Current Scenario:

This case portrays an issue that many companies might face .this company had 21 plants
whose purchasing procedures had never been completely co-ordinated .Mr Manson , the
companys president ,appointed Mr Post as VP so as to centralize the companys purchasing
procedure .Mr Larson was appointed as Mr Post assistant.
Issues
Poor Coordination- Coordination among the plants is very poor
No authorized control
Purchase decisions are being taken by individuals rather than by a team.
Steps Taken by Mr Post
To ensure timely purchase and availability, purchase contract > $10,000
Should get approval from head office 6 months in advance, with best possible prices of raw
material
Keeping head office aware of all the purchase contracts signed at individual plants.
Solutions:

The VP might have communicated the message regarding the change in a better way
Creating a separate purchase department for the company with all the decision powers
and control on the purchase process of individual units.
Mr post should meet all the purchasing executives to make sure all of them are on the
same page
Mr Post should make sure that all centralized systems will be unanimously accepted
by plant executives and should be rigorously followed
One another thing Mr post can do is make a altogether purchase department for the
company with all decision powers and control on purchase of individual units