Short Business Case

Based upon Chapter 1, 2 & 3 material from Purchasing and Supply Management, 16e (Johnson) ______________________________________________________________________________ CASE ASSIGNMENT # 1 Golf Pro Inc. Golf Pro Inc. is a Canadian manufacturer and retailer of premium, innovative golf equipment. Golf Pro Inc. has two main divisions, product development and manufacturing and product inventory, distribution and retail. In January, Milton Montague was promoted to the position of Chief Procurement Officer at Golf Pro Inc. Milton Montague was formerly a Supply Chain Management Category Specialist supporting the product development and manufacturing division. Milton has been invited to an urgent meeting tomorrow with Louis LeBlanc, the Chief Financial Officer. The agenda concerns the fiscal year end close for April 31st. Louis LeBlanc asked Milton to attend and speak about his Supply management plan and strategies to reduce operating, inventory and purchasing costs by 5% to help meet projected budget and income statement improvements mandated by the corporate Board of Directors. Louis sent Milton a current copy of the Income Statement:

INCOME STATEMENT March 2021

Sales $ 85 million

Cost of Goods Sold $ 48 million

Gross Profit $ 87 million

Operating Expenses $ 28 million

Operating Income $ 17 million Just prior to attending the meeting with Louis, Milton received a call from Walter Neaves, Vice President Sales. Walter informed Milton that the Sales Team was pursuing Fairway Resorts International, a large corporate client in the golf resort industry to purchase 100 of their new prototype Eco-Cart Green Energy Golf Cart. This deal represents $ 200K in sales for Golf Pro Inc. Walter explained to Milton that the terms of the proposed sale requires Golf Pro Inc. to manufacturer and supply 100 to their units to their new golf resort in Lorneville, NB before May 1st. Walter pressed Milton to have all suppliers and contracts for the goods and materials secured as soon as possible so the sales team can land the deal. What should Milton do? What should his priority be?