Eagle Industry Case

In: Business and Management

Submitted By madhuradesh
Words 1264
Pages 6
: Eagle Industry Case

1. Why are office products frequently chosen as a lead commodity in strategic sourcing efforts? In an effort to reduce the overall costs associated with the purchases of the outside goods and services, though the office supplies were not the largest part, it’s chosen for variety of reasons:
a. With office supplies, there is no difficulties in comparison and substitution as there is very little or no differentiation among the suppliers and products.
b. Also, with initial understanding obtained from the data, quick hit opportunities are present for savings.

2. What observations can you develop about Eagle's SKU usage, prices they pay and contracts they currently use?
a. About the SKU usage, the there were broad range of products as well as individual items purchased per category.
b. The prices Eagle paid with large difference in the prices for the identical items by the same supplier. Also, there was a greater variance across the vendors for the prices on some items as 50% or more.
c. The spending was made through three suppliers-two are contract and one catalog supplier. The prices for the identical items by same supplier varied. The variance was even greater across the vendors. Though the catalog supplier used promotional pricing, price comparison shoed that the non-discounted items were prices premium as compared to contract suppliers.

3. Discuss potential implementation barriers.
Though the office supplies category seemed easy target with larger impact, the few of the barriers it could faced:
a. The catalog supplier used gift incentives for purchasing minimum quantities. These gift incentives were highly valued by the administrative staff handled office supplies. They saw these gifts as deserved rewards for the hassle of handling office products sourcing.
It will be a difficult task to make these…...

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