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Product cover image for Lajpal Tea: Black Gold at Stake-Supplier Selection

Lajpal Tea: Black Gold at Stake-Supplier Selection

Alison Konrad; Abdul Rehman Shaikh; Asad Ali Qazi

Product #:9B19D020
Supplier:Ivey
Discipline:Operations Management
Setting:India, Pakistan, 2014
Details:Case (PDF) • 7 pages • 2019-09-23 (Rev: 2024-10-15)

Subjects:

SourcingSuppliersSupply chain managementCustomer relationship managementBusiness managementOperations and supply chain management

Industries:

Fabrication and manufacturing

Geography:

IndiaPakistanAsia
Your Price:$10.54

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In September 2014, the national logistics manager at Lajpal Tea Pvt. Limited (Lajpal Tea), a leading tea brand in Pakistan, received notice that one of his key logistics service providers would soon terminate his service contract for transportation services. This contractor had been associated with Lajpal Tea since the company originated; however, due to payment delays and non-responsive behaviour from the logistics team, he decided to terminate his services and provided three months’ notice as per the terms and conditions of his contract. The transport company’s business was strong: the owner had many local contacts, geopolitical influence, and a good understanding of the local market. However, his trucks were old fashioned and were not equipped with the latest technology, such as global positioning system tracking. Lajpal Tea, a leading organization with plans for expansion, had to decide what to do now. Should the logistics manager negotiate with the existing contractor or find an alternate transporter from among the other available options?

Learning Objectives

This case can be used in courses on supply chain management at the undergraduate or graduate level. It discusses the management of a supplier relationship and introduces a sourcing-related decision. It explains how logistics decisions can affect organizational performance and discusses how to best manage supplier selection and relationships in order to minimize supply chain interruption. Sourcing and transportation are a core area of discussion in the case. After working through the case and assignment questions, students will be able to do the following:
  • Identify the decision-making constraints that affect third-party logistics.
  • Describe the supplier scorecard and product categorization models.
  • Analyze the background, pros, and cons of various logistics alternatives.
  • Outline the long-term objectives of a supply chain department.
  • Critically analyze various third-party logistics alternatives and select the best logistics service provider for a fast moving consumer goods market.
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    Case Study: Lajpal Tea: Black Gold at Stake-Supplier Selection (English version) | Ivey Publishing