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Case 1:  Integrated Logistics for Dep/Gard

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Case 1: Integrated Logistics for DEP/GARD
MGT 309
March 7, 2015
Dr. Williams

Background Gard Automotive Manufacturing’s purchasing agent Mike O’Leary has announced his retirement and his predecessor, Richard Binish, has been announced. One of Gards long term suppliers, Tom Lippet, of DuPont Engineering Polymers (DEP) is coming in to negotiate a new contract. DEP’s polymer is a critical feedstock of the GARD’s manufacturing process. DEP’s supplies have always met Mike’s standards and he’s had few production problems reported from his production managers. Tom’s approach to supplying the business is different than Mike’s. Tom has and MBA with a concentration in purchasing and logistics. Prior to be announced as Mike’s predecessor, Tom worked in inventory management. While in this position Tom used the 80/20 rule to eliminate suppliers and products that were not profitable. Tom’s company is award a one year contract. After the contract signing Mike explains to Tom what Richard is looking for in delivery and options moving forward. Mike reviews with Tom that his company’s product no longer stands out from the pack and that its delivery standards are below Richards expectations. He also explains that Richard’s expectations for delivery will only increase in the coming years. The conversation Mike has had with Tom gives him time to review the competition and his company’s standards. Tom can use this as an opportunity to reevaluate how his company compares to others in the industry and determine what his competition is doing to meet the needs of their customers.

Issues Addressed DEP uses six companies to provide the raw materials for its polymers. They do this because they once experienced a supplier shortage. Now they use multiple suppliers for each of the chemical compounds that are used in their polymer. In addition they warehouse a…...

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