...United States exceeding $2.3 billion in revenues annually. It is also the employer of more than 2,500 employees. Iowa Elevators has recently experienced declining revenues over the past year as a primary result of drought conditions. Needless to say, the drought had a huge impact on crop production, hence setting in motion a need for change. Scott McBride, director of purchasing at Iowa Elevators, has been tasked with developing a plan to regain control of purchases made throughout the company in order to increase revenues and cut back on costs. With this in mind, Scott’s task was to develop and present a five year plan for the purchasing department. This plan would identify major issues in purchasing company wide, identify areas where cost could be cut. This would include reducing headcount, overhead expenses, and capital expenditure budgets. In Scott’s plan he would identify annual targets for achieving the reductions. Working with a team of acquisition specialists, sales representatives, and administrative offices, Scott began to work on a plan for cost reductions. Cathy, Scotts’ right hand purchasing analyst, began analyzing corporate spend which averaged $728 million with 20 of the 1,500 suppliers accounting for 45% of total spend and the top five represented 35%. This led to the perception of many things, including the ability to begin making cuts in supplier relations. Cathy designed a table which identified total purchases by category with farm supplies leading...
Words: 1255 - Pages: 6
...C A S E S T U D Y MasterCard Best Practice Case Study - Harvard University A T - A - G L A N C E Harvard’s GE MasterCard Corporate Purchasing CardTM delivers a range of benefits such as expense reduction with improved efficiency, tighter cost control and saved manhours: • Ease of use and improved productivity for employee • Reduced bank fees • Reduced check costs and related invoice processing costs • No rework- 100% first pass yield • Improved employee satisfaction • Decreased cycle time -from 22 days to 2 days • Enhanced supplier relationships -reimbursement within 48 hours • Enhanced data capture and more accurate accounting information • Accelerated purchasing process • More efficient A/P team -- 30% reduction in check issuance • Fewer vendor records added to the ERP system • Less activity in the customer service group regarding: problem resolution - 20% reduction in supplier calls www.mastercard.com/gov GE Capital's implementation of the MasterCard Corporate Purchasing CardTM solution at Harvard University has resulted in direct cost savings for the organization, greater employee productivity, enhanced efficiency, improved supplier relations, reduced rework and improved cycle times. The GE Capital MasterCard Corporate Purchasing Card has helped the university more effectively manage and control its payment processes. Harvard University, founded in 1636, is the oldest educational institution in the United States. The university currently...
Words: 2233 - Pages: 9
...purchase can take take advantage of the great incentives that will help them. For those that cannot they end up with different perks, which could cause them to start looking elsewhere for someone to help out the “little man”. There could be many types of problems Mac Gibson’s could be facing is just the fact of change. Staff and clients alike may hesitate at the thought of change. Another problem make be the likelihood that proficiency may be lost. Purchasing in a large quality wold have a large impact on the way the current service plan is. Currently clients do not have to purchase large amounts of product to get a good deal or incentives. Currently clients can buy and if they want buy more the next day with the same service expectation. The new proposed plan will help the company have more cash or sales meeting their day to day operational cost. The working capital now improves in this situation, the company produces smaller debt days and be able to pay there bills to supplies on time. When purchasing less then the $100,000 worth of product each year client are going to loose the customer service experience they are used to, when they purchase on an as needed basis. References Gerhart, B., Hollenbeck, J., Noe, R., & Wright, P. (2009). Fundamentals of human resource management (3rd ed.). New York, NY:...
Words: 320 - Pages: 2
...Biniyam Beyene, Christie Ferrell, Gabriel Mendoza and Paula Strahl ACC/544 May 2, 2015 Professor Tracie Youngblood Controls for Outflows Purchasing, accounts payable, cash disbursements, finance, investment, and payroll are key components to a successful and efficient business. Internal controls are needed in these outflow process to prevent fraud and theft within the business. The follow proposal will list the types of controls that are needed and reason for the controls. Finance One of the things that cannot be overlooked when it comes to controls is finance. Finance is the lifeblood of an organization. Without proper controls and functionality and control, a company’s finances can be out of distorted and may cause a business to possibly go under and close for business. One of the things that a business can do with controlling its finances is to have more than one person of management sign off on orders that have to do with financial transactions. An example of this would be a work or purchase order. This is something that should be controlled and documented by more than one person of management. The last thing that upper management wants to see is a mess of finances where one individual may end up taking too much control and could very well not be aware of the right amount of inventory they could be purchasing where there may not be a need. A second person can look over the order themselves and may have the ability to intervene and consider other...
Words: 2205 - Pages: 9
...agreed-upon prices over a specified period. Because the seller holds the stock, blanket contracts are sometimes called stockless purchase plans. Product value analysis is an approach to cost reduction in which components are carefully studied to determine if they can be redesigned or standardized or made by cheaper methods of production. Organizational buying is the decisionmaking process by which organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. The Business Market versus the Consumer Market • • • Fewer buyers: Business marketers normally deal with far fewer buyers than do consumer marketers. Larger buyers: Buyers for a few large firms do most of the purchasing in many industries. Close supplier customer relationship: Smaller customer base and importance of larger customers, suppliers have to customize offerings to meet the needs of individual customers. • Geographically concentrated buyers Derived demand: Demand for business goods is derived from demand for consumer goods, so business marketers must monitor the buying patterns of ultimate consumers. • Inelastic demand: Not much affected by price changes as producers cannot make quick production changes. • • Chapter 7 -...
Words: 1185 - Pages: 5
...cost-efficient and cost-effective ways. Separated into 4 distinct budgets, the materials, MRO, Capital and administrative/operating budget, the supply budget offers the business the means to meet its goals and objectives. * The Materials (operations) purchase budget, is based on the group’s forecasted operations, sales and plans classifies cash flow labels and problems well in advance. Because of this task, the materials (operations) purchase budget separates problems and gives the organization ways to avoid predicament. * The MRO Budget, which normally covers a purchase plan over 12 month periods, outlines budgetary provisions for maintenance, repair and operating supplies. Due to the intricacy of the MRO budget and the line items it contains, the MRO budget is really thought-provoking. For clear reasons, it might be impossible to forecast some repairs. * The Capital Budget fine points the money outflows based on the strategic plans of product lines and production needs. Because of this, some companies may plan the wealth outflows for one year or more. In fact, some product lines and production schedules for such require a Capital Budget covering years. Since this budget plans capital purchases, equipment oldness and equipment replacement needs, and in turn considers organizational growth plans and/or new endeavors, the strategic choices the organization makes and the Capital budget must work together to guarantee organizational...
Words: 438 - Pages: 2
...and cost-effective ways. Separated into 4 distinct budgets, the materials, MRO, Capital and administrative/operating budget, the supply budget offers the business the means to meet its goals and objectives. • The Materials (operations) purchase budget, is based on the group’s forecasted operations, sales and plans classifies cash flow labels and problems well in advance. Because of this task, the materials (operations) purchase budget separates problems and gives the organization ways to avoid predicament. • The MRO Budget, which normally covers a purchase plan over 12 month periods, outlines budgetary provisions for maintenance, repair and operating supplies. Due to the intricacy of the MRO budget and the line items it contains, the MRO budget is really thought-provoking. For clear reasons, it might be impossible to forecast some repairs. • The Capital Budget fine points the money outflows based on the strategic plans of product lines and production needs. Because of this, some companies may plan the wealth outflows for one year or more. In fact, some product lines and production schedules for such require a Capital Budget covering years. Since this budget plans capital purchases, equipment oldness and equipment replacement needs, and in turn considers organizational growth plans and/or new endeavors, the strategic choices the organization makes and the Capital budget must work together to guarantee organizational success. Failure to match these...
Words: 423 - Pages: 2
...Analysis of Bose Corporation Case Manufacturing Strategy at Bose • Focus was mainly on speakers. The three most critical components of speaker design was; 1.Transducers, 2.Electronics, 3.The cabinet • Three existing manufacturing units: 1.Westboro, Massachusetts; 2.Ste-Maire, Quebec; 3.Carrickmacross, Ireland • Two planned manufacturing units: 1.Hillsdale, Michigan; 2.San luis , Mexico • Plants were increasingly becoming self-sufficient. Expanding their range f manufacturing • Three potential problems: o Separate priority and agenda for BOSE and the vendors o Long term relationships helped vendors become an expert by acquiring specialised capitals o In long term out-sourcing would be more expensive than in-house manufacturing. Corporate Procurement Strategy • The two major functions of the Corporate Procurement Division was : 1. Locating new vendors 2. Sourcing new parts • Vendors were involved at a very early stage of product development – like design advice and product specification • Elaborate screening process for choosing a vendor • 4 types of personnel involved in procurement process: 1.Design Engineers, 2.Materials Planners, 3.Buyers, 4.Vendor Salesperson • After 1988 procurement and purchase were decentralised and instead of Corporate Level, buying began at Plant Level • Buyers at Plant were responsible for Quality, Cost and Delivery and decisions depended on the domain knowledge and experience of the representative • 75% of buyers time were...
Words: 542 - Pages: 3
...Consumer Behavior Insights Name : Student Number : Course title : Marketing Course : Assignment topic : Consumer Behaviour Insights Lecturer : Author : Name : Student Number : Course title : Marketing Course : Assignment topic : Consumer Behaviour Insights Lecturer : Author : Assignment Coversheet The Faculty of Business STUDENT INFORMATION STUDENT NO. | | SURNAME | | PHONE NO. | | GIVEN NAMES | | E-MAIL | | Instructions for submission are found in the course description. Assignments with Cover Sheets not signed at the bottom will be returned unmarked and ma y then incur a penalty for late submission. ASSESSMENT INFORMATION COURSE NAME | | COURSE CODE | | ASSIGNMENT DETAILS (title) | | LECTURER / TUTOR’S NAME | | Campus / Provider | | DUE DATE | | SUBMITTED ON | | PLAGIARISM The Faculty and the University regards as a very serious matter the action of a student who acts dishonestly or improperly, including plagiarism or cheating, in connection with his or her academic work. Under University Regulation 6.1.1 “Plagiarism” is defined as “…the presentation of the works of another person / other persons as though they are one's own by failing to properly acknowledge that person / those persons”. Plagiarism may take many forms including: direct copying of sentences, paragraphs or other extracts from someone else’s published work (including on the Internet and in software) without acknowledging...
Words: 4540 - Pages: 19
...STANDARD INTERNAL AUDIT PROGRAMME ----- I. SALES: 1 To study the system for approval and acceptance of orders and to give suggestions for improvement. 2 To check the order acceptance with price list, if any, and to report the financial impact of sales below the price list. 3 To compute the percentage mix of sales made to new parties developed during the period under review and also compute the opportunity loss due to non-development of prospective parties as customers. To identify the reasons for non – development of these parties into customers. This may, further, be correlated with the expenses incurred during foreign tours conducted by the marketing personnel. 4 To study the system of order acceptance and invoicing and to report deficiencies in internal control, if any, along with suggestions for improvement. 5 To check the complaints and rejections during the period under review. Following aspects are to be checked in details: a) Nature of various complaints and percentage thereof. Reasons for frequent complaints of similar nature to be looked into. b) To study the role and follow up done by the Quality Assurance Department in respect of various complaints received during the period. c) To check whether there has been any major rejection, both, in domestic and overseas market, identify the reasons for the same and follow up action taken in this respect. d) To study the various reports prepared for monitoring...
Words: 3428 - Pages: 14
...Answer 1: Man is a gregarious animal and always lived in social groups. Their needs to survive were food, shelter and clothes. In the primitive times, every tribal or village group was at the same level. They compete for survival and to fulfill essential needs. With time, consumer behavior has evolved. And slowly different societal status was formed and the distinction less privileged to more privileged was seen. In the early times, the consumer’s decision process to purchase a commodity was based on his need. Slowly that has shifted from what a man “needs” to what he “desires”. Every human is a consumer at some point of time in their life-span. Markets create desires more than needs. For example if a company introduces any new product or service to the market, a consumer will assess the product/service by the following criteria: • Make their life more convenient. • Cost effectiveness • And, how cool it makes them look in the society Need factor is mostly ignored in current market. Answer 2: The article clearly states, for a not so rich person, in order to enjoy a commodity that a wealthy person enjoys, he has to look for a similar commodity (under a different brand maybe) that is created to serve masses and the medium that provides more economical option to make the purchases. Take for example an LCD TV, today in the market there are varied options and brands that are less expensive and can be afforded by masses easily. Not only that for a smart consumer, he has...
Words: 772 - Pages: 4
...departments are authorized too much power, such as the purchasing clerk and the cash disbursement department. These duties need to be segregated among other departments. By pre-approving transactions, such as an approved vendor list, preventative controls can eliminate the ability to engage in fraudulent activities. Also, this company needs to engage in a system of checks and balances among each department to ensure validity, accuracy and completeness. Analysis The first step in the expenditure process may create issues. All the employees should not have access to create a purchase requisition. For example, how can an employee that works in the cash disbursement department know about the inventory levels and make a purchase requisition. BLUE Company is lacking an inventory control department; this needs to be incorporated. BLUE Company should limit the number of employees with the access to create a purchase requisition within the inventory control department. Unauthorized access exposes assets to misappropriation, damage, and theft. By incorporating access controls, BLUE Company may be able to eliminate the misappropriation of assets. The purchase requisition should be prepared by an employee with access to inventory needs. Also, a purchase requisition should only be prepared when inventory drops under the predetermined reorder point. This point is set by each individual firm. This is to ensure that a firm is not purchasing unnecessary amount of inventory. After the purchase...
Words: 954 - Pages: 4
...Southeastern University Situation: * Southeastern University was one of the largest universities in the state. * Total enrollment of more than 25000 students and approximately 3500 staff. * Had 12 faculties at the university, over 20 continuing education diploma and certificate programs and 3 affiliated colleges. * Its purchasing department was centralized and it has a detailed policy. * Purchasing director Blake Hyatt, reported to the university’s VP of administration. * Maintained a list of approximately 1200 approved suppliers, adjusted every 3-5 years. * Follows a weighted average vendor selection system * Volume of purchases amounted to $75 M for goods and services each year. * The office of registrar handled about 160000 pieces of mails a year. * 50 to 60 employees(full time and temporary) were occupied in manually stuffing envelopes two days a month. * Walter Charbonneau, Manager of university registrar’s office bought the automatic folding machine; at cost -$14000 and supplier-not in the approved supplier list. * Heather Sloman, buyer in the purchasing department received quotes from 3 of her suppliers for a similar machine * .Q1- 10000,Q2- 11000 and Q3- 15000 +free 1 year service. Tasks: * What does Heather do? * Investigate unauthorized purchase * Talk with Walter about following university policy * Check with other suppliers on stock availability/lead...
Words: 744 - Pages: 3
...DISADVANTAGES: - You usually have to wait long periods of time to receive your sofa. Sometimes, this can even take up to a month or longer if being shipped from overseas. There could be delays on the delivery, or miscommunication and you can’t go to the store or get in contact with someone face to face. Usually, there is no one to ease your frustration about any delays that occur. - Shipping costs on your item can be extremely high in comparison to what you paid for the sofa, sometimes making the purchase not worth it. - Sometimes looks can be deceiving. You don't get to test the product before you buy it. What might have looked beautiful to you in picture might not live up to your expectations once received. Then what? - If it’s an online store that doesn’t have a local store in your area, returning the sofa will be a HUGE hassle. Make sure before you purchase online that you are clear on the stores return policies. Make sure that no matter how good the deal is that you have the option to return if need be. You wouldn’t want to spend 500+ dollars on furniture you can’t bring back. - Another factor to remember about returns. You will have to pay the charge for shipping it back, repackaging, and stocking in most cases, unless it’s a manufacturing problem. - People worry about fraud or theft with credit cards purchases. Make sure every website you shop from is security verified secure and protected and has this information displayed clearly on their website. Also...
Words: 309 - Pages: 2
...Situation: • Heather Sloman is one of the buyers in the purchasing department of the Southeastern University. o Report to her boss, Glen Meredith, about a new equipment purchase all purchases report to director, Blake Hyatt, • New equipment was purchased without following standard university purchasing polices. • Standard university purchasing procedures: o Submit a purchase request to purchasing department o Additional information may need to be added: such as tax, and duty status, product classification and supplier status o If purchase amount over $7500, at least two written quotations are required; if the amount over $15,000, three or more written quotation is required o Buyer prepares the request for quotation form (RFQ). o Any RFQs over $100,000 had to be posted on the internet. • Current situation: o Walter placed an equipment order that cost $14,000 o Other suppliers offered lower rate or better service plan for similar equipment: $10,000, $11,000 and $15,000 that included one year free service. BASIC ISSUES: 1) University personnel placed the order directly with supplier 2) About 275 cases were signed with suppliers without prior approval each year 3) Some employees often ignore university policy Tasks: • What should Heather do? o Should Heather keep the machine and pay for it? o Status quo • What are alternatives: o Can the equipment be returned? (avoiding...
Words: 515 - Pages: 3