Iowa Elevators from Purchasing and Material Management 15th Edition by P. Fraser Johnson and Anna E. Flynn. From the Text Book, the Case is on page 69-72
The case study requires that you assist Scott McBride, the director of purchasing at Iowa Elevators in reviewing and preparing a 5-year plan for a meeting with the executive management team.
For this case study, instead of preparing a 5 year plan, answer the following discussion points and prepare a short response using the Walden University Responding to a Case Study PowerPoint to develop, draft, and post your response:
Responding_to_a_Case_Study Walden University.ppt
(1) Exhibit 1: Iowa Elevators Purchasing Department reflects that Scott McBride reports to the Iowa Elevators Chief Financial Officer, after your study of Chapter 3: Supply Organizations, how would you proposed to the Executive Team that the purchasing department be reorganized to report directly to the Executive Team?
(2) Based on your analysis of the Iowa Elevators Purchasing Department which has a history of decentralized management should Iowa Elevators evaluate their decentralized management of the purchasing function and consider moving to centralized purchasing and materials management in order to reduce costs and improve the purchasing and materials management function? If so why, if not why not. Support your decision for decentralization versus centralization.
(3) In the analysis of the corporate spend, the information provided indicates that the Iowa Elevators deals with over 1,500 suppliers, 20 of which account for approximately 45 percent of the total spend for company purchases. In your opinion, should Scott McBride consider a plan to reduce the number of suppliers to better manage the company spend and or consider the development of a consortia for the purchase of fleet vehicles? What other purchasing and or materials management areas at Iowa Elevators could be considered for consortia purchases?
Prior to responding to this case study discussion point, watch the following shot video from YouTube on Fleet Vehicle Replacement:
Source: YouTube, Element Fleet Management, Determining Optimal Fleet Vehicle Replacement published on February 24, 2015 and retrieved September 2015, this quick video provides information on the fundamentals of fleet management to help you determine your optimal fleet replacement strategy.
(4) Due to the specialized nature of information technology and management information systems equipment, should Iowa Elevators consider moving the IT Purchasing function under the Chief Information Officer (CIO), or should it remain under the Director, Purchasing? Why or why not. Support your decision.
(5) As noted in the case, one of Scott's major concerns is resistance from the division and field elevator managers to his plans, and what he could do if anything to address any organizational resistance to his recommendations. In your opinion, from what you have learned from Chapter's 1: Purchasing and Supply Management, Chapter 2: Supply Strategy, and Chapter 3: Supply Organization, which steps could Scott take to gain support for his purchasing and materials management plans?
The "Chapter Case Studies" are worth 50 points each, for a total of 150 points which is 15 percent of your final grade. Points will be awarded based on: timeliness of submission; organization and format; content, original analysis and thought; support provided for your opinion; and, organization, clarity of expression, substance of content and English usage.
Below is the Case for Iowa Elevators