Purchasing articles from August 2004

Purchasing archives from August 2004

Amid the layoffs that have become a routine result of corporate downsizing, mergers, and outsourcing.(Tip sheet: key metrics and supply alert)(Brief Article)
August 17, 2004... Amid the layoffs that have become a routine result of corporate downsizing, mergers, and outsourcing, there is a growing trend: older supply chain managers who can't find new jobs. Between February 2000 and January 2002, for example, the...

Inflationary pressures could intensify if global electricity costs escalate and that could lead to more aggressive interest rate increases.(Tip sheet: key metrics and supply alert)(Brief Article)
August 17, 2004... Inflationary pressures could intensify if global electricity costs escalate and that could lead to more aggressive interest rate increases. "High oil and coal prices soon could impact global power costs and, hence, trigger some inflation," says...

Global supply chains are making it tough for even the bitterest corporate rivals to start trade wars.(Tip sheet: key metrics and supply alert)(Brief Article)
August 17, 2004... Global supply chains are making it tough for even the bitterest corporate rivals to start trade wars. Example: Airbus and Boeing, the world's only makers of big jetliners, are both developing new multibillion-dollar aircraft. Each grouses that...

It's not too late to respond to Purchasing magazine's annual salary survey.(Tip sheet: key metrics and supply alert)
August 17, 2004... It's not too late to respond to PURCHASING magazine's annual Salary Survey. If you haven't done so already, please take a few minutes to complete the survey attached to the back cover of PURCHASING'S June 17 issue and return it to our editorial...

Potential uses for radio frequency identification (RFID) tags include tracking containers on highway trucks, railroad cars or ocean freighters.(Tip sheet: key metrics and supply alert)(Brief Article)
August 17, 2004... Potential uses for radio frequency identification (RFID) tags include tracking containers on highway trucks, railroad cars or ocean freighters. Just now, the Department of Defense is moving ahead with pilot project initiatives to track assets...

Forward demand indicator 90-day.(Purchasingdata.com)(Industrial buyers)(Brief Article)(Illustration)
August 17, 2004... [GRAPHIC OMITTED] With nearly two-thirds of industrial buyers expressing plans to increase buying in the coming three months, the outlook for manufacturing looks strong and steady. DOWN 0.3 Manufacturing expansion continues ...

Semiconductor prices started to improve late last year as demand finally caught up with bloated inventories and excess manufacturing capacity, says Jim Feldhan, president of Semico Research Corp. in Phoenix.(Prices: factors affecting product cost)(Brief Article)
August 17, 2004... Semiconductor prices started to improve late last year as demand finally caught up with bloated inventories and excess manufacturing capacity, says Jim Feldhan, president of Semico Research Corp. in Phoenix. "For the remainder of 2004, we...

Office white paper prices have rebounded by $60/ton off the cyclical low of $710 posted in January 2004 and need to rise only another $20 to reclaim the cyclical peak of $790 posted in January 2003.(Prices: factors affecting product cost)(Brief Article)
August 17, 2004... Office white paper prices have rebounded by $60/ton off the cyclical low of $710 posted in January 2004 and need to rise only another $20 to reclaim the cyclical peak of $790 posted in January 2003. Since uncoated free sheet markets have...

Compania Siderurgica de Tubarao.(Prices: factors affecting product cost)(Brief Article)
August 17, 2004... Compania Siderurgica de Tubarao, the Brazilian steel-maker known as CST, is negotiating deals for fourth quarter slab contracts at prices of $460-$470/metric ton FOB for the U.S. market, according to sales director Benjamin Baptista.

Steel plate (in coils) from mills costs $330-$340/ton more than in January.(Prices: factors affecting product cost)(Brief Article)
August 17, 2004... Steel plate (in coils) from mills costs $330-$340/ton more than in January. Cut plate from service centers is $360 higher. However, Bear Stearns analyst Anthony Rizzuto Jr. says demand/supply fundamentals have been healthy, but not robust, and...

Palladium averaged $253/oz in the first half, and BMO Nesbitt Burns analyst David Mallalieu predicts a full-year price average of $273.(Prices: factors affecting product cost)(Brief Article)
August 17, 2004... Palladium averaged $253/oz in the first half, and BMO Nesbitt Burns analyst David Mallalieu predicts a full-year price average of $273. In 2003, the precious metal used extensively in autocatalysts averaged at $198 but annualized demand at...

Retail diesel prices have averaged $1.73/gal over the past three months, the Energy Department says.(Prices: factors affecting product cost)(Brief Article)
August 17, 2004... Retail diesel prices have averaged $1.73/gal over the past three months, the Energy Department says. In the previous 16 months, diesel averaged $1.54. But now, economic growth is pushing fuel prices higher and boosting costs for rail, airline...

Transportation 90-day price expectations.(Purchasingdata.com)(Brief Article)(Illustration)
August 17, 2004... (Diffusion index, less than 50 = falling, more than 50 = rising) [GRAPHIC OMITTED] With no drop in fuel costs, Purchasingdata.com's index tracking buyers' pricing expectations for transportation services may wobble but will stay high....

Strong demand for personal computers in Europe and replacement purchases by U.S. corporate customers boosted PC shipments by 14% in the second quarter, according to estimates by market research firms.(Supply: what's happening in markets)(Brief Article)
August 17, 2004... Strong demand for personal computers in Europe and replacement purchases by U.S. corporate customers boosted PC shipments by 14% in the second quarter, according to estimates by market research firms. Midyear sales results show that corporate...

Expect major automakers to trim production steeply to reduce inflated inventories.(Supply: what's happening in markets)(Brief Article)
August 17, 2004... Expect major automakers to trim production steeply to reduce inflated inventories. General Motors and Ford reported unexpectedly large double-digit sales declines in June, causing analysts to project production cuts in coming months to reduce...

Double-digit wireless telephone demand growth so far this year has prompted the Gartner research company to raise its forecast for global handset sales in 2004 to more than 600 million units, from an earlier forecast of 580 million.(Supply: what's happening in markets)(Brief Article)
August 17, 2004... Double-digit wireless telephone demand growth so far this year has prompted the Gartner research company to raise its forecast for global handset sales in 2004 to more than 600 million units, from an earlier forecast of 580 million. By...

Spending on semiconductor capital equipment will rise 63.5% this year to $37.3 billion, stronger than previously forecast, as demand has pushed chip factories near their production limits.(Supply: what's happening in markets)(Brief Article)
August 17, 2004... Spending on semiconductor capital equipment will rise 63.5% this year to $37.3 billion, stronger than previously forecast, as demand has pushed chip factories near their production limits. "The industry needs more capacity to continue meeting...

President Bush denied the request to remove duty-free status given to PET resin from India, Indonesia and Thailand sought by the U.S. PET Resin Producers Coalition.(Supply: what's happening in markets)(Brief Article)
August 17, 2004... President Bush denied the request to remove duty-free status given to PET resin from India, Indonesia and Thailand sought by the U.S. PET Resin Producers Coalition. A processors" group called the PET Users Coalition opposed the anti-import...

Russian metals giant Norilsk Nickel, the world's top producer of nickel and palladium and a major producer of copper.(Supply: what's happening in markets)(Norilsk Nickel USA Ltd)(Brief Article)
August 17, 2004... Russian metals giant Norilsk Nickel, the world's top producer of nickel and palladium and a major producer of copper, will now sell its metals into the Americas through Norilsk Nickel USA Ltd., based in Pittsburgh.

30-day fabricated metals buying plans.(Purchasingdata.com)(Diffusion Index)(Brief Article)(Illustration)
August 17, 2004... (Diffusion index, less than 50 = falling, more than 50 = rising) [GRAPHIC OMITTED] After reaching a high point in May 2004, demand for metals parts has stabilized at a growth-signaling level. Forward demand, 30-days COMMODITY...

Not your grandfather's MRO buyer.(inside purchasing)
August 17, 2004... There was a time in the not-too-distant past when the function of MRO/indirect procurement was a corporate backwater where buyers spent most of their time processing big piles of paper and rubber stamping buying decisions made elsewhere in the...

Hedging helps airlines deflect higher jet fuel costs.(Energy Buying Strategy)
August 17, 2004... Sky-high jet fuel prices are pinching bottom lines of the major airlines so much that many carriers have expanded hedging of energy purchases. The goal is to control energy costs, maintain the low air-fares that consumers increasingly favor and...

SupplyOn takes on North American market.(Automotive E-Commerce)
August 17, 2004... The SupplyOn online marketplace for tier one automotive suppliers is making the leap across the pond. Founded in 2000 through investments from major German automotive suppliers Robert Bosch, Continental, INA Werk Schaeffler, SAP and ZF...

Supply chain management faces tough scrutiny.(Purchasing Survey)
August 17, 2004... Like materials management strategies of an earlier day, supply chain strategies seem to be running into serious challenges of their own. What's more, many of the challenges appear to be coming from the strata of supply professionals who would...

La-Z-Boy.(Who's News)(Brief Article)
August 17, 2004... La-Z-Boy has appointed Mike Martinelli as vice president of supply chain for La-Z-Boy Residential. In this newly created position, Martinelli will oversee the areas of purchasing, materials and logistics from the company's headquarters in...

Nissan North America Inc.(Who's News)(Brief Article)
August 17, 2004... John Miller has been named vice president of purchasing strategy, a newly created position, for Nissan North America Inc. He initially will be located at Nissan's Smyrna, Tenn., assembly plant before moving to Nissan Motor Co. Ltd. headquarters...

Union Switch and Signal.(Who's News)(Brief Article)
August 17, 2004... Union Switch and Signal has a new vice president for manufacturing and supply chain management in Yolande Burnham. She will be responsible for the management of United Switch and Signal manufacturing in Batesburg and Leesville, Pa. She also...

Delphi Corp.(Who's News)(Brief Article)
August 17, 2004... Delphi Corp. named Bill Lloyd director of global supply management, Delphi Europe, effective Sept. 1; Kevin Smith succeeded Lloyd as Delphi's director of machinery/equipment & indirect, global supply management in Troy, effective July 19.

TNT Logistics.(Who's News)(Brief Article)
August 17, 2004... TNT Logistics has named Jim Krepp as its director of purchasing. In his new role, Krepp will direct the materials purchasing activities of TNT Logistics North America, which include warehouse equipment, trucking assets and general supplies....

Raytheon Technical Services Co.(Who's News)(Brief Article)
August 17, 2004... James Mandracchia has been named vice president of integrated supply chain for the Raytheon Technical Services Co. business unit in Reston, Va., of Raytheon Co. that provides technical, scientific, engineering, and professional services for...

TVA to save time and money on outsourced services.(Services Buying)(Tennessee Valley Authority)
August 17, 2004... The Tennessee Valley Authority is rewriting its purchasing rules to buy and manage such outsourced services as information technology, engineering services, administrative assistance, grounds keeping and facilities maintenance and construction...

Bell Microproducts, a provider of storage products and solutions, has been awarded the prestigious STAR award by Lockheed Martin recognizing the supplier's achievements in meeting some of the most stringent performance criteria in the aerospace industry.(Kudos)(Brief Article)
August 17, 2004... Bell Microproducts, a provider of storage products and solutions, has been awarded the prestigious STAR award by Lockheed Martin recognizing the supplier's achievements in meeting some of the most stringent performance criteria in the aerospace...

Nortel Networks honored its strategic and preferred suppliers with the presentation of its annual Supplier Awards.(Kudos)(Brief Article)
August 17, 2004... Nortel Networks honored its strategic and preferred suppliers with the presentation of its annual Supplier Awards. Supplier of the Year went to Motorola Computer Group. Supplier Representative of the Year was Don Donaldson of AMD. The award for...

PPG Industries recently presented 11 Excellent Supplier Awards for supplier performance in 2003.(Kudos)(Brief Article)
August 17, 2004... PPG Industries recently presented 11 Excellent Supplier Awards for supplier performance in 2003. Award criteria included product quality, delivery, documentation, innovation, responsiveness, continuous improvement and participation in PPG's...

Pop quiz on breach of contract claims.(Murray's law)
August 17, 2004... One of the basic defenses against a claim for breach of contract is to claim that no contract ever existed. Consider the following problems based on an alleged breach of contract and consider who should win the case and why. (The answers follow...

Verticalnet recently released its Supply Management 5.1.(Version *.* latest sourcing software releases)(Brief Article)
August 17, 2004... Verticalnet recently released its Supply Management 5.1, which includes new capabilities for contract compliance, contract audit, supplier performance management, savings tracking, and sourcing analysis.

PeopleSoft recently signed a deal to provide its eProcurement solution to more than 8,000 suppliers and 21 million SKUs.(Version *.* latest sourcing software releases)(Brief Article)
August 17, 2004... PeopleSoft recently signed a deal to provide its eProcurement solution to more than 8,000 suppliers and 21 million SKUs by expanding an existing partnership with Perfect Commerce. The deal will connect the PeopleSoft eProcurement tool with the...

Who's got strategic sourcing on the brain?(buylines)(Brief Article)
August 17, 2004... Matsushita Electric Industrial Co., the world's largest maker of consumer electronics, will cut group procurement costs by 10.5% or $4 billion in the year ending March 2005 and reduce the number of parts used in products to about a tenth of the...

What's hot.(metals)(Brief Article)
August 17, 2004... World copper prices are set to ease slightly in 2005 but will remain above $1/lb as strong demand and short supply continues, says analyst Robin Bahr at Standard Bank of London. Commodity exchange prices for copper have risen 70% in the past...

Strong demand fundamentals translate to solid new orders.(Aluminum)
August 17, 2004... The midyear aluminum market: Strong domestic consumption, annualized at almost 10% growth, despite a continuing rebound in transaction prices. In fact, net new aluminum orders are running at a healthy 15% ahead of the first six months of 2003...

Achieving greatness: buy like the best-in-class.(Global Procurement Conference: October 13-14, 2004)
August 17, 2004... PURCHASING Magazine will host its 3rd Global Procurement Conference on October 13-14. The conference will home in on issues that purchasing executives say are most important right now. Topping the list is spend analysis where most organizations...

3rd annual MRO all stars Purchasing's winning team: these MRO buyers add value through innovation and by partnering with sources that do more than deliver a product.(maintenance, repair and operations)(Cover Story)
August 17, 2004... Selecting MRO buyers for PURCHASING's All-Star team (profiled on pages 36-47) gets tougher every year. In response to the magazine's annual editorial call, PURCHASING received from readers numerous nominations of MRO buyers worthy of a...

15 best practices for MRO sourcing and increasing plant uptime.(Special Advertising Section)(Maintenance, Repair and Operating/Operations)(Advertisement)
August 17, 2004... If you missed Purchasing's Global Procurement Conference session for MRO buyers, sponsored by 3M you can read the highlights in these pages. To request a 3M MRO Solutions catalog, dial 1-800-362-3550 x4034. 1 * CLEANSE DATA: Eliminate...

LED prices to fall despite strong demand.(Optoelectronics)(light emitting diodes)
August 17, 2004... The market for high brightness light emitting diodes (LEDs) will grow from $2.5 billion in 2003 to $5.9 billion in 2008 driven by LED demand from automobile and cell phone manufacturers. The good news for buyers is that prices will continue...

What's hot.(electronics & technology news)(Brief Article)
August 17, 2004... Some industry analysts are doing some hand wringing over last month's announcement by Intel that it had a 15% increase in inventory in the second quarter and was expecting lower profit margins for the year. Intel said inventory increased...

Capex spending by chip companies picks up in 2004.(Semiconductors)
August 17, 2004... Capital spending by semiconductor companies is accelerating and will grow a hefty 51% to $44.8 billion, according to a new report by market researcher Gartner Inc. However, capital spending will decline in 2006 and 2007. Capital equipment...

Plexus cuts cost through supplier collaboration.(Purchasing Strategy)
August 17, 2004... It's not uncommon for an electronics manufacturing service (EMS) provider to have a roster of several thousand suppliers. After all, an EMS will often be required to use the suppliers on its OEM customer's approved vendor list (AVL). In...

Consumer equipment drives MPEG IC growth.(Integrated Circuits)(Moving Picture Expert Group)(Brief Article)
August 17, 2004... Growth in demand for consumer electronics equipment including digital televisions and set top boxes will drive the MPEG video IC market for the next several years. The Moving Picture Expert Group (MPEG) video IC grew a hefty 36% to $1.8...

Recovery builds for resistors, capacitors: strong end equipment demand means buyers can expect longer leadtimes and higher prices for some passive components.(passives)
August 17, 2004... Growing global demand from several end market segments including computers, consumer electronics, medical and wireless communications is driving price stabilization for passive components. Most leading passive component suppliers say the...

What's hot.(logistics)(Brief Article)
August 17, 2004... Port security came into focus on July 1 when the International Ship and Port Facility Security Code went into effect as the first-ever multilateral ship and port security standards. The code provides guidelines to ports on security assessments,...

Shippers get advice from experts on reducing logistics costs.(10 Surefire Cost Cutting Tips)
August 17, 2004... With so much emphasis on reducing costs today, supply chain and logistics professionals are looking for ideas from a variety of sources to help control bottom-line costs. With that in mind, PURCHASING has polled a list of logistics experts to...

Take a walk on the cyber side: is the move to online buying helping or hindering supplier diversity efforts?(supplier diversity)
August 17, 2004... There are two trends in the purchasing world today traveling parallel but separate roads. On one hand, buyers at major corporations are moving rapidly to online technologies to streamline the sourcing, bidding and procurement processes while...

Key supplier web-site locator.
August 17, 2004... ADHESIVES, SEALANTS AND COATINGS Master Bond Inc. www.masterbond.com Master Bond Inc. manufacturers over 3,000 grades of adhesives, sealants, coatings, potting compounds and impregnation resins. Products include epoxies,...

Memory leadtimes stretch.(electronics leadtimes)
August 17, 2004... Leadtimes for many electronic components are stretching and buyers can expect the trend to continue until the fourth quarter. Twenty-nine of 41 electronic component leadtimes tracked by PURCHASING magazine stretched in July. While business...