DaimlerChrysler Collaboration with BP Amoco Leads To New Business for Minority Supplier
20 July 2000
DaimlerChrysler Collaboration with BP Amoco Leads To New Business for Minority Supplier
AUBURN HILLS, Mich. - DaimlerChrysler Corporation strengthened its
leadership position in minority supplier relations today as it announced a deal
resulting in a $25 million contract involving Cole Chemical & Distributing, a
minority-owned company based in Houston, Texas.
The agreement calls for Cole Chemical to purchase fuel from BP Amoco on
behalf of DaimlerChrysler, receive and fulfill fuel orders and manage the fuel
transportation to 29 U.S. DaimlerChrysler facilities. Cole will also
recommend ways to streamline and improve existing distribution processes. The
agreement took effect on July 1, 2000 and shipments to DaimlerChrysler U.S.
facilities began on Monday, July 10, 2000.
In a unique collaboration, DaimlerChrysler, BP Amoco and Cole Chemical
worked closely together over the last several months to assess
DaimlerChrysler's fuel distribution needs in the U.S. and created a strategy
to mentor Cole Chemical, while also assigning Cole a significant amount of new
business.
"When our supply base reflects our customer base, it just makes good
business sense," stated Thomas W. Sidlik, DaimlerChrysler Board of Management
Member, Executive Vice President - Chrysler Group Procurement & Supply and
General Manager - Jeep(R) Operations. "Cole Chemical has been an outstanding
supplier since we began conducting business with them in 1985. They've grown
their business significantly and they are a role model for minority
suppliers."
Sidlik added that DaimlerChrysler could not have pursued this minority
sourcing opportunity without the collaborative efforts of BP Amoco. Like
DaimlerChrysler, BP Amoco places an emphasis and priority on minority sourcing
opportunities. BP Amoco continues its long-term relationship with Cole
Chemical in this new business venture. BP Amoco has been actively mentoring
Cole Chemical since 1980 and will continue to collaborate with DaimlerChrysler
on future minority supplier opportunities.
DaimlerChrysler's Special Supplier Relations (SSR) Department has been a
leader in minority supplier support for more than 15 years. Established in
1983, SSR primarily focuses on assuring that DaimlerChrysler has a quality
minority supply base in order to achieve minority sourcing goals.
In 1983, DaimlerChrysler sourced $25 million to minority suppliers. Last
year, that amount jumped to $2.1 billion. By the end of this year, the
company expects to reach $2.5 billion in sourcing to minority suppliers.
Through its supplier diversity program, BP Amoco advocates purchases of
goods and services from suppliers owned by minorities and women to encourage
development of local economies and entrepreneurial skills. In 1999, minority-
and women-owned businesses provided $205 million in supplies and services to
BP Amoco in the U.S.
During the next three years, BP Amoco is committed to increasing its
volume of purchases from minority- and women-owned suppliers to represent 6%
of its U.S. third-party spending. In addition, BP Amoco has been supplying
DaimlerChrysler its slate of quality gasoline and diesel fuels for use in
fleet and newly manufactured vehicles for over 30 years.
"We agree that it is simply good business to build a multi-faceted
relationship between a valued supplier like Cole Chemical and a long-time BP
Amoco customer like DaimlerChrysler, while simultaneously meeting our shared
commitment to expand our purchases from minority-owned businesses," explained
Gerry D'Souza, BP Amoco's commercial business unit leader.
Founded in 1980 by Donna Cole, Cole Chemical & Distributing markets and
distributes fuel, lubricants, laboratory chemicals and resins nationally and
internationally. With sales in 1999 of almost $26 million, Cole Chemical
services various industries, such as automotive, pulp and paper, chemical and
refining. It also has been a DaimlerChrysler Tier 1 and Tier 2 supplier since
1985. A nine-year recipient of DaimlerChrysler's Gold Award, which recognizes
outstanding supplier performance, Cole Chemical is also a participant of the
DaimlerChrysler Minority Enterprise Initiative and a member of the company's
Minority Supplier Council. Cole Chemical's 2000 purchases from minority- and
women-owned businesses will exceed $2 million, which is 5% of Cole Chemical's
total sales.
"We are extremely proud of the opportunity to work simultaneously with two
of our key clients, DaimlerChrysler and BP Amoco, on this new business
venture," said Donna Cole, President and CEO of Cole Chemical & Distributing.
"Both companies have been extremely supportive in opening doors to potential
new customers and professional development initiatives. The new fuel contract
represents a 200% increase in DaimlerChrysler business for Cole Chemical."
Fact Sheet: DaimlerChrysler Collaboration with BP Amoco and Cole Chemical
& Distributing
WHAT:
On July 18, 2000, DaimlerChrysler Corporation strengthened its leadership
position in minority supplier relations today as it announced a deal resulting
in a $25 million contract involving Cole Chemical & Distributing, a minority-
owned company based in Houston, Texas.
The agreement calls for Cole Chemical to purchase fuel from BP Amoco on
behalf of DaimlerChrysler, receive and fulfill fuel orders and manage the fuel
transportation to 29 U.S. DaimlerChrysler facilities. Cole will also
recommend ways to streamline and improve existing distribution processes. The
agreement took effect on July 1, 2000 and shipments to DaimlerChrysler
facilities began on July 10, 2000.
In a unique collaboration, DaimlerChrysler, BP Amoco and Cole Chemical
worked closely together over the last several months to assess
DaimlerChrysler's fuel distribution needs in the U.S. and created a strategy
to mentor Cole Chemical, while also assigning Cole a significant amount of new
business.
WHY:
DaimlerChrysler, a leader in minority supplier relations, is committed to
increasing minority supplier involvement in the development, production and
delivery of its products. It also embraces the business principle that its
supplier base should reflect its changing customer base.
DaimlerChrysler's Special Supplier Relations (SSR) department has been at
the forefront of minority supplier support since 1983. SSR has been
recognized by the National Coalition of Minority Businesses for its
outstanding efforts in minority supplier sourcing. The goals of the SSR
department are part of DaimlerChrysler's Extended Enterprise(R) philosophy of
supply chain management.
The three-way relationship with DaimlerChrysler, BP Amoco and Cole
Chemical & Distributing will be a benchmark for future initiatives between
OEMs and suppliers. It serves as an example of how excellent supplier
relations and creative approaches to minority sourcing can lead to
streamlining existing processes, increasing profitability of the supplier and
future cost-saving opportunities for a supplier's customers.
HOW:
As part of the new business contract, Cole Chemical will receive orders
for fuel from U.S. DaimlerChrysler facilities. With fuel purchased from BP
Amoco, Cole will fulfill all requests, including managing and overseeing the
responsibilities associated with distributing the fuel. Cole Chemical will
also analyze the existing fuel supply management and logistics process at
DaimlerChrysler and recommend ways to streamline and consolidate this area of
the business.
Cole Chemical, a supplier to BP Amoco since 1980, will continue to be
mentored by BP Amoco in order to build business opportunities. They will also
be mentored by DaimlerChrysler through the Minority Enterprise Initiative.
One of 52 mentored suppliers, Cole Chemical will be part of a comprehensive
business assessment that includes a management plan to strengthen overall
business practices.
BACKGROUND:
DaimlerChrysler Corporation
In 1983, DaimlerChrysler sourced $25 million to minority suppliers. That
number grew to $2.1 billion in 1999. By the end of this year, the company
expects to source $2.5 billion to minority suppliers. In May, 2000,
DaimlerChrysler Corporation launched its Minority Enterprise Initiative, a
grass roots program with national reach in partnership with Comerica Bank and
ASG Renaissance that provides minority suppliers with comprehensive business
assessments in order to help them improve their current processes and be
better poised for new business opportunities.
DaimlerChrysler is one of the world's leading automotive, transportation
and services companies. Its passenger car brands include Mercedes-Benz,
Chrysler, Jeep(R), Dodge and smart. After the merger of Europe's largest
industrial company and one of America's most innovative automotive companies,
DaimlerChrysler has a global workforce, a global shareholder base, global
brand awareness and a global outlook. This makes DaimlerChrysler the first
automotive, transportation and services company with a truly global structure.
BP Amoco
Through its supplier diversity program, BP Amoco advocates purchases of
goods and services from suppliers owned by minorities and women to encourage
development of local economies and entrepreneurial skills. In 1999, minority-
and women-owned suppliers provided $205 million in supplies and services to BP
Amoco in the U.S. During the next three years, BP Amoco is committed to
increasing its volume of purchases from minority- and women-owned businesses
to represent 6% of its U.S. third-party spending.
BP Amoco's commercial business unit supplied 2.4 billion gallons of diesel
fuels and gasoline last year, representing $1.4 billion in sales, to
government, industrial, automotive and commercial customers in North America.
It is a subsidiary of London-based BP Amoco p.l.c., the holding company of one
of the world's largest petroleum and petrochemicals groups. BP Amoco has
well-established operations in Europe, North and South America, Australasia
and Africa.
Cole Chemical & Distributing
Founded in 1980 by Donna Cole, Cole Chemical & Distributing markets and
distributes fuel, lubricants, laboratory chemicals and resins to Fortune 500
companies domestically and internationally. With sales in 1999 of almost $25
million, Cole Chemical services various industries, such as automotive, pulp
and paper, chemical and refining. Cole Chemical is headquartered in Houston,
Texas, employs a staff of 25 and also has facilities in Detroit, Michigan.
Cole Chemical & Distributing has been servicing BP Amoco since 1980 and
DaimlerChrysler since 1985. A nine-year recipient of DaimlerChrysler's Gold
Award, which recognizes outstanding supplier performance, Cole Chemical is
also a participant of the DaimlerChrysler Minority Enterprise Initiative and a
member of the company's Minority Supplier Council.