Donovan Valley Purchasing Consortium ( Chapter 3-1)

Suggested Student Assignment

1. As Bob Hamilton, what is your evaluation of the proposal to establish a centralized purchasing consortium? What would be your estimate of potential savings?

2. What are the implications for the required skills and capabilities of the purchasing staff if the centralized model is adopted?

3. As Bob Hamilton, what would you say to Rick Lewis and why?

Possible Discussion Questions

1. What issues does Bob Hamilton have to resolve?

2. What are the advantages and disadvantages of centralizing purchasing?

3. What is a purchasing consortium? How does a formal consortium function?

4. What are the similarities and differences among the districts?

5. Do you believe the consultant's cost savings estimate? Where will the savings come from?

6. Who are the real winners here if the consortium model is adopted? Who are the losers?

7. What do you want to do next and why?

8. Do you have a better alternative?

9. Do you think you can convince all four of the districts to adopt the consortium model? What would you do if only two or three of the districts wanted to proceed?