Q1. Critical/Bottleneck: Application support (core), Security, Network (LAN), System AdminStrategic: ATM ServicesTactical/Non-critical: Infrastructure, Legal Services, Branch Development (Consultancy), Database & Operating systemLeverage: Network (WAN), Branch Development (Property), Branch Development (Construction), Advert & Publicity, Diesel and other goods and services. Q2. IT services:· Procurement Process- all the procurement processes are initiated by the user department, instead of procurement unit. Hence, it is hard to distinguish the responsibility for each department. Also, there would be too many suppliers and will cause different quality for the product, as well as the inconsistent price for the same product.· For their application support (core), only one finacle supplier. They don’t have the choice to compare the price and high risk if the supplier cannot meet their requirement. ATM services:· There are only 3 suppliers for the ATM services, they don’t have many choices to compare the quality and price, it will cause high cost and high risk if there has any situation from the supplier. Branch Development:· In their procurement process, some invitation for suppliers are from senior managers. This will cause some supplier can be chosen because of personal relationship. So, the supplier may can’t meet the standard that the company used to choose the supplier. Therefore, it will cause the high risk of poor quality. Legal services:· The providers in legal services are professional, it is helpful to figure out some specific issue (about legal). Another issue:· The staff who work in the procurement unit most never visit the suppliers’ warehouse or factory, so they don’t know the suppliers very well. It will cause the high risk of poor quality and the supplier might not meet the requirement. · They don’t have a consistent market survey process. Therefore, it will cause different price for the same product. Q3 · The procurement function can help to consistent the quality, reduce the risk of poor quality.· They can help to manage the price and reduce the cost. Getting through comparing the price from different suppliers, they can choose the best price for the purchasing. Therefore, the procurement function can also help the company to increase the profit.
The procurement function can best leverage suppliers. Because they have all the information of suppliers and the market, they can provide better information flow and increase the profit for the company.