Answer to Question #224377 in Management for Sibabalwe

Question #224377
Based on the case study, fully discuss the disadvantages of a rationalised and optimised supply. Give examples from the case.
1
Expert's answer
2021-08-09T17:02:02-0400
  • Ignores the Positive Savings from Price Dispersion.
  • Leads to Increased Maverick Spend.
  • Weakens Procurement's Negotiating Position.
  • Increased Risk of Price and Product Creep.
  • Reduced Supplier Diversity, Flexibility and Innovation.

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