Case 17-3, Tanton Foods. If you were in the position of Earl Jones: 1. How could

Question

Case 17-3, Tanton Foods.

If you were in the position of Earl Jones:

1. How could you use the CAPS Purchasing Performance Benchmarks for the U.S. Food and Beverage Manufacturing Industry?

2. What would be the implications if Tanton’s results were:

Close to the industry average?

All on the low side vs. the CAPS benchmarks?

Much higher than the CAPS figures?

Higher in some categories, lower in some and the same in the remaining ones?   

3. Which of the 37 benchmarks would you consider most relevant and why?

Case 17-3 Tanton Foods Earl Jones, vice president of supply at Tanton Foods, Tanton Foods' annual sales volume was close to the had just received the most recent CAPS Research average sales reported for the sample group and was part Purchasing Performance Benchmarks for the U.S. of the food manufacturing industry with a wide range of Food Manufacturing Industry. Tanton Foods had not canned, frozen, and packaged consumer goods. Earl Jones been one of the firms that provided the data for thiscarefully read the summary provided in the CAPS report. study He knew that some of these benchmarks covered areas in

Explanation / Answer

1.As a manager, I would use CAPS benchmarks to actually analyze where the US Food and Beverage Manufacturing industry is heading towards. The benchmarks would give us an idea of what are the new trends in the industry and financially how the top companies are approaching profit maximization. From my firm's perspective, the pros, cons and distinguishing factors of my strategy when compared to the industry.

2. Assuming that the calculation methodologies are similar -

3. I feel total spend as a percentage of revenue (1st one) is the most relevant. Because the basic rule in any profitable business is maximising your revenues and minimizing your spends and this benchmark shows how good a company is in doing that.

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