Your position is currently in purchasing and you have been selected by your company to be on
Question:
Your position is currently in purchasing and you have been selected by your company to be on a cross-functional team to collectively determine whether the company can cut costs and provide a better return to the company by replacing the company’s internal corporate logistics unit with a third-party logistics company. The internal corporate logistics unit provides inter-company shipments to multiple company divisions in multiple states and JIT deliveries to customers as needed. The sales, purchasing, and operations area has been disappointed in the logistics team performance, vehicles used are dated and there are significant maintenance costs. Considering a third-party company for all transit work that has provided some very appealing pricing and performance statistics has received the interest of the top managers in the company.
How can you assist the team based on capital budgeting decisions to determine what is the best decision for the company? This would involve determining what is the “least-cost” decision.
What criteria need to be considered to make the best decision. Explain.
Systems analysis and design
ISBN: ?978-1118808177
5th edition
Authors: Alan Dennis, Barbara Haley Wixom, Roberta m. Roth