Reference no: EM132867456
You have recently commenced as the purchasing control officer at A.C.E. electrics. A major part of your role is to purchase the monthly stock for the contractors so they are able to complete their daily jobs. The Chief Financial Officer has asked you to look into reducing costs in regards to parts.
He has also asked you to look into purchasing strategies and has asked you to recommend one for the company moving forward. The companies current purchasing strategy has been to use Premium Electrics to purchase all stock as they are online and provide speedy delivery, the only drawback is that they are expensive.
You have obtained 3 quotes from different companies in regards to providing parts on a monthly basis.
Quote 1: Premium Electrics- $20,000 per month. 24 hour guaranteed delivery, only use premium equipment from the USA and Europe.
Quote 2: Shady Electrical parts- $10,000 per month, up to 5-7 day business delivery timeframe. Source parts from China to keep costs down.
Quote 3: 365 Electrical parts- $15,000 per month, 2 Day guarantee delivery timeframe. Parts are sourced from USA & China to keep costs down.
Task: In a discussion group of three students, decide your own role and answer the following questions as a group:
1. Recommend a new purchasing strategy moving forward
2. Compare the 3 quotes provided and make a recommendation on which company you will use moving forward. (When comparing you need to provide cost savings projections over the 12 months plus any other information you used to make your decision)
3. Create a process to receive, check and document purchases- this should also include a step of what to do if the purchased goods are damaged or unusable.