To make a contribution to profitability the purchasing operation of a US manufacturing operation gained the support of senior management with a proposal that a 5% cut in a $5 billion purchasing budget would represent a contribution of $250 million. A Pareto Analysis was used to build a list of the top 20 categories which…

BPIR Categories

5.2.4 Purchase materials & supplies
11.1.4 Manage cash flow

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