Supply Chain Requirement
Green Gable Farms, a Division of Integrated Forest Products Limited, was
reviewing its strategic plan for the coming year. A major component of the
strategic plan was the supply chain strategy and how to achieve lower material
costs. The responsible procurement manager, Terrence Forest, has to determine
the best strategy to meet the company’s objective of lower material costs and
improving profit margins.
Integrated Forest Products is a large privately held corporation consisting of
operations predominately in Eastern North America. Business units include:
- Forestry & Forest Products
- Industrial/Construction Services
- Consumer Products
- Modular Homes
Terrence Forest has been employed by Integrated Forest Products for 5 years and
has a good track record within the purchasing department of Green Gable Farms.
Terrence understands the business very well and also understands that Green
Gables needs to make a step-change to its previous sourcing strategies.
1) Describe your strategy to improve cost reductions and explain how your program will work.
2) Describe the risks you are facing and explain how they could be minimized.
3) Describe your plan to roll-out any changes at Green Gables.