Commodities prices are going up, the prime distributor is looking for a mark-up increase, and the CEO is mandated by the Board of Directors to control and eventually reduce the cost of goods purchased, in order to maintain institution tuition rates.
The CEO recruits OPTIMBUY but also expresses concerns with the potential reactions of end-users/operators to any change in the organization.
As the Company is preparing to launch a significant organic growth initiative in a very competitive marketplace, the President decides to review overall company strategy including supply chain management strategy while the CFO is questioning the existing purchasing team’s productivity. OPTIMBUY is hired to review company supply chain organization, analyze suppliers' contracts and implement actions to generate savings’ opportunities.
Company is a large decentralized organization with multiple profit centers. Current supply chain strategy is to let each location manage purchasing activities to customize offerings to local preferences while controlling costs with competitive bids. Realizing the limits of such a strategy, CFO and newly hired Senior Vice President recruit OPTIMBUY to develop and implement a plan to reorganize supply chain function and accelerate cost reductions and savings.