Case 3-1 Iowa Elevators - Case 3-1 Iowa Elevators Situation Scott McBride direct of purchasing at Iowa Elevators prepared to present a five-year plan

Case 3-1 Iowa Elevators - Case 3-1 Iowa Elevators Situation...

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Case 3-1: Iowa ElevatorsSituation:Scott McBride, direct of purchasing at Iowa Elevators, prepared to present a five-year plan forthe purchasing department.oAsked by Walter Lettridge, the CEO of Iowa ElevatorAnnual revenue of the company was $2.3 billion and hired 2,500 employees.oTotal revenue had decreased by 20% from the previous year due to drought conditionso$11 million after taxes was lost and a dramatic decline in working capital in the lastfiscal yearTwo business unitsoThe grain-handling and marketing divisionoThe farm supplies divisionThe grain-handling and marketing divisionoOperated approximately 300 grain elevators in the MidwestoInvested in upgrading its elevator system heavily over the previous five yearsoContributed about 75% of total company revenuesoPoor management leaded to lower volumes in inventory and increased competitionThe farm supplies divisionoProducts contain crop-protection products, equipment and supplies, fertilizer, and seedsoIncreased in market shareoThe operating margins has remained flattedoThe revenue of this division has doubled during the past five-yearThe current job allocation of purchasing team need improvementData collection focused on oHow much money did Iowa Elevators spend with its outside suppliers?

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