Case Study 1: Integrated Logistics for Dep/Gard

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Business Logistics & Transportation 2/18/2015 Case Study 1: Integrated Logistics for DEP/GARD In this case study, long time partners, Dupont Engineering Polymers (DEP) and Gard Automotive Manufacturing are approaching a new bid. Tom Lippet, sales representative for DEP, is in charge of the meeting with GARD and felt a sense of uneasiness as he headed for his appointment to negotiate a new contract. Over the past few years, Mike O’Leary, purchasing agent at GARD, would be the main representative to handle negotiations with Lippet on a new contract. Building a strong relationship with O’Leary, the two would come to terms with ease as business could continue as usual. What is different this time is that O’Leary is here for his last bid and a shortened one year contract is put in place. Binish, a scholarly man who has worked with fortune 500 companies, and has seen the likes of processes such as JIT and other quality programs, is the successor to O’Leary. From Lippets, point of view, he feels as though business will not be business as usual once the contract is up. As O’Leary explains, the shortened contract was put in place due to the fact that management felt as though they did not want to step on Binish’s toes and lock him into a deal that was not right for him. Following the meeting, Lippet an O’Leary join one another for coffee in GARD’s lunchroom and Mike warns Tom of future negotiations. According to Mike, Binish has plans to test the market and notices that DEP does not have as much of an edge as it once had. Faced with this news, Lippet is forced to make some changes given only a year to do so. Currently, in the way that DEP does business with its suppliers on its 6 principal compounds A-F, 60% of business is given to the suppliers with the lowest price. From there, 25% of business is given to the following two and 15% to the remaining. For company 1,

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