1PSM302 Procurement and Supply Business Needs Analysis Assignment Brief 2026 | NIT

1PSM302 Procurement and Supply Business Needs Analysis Assignment Brief 2026 | NIT

1PSM302 Assignment Brief

Instructions to Students

1. Answers must be typed (font size 12, Arial).
2. Assignments submitted after the deadline will NOT be marked.
3. Plagiarism is a serious offence and can disqualify your assignment.
4. Assignments and Projects are subject to be checked through TURNITIN for plagiarism verification.

Case Study

Case Scenario: Procurement Challenges at TechBuild Solutions (Pty) Ltd

TechBuild Solutions (Pty) Ltd is a medium-sized company that supplies computer equipment, office furniture, and IT infrastructure to businesses, government institutions, and educational organisations. Due to rapid expansion, the company has recently secured several large contracts that require significant procurement activities. The procurement department is responsible for sourcing goods and services from external suppliers. These purchases include computer hardware, networking equipment, office furniture, cleaning services, and maintenance contracts.

However, management has noticed several challenges in the procurement process. Firstly, many purchasing decisions are made without a proper business case. Some departments request purchases without clearly explaining the organizational need, expected benefits, or possible alternative solutions. As a result, procurement officers sometimes struggle to justify purchases or compare supplier options effectively.

Secondly, the organization has difficulty estimating procurement costs accurately. Some employees only focus on the purchase price of goods without considering additional costs such as delivery, installation, maintenance, and operating costs. This often leads to unexpected expenses later in the product life cycle.

Another issue involves market management. Procurement staff have limited knowledge about supplier markets. They do not always analyze factors such as supplier bargaining power, competition in the market, or the availability of substitute products. Because of this, the organization may pay higher prices than necessary.

In addition, the company often experiences problems with poor procurement specifications. For example, when requesting IT equipment or services, departments sometimes provide vague descriptions such as “high-performance computers” without specifying technical details. In other cases, specifications are too detailed and limit competition among suppliers.

Poor specifications have caused several procurement problems, including suppliers delivering incorrect products, project delays, and additional costs to modify contracts. The finance department has also identified issues related to budget control. Procurement staff do not always monitor spending against approved budgets, and some purchases exceed planned financial limits.

Management has therefore requested the procurement team to conduct a detailed procurement needs analysis and develop strategies to improve purchasing decisions, supplier management, and specification development.

You have been appointed as procurement consultants to analyze the situation and propose practical solutions.

Task 1

The IT department has requested the purchase of 20 high-performance office computers for employees working on technical projects. You are required to develop a structured procurement business case to justify the purchase of high-performance office computers for an organization.

Your business case should clearly explain:

• The current problem or operational need that requires the organization to purchase new computers.
• The purpose and objectives of acquiring high-performance office computers.
• The expected benefits to the organization, such as improved productivity, faster processing, enhanced efficiency, and reduced system failures.
• The risks or negative consequences the organization may face if the computers are not upgraded.
• A brief overview of the estimated costs and financial considerations.
• A final recommendation that supports the decision to purchase the computers.

Your response should demonstrate logical reasoning and clearly show why the procurement decision is necessary.

[35 Marks]

Task 2

TechBuild Solutions plans to purchase 20 office computers.

Cost Information

Instructions:

1. Calculate the total initial cost per computer.
2. Calculate the total maintenance and operating cost for 3 years.
3. Calculate the Total Cost of Ownership (TCO) per computer for 3 years.
4. Calculate the total cost for 20 computers.
5. Present calculations in a clear table format.

Write a short explanation (100–150 words) explaining why TCO is important in procurement decisions.

[30 Marks]

Task 3

In this task, develop a professional procurement specification document for the highperformance office computers.

Your specification should clearly describe the technical and operational requirements that suppliers must meet. This should include:

• The purpose of the procurement
• The quantity of computers required
• The technical specifications, such as processor type, RAM, storage capacity, graphics capability, and operating system
• Minimum performance requirements
• Compatibility requirements with existing organizational systems
• Warranty and technical support requirements
• Delivery requirements

Your specification should be clear, detailed, and measurable so that suppliers fully understand what is required.

[35 Marks]

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