Negotiating Supplier Cost Reductions at Deere and Company Jack Williams, manager of supply management for Deere & Company's Drive Train and Axle Division in Waterloo, Iowa had just returned to his office after a contentious meeting with one of its suppliers, Fulton & Son, a maker of forged parts that go into the tractor's drive train. Williams' team asked for a three-year price reduction on all Fulton forged parts. After a heated discussion, Fulton & Son's vice president, Jim Fulton, countered, "If you can find better prices, move your business elsewhere!" and stormed out. Drive Train and Axle Division The Drive Train and Axle Division was part of the Agricultural Tractors and Major Components Division for John Deere and Company, a $44 billion (2021 revenues) multi-national corporation. Annual spend for forged parts was $30 million. Fulton & Son Fulton & Son, a privately-owned company and key supplier to Deere & Company for 30 years, accounted for $5 million in purchases of forged parts in 2022. Deere respected Fulton and viewed the long-term relationship as very good for many years. However, Deere now believed Fulton had become complacent. It expected Deere's work given its proximity to the plant and its