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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.
Expert's answer
- 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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