De Havilland Inc Case Study

Executive Summary:

The current problem with the De Havilland INC. case is awarding the bid to Marton who did not present their financial analysis as instructed in the bid. They came in with the lowest bid, which can be either a tactic just to get business and they hike their prices later, or they actually are that good at what they do.   The decision has been made to go with Marton because of their lower prices and we will be able to see their financials when we do a site visit to their facility.
One of the issues with this process is that De Havilland has lost some of the control in the bid process since Marton as put a time limit on the decision of 120 days. This makes it difficult for De Havilland to be able to negotiate with the other companies that came in slightly higher than Marton. It seems as though Marton doesn’t have as much to lose as Marton, which is clearly evident in what Dollard Plastics has been charging compared to what Marton is offering.  
De Havilland is trying to lower costs and get a five year fixed rate contract with the winning company in order to eliminate constant contract negotiations. The financials of Devon were looked as since they are the parent company of Marton and are publicly traded.   Marton submitted invoices on billing material and unit cost break downs, which makes one wonder what they are hiding.
The recommendation is to go with Marton and do a full audit of their facility and financials. If everything looks in order, de Havilland will terminate the Dollard Plastics contract and start one with Marton, and if the financials are not in order, de Haviland will   continue out the contract with Dollar Plastics and start a new five year with DAS Composites.
Table of Contents:

Issue Identification……………………………………………………………………Page 3

Environmental and Root Cause Analysis…………………………………….Page 3

Alternatives and/ or Options …………………………………………………….Page 4

Recommendation and Implementation ……………………………………...Page 5

Monitor... [continues]

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