Profit leverage effect on behalf of company

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Reference no: EM133004951

Scenario:

You are in purchasing at an after-market auto parts supply company. Your role is to source-purchase parts which will be sold both in retail and on line (ecommerce). One of your products is a mobile phone holder that fits into a car cup holder, purchase price is $4.00 each and the company sells for $8.00 each. Sales are ramping up as you are this unique product supplier in the marketplace. Sales are currently running at 3,000 a month. The future forecast is for each month to grow by plus 500 a month (3,500 new monthly total) for the next 12 months at least.

You have decided to confirm with your supplier (s) as to their ability to meet new demand increases. (plus 500 units a month, starting in 3 months (day 1 month 4) for at least a year's supply).

Question:

  • Outline Purchasing steps you would take in terms of adding value to the Profit Leverage Effect on behalf of your company. Add who would you reach out to?
  • Outline your assumptions and show your mathematics calculations with your financial projections.

Reference no: EM133004951

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