STRATEGIC SOURCING AT BEST BANKS
Strategic Sourcing at Best Banks
Karen Williams is the new director of the supply management at Best Banks after gaining 10 years of valuable experience. During the past five years, the bank has handled the sourcing when the bank upgraded its information system to help customers with online banking. The main issue currently lying with Best Banks is they are spending too much, so this is likely to increase costs and cause more problems for the company itself. If they want to decrease spending and increase value at the same time, then they have to do a few major things.
As of Best Banks information systems, it is considered to be a strategic purchase even though it ranks first on the spending analysis. I think they should continue sticking with this, as it is important and unique to their operations especially with it being 30% as well. For the temporary personnel, I think they are operating with the leverage purchase strategy as they employ low risks but high spending. In this area of operation, you are using competition to select your suppliers and standardize purchases. Karen also looked into this situation as she found out that over 20 different temporary personnel agencies were used and made her own decision for which one to utilize. They should have better communication skills between the branches. My recommendations for temporary personnel is to look into the alternative of following a strategy between bottleneck and leverage, so they can allocate their supply properly as this area is very important to Best Bank’s operations. Karen’s main challenges will be to ensure the spending remains as low as possible and at the same time, the firm is increasing value. The firm should alter their spending for the marketing department’s print advertising and promotional materials to involve the supply management. This will allow them to focus on producing the ads using the required materials and also maintaining long relationships with suppliers. The supply’s
Karen Williams is the new director of the supply management at Best Banks after gaining 10 years of valuable experience. During the past five years, the bank has handled the sourcing when the bank upgraded its information system to help customers with online banking. The main issue currently lying with Best Banks is they are spending too much, so this is likely to increase costs and cause more problems for the company itself. If they want to decrease spending and increase value at the same time, then they have to do a few major things.
As of Best Banks information systems, it is considered to be a strategic purchase even though it ranks first on the spending analysis. I think they should continue sticking with this, as it is important and unique to their operations especially with it being 30% as well. For the temporary personnel, I think they are operating with the leverage purchase strategy as they employ low risks but high spending. In this area of operation, you are using competition to select your suppliers and standardize purchases. Karen also looked into this situation as she found out that over 20 different temporary personnel agencies were used and made her own decision for which one to utilize. They should have better communication skills between the branches. My recommendations for temporary personnel is to look into the alternative of following a strategy between bottleneck and leverage, so they can allocate their supply properly as this area is very important to Best Bank’s operations. Karen’s main challenges will be to ensure the spending remains as low as possible and at the same time, the firm is increasing value. The firm should alter their spending for the marketing department’s print advertising and promotional materials to involve the supply management. This will allow them to focus on producing the ads using the required materials and also maintaining long relationships with suppliers. The supply’s