DEVELOPING PURCHASING AND SUPPLY STRATEGIES AT FEDERAL DELIVERY (ANSWER ATTACHED)
12 thg 10, 2023 | 14:25

DEVELOPING PURCHASING AND SUPPLY STRATEGIES AT FEDERAL DELIVERY (ANSWER ATTACHED)



DEVELOPING PURCHASING AND SUPPLY STRATEGIES AT FEDERAL DELIVERY Ellen jones sat in her office thinking, looking out the window. As director of corporate procurement for Federal Delivery, a company specializing in overnight package delivery, she was responsible for all supply management strategies and issues that affected the company. 

Ellen had just left a staff meeting with Larry Thomson, the vice president of supply management. Larry opened the meeting by comparing the supply management group to the mar- keting group, a comparison that did not evoke a pleasant response among the supply managers present. He said that he had just spent an entire day with the vice president of marketing in a strategy alignment meeting. During this meeting, it became evident how seriously and creatively marketing took its responsibility for developing customer—focused marketing strategies. Larry said it was "embarrassing" when it was his turn to outline current and future sourcing strategies, which he said paied in comparison to the market- ing department's strategies. The staff assembled at this meeting soon realized that Larry was not about to suffer this embarrassment alone. In the words of one staff member, "Larry really read us the riot act." Larry argued that the sourcing strategies developed at Federal Delivery were incon- sistent and sometimes conflicting. For example, he said that while one group wants a partnership with a supplier, another group is out "beating suppliers over the head for a lower price." Meanwhile another group wants a single—source contract at the same time a second group insists on maintaining more than one supplier for every purchased item. An animated discussion of long- versus short-term contract agreements finally sent Larry looking for aspirin. Larry concluded the meeting by saying: The bottom line is that we need to get our act together. Each supply group is off doing its own thing while reinventing the wheel every time we have a purchase requirement. We are not consistent. We are not developing strategies that align with what this company must do to be successful. We operate in our own little world, and from where I sit, that world doesn't command much respect around this company. Ellen, I want your group to address these issues right away. Larry's comments troubled Ellen, particularly his concern that Federal Delivery pursued widely divergent buying strategies. While admittedly the sourcing groups sometimes devel— oped strategies that appeared inconsistent, it was possible that some of these groups were responding rationally to the demands placed on them by each sourcing decision. As she thought about this question, however, it became evident that Federal Delivery could bene~ fit from a strategy development process or framework that would guide the various pur- chasing groups and buyers. This process must be robust enough so that all sourcing groups could use it. It was also evident to Ellen that Federal Delivery required a tool or approach for segmentng purchase requirements. She felt that segmenting purchase requirements 













DEVELOPING PURCHASING AND SUPPLY STRATEGIES AT FEDERAL DELIVERY Ellen jones sat in her office thinking, looking out the window. As director of corporate procurement for Federal Delivery, a company specializing in overnight package delivery, she was responsible for all supply management strategies and issues that affected the company. 

Ellen had just left a staff meeting with Larry Thomson, the vice president of supply management. Larry opened the meeting by comparing the supply management group to the mar- keting group, a comparison that did not evoke a pleasant response among the supply managers present. He said that he had just spent an entire day with the vice president of marketing in a strategy alignment meeting. During this meeting, it became evident how seriously and creatively marketing took its responsibility for developing customer—focused marketing strategies. Larry said it was "embarrassing" when it was his turn to outline current and future sourcing strategies, which he said paied in comparison to the market- ing department's strategies. The staff assembled at this meeting soon realized that Larry was not about to suffer this embarrassment alone. In the words of one staff member, "Larry really read us the riot act." Larry argued that the sourcing strategies developed at Federal Delivery were incon- sistent and sometimes conflicting. For example, he said that while one group wants a partnership with a supplier, another group is out "beating suppliers over the head for a lower price." Meanwhile another group wants a single—source contract at the same time a second group insists on maintaining more than one supplier for every purchased item. An animated discussion of long- versus short-term contract agreements finally sent Larry looking for aspirin. Larry concluded the meeting by saying: The bottom line is that we need to get our act together. Each supply group is off doing its own thing while reinventing the wheel every time we have a purchase requirement. We are not consistent. We are not developing strategies that align with what this company must do to be successful. We operate in our own little world, and from where I sit, that world doesn't command much respect around this company. Ellen, I want your group to address these issues right away. Larry's comments troubled Ellen, particularly his concern that Federal Delivery pursued widely divergent buying strategies. While admittedly the sourcing groups sometimes devel— oped strategies that appeared inconsistent, it was possible that some of these groups were responding rationally to the demands placed on them by each sourcing decision. As she thought about this question, however, it became evident that Federal Delivery could bene~ fit from a strategy development process or framework that would guide the various pur- chasing groups and buyers. This process must be robust enough so that all sourcing groups could use it. It was also evident to Ellen that Federal Delivery required a tool or approach for segmentng purchase requirements. She felt that segmenting purchase requirements 











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