Van Leer Case

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Total Account is of high importance to Van Leer, because according to Hoareau expectations Total will make 6% of sales expected in 1995 and loss of Total would be a serious blow to Van Leer France. Total was planned to purchase 872 000 new drums rep year in Europe. Van Leer is also important to Total because Van Leer being responsive to Customer’s requirements can meet requirements of Total’s globalization strategy. Problem of Ten Cate with respect to Total was that he felt threat from new purchasing team at Total in France based on Business unit manager for Van Leer France who took Total reengineering efforts very seriously. Recently no major changes in the market of Drums occurred, but some minor changes did. The most important change is that many Customers was going through reengineering and rationalization of their logistics, so they applied more pressure to the suppliers with regards to price, quality, delivery terms. Key decision maker of Total is Jean-Claude Delvallee who managed Purchasing. He has an internal consultant – Michael Chouarain, who participates together with Jean-Claude Delvallee in implementing purchase strategy. Hal Swinson joint them in contacts with global suppliers. During negotiations in Amstelveen Delvallee and Chouarain were keeping silences while Swinson was active. As per my understanding as Total is global company and American Swenson newly joint to the European team of Total behave actively during negotiations it is a sign of serious intentions of Total with regards to new strategy. The fact that old players (Delvallee and Chouarain ) kept silent during negotiations mean that they are not fully committed to a new strategy of Total, so Ten Cate probably can utilize this difference in attitude of Total representatives towards new reengineering.
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