1. In the text, Tyco's procurement of logistics services was discussed. Why is Tyco's approach considered innovative?
2. What problems might Tyco confront in attempting to implement this strategy?
3. Explain the rationale underlying volume consolidation. What are the risks associated with using a single supplier for an item?
4. What is the underlying rationale that explains why firms should segment their purchase requirements? Explain the concept of procurement strategy portfolio.
5. Explain how logistics performance is crucial to BT.