Reference no: EM133678237

Question

Rewrite I will recommend that Stoeckl proceeds with two alternatives. The best fit for the company is to have a centralize procurement strategy and at the same time focus on supplier development to help boost performance as well as drive continued growth. Centralizing company's procurement of all the three products unit will solve multiple issues listed above. It will break down the matrix reporting structure of the company and will create clear reporting to Supply Services team. The company can implement a cohesive global sourcing which will enable them to have a company-wide strategy for finding international supplier. It will help them to coordinate their procurement requirement across multiple product lines and consolidate vendors. By implementing centralize procurement strategy the company can save annual 15% cost by taking opportunity of advance planning and volume discount due to bulk purchasing and transportation cost. Further focusing on finding sources that can meet majority of raw material and product requirements, the company should take initiatives to build collaborative relationship with such suppliers. The company should consider supplier development by investing time and efforts and giving larger share of their business to such suppliers. This will increase the performance and capabilities to meet.