ABC Company's Purchasing and Supply Management Optimization: Improving Performance and Reducing Costs through Competitive Bidding and Supplier Development

Paraschos Maniatis

Paraschos Maniatis Athens University of Economics and Business, Athens, Greece

Keywords: case study, statistics, purchasing, supply management

Abstract

ABC Company is initiating a project to optimize its purchasing and supply management processes, aiming to reduce costs and enhance supplier performance. This includes implementing competitive bidding, a supplier performance review process, and a supplier development program. Key performance indicators (KPIs) such as total cost savings, supplier development progress, and process improvement rates will be tracked to measure the success of these initiatives. The project also considers a just-in-time inventory management system and expansion of the supplier base for critical components to further improve efficiency and reduce inventory holding costs.

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