Contracts and Procurement

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Submitted By pkgar03
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PROJ410 Contract Close-Out Case Study 3
DeVry University

Contracts and Procurement
Professor Dr. Jayaram Madireddy

Corporation Background:
Multiquip Inc. is a primary manufacturers and distributors of light- and medium-sized construction equipment. The company has been supplying construction equipment’s to fortune 500 companies engaged in various infrastructures and construction related turnkey project. Multiquip Inc. has an extensive product line – generators, rammers, rollers, plate compactors, light towers, pumps, welders, concrete installation equipment and more. Many of the products come in unusual shapes, sizes and packages, and some need mechanical alterations before final shipment. The logistics function in Multiquip Inc. is responsible for bringing materials to and from a company’s manufacturing facilities, storing finished products, and delivering these products to customers. This important task includes the transport and storage functions. The company is deciding to outsource its logistics functions, so the company can focus on its core competency. The company has experimented in the past with operating its own warehouses and coordinating consignment but found that its service level often was suffering as a result. The wrong products frequently were shipped, serial number reporting was compromised, and deliveries were recorded inaccurately. Multiquip Inc. recognized that the company's tradition of service was at stake and decided to explore additional options.
Calculation of Business procedures to outsource and cost saving report
The company is looking for the outsourced partner or vendor who can provide the warehousing, transportation, and integrated logistics nationwide and accommodate the volume and variety of Multiquip Inc. shipments as well as the special requirements for many of its products.
Shifting logistics to supplier brings up a…...

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