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Iowa Elevators

In: Business and Management

Submitted By princevc
Words 433
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1. I will start to reduce the large annual spend in categories, including farm supplies, transportation services, and MRO and construction. These three categories contribute the majority of the spend categories and some cost is not essential. Therefore, I will eliminate these unnecessary expenses.

2. According to the Scott’s speaking in textbook, I can save about $500,000 on average in each year of the next five years. This is not an accurate number. However, it is certain that it can be saved more and more with the time.

3. The inventory turns for farm supplies are crop-protection products, equipment and supplies, fertilizer, and seed. The improvements can be made by reducing the annual spend in purchasing the farm supplies. In order to achieve the goal, we need to request an additional spending beyond standards upgrade at the beginning. And then, the savings can be made increasingly over the next five years.

4. The changes I would make to the organization are to control the annual spend and make more profits. The large of annual spend is a big issue in Iowa Elevator company, especially in the farm supplies. Thus, the company should obtain the right materials in the right quantity, for delivery at the right time and right place, from the right source, with the right service, and at the right price in the short and long term. In addition, the structure should be changed into more centralized. The hybrid structure combines the advantages of both centralized and decentralized structure so that the work may be individual or together depending division-making authority. Moreover, the four product managers should be assigned more work to do, not just to finish their own responsibilities. They are required to communicate together and exchange their information in order to improve their work condition. Besides, other managers also need to join the system to

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