What consideration should be taken when approaching contract

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Reference no: EM133612343

Problem

Case Study: Thandi's Farm

Thandi Miyake has a farm in the Limpopo area. Her farm has been successfully supplying major retailers in the area for years. She has enjoyed excellent relationships with the retailers, and they had been pleased with her service and the quality of her products. The access road to the farm has always been a major problem for Thandi. Frequent rainfalls had made the road to be very difficult for trucks to come to the farm. At times, trucks would be stuck in the mud, and Thandi would hire tow trucks to assist. This came at a cost and was starting to ruin the relationship between her and the retailers. Some were even threatening to pull out of the deals, but Thandi promised that she would find a permanent solution to the problem.

In previous years, Thandi would hire a grader and it would repair the road. However, not long after this, the rains would come, and the situation would go back to square one. In realising that this is not sustainable, Thandi and her team concluded that a tarred access road should be built to solve the problem. The challenge though was that she and the team were not into construction, therefore they had limited knowledge of this. They decided that they will hire a company that would assist them in tarring this 1Km road stretch.

Task

Question I. Discuss the factors to be considered in identifying a suitable procurement strategy, system, process and supplier selection criteria when identifying when hiring the company that will assist them in tarring a 1km road stretch,

Question II. Given the nature of the challenges highlighted in the case, and your analysis in Question I, what considerations should be taken when approaching "contracts"? Elaborate. see below case study:

Reference no: EM133612343

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