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August 8th, 2017 
admin Introduction
This business report is aimed at offering procurement advice to the Director of BenBori; a major manufacturing company which has in the recent past suffered loss of scales as a result of deterioration of its own performance. The report analyzes some of the major procurement problems and their causes with major consideration being given to the main problems in this company which can be traced back to failure of the suppliers to deliver and control the quality. The other problems that this company faces and which this study analyses on are the notable decline in the profitability, attributed to the increase in the cost of purchasing which has been caused by increasing costs of raw materials and labor.
The other key issues to be highlighted in this report includes the appropriate circumstances in which BenBori can conduct direct negotiations with the suppliers together with the ethical issues to be considered in the negotiation and the sources of information to be used by this company in identification of the suppliers for the purpose of global sourcing. The conclusion in this report is based on the findings and recommendation that are appropriate to enhance the company to improve its performance and revive its market share in its area of operation.
Procurement problems, causes and solutions
BenBori is a good example of a company facing the most common problems that are found in the procurement. Cost to a procurement process is very sensitive based on the fact that it is through maneuvering around this variable that a company is able to justify the reason for operating in the market. In the procurement process, the companies are usually faced with a similar dilemma in which they are unable to establish and maintain a supplier relationship that is profitable, the price increase confrontation problem in addition to ensuring the control of the quality supplied. Therefore, the major procurement problems revolve around profitability, the level of price and the quality that the company procures from the supplier (John, 2010), as illustrated in the figure 1.
Chart 1: relationship between profit, quality and price
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