Texas Instruments Texas Instruments could save more than $30 million by redesigning their procurement process. In some cases, they could reduce the transaction costs associated with line items from $250 for a manually processed order to less than $5. Procurement and supply strategy The savings were achieved by using the following approach: Each division of the company had its own procurement system. This was changed so that the buying power of the whole company could be used. The supplier base of 34,000 was significantly reduced. Business processes were carefully examined and unnecessary steps or procedures eliminated. This saved both time and money. The newly streamlined processes then formed the basis of their computerized paperless procurement model. Electronic Data Interchange (EDI) links were established with suppliers internationally. Online catalogues of items were made accessible to employees. This system, known as Express Buy, allowed employees to select the everyday items they needed with speed and ease, the terms and conditions of these purchases having already been negotiated by the buying team. Savings were generated in labour costs and inventory carrying, buying power was consolidated on a global scale, and the need to expedite critical parts orders was reduced. These significant improvements and savings were not generated overnight. Texas Instruments started this 10 years ago, but they had a clear idea about what they were seeking to achieve. Questions 1. Comment on the Texass move to follow the new procurement and supply strategy. 2. Do you think Texas could have used Vendor Managed Inventory (VMI) system? Explain your reasoning. 3. Do you think Texas could have used collaborative planning, forecasting and replenishment (CPFR)? Explain your reasoning. 4. What are the opportunities and threats facing Texass suppliers because of significant reduction in its supplier base? There is no specific word limit for the answers. Please be brief and to the point.