Sulem Ghawte

SCM 880 NTT

Case Study: Lambert-Martin Automotive
Systems Inc.

Student Number:- 125676197

Date:- 27/9/2020
Main Problem of the Case:

The main problem of the case was the decentralization of purchasing head in various department. As
the Purchase takes around 50% of the revenue generated by the company, there has to be an effective
communication between the buyer and the suppliers for given department. Moreover the lack of a
moderator to assess the purchasing process and co-ordinate various other department makes those
process really cumbersome. Departmental purchasing heads will naturally look for their departmental
growth rather than consider overall growth of the company.

Alternatives (potential solutions):

A moderator should be appointed who will make sure all the departments are well in synced and make
sure the purchasing talks with the suppliers are focused towards getting the products for as low as
possible. Arthor should take a periodic feedback from the moderator to be well aware about the current
situation and decide company’s goals accordingly.

Decision Criteria (what goals to achieve out of the solution):

The main goal to be achieved from the solution is to have better understanding the current condition of
the business.
Departmental co-ordination is the second goal which will be achieved along with providing the skill of
bargain to the respective purchasing head of the departments in order to save resources in the
purchasing process.

Analysis (assessment) of the Alternatives:

As the purchasing eats up a huge chunk out of revenue generated, small improvements will lead to the
achievement of Arthor,s envisioned goals.

Recommendation(s) and prediction of outcomes:

The moderator has to be very skilled in terms of establishing and improving the relations as well as
assess and teach the art of bargain to the respective department’s purchasing heads.

If the suggestions are implemented correctly, Arthor will have higher chance of achieving the goals for
his company.

Action/Implementation plan:

The first step is to hire a moderator and make sure that he/she is well aware of the given responsibility
and authority.
Start with the coordinating various departments and build a feedback system to note their progress.
Organize a meeting to educate the departmental purchase heads the importance of bargaining in a deal
and its overall effect on the productivity of the organization.
Lastly keep a tab by the Moderator on ongoing conversation with the supplier and find ways to make
the purchasing efficient by deploying bargaining skills.