his assessment addresses the following Unit Learning Outcome:
Company Background: WestAgri Ltd.
WestAgri Ltd. is a medium-sized agribusiness based in Geraldton, Western Australia, employing
approximately 320 staff across farming operations, processing facilities, and regional distribution
centres. The company supplies grain, fertiliser, and agricultural inputs to growers across WA and has
annual revenues of approximately $180 million.
WestAgri has traditionally relied on manual and semi-automated systems for procurement, inventory
management, and logistics coordination. While this approach has supported the business to date,
recent disruptions to supply chains, increased regulatory reporting requirements, and expansion plans
into interstate markets have exposed limitations in existing systems.
To support future growth and improve operational resilience, the board has approved WestAgris first
major ICT investment.
Procurement at WestAgri Ltd.
WestAgri Ltd. is planning to invest $2.5 million in a cloud-based procurement and logistics
management system. The system is intended to:
Given the scale of the investment and WestAgris limited experience with large ICT procurements,
the decision is considered strategically significant.
At a senior management meeting held on 12th of January, 2026, differing views emerged.
Procurement Officer (Anna):
We should adopt a formal tendering process similar to the WA Governments approach. This would
allow us to assess multiple suppliers, ensure transparency, and demonstrate value for money.
Although tendering takes time and involves additional costs, it reduces the risk of selecting an
unsuitable supplier for such a critical system.
Operations Officer (Mark):
Tendering is slow and bureaucratic. We already know a local IT firm whose owner has a long-
standing relationship with WestAgri. Theyve offered to deliver the system for $2.2 million, which
is below our estimated budget, and can complete implementation faster. Awarding the contract
directly would save time and keep investment within the local community.
Chief Financial Officer (Linda):
The tender process itself could cost up to $100,000 in external consultancy and evaluation fees.
While tendering may reduce long-term risk, the direct award option appears cheaper in the short
term. However, if the system underperforms, the financial impact could outweigh the initial
savings.
2
Chief Executive Officer (Robert):
Were not legally required to follow WA Government procurement rules, but our board expects
ethical and transparent decision-making. Even the perception of favouritism could damage our
reputation with investors and partners.
IT Manager (Sophia):
The local supplier has experience with small-scale IT systems but has never delivered a cloud
platform of this size or complexity. Im concerned about capability, vendor lock-in, and disaster
recovery readiness.
Community Representative (David):
Supporting a local supplier strengthens regional employment and community trust. A formal tender
may favour large metropolitan firms, which could be viewed negatively by the local community.
As a newly appointed member of WestAgris Strategic and Digital Transformation Team, senior
management has asked you to work with the procurement team, conduct background checks on
potential suppliers, and assess procurement options before a final decision is made. You are required
to analyse the situation and advise senior management on the most appropriate procurement approach.
Your Task
Prepare a 1000-word professional report advising WestAgri Ltd. on the most appropriate procurement
approach for this ICT investment.
Your report must:
1. Assess the advantages and risks of a formal tendering process
2. Assess the advantages and risks of a direct award to the local supplier
3. Provide a clear, justified recommendation, drawing on:
You should demonstrate critical thinking and professional judgement, and your recommendation
must be well reasoned and supported.
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