Case Study

You have just taken over responsibility for the budget for your department and have noticed that the previous manager placed an order from the same company every month for the last 6 months. You have requested copies of the invoices from your finance department and have found that each order was less than £100 in value and incurred a delivery charge of £15. When you look at the delivery terms and conditions you notice that the delivery charge is waived for orders over £100.

1. How much could have been saved by combining two or more orders?
2. What benefits might there have been in ordering the same total quantity of goods but over fewer orders?
3. What benefits (apart from any saving the delivery charges) would you see by reducing the number of orders placed?
4. If you decide to reduce the frequency of placing orders, what do you need to take into considerations and who might need to be advised of this change?

It is rare that there is just one way to respond to a scenario or situation, so do not consider that the responses you have to the above scenario will be judged as right or wrong. Share your scenario with a work colleague or friend and ask them to tell you whether they think you have responded appropriately. Ask them to challenge your response if necessary. You do not need to submit this task for assessment unless asked to do so by your assessor.