Case – SafeBlend Fracturing
1. Describe the nature of the sourcing teams (those responsible for making purchase decisions of fracturing fluid) at BNG. * What is the team’s purpose (short and long term)? * Who are the key members of the team? * Who on the team wields the most power and the least power? Why? * Does this sourcing team provide SafeBlend with opportunities? Why or why not?
The sourcing team comprised of adequate representation of key stakeholders in the company. It consisted of a few chemists and engineers, but mostly strategic leaders, who were responsible for making the purchase decisions of additive for fracturing fluid. The SafeBlend worked directly with sourcing managers at each company.
Team Structure…show more content… Post negotiating with BMG, they gained confidence to use the same pitch at other potential buyers. Because of BMG’s short term goal, SafeBlend could charge a premium price to BMG and gain financial support to increase the capacity to meet production goals. This two-year relationship with BNG formed basis for many new business inquiries for SafeBlend.
2. What does Barstow’s arrival as the primary contact role at BNG signify? What can we infer when Dudley assumes the negotiating role at SafeBlend?
Barstow’s arrival as the primary contact role at BMG signifies BMG wanted to formalize the relationship with SafeBlend. They were not keen in having Dudley collaborate with company’s strategy and engineering teams. One possible reason could be BMG might be interested in exploring opportunities with other players in the market and didn’t want to establish any personal relationship with SafeBlend.
Unlike Barstow, Dudley, who was a free-spirited, extremely confident, decisive and driven, believed in establishing relationships. Initially, Dudley preferred to stay out of negotiations, but once SafeBlend gained contractual and financial commitments from BNG, he actively participated in negotiations. While working with BMG, Dudley constantly focused on establishing stronger customer-vendor relationship by ensuring on-time delivery and meeting product