[Year]

STRATEGIC SOURCING RECO

DECISION REQUIRED
[Summarise here the supplier, average contract value per annum and term of
contract that you are seeking approval for]

SUBMITTED
[Insert date Recommendation Paper submitted]

LEAD TEAM MEETING

[Insert date of Lead Team Meeting]

WORD COUNT:
[Word Count, excluding Appendices]

PROCUREMENT MANAGER:
[Student Name and Student Number]
1 Executive Summary
Compose a concise and comprehensive summary of your recommendation, outlining the
reasons and justifications. This section serves as a high-level overview, seeking approval
from management by providing the necessary insights for an informed decision. Ensure that
this summary is compelling and instills confidence in the recommendation. Decision-makers
should be able to make informed choices by reading this section alone, with the option to
refer to the subsequent analysis, interpretation, and conclusions for additional support.

2 Table of Contents
To update, right click the table of contents and select [Update Field]

1 Executive Summary___________________________________________________1
2 Table of Contents_____________________________________________________1
3 Process and Timeframes_______________________________________________1
4 Sourcing Strategy_____________________________________________________1
4.1 Overall Strategic Direction___________________________________________2
4.2 Sourcing Strategy – single versus multiple_____________________________2
4.3 Sourcing Strategy – domestic versus international______________________2
5 Supplier Analysis_____________________________________________________2
5.1 Market Analysis___________________________________________________2
5.2 Supplier Financial Analysis__________________________________________3
5.3 Capacity Analysis__________________________________________________3
5.4 Supplier Evaluation and Selection____________________________________3
6 Risk and Cost Analysis_________________________________________________3
6.1 Inventory Management Analysis______________________________________3
6.2 Total Cost Analysis________________________________________________4
6.3 Risk Assessment__________________________________________________4
7 Recommendation_____________________________________________________4
8 References___________________________________________________________4
9 Listing of Appendices__________________________________________________4
Appendix – 1 – Gantt Chart_________________________________________________5
Appendix – 2 – Supplier Financial Analysis___________________________________6
Appendix – 3 – Supplier Evaluation and Selection_____________________________7
Appendix – 4 – Inventory Management Analysis_______________________________8
Appendix – 5 – Marking Criteria_____________________________________________9

3 Process and Timeframes

Document the entire process from concept requirements in 2022 to the point of November
2024 sales. Present this comprehensive timeline in the form of a Gantt chart, including key
decision points, start dates, and the time required for each step. Use the information from
the case study, and explain that your team has been through a logical process to provide
your management confidence that you have been thorough and the time allowed to
Therason’s Einstein production process is adequate. Integrate interpretations and
conclusions derived from the case study into your sourcing recommendation. Highlight any
risks or concerns with the timeline

Information provided here – refer to Appendix 1 – Gantt Chart

Interpretations and conclusions

4 Sourcing Strategy

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4.1 Overall Strategic Direction (Using Kraljic Portfolio Management)

Developing a procurement strategy involves a systematic approach to acquiring goods,

services or works in a way that aligns with the goals and objectives of the company. Explain
the significance of developing an appropriate strategy for sourcing the miniature camera,
utilizing theoretical purchasing concepts. Ensure that you apply a Supply Positioning Matrix
and develop your procurement strategy based on the model. Use the model to inform your
procurement strategy. This is an opportunity to demonstrate to your management why
Procurement is an important function in your company and how it is aligned to organisational
objectives.

Information provided here – no appendix required

Interpretations and conclusions

4.2 Sourcing Strategy – single versus multiple

Examine the critical aspect of single versus multiple sourcing in the context of selecting a
supplier for miniature cameras. The aim is to educate management on the implications of
this decision. Use a table to present your findings. The table should clearly outline the
potential benefits and risks associated with both single and multiple sourcing.

Benefits Risks
Single Sourcing
Multiple Sourcing

Information provided here – no appendix required

Interpretations and conclusions

4.3 Sourcing Strategy – domestic versus international

Examine the crucial aspect of domestic versus international sourcing in the context of
selecting a supplier for miniature cameras. The goal is to educate management on the
implications of this decision. Create a table to present your findings. The table should clearly
outline the potential benefits and risks associated with both domestic and international
sourcing.
Benefits Risks
Domestic Sourcing
International
Sourcing

Information provided here – no appendix required

Interpretations and conclusions

5 Supplier Analysis

5.1 Market Analysis

Demonstrate to your management the market analysis that you have undertaken as part of
your review:
 Provide a detailed description of the competitive industry landscape of miniature
camera suppliers.

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  Using theoretical procurement concepts, demonstrate how aligning with suitable
suppliers who view Therason as a preferred customer is crucial for the company's
success.
Summarise your market intelligence, with specific reference to the suppliers contacted in
your selection process, and use these insights to inform your procurement strategy.

Information provided here – no appendix required

Interpretations and conclusions

5.2 Supplier Financial Analysis

While this case assumes that the cross-functional team visited five suppliers, organisations
often perform a preliminary financial risk analysis to identify the suppliers that may not
warrant further consideration due to excessive financial risk. Conduct a preliminary financial
analysis as per “03 Therason - Appendix 2 - Supplier Financial Analysis.docx” tool.

Information provided here – refer to Appendix 2 – Supplier Financial Analysis

Interpretations and conclusions

5.3 Capacity Analysis

The issue of capacity is an important consideration during supplier selection. Conduct a

preliminary capacity analysis for the suppliers in accordance with the requirements of
Therason and explain any potential issues.

Information provided here – no appendix required

Interpretations and conclusions

5.4 Supplier Evaluation and Selection

As organisations continue to rely on fewer suppliers, the supplier selection process takes on
greater importance. By quantifying the qualitative information, your recommendation is
based on facts and data that will give your management confidence. Conduct a preliminary
supplier evaluation and selection analysis as per directions in “07 Therason - Guidelines -
Supplier Evaluation and Selection.docx” tool, complete and attach the “04 Therason -
Appendix 3 - Supplier Selection and Evaluation Template.xlsx” template.

Information provided here – refer to Appendix 3 – Supplier Evaluation and Selection

Interpretations and conclusions

6 Risk and Cost Analysis

6.1 Inventory Management Analysis

The issue of maintaining minimum required stockholdings is an important consideration

during supplier selection. Conduct a preliminary inventory management analysis for the
suppliers in accordance with the requirements of Therason by completing and attaching the
“05 Therason - Appendix 4 - Inventory Analysis and Calculation Template.xlsx” as per
directions in “08 Therason - Guidelines - Inventory Analysis.docx” to determine order

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quantities, average stockholdings and number of orders. You will note that one of your team
have already commenced the analysis, completing two of the suppliers.

Information provided here – refer to Appendix 4 – Inventory Management Analysis

Interpretations and conclusions

6.2 Total Cost Analysis

Conduct a comprehensive total cost analysis for supplier evaluation, recognizing that unit
price rarely reflects the complete cost of doing business with a supplier. Utilise the "09
Therason - Guidelines - Total Cost Analysis.docx" tool to guide your preliminary cost
analysis. Identify relevant additional costs beyond the unit price, considering both actual and
estimated costs. Account for potential currency issues and anticipate fluctuations in your
analysis interpretations.

Information provided here – no appendix required

Interpretations and conclusions

6.3 Risk Assessment

Identify, assess, and manage potential risks associated with your sourcing decision.
Understand that sourcing decisions inherently involve risks. Utilise the "10 Therason -
Guidelines - Risk Management Plan.docx" tool to guide your preliminary risk analysis.
Identify the possible magnitude of each risk to operations and propose effective strategies to
manage or reduce exposure to these risks.

Information provided here – no appendix required

Interpretations and conclusions

7 Recommendation
What is your recommended sourcing strategy in this case? Include the supplier selection,
term of contract and specific inclusions by way of terms and conditions in a contract. Include
any negotiation topics that you intend on raising to discuss with suppliers prior to agreement.
Support your decision with quantitative and qualitative evidence gathered during the case
analysis. Also, present your plan to reduce any risks associated with your sourcing decision.

8 References
Harvard Referencing – should have a minimum of four – six sources references justifying
theoretical concepts and interpretations.

9 Listing of Appendices
Appendix 1 – Gantt Chart
Appendix 2 – Supplier Financial Analysis
Appendix 3 – Supplier Evaluation and Selection
Appendix 4 – Inventory Management Analysis
Appendix 5 – Marking Criteria

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Appendix – 1 – Gantt Chart
Please include screen shot of Gantt chart.

All supporting excel information should be included in a single file and uploaded to Turnitin. If
you are unable to upload to Turnitin, you may email the file with the reference ‘OPS 911
Assessment 1 Support Materials – Student Name, Student No.’ (shared files or links to files
stored in the cloud will not be viewed).

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Appendix – 2 – Supplier Financial Analysis

Please include screen shot of Financial Analysis.

All supporting excel information should be included in a single file and uploaded to Turnitin. If
you are unable to upload to Turnitin, you may email the file with the reference ‘OPS 911
Assessment 1 Support Materials – Student Name, Student No.’ (shared files or links to files
stored in the cloud will not be viewed).

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Appendix – 3 – Supplier Evaluation and Selection

Please include screen shot of Supplier Evaluation worksheet.

All supporting excel information should be included in a single file and uploaded to Turnitin. If
you are unable to upload to Turnitin, you may email the file with the reference ‘OPS 911
Assessment 1 Support Materials – Student Name, Student No.’ (shared files or links to files
stored in the cloud will not be viewed).

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Appendix – 4 – Inventory Management Analysis

Please include screen shot of Inventory Management Analysis results.

All supporting excel information should be included in a single file and uploaded to Turnitin. If
you are unable to upload to Turnitin, you may email the file with the reference ‘OPS 911
Assessment 1 Support Materials – Student Name, Student No.’ (shared files or links to files
stored in the cloud will not be viewed).

Commercial in Confidence Page 8

 Appendix – 5 – Marking Criteria
The following is evaluation guidelines for the assignment. This is not part of the case study
but will be useful to use as a guide. I will then use for marking.

DESCRIPTION WEIGHT SCORE COMMENTS

Format and Exec Summary
 Business context – professional writing
style, precisely stated.
 Clear and succinct summary of the key
issues showing a comprehensive 15%
understanding of all relevant issues
 Executive summary has
recommendation and justification
Process and Timeframes
 Gantt chart format
 Logical order with time allowed 10%
 Key issues discussed
 Recommendation follows process
Overall Strategic Direction
 Broad strategy development
 Theoretical concepts 10%
 Discussed procurement
Single v’s Multiple Sourcing
 Sourcing strategy considered
 Advantages and disadvantages 5%
discussed
Domestic v’s International Sourcing
 Sourcing strategy considered
 Advantages and disadvantages 5%
discussed
Market Analysis
 Industry and Supplier Analysis 8%
 Application of theoretical concepts
Financial Analysis
 Financial risk analysis accurate and
thorough 5%
 Interpreted and conclusions provided
Capacity Analysis
 Capacity identified
 Issues discussed 5%
 Recommendation follows process
Supplier Evaluation and Selection
 Supplier evaluation and selection
process 5%
 Justified / comments
Inventory Management Analysis
 Analysis correct
 Issues discussed 5%
 Costing flows to total cost analysis
Total Cost Analysis
 Total cost analysis accurate and
thorough 7%
 Interpreted and conclusions provided
Risk Assessment
 Risk management plan thorough 5%
Recommendation
 Correct decision
 Recommendations supported by
research and diagnostics. 15%
 All points are well considered including
the implications of the recommendations
made.
Research & Referencing Marks
 Harvard System of referencing adjusted
 Evidence of research / reading as req’d
TOTAL 100%
Exceeding Word Limit (PENALTY) -5%