Faculty of Management Sciences

Department of Marketing, Supply Chain and Sport Management

Group Assignment Cover Sheet

Title of assignment: Assignment number 1

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Initial and surname Student number % Contribution Signature

BT SETHE 217588480 33% 𝐵𝒯 𝒮𝑒𝓉𝒽𝑒

SQ MASOMBUKA 216656440 33% 𝑀𝒶𝓈𝑜𝓂𝒷𝓊𝓀𝒶
AG MKHUVELE 216746090 33% 𝑀𝒶𝓀𝒽𝓊𝓋𝑒𝓁𝑒

Submission date: 11 April 2024

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Date submitted: 11 April 2024

Table of contents
Headings, contents Page numbers

Introduction 3

Single sourcing meaning 3

Reasons for sourcing mobile phones 4

Sourcing strategies and objectives 5

Advise SA government on whether to 6

use single or multiple suppliers for
sourcing mobile Phones

multiple benefits you can archive from 7

using single sourcing such as,

Risks the government can encounter 9

when sourcing

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 How can risks be managed

Conclusion 12

References 13

Introduction
Sourcing is very important to the success of organizations of different kinds which
also include our government. There are many organizations that are on a look out
for ways to enhance the efficiency and effectiveness of their supply chain,
strengthening the sustainability on sourcing principles and putting risks at a
minimum. The government should also consider investing in sourcing experts who
will ensure a smooth sourcing process from selecting suitable vendors that will
provide them with the required mobile phones and ensure proper agreement of
terms and condition between the vendors and government.

 Single sourcing explanation

Sourcing refers to the process of obtaining, evaluating, and choosing suitable

suppliers that will provide the required goods and services needed to form part of
company’s daily operations at the lowest possible cost. E.g. Government buying
500 Samsung S22 android mobile phone from MTN Store at the lowest possible
charge. The government can take advantage of the benefits and opportunities
that come with sourcing for mobile phones needed to form part of its day-to-day
operations. The following are the reasons why the S.A. government should take
sourcing of mobile phones into considerations:
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  Reasons for sourcing mobile phones

Enhanced communication

Through the use of mobile phones, the government employees can achieve
a definitive and genuine communication. E.g. Employees of the same
department but different locations can easily exchange information through
mobile phones.

Emergency response and accident management

Mobiles phones can also be helpful in the emergency circumstances. The

government can make use of mobile phones to call and ask for help in case
of emergency. E.g. calling for a rescue form a burning building. Mobile
phones enhance communication, are used for the organization of rescue
efforts, and play an important role in the publication of important
information to ensure public safety. E.g. keeping the public updated on
areas affected by flood during these heavy rains to ensure safety of people
travelling from one place to another.

Data collection and analysis

The government can make use of mobile phones to collect data, conduct
surveys, and give feedback. The government can make use of surveys and
applications on the mobile phones to gather information that can eventually
be used to enhance the education system, determine the public opinion
and enhance service delivery based on the information obtained from the
public. E.g. conducting surveys on how the government’s recruitment
system can be made easier to utilize.

Transparency and accountability

The use of mobile phones will enable the government to provide citizens
with access to information and give real-time updates. This will enable the

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public to stay up to date with everything happening within the community
and the government can however be held responsible for their actions. E.g.
government promising to close the potholes within a specific given time but
however fail to fulfill their promise.

Enhanced service delivery

Mobile phones can help the government to improve the service delivery offered
to citizens. Apps can be created and made available to citizens so they can
request or obtain a specific service through it. E.g. the government should create
apps that students from disadvantaged backgrounds can make use of to obtain
bursaries or different financial aid to assist the further their studies.

 Sourcing strategies and objectives

There are different ways utilized by organizations to determine, select, and

obtain goods and services from vendors. These strategies can be of a
benefit to the government as well in streamlining or improving the
procurement procedures, minimizing costs, and ensuring the quality of
mobile phones and accessibility. The government can make use of these
common strategies when sourcing for mobile phones.

Single sourcing

This strategy refers to the choosing one vendor to fulfill the need of
acquiring a specific product or service. The government can make use of
this strategy to achieve lower costs. On this strategy, the government can
review a list of different suppliers and only chooses one supplier to do
business with. However, this strategy may also offer the disadvantage of
depending on one vendor and sometimes experiences delays. E.g.
government choosing to buy Samsung mobile phones over other brands
that also sell mobile phones.

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Multiples sourcing

This strategy refers to choosing more than one vendor to do business with. this
strategy will keep the government’s dependency on one supplier at a minimum,
improve innovation due to supplier competition. This strategy can also offer the
disadvantage of getting products of different quality from suppliers. E.g.
government sourcing different kind of mobile phones such as Samsung, IPHONE,
Nokia and not having to source only one brand.

 Advise SA government on whether to use single or multiple suppliers for

sourcing mobile Phones

Single sourcing

This strategy refers to the choosing one vendor to fulfil the need of acquiring a
specific product or service.

Multiple sourcing

Multiple sourcing is the process of working with more than one service provider
or supplier to manufacture the same product or fulfil the same service.

Multiple sourcing has less advantages especially when it comes to sourcing mobile
phones for a government organisation, the mobile phones will need to be
procured from a sole supplier, using multiple suppliers for the procurement of
mobile phones will just complicate things for the government because the devices
will be different as the quality and functions and it also affect the supply chain
causing delays leading to complaints.

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 - I would advise the South African government to use single sourcing because
electronic devices such as mobile phones requires specialization and single
sourcing provides this method best, below are the reasons to motivate the
option of single sourcing.

Buying from one supplier has its own advantages and disadvantages, any business
or government organisation knows that there’s a lot to consider when sourcing
from one supplier,

Advantages of single sourcing are that there is less work than dealing with
multiple suppliers, having a single supplier means there will be less work involved
therefore less administrative effort to be used, this is good especially when
dealing with a highly technical product that require significant engineering to
qualify it or use it, for example mobile phones (Ahluwalia 2023).

When governments source from one supplier the procurement process is easier it
reduces cost, less administrative work and also leads reduced lead times, there
will also be a more simplified supply chain and when goods and services come
from a sole organisation instead of multiple they are more efficient and effective.

 There are, multiple benefits you can archive from using single sourcing
such as,

Improved supplier-related problem-solving

Since a government organisation or company using single sourcing only has one
supplier, it may be a lot easier to monitor and measure the supplier's
performance and identify continuing problems. This can help the company solve
its issues in a timely manner.

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Personalized supplier relationship

When a company or government organisation works with a sole supplier, the

supplier may provide it with specialized treatment. Due to the supplier being
more flexible and available which can help a company produce goods and services
more efficiently and effectively.

Minimized administrative work

Having a sole supplier providing all of the company's products and services
simplifies its procurement process. Less administration effort and can save the
government lead time and professional resources, allowing it to focus its
resources towards completing other important operations.

Increased brand partnership opportunities

When a company or government organisation and a supplier have a productive

single-sourcing contract, they may consider brand partnership initiatives. This
means that each organisation may promote the other organisation, which may
lead to an increased customer base and profits for both organisations.

Competitive advantage in the market

If a supplier produces high-quality goods and materials, efficient services

consistently, this may provide competitive advantage for the company or
government organisation over competitors. This can influence the competitors
customer base to consider our company products or services instead.

Enhanced product consistency

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When a company uses single sourcing, its supplier may specialize or become
knowledgeable about its preferences. This can improve product efficiency, making
sure each product appears and functions in the same way and at the same level of
quality.

Reduced costs

Many companies or government or organisations choose single sourcing because

it can reduce costs of materials and products. This strategy can also help to lower
operating costs, allowing them to allocate their budget to other important
business issues.

Higher-quality services and goods

To keep a contract with a government organisation or company, a sole supplier

may provide higher-quality products and services. This can impress potential
customers, which may lead to increased profits.

Improved negotiations and payment terms

When a company or government organisation only has a single supplier, it may

have greater flexibility during negotiations. For example, a single supplier may
offer a company special deals and payment terms.

 Risks the government can encounter when sourcing

The potential risks the SA government can encounter when sourcing include
delivery delays, longer lead times and product shortage just to name a few this
issues may arise due to labour shortages, unethical labour and accidents or harsh
weather resulting in mobile phone shortages and missed deadlines.

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Product shortage risk

When the government is unable to procure the right amount of mobile phones or
the supplier not having enough inventory to meet the government needs this will
result in not having enough mobile phones to supply customers or clients, for
example the supplier makes empty promises and the government places orders
and the supplier is unable to fulfil the orders.

Over spending risk

Due to price instability around the word prices can fluctuate over time, some
suppliers might see the need to renegotiate their contracts which might put the
government in peril because of not having enough capital, the government could
end facing additional costs from supplier resulting in poor supplier relationships
and complete shutdown of the procurement process.

Inaccurate supply chain forecasts risk

Miscalculating the supply chain forecast or not being able to acquire the mobile
phones when we need them might lead the SA government to unsatisfied clients.

Fraud risk

The South African government officials are notorious for their unethical
behaviour, manipulating the procurement process for self financial gain by being
dishonest and participating in unethical behaviour from both parties government
officials and suppliers which involves taking pay offs, kick back shell companies
and giving tenders to people they know.

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Poor supplier performance risk

The inability of a supplier to consistently supply good quality mobile phones can
have a negative impact on the SA government because there will be increased
costs, defects and customer complaints leading to reputational damage for the SA
government and the supplier.

Supply chain disruption risk

An interruption in the flow of process which causes delays in getting the mobile
phones on time, this delays are usually caused by harsh weather, road accidents
and robberies resulting in the supplier being unable to deliver on time and the
government disappointing clients or customers.

 How can risks be managed

Supplier evaluation and selection

The government needs to conduct a thorough due diligence when selecting

suppliers, consider their operational capabilities, stability and track record and
make sure they adhere to quality, compile criterion to evaluate the supplier
including deciding on ways to measure supplier performance.

Supplier risk management

Managing supplier risk sometimes referred to as managing third party risk or

vendor risk means identify the risks, evaluate the risks and create a contingency
plan, when identifying the risks the government needs to check whether the
supplier risk is high, medium or low this requires a team effort to define the most
critical risks and to evaluate the risks, the government needs to be aware at all
times and decide on whether to accept the specifications or take action to
prevent , minimise the risk or build a contingency plan.

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Continuous monitoring and collaboration

It’s very important for the SA government to monitor and evaluate if progress is
made in achieving expected result, the government needs to manage and monitor
supplier performance, financial stability and compliance with the expected
standards, collaborate with suppliers on risk identification mitigation plans and
improvement initiatives regular audits and site visits can provide insights into the
supplier risk management capabilities (Scott 2022).

Continuously monitor KPIs and KRIs

KRI is used to indicate potential risks and KPI measures performance the SA
government can use this two indicators interchangeably to insure high level
performance.

 Conclusion

In order for the South African government to effectively procure mobile phones
and satisfy the demand while ensuring customer or client satisfaction and
mitigating risks single sourcing is the best option to use. single sourcing can offer
many advantages such as reduces cost, less administrative work and also leads
reduced lead times, there will also be a more simplified supply chain, to ensure
that the sole supplier keeps on performing at their level best the government will
need to manage supplier risk by compiling a criterion to evaluate the supplier
including deciding on ways to measure supplier performance.

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  References

Knemeyer, A. M., Corsi, T. M. and Murphy, P. R., ‘Logistics outsourcing

relationships: customer perspectives’, Journal of Business Logistics, Vol.
24, No. 1, 2003, pp. 77–101.

Humbert, X. P. and Passarelli, C. P. M., ‘Outsourcing: avoiding the hazards

and pitfalls’, Paper presented at the NAPM International Conference, 4–7
May, 1997.

Waller, A., quoted by Lascelles, D., in his Managing the E-supply Chain ,
Business Intelligence, 2001, p. 19.

6 Leon, Steven. M, Financial Intelligence for Supply Chain Managers ,

Pearson Education Inc.Harlow, UK, 2016.

Scott L (November 11, 2022) RC: Supplier Risk Management Best practises: 7
Critical steps to building a proactive SRM program [Prevalent], Accessed 06 April
2024 htts:// net/blog.

Akogbe R,Feny, X and Zhou J. (2013). Importance and ranking evaluation of delay,
factors for development projects in Benin KSCE J. LIV. Eng., 17(6) p1213-1222.

Abd EI-Razek M., Bassione, H., and Mobarak. A.(2008) Causes of delay in building
contraction projection Egypt” J. Conster. Eng manage. P 831-841.

Bryce I (Jan 04 2022) RE: (Supplier management, Risk, Compliances control (2022)
supplier risk management best 5 best practises to follow: Accessed 01 April 2024
https: //www.gatekeeping.com>blog .

Over vest M (21Feb 2024)n RE: Multiple sourcing – The ultimate guide of 2024.
Procurement factors accessed 07 April 2024 htts: //www. Bluelinkerp.com> blog.

Rafael A. (2023) understanding supplier risk and its importance to effective supply
chain management, Accessed 03 April 2024.https://linkedin.com pulse.

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