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Van Leer packaging worldwide: the total account (A-E)

Author: Weinstein, David INSEAD Area: MarketingPublisher: Fontainebleau : INSEAD, 1996.Language: EnglishDescription: 21p. + 12p. + 1p. +1p. +1p.Type of document: INSEAD CaseAbstract: The relationship of Van Leer's industrial packaging division with Total, a major French oil company is seriously threatened. In the past, being the only world wide supplier of steel drum, had been a clear competitive advantage for Van Leer. While Van Leer had assured to global customers quality, proximity and continuity of supply the sales relationship had been handled locally. However, more and more global clients, like Total, were re-engineering their purchasing operations to reduce the number of supplier and form global relationships. With such changes there were naturally pressures from clients' headquarters to gain control on prices, which traditionally had been based on local competitive conditions and relationships. Is being a global supplier turning into a liability for Van Leer?Pedagogical Objectives: This series of cases, (A) through (E) follows the development of the relationships between Van Leer's subsidiaries and world wide headquarter, on the one hand, and Total's headquarters on the other. It focuses on the need to question the value provided to the client and not to rely on past paradigms. A unique feature of the case is an interview with Total's global buyer, once the chain of events ended
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This series of cases, (A) through (E) follows the development of the relationships between Van Leer's subsidiaries and world wide headquarter, on the one hand, and Total's headquarters on the other. It focuses on the need to question the value provided to the client and not to rely on past paradigms. A unique feature of the case is an interview with Total's global buyer, once the chain of events ended

The relationship of Van Leer's industrial packaging division with Total, a major French oil company is seriously threatened. In the past, being the only world wide supplier of steel drum, had been a clear competitive advantage for Van Leer. While Van Leer had assured to global customers quality, proximity and continuity of supply the sales relationship had been handled locally. However, more and more global clients, like Total, were re-engineering their purchasing operations to reduce the number of supplier and form global relationships. With such changes there were naturally pressures from clients' headquarters to gain control on prices, which traditionally had been based on local competitive conditions and relationships. Is being a global supplier turning into a liability for Van Leer?

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