Logistics Case Study Essay

Decent Essays

Case 1: Integrated Logistics for DEP/GARD Tom Lippet, sales representative for DuPont Engineering Polymers (DEP), felt uneasy as he drove to his appointment at GARD (Automotive Manufacturing (GARD). GARD is one of DEP’s biggest customers. In the past, sales deals with GARD had proceeded smoothly. Oftentimes competitors were not even invited to bid on the GARD business. Mike O’Leary, purchasing agent at GARD, claimed that was because no competitor could match DEP’s product quality. But this contract negotiation was different. Several weeks before the contract renewal talks began, O’Leary had announced his plan to retire in 6 months. GARD management quickly promoted Richard Binish as O’Leary’s successor. …show more content…

Light banter continued as the three moved down the hallway to a small conference room. “Well, great news, Tom! DEP has the contract again!” O’Leary paused, then continued, “But there’s going to be a slight modification. Instead of the traditional 2-year contract we’re only going to offer a 1-year deal. Nothing personal, just that management feels it’s only fair to Richard that these last contracts I negotiate be limited to a year. That way he doesn’t get locked into any deals that might make him look bad!” O’Leary roared with laughter at his last comment. “It is certainly no reflection on DEP,” Richard interjected. “It simply gives me a chance to evaluate suppliers in the coming year without being locked into a long-term contract. If my evaluation concurs with what Mr. O’Leary has told me about DEP I see no reason that our successful relationship won’t continue.” “Entirely understandable,” replied Tom as his mind pondered the meaning of Binish’s evaluation. “I’m confident you’ll find DEP’s service and product every bit as good as Mike has told you.” Following the meeting O’Leary invited Lippet to join him for a cup of coffee in GARD’s lunchroom. Binish excused himself, saying he had other matters to attend to. As they enjoyed their coffee, O’Leary sighed. “You’ll be seeing some changes coming, Tom. The best I could do was get you a year.” “I’m not sure I understand. As far as I know GARD’s

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