A museum shop sells branded notebooks made by a local printer. The procurement officer has been asked to assess three options for the next order: retain the...
Question 1 Report
A museum shop sells branded notebooks made by a local printer. The procurement officer has been asked to assess three options for the next order: retain the current printer, use a cheaper national supplier, or buy from an online manufacturer. Market research indicates that visitors value local products, but the shop's profit margin has fallen. The order is for 1500 notebooks, required in 14 days for a major exhibition.
(a) Identify two criteria, other than price, that the officer should use to compare suppliers. [2]
(b) Explain one reason why the shop should request product samples before placing the order. [2]
(c) Show why procurement should check each supplier's production capacity. [2]
(d) Which option may best support the museum shop's local-product image? [1]
(e) What could procurement negotiate with the chosen supplier to improve value for money? [1]
Answer Details
(a) Two valid non-price criteria are delivery reliability [1] and product quality [1]. Production capacity, ethical standards and payment terms are also acceptable. These factors matter because 1500 notebooks are needed for a fixed exhibition date.
(b) Product samples allow the officer to check print quality, paper quality and design accuracy [1]. This reduces the risk of receiving notebooks that visitors will not buy or that must be replaced [1].
(c) Procurement must check that the supplier can produce all 1500 notebooks [1] within 14 days; otherwise, sales during the exhibition could be lost [1]. Capacity concerns the amount a supplier can make in the required period, not simply the price quoted.
(d) Retaining the current local printer may best support the museum shop's local-product image [1].
(e) Procurement could negotiate a bulk discount [1] to improve value for money. A lower unit price, free delivery or a longer payment period would also be acceptable.
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