Document 9m8X45yzgNv23dw6agYjyKR3
TO: FROM: RE:
October 19, 196? R. M, Burns H. G. North Purchases Of Asbestos Fibre
For some time now, we have been purchasing the bulk of our asbestos fibres from Johns-Manvilie, via Smith & Kansler largely due to two reasons:
1. Mr. Binger was felt to be the more knowledgeable procurement-wise recognising his background on fibre.
2. Smith & Kansler, as a distributor for JohnsManville, granted a 5% discount on certain grades of fibre where they had not done so previously.
Several things have occurred which I feel change past procurement policies.
2. Mr. Binger is no longer a member of our organisation.
2. Other approved sources would have met the 5% discount on any given type and still will.
3. Acquisition by Dana and conversion to a profit center concept makes it mandatory for effective procurement.
Summary We would like to resume control over at least the portion of the fibres required for this profit center, utilise more than one source (if we feel that a more effective procurement Job can be done) and we believe that this is possible.
The yearly contracts will be up on December 31, 1967 we should be sitting down with our people sometime next month for initial discussions. We would appreciate your comments, inasmuch as we must assure Mr. Sheehan that every effort is being expended to reduce costs.
H. G. North
J'n VPD-158-0000376
DANA-091
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VPD-158-0000377