencies. Do you agree with this view? Substantiate your
response. (20)

Procurement Inefficiencies and Cost Differentials

The claim made by John Bunn, the General Manager of the Southern African
operations, that the cost differentials between a 500ml can of Appletiser in Gauteng,
South Africa and Harare, Zimbabwe are entirely due to procurement inefficiencies
needs to be examined further. While procurement inefficiencies can contribute to cost
differentials, it is unlikely to be the sole factor in this case.

There are several other factors that could contribute to the price difference between
the two locations:

Exchange Rate Fluctuations: The difference in the value of the South African Rand
(ZAR) and the Zimbabwean Dollar (ZWL) can significantly impact the cost of imported
goods. If the exchange rate between the two currencies is unfavorable, it can lead to
higher prices in Zimbabwe.

Transportation and Logistics Costs: The cost of transporting goods from the production
facility to the final destination can vary depending on the distance, infrastructure, and
efficiency of the transportation network. If the transportation costs are higher in
Zimbabwe compared to Gauteng, it can contribute to the price difference.

Import Duties and Taxes: Import duties and taxes imposed by the Zimbabwean
government can increase the cost of imported goods. These additional costs can be
passed on to the consumers, resulting in higher prices.

Economic Factors: The overall economic conditions in Zimbabwe, such as inflation
and market demand, can also influence the pricing of goods. If the cost of doing
business in Zimbabwe is higher due to economic factors, it can contribute to the price
differential.

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Uploaded on
October 17, 2023
Number of pages
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Written in
2023/2024
Type
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Grade
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