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Leyland Daf ties-up deal

2nd July 1992, Page 13
2nd July 1992
Page 13
Page 13, 2nd July 1992 — Leyland Daf ties-up deal
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Which of the following most accurately describes the problem?

• Leyland Daf has won a £19m vehicle deal — Parcelforce's entire new vehicle requirement for 1992.

The 1,200 vehicle order went out to tender last autumn when Ken Mabbett, head of transport for Parcelforce, invited bids from manufacturers throughout Europe.

The order was delayed at that time pending a critique from business consultant McKinsey on how the business was performing. (CM 31 Oct-6 Nov 1991).

The recent agreement from the Department of Trade and Industry to allow Parcelforce £250m of Post Office money over five years has allowed the £19m order to be placed as part of a £68m investment programme for 1992.

Leyland Daf has begun supplying the order for 700 7.5tonners and 500 3.5-tonners. Two hundred of the 7.5-tormers and 150 of the 3.5-tonners are required for the takeover of the Datapost operations.