Many businesses do not understand whether their international sourcing methods maximise profits and offer return on investment. This is owing to limited research being done with regard to procurement models that are utilized by companies, as well as whether these models in fact embrace the basic logistical elements of price, transportation and inventory costs. International sourcing is typically driven by cost considerations and has a cost advantage over domestic sources. However, they should have profit maximisation as the ultimate end goal. As with many other retailers in South Africa, Company CC within the XYZ group has not undergone any research in order to understand whether their international sourcing methods are efficient and effective in order to maximize profits. It is also important to understand what the risks are that are associated with imports. Imports are associated with various complexities, which impact on the way that we plan our business. It is therefore important, as a starting point, to ascertain whether the employees at Company CC within the XYZgroup understand the process of imports and what it involves.

Many businesses do not understand whether their international sourcing methods maximise profits and offer return on investment. This is owing to limited research being done with regard to procurement models that are utilized by companies, as well as whether these models in fact embrace the basic ...