CASE STUDY - IOWA ELEVATORS Scott McBride, director of purchasing at Iowa Elevators, was reviewing information collected by his analyst, Cathy Ritchie, as he prepared for a meeting with the executive management team scheduled for Wednesday, June 11. Scott had been asked by Walter Lettridge, Iowa Elevators CEO, to present a five-year plan for the purchasing department at the meeting. In preparation for the meeting, Scott asked Cathy to prepare a report analyzing all expenditures made by the company with outside suppliers over the previous year. It was now June 3, and Scott knew there was still a lot of work that had to be completed to get ready for the meeting the following week.

1. Describe the company Iowa Elevators. What are the company's businesses? How is the company doing?

2. Carefully consider the company's current purchasing practice and profile. What opportunities for improvements do you find? What potential strategies to cut cost do they imply?

3. Who would be unhappy to see your cost-cutting strategies? Is there some way to bring them onboard?