What is realistic on spend reduction


NEW .TODAY ASAP. Discussion post one page base on Exhibits 2 and 3 SEETHE ATTACHEMENT FOR (exhibits 2 and 3) AND THER WILL BE TWO OR FOUR RESPONSE AS WELL.

You are now discussing as individuals-feel free to follow your case analysis, but you do not have to be bound by it; if you have additional ideas to offer here that did not make it into the case, please do so.

In 8 days, he needs to persuade the executive management team to embrace his plan and give him its total support. How can he make that happen?

Especially consider exhibits 2 and 3. What should be done with them? What is realistic on spend reduction? How would that vary from category to category and from year to year? What is the right number of suppliers? What is reasonable for inventory turnover? How much can be saved and how much can inventory be reduced if the turnover is optimum? How much will a change in organization cost and what will be the cost benefits of making the change? This is the type of information he must use to support his plan to get serious consideration.

There could be a lot more questions-you do not need to answer each and every question, but answer enough to persuade the executive management team.

In all reply follow-ups, I expect you to discuss with and challenge each other to ensure strong cases are made and poor analysis is not accepted.

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