Purchasing articles from February 2002

Purchasing archives from February 2002

Key metrics and supply alert. (Tip Sheet).(purchasing news briefs)(Brief Article)
February 7, 2002... * Leverage is a powerful way to boost your company's bottom line in today's economy. Emerson Electric of St. Louis expects to save $100 million over five years by coupling strategic sourcing to its Material Information Network In steel bar...

How supply managers see business. (ECONOMY).(current economic conditions, United States)(Brief Article)(Illustration)(Statistical Data Included)
February 7, 2002... * At least one leading economic indicator suggests a recovery could be underway as early as Q1 2002. Growth rate for the Economic Cycle Research Institute's (ECRI) Weekly Leading Index rose to +0.9 for the week ending Jan. 11, marking its...

What's happening in markets. (Supply).(Brief Article)(Statistical Data Included)
February 7, 2002... * The weakest corrugated box market in decades is showing no signs of regaining its strength. Tags are down 12% from this time last year. U.S. container-board producers continue to operate at just 86% of capacity. The box market showed a second...

ISPI edges up. (Transaction Prices).(Industrial Supplies Price Index)(Brief Article)(Illustration)(Statistical Data Included)
February 7, 2002... Transaction prices struggled off the mat in January as the manufacturing economy labored to end its recession. In fact, PURCHASING'S Industrial Supplies Price Index (ISPI) rose to 102.5 (1992=100) compared with a revised 102.0 for December. Of...

Help pick all-star MRO buyers' team. (Inside Purchasing).
February 7, 2002... "MRO supply chains must consist of professionals capable of addressing complex business and technical issues with a leadership presence that will produce consistently high achievements, says Albert Keal, director of purchasing operations,...

Deere's new web system tracks and forecasts product costs. (Cost Management).(Deere and Co.)(Brief Article)(Statistical Data Included)
February 7, 2002... Message to buyers: make sure you communicate with senior management using financial measures that are dear and easily understood. Deere & Co., Moline, Ill., has developed a Web-based tool designed to track and manage actual and forecasted...

Procurement helps move Boeing to Chicago on time. (The MRO Buy).(Boeing Company's Shared Services Group credits long-term supplier relationships)
February 7, 2002... Candace C. Ismael, director of supplier management and procurement (SM&P) for The Boeing Company's Shared Services Group, says long-term supplier relationships were the key to her group's success at helping move Boeing's headquarters to...

Enron's collapse won't kill power restructuring. (Washington Perspective).(Brief Article)
February 7, 2002... Multiple committee probes into Enron's bankruptcy have distracted Congress' attention from federal legislation to advance electricity market restructuring (the term currently favored over deregulation, because fostering competition requires...

Digitalized contracts. (Murray's Law).
February 7, 2002... The digital revolution has invaded every aspect of our lives including the way we make contracts. For as long as anyone can remember, certain kinds of contracts had to be evidenced by a writing including contracts for the sale of goods priced...

Mentoring programs pick up where training leaves off. (Career Development).(Brief Article)
February 7, 2002... While there is a lot to be said for training programs for purchasing professionals, the value of mentoring should not be overlooked. While training ensures that employees receive information they need in an organized and detailed fashion, it...

Letters.
February 7, 2002... To the editor: Your article in the Oct. 4, 2001 issue about certification addresses the need for professionals to be both specialists and generalists. Specialty professional certificates, such as CPM, CPIM, or even the CPA and CMA, are...

Mills hope trade action will spark price push. (Stainless Steel Market).(Statistical Data Included)
February 7, 2002... Buyers report that domestic stainless sheet mills are refusing to quote deliveries beyond the first quarter on the assumption that the government's Section 201 investigation will result in tariffs that will reduce imports and allow them to push...

Buyers sourced less tonnage from metal centers. (Steel).(Brief Article)(Statistical Data Included)
February 7, 2002... Buyers sourced an estimated 11-12% fewer tons from steel service centers last year than in 2000, based on 11-month data available from the Steel Service Center Institute (SSCI) in Chicago. The data shows that monthly shipments started 2000 at...

World aluminum supplies will be plentiful again this year. (Metals Perspective).(Brief Article)(Statistical Data Included)
February 7, 2002... Aluminum's early-January rise on the London Metal Exchange (LME) to 64cents/lb from 61cents in December appears to be causing speculation that the light metal market is starting a recovery. On the contrary, we expect aluminum inventories to...

Birmingham Steel Corp. (Chips).(to allow Charter Manufacturing Inc. to acquire American Steel & Wire)(Brief Article)
February 7, 2002... Birmingham Steel Corp. of Birmingham, Ala., has given Charter Manufacturing Inc., a mini-mill in Mequon, Wis., until Feb. 28 the rights to purchase American Steel & Wire, the special bar quality division that has been idle since June 2001....

Norsk Hydro. (Chips).(establishes Hydro Aluminum North America)
February 7, 2002... Norsk Hydro, the Norwegian oil and energy, light metals, and fertilizer giant, has established Hydro Aluminum North America, a new business unit, in Baltimore. Martin Carter, formerly senior vice president of corporate strategy for Norsk Hydro,...

AmeriSteel. (Chips).(purchases mini-mill from Birmingham Steel Corp.)(Brief Article)
February 7, 2002... Steel rebar producer AmeriSteel of Tampa has added a fifth plant and brought annual capacity to 2.4 million tons/year with the purchase of the Cartersville, Ga., mini-mill formerly owned by Alabama-based Birmingham Steel Corp. AmeriSteel is...

No quick upswing seen in end-user purchasing. (Copper).(brass and copper)(Brief Article)(Statistical Data Included)
February 7, 2002... Purchasing of copper and brass mill products dropped to its lowest level in eight years in 2001 and buying is off to a slow start this year. "Consumers are still buying hand to mouth," says analyst Frederick R. Demler at Man Financial Inc. in...

Market prices tumble; more dips seen as year advances. (Titanium).(Brief Article)(Statistical Data Included)
February 7, 2002... Titanium mill product prices are easing, and buyers think there will be more declines later this year. Spot prices for aircraft-grade are down 10-15% from last summer, due primarily to anticipated cutbacks in Boeing's airliner programs. Boeing...

Purchasing hit rock bottom in December. (Aluminum).(Brief Article)(Statistical Data Included)
February 7, 2002... Purchases of aluminum products from U.S. mills dropped 20% in December, guaranteeing a 12% drop in buying from foreign and domestic mills for the year. Projected use of 11.2 billion lb by metalworking companies last year was almost 22% lower...

Nations agree tentatively to reduce global capacity. (Steel Trade Wars).(Brief Article)
February 7, 2002... Representatives from 39 nations have reached "agreement in principle" to ease the world's glut of steel by cutting production by about 10% over the next decade. But the agreement isn't binding, and it doesn't eliminate the risk of a serious...

Downturn lives on as demand tumbles. (Exclusive Business Data).(metals)(Brief Article)(Statistical Data Included)
February 7, 2002... Metals buyers opened 2002 with their lowest overall optimism for near-term business and buying plans since PURCHASING Magazine revised its monthly Metals Business Survey in June 1997. Only one in four buyers polled expect to buy more metals...

Buyers expand sourcing of high-strength steels: New generations of sheet steel are replacing commercial grades as automakers adjust to demands for lighter vehicles. (Automotive Metals).
February 7, 2002... Automakers continue to have problems reducing the weight of motor vehicles that improve fuel economy without sacrificing safety characteristics. Much strategic sourcing attention is focused on the battle of materials for future changes of...

Layoffs hit hardest at low end of purchasing job mart. (Exclusive Survey).(Brief Article)(Statistical Data Included)
February 7, 2002... Employment trends in purchasing departments around the country appear to be following a mixed script. Layoffs are up, new hires are down, but talented and experienced purchasing professionals remain in demand. In PURCHASING Magazine's most...

Online buy gains speed: Web-based buying cuts costs and streamlines sourcing for the hard-hit auto industry. (Automotive Consortia).(Statistical Data Included)
February 7, 2002... The automotive industry is moving its entire supply chain online at a faster rate than many other industries. The movement has been driven, in part, by the rapid adoption and growth of the Covisint online supplier exchange. But Covisint isn't...

Shippers and rail carriers build bridges. (The Rail Buy).(Statistical Data Included)
February 7, 2002... Relationships between major rail carriers and large shippers have been bumpy to say the least. And while there have been signs that these relationships are being repaired through increased communication and flexibility on both sides, 2002...

Consolidating to consolidated. (News).(United States Postal Service selects Consolidated Freightways)(Brief Article)
February 7, 2002... The U.S. Postal Service selected trucking giant Consolidated Freightways to manage all of its nonmail LTL freight delivery in the continental U.S. The contract comes with options that allow the USPS to extend the partnership through February...

Roadway establishes air service. (News).(Brief Article)(Statistical Data Included)
February 7, 2002... Major LTL carrier Roadway is broadening its services to include air freight forwarding. Roadway Air was born out of a strategic agreement with Integres Global Logistics, a transportation and technology solutions provider in which Roadway...

Insurance rates up. (News).(trucking industry)(Brief Article)
February 7, 2002... Trucking companies paid an average of 32% more for insurance in 2001 than the year before and are likely to pay even higher premiums in the future, according to an American Trucking Association (ATA) survey of 1,000 carriers. The ATA has...

STB reviewing record number of rail constructions. (News).(Surface Transportation Board)(Brief Article)
February 7, 2002... The Surface Transportation Board (STB) is currently reviewing an unprecedented 11 railroad line construction proposals. The proposals vary in size, scope, and location, and involve both Class I and shortline railroads. The longest proposal is...

Price hikes for 2002 won't stick until upturn. (Bearings).(Brief Article)(Statistical Data Included)
February 7, 2002... Though suppliers agree that flagging demand for bearings will turn around next year, there is no consensus about exactly when in 2002 a recovery will occur. The result is a confusing price forecast. Price increases have already been announced...

Signs point to trend shift. (Leadtimes).(packaging suppliers)(Statistical Data Included)
February 7, 2002... On average, packaging suppliers are delivering products 12% faster than year ago. MRO distributors and industrial equipment sellers are delivering 15% faster. Steel deliveries are arriving in 9% less time. Deliveries of nonferrous metals are 5%...

Coil coating technology: Almost unlimited benefits.(Statistical Data Included)
February 7, 2002... If you are a manufacturer using painted steel, aluminum or other metals in your manufacturing process, there is a process you should consider that can improve productivity, reduce processing costs, improve quality, reduce inventory, and reduce...

What's hot.(year 2002 auto industry market forecast)(Brief Article)(Statistical Data Included)
February 7, 2002... Despite the second-best sales year in history, North American motor vehicle production dropped 11% in 2001 as car companies attempted to reduce inventories of unsold vehicles. That caused the auto industry's sheet steel buy to tumble 15%...

What's hot.(United States eases border restrictions with Canada and Mexico)(Brief Article)
February 7, 2002... The Canadian border got a little smarter and hopefully a little faster in mid-December, thanks to the Smart Border Declaration. The declaration resumes the Nexus program, an "Easy Pass" type system that lets pre-approved travelers cross the...

Tip sheet key metrics and supply alert.(semiconductor industry)(Brief Article)(Statistical Data Included)
February 21, 2002... * Expect SRAM tags to be soft through the year. Average price for an SRAM fell from $5.68 in first quarter 2001 to $2.74 in the fourth quarter. Falling prices and weak demand resulted in the SRAM market declining 41% in 2001 to $3.8 billion....

Supply what's happening in high-tech supply chains.(semiconductor and computer market news briefs)(Brief Article)
February 21, 2002... * The semiconductor supply chain may be on the verge of eliminating its massive inventory glut. Insiders suggest the value of excess chip inventories will end this quarter at $1.6 billion, down from $13 billion one year ago. When stocks will...

Electronics transaction prices: Prices to steady in second half.(wholesale electronics)(Brief Article)(Statistical Data Included)
February 21, 2002... The first quarter is traditionally a slow period or the electronics industry and this one is no exception. End equipment shipments are weak, so component demand is sluggish, and there is downward pressure on prices. In fact, for the coming...

Hot Spot.(DRAM prices could rise)(Brief Article)
February 21, 2002... It may be hard to believe, but there could be some DRAM price hikes later in the year. Prices have bumped up in recent months, but many analysts say these increases won't stick. However, if there is another merger of DRAM companies, supply...

Best practices at Big Blue three years later: Virtually 100% of the IBM spend is leveraged. That is, every penny that is spent goes through one of 30 commodity councils that cover all spending categories. (Inside Purchasing).(purchasing management)(Brief Article)(Statistical Data Included)
February 21, 2002... One of the screaming themes in today's economy is the role of supply officers in improving corporate performance. Company after company, from Ford to Motorola, wants instant bottom-line salvation from its purchasing pros. In that light, we...

Electronics giant centralizes contract labor buy online. (Texas Instruments).(Brief Article)
February 21, 2002... The cyclical nature of the semiconductor business makes it prone to staffing changes. When business is up, hiring is frenzied and contract labor is in high demand. When times are bad, layoffs are common and contract labor is minimized. Keeping...

Forrester report shows Q4 e-procurement growth.(Forrester Research's Report On eBusiness )(Brief Article)(Statistical Data Included)
February 21, 2002... The latest research from the Institute for Supply Management and Forrester Research's Report On eBusiness found that the number of large-volume-buying organizations that reported cost savings from using the Internet grew from 28% in the third...

Chipmaker moves to put direct spend online. (Intel).(Intel Corp. implements e-procurement system)(Brief Article)
February 21, 2002... The name Intel Corp. is almost synonymous with innovation and forward-thinking. So it comes as little surprise that the company decided to go against the grain when implementing an e-procurement strategy, going after direct materials before...

Distributors go a la carte with value-added services. (Electronics Distribution).
February 21, 2002... Electronics buyers recognize the value of distributor-provided services such as kitting, cable assembly, IC programming, bonded inventory and auto replenishment. A recent PURCHASING Magazine survey shows 65% of buyers using distributors'...

What's hot. (Electronics & Technology News).(electronics distributors' "pay for service" programs)(Brief Article)
February 21, 2002... Electronics purchasers have long appreciated distributor value-added services. Services such as kitting, cable assembly, IC programming, bonded inventory and other programs save OEMs and contract manufacturers money. But some distributors...

DSP tags are poised for fall in 2002 as market grows. (Semiconductors).(digital signal processors)(Brief Article)(Statistical Data Included)
February 21, 2002... Buyers can expect prices for digital signal processors (DSPs) to fall this year as the market grows only 4% in 2002 after falling 33% in 2001. DSP manufacturers say tags should fall 5-10% for the year. While growth will return to the DSP...

Weak demand has buyers scrambling to cut costs. (Networking Equipment).(Statistical Data Included)
February 21, 2002... Lowering cost is always an important task for purchasers, but in the networking equipment industry there is new emphasis on cost reduction. After years of growth, demand for networking equipment fell last year. This year is also expected to be...

Lithium ion makes the most of a down market. (Rechargeable Batteries).(Statistical Data Included)
February 21, 2002... The high-tech market may be struggling this year, but there is one technology making lemonade out of lemons. In the world of rechargeable batteries, lithium ion chemistry makers are taking advantage of slow sales to focus on gaining market...

Intel's MPU share drops. (Processors).(AMD takes market share points from Intel)(Brief Article)(Statistical Data Included)
February 21, 2002... Intel is still the king of the PG microprocessor hill, but AMD took away about four points of market share from Intel in 2001, according to Mercury Research. AMD now has about 20% of the PC microprocessor market and Intel has 78.7%. In...

Mobile MPUs move to 0.13 micron process technology. (Microprocessors).(Intel's mobile microprocessors)(Brief Article)(Statistical Data Included)
February 21, 2002... Intel says it is now manufacturing all of its mobile microprocessors on 0.13-micron process technology. Smaller chip geometries, enabled by this advanced chip making process, result in chips with lower power consumption and smaller sizes...

Electronic parts-buying strategies show caution. (Heard on the Street).(Brief Article)(Statistical Data Included)
February 21, 2002... The component market remains weak because demand for electronic end-equipment remains fragile, according to parts buyers surveyed recently by PURCHASING. Latest purchasing plans indicate strategies described by some as "treading water", since a...

Slow recovery expected for electronics distribution. (Distribution Outlook).(Brief Article)
February 21, 2002... Shell-shocked may be the best word to describe how electronics distributors felt after 2001. Weak end equipment demand coupled with high inventory levels resulted in most distributors having poor years. The National Electronic Distributors...

Fujitsu cuts procurement costs and suppliers. (Supply Strategy).(Brief Article)(Statistical Data Included)
February 21, 2002... Leading Japanese computer and chipmaker Fujitsu has detailed plans to reduce its spending on components and materials by approximately $3.85 billion over the two years. Fujitsu currently spends about $21.5 billion annually on components and...

Standard logic crumbles in 2001. (Electronics Briefs).(Brief Article)(Statistical Data Included)
February 21, 2002... A new report from iSuppli Market Intelligence Service says the market for standard logic devices saw its worst decline in history during 2001, with revenues dropping 46% to just $1.6 billion from a high of $3 billion just last year. iSuppli is...

Celestica expands in Japan. (Electronics Briefs).(Brief Article)
February 21, 2002... Contract manufacturer Celestica has expanded its Japanese presence recently through the acquisition of two telecom equipment factories from No. 3 chipmaker NEC Corp. Celestica signed a five-year, $2.5 billion supply agreement with NEC and will...

IBM outsources. (Electronics Briefs).(Brief Article)
February 21, 2002... In an effort to cut costs, IBM has outsourced production of some desktop computers to contract manufacturer Sanmina-SCI Corp. The $5 billion, three-year contract covers IBM's NetVista computers, including several different models sold primarily...

New software for Cisco. (Electronics Briefs).(Brief Article)
February 21, 2002... Cisco Systems, which became the poster child for inventory write-offs last year, has implemented a new software package to help improve its supply chain operations. The new software from MCA Solutions will support inventory planning for Cisco's...

Kodak focuses on wireless. (Electronics Briefs).(Will form Appairent Technologies Inc.)(Brief Article)
February 21, 2002... Eastman Kodak will create a new company focused on the wireless transmission of high quality video, photographs and data, The new firm, Appairent Technologies Inc., will build components and develop systems that, when integrated with consumer...

Slow recovery for IT. (Electronics Briefs).(Brief Article)
February 21, 2002... Gartner Group analysts are predicting another slow year for IT in 2002. While increased IT spending in the Asia-Pacific region may bring a slight recovery for the year, the industry will continue to go through a shakeout, Gartner predicted....

PC shipments fall. (Electronics Briefs).(Brief Article)(Statistical Data Included)
February 21, 2002... The global personal computer industry shrank 4.6% in 2001, according to Gartner Dataquest, marking the first negative year for the market since 1985. The U.S. decline was especially sharp, with sales down 11.1% to 43.8 million computers....

Flash prices to fall further. (Nonvolatile Memory).(Flash memory)(Brief Article)
February 21, 2002... Expect flash memory prices to drop 32% this year despite an increase in unit shipments. Prices will fall for a second straight year because of sluggish demand for the memory chips from cellular telephone manufacturers, according to a new...

Analysts see 'modest' 3% price increase. (Gold).(Brief Article)(Statistical Data Included)
February 21, 2002... The price of gold, a mainstay material in industrial electronics, is expected to rise in 2002 to a consensus average $280/ounce, compared to $272 in 2001. The anticipated 3% increase is due to reduced supply and not higher demand from makers of...

Switch makers lack Web capability. (Survey Report).(Brief Article)
February 21, 2002... Buyers who want to purchase switches from manufacturers are likely to find they are out of luck. Reason: a new report finds that many switch manufacturers lack e-commerce capability. A survey by Venture Development Corp. reveals that few...

Weak demand=few shortages. (Exclusive Electronics Business Report).(Good times for electronics buyers)(Brief Article)(Statistical Data Included)
February 21, 2002... The good times for electronics buyers keep rolling along. Supply is plentiful and prices are soft to falling. The supply scenario of 2001 has carried over into 2002 to no one's surprise. The good news for buyers is that supply...

Tighter supply, higher tags in fourth quarter: the buyers' market for electronic components will continue through most of the year, but supply conditions could get dicey late in the year. (Component Outlook).(Brief Article)(Statistical Data Included)
February 21, 2002... The days of wine and roses for electronics buyers will continue through much of 2002 as component availability remains high and prices fall through at least the first half of the year. However, some leadtimes will stretch and prices won't fall...

HP cuts risk with portfolio approach: Using this system, Hewlett-Packard slashed electricity costs and will now apply it to memory products. (Risk Management).
February 21, 2002... Risk management: The art of reducing uncertainty where possible and increasing the number of options for dealing with surprises that can't be forestalled by other means. During the late 1980s and all through the 90s, manufacturers such as HP...

A move to e-procurement improves order efficiency. (Office Supplies Sourcing).(Arkansas Blue Cross and Blue Shield)(Brief Article)
February 21, 2002... Moving its office supplies purchase online has helped Arkansas Blue Cross and Blue Shield to significantly reduce its supplier base, improve process efficiencies, and allow its buying operation to concentrate on more strategic tasks. An...

Minolta engineers digital copier for sharper images. (Products).(new multifunction printer)(Brief Article)
February 21, 2002... Minolta engineered its new DIALTA Di650 digital printer/copier/scanner for sharper image quality, faster output and more powerful options to support high copy and print volumes. The Di650 has applications in offices that have large volume...

Toshiba expands line to include networked printers. (Products).(Toshiba America Business Solutions)(Brief Article)
February 21, 2002... Toshiba America Business Solutions (TABS) has introduced the first in its new line of standalone digital monochrome laser printers, the flagship 40 ppm e-STUDIO40P. Building on the success of its full-featured e-STUDIO MEPs (multifunction...

What's ht. (Logistics).(trucking companies, insurance policy renewals)(Brief Article)
February 21, 2002... Insurance is certainly a hot topic in logistics these days. Increased rates for airfreight carriers contributed to the emergence of security surcharges at most major airlines which are being passed to shippers. A recent survey by the American...

Last year has lasting effect. (International Airfreight).(air cargo industry in 2001)
February 21, 2002... It was a year that affected many businesses in many ways, mostly negative. Given sluggish manufacturing lines, decreased shipping volumes and increased security measures following Sept. 11, the international airfreight business may have been...

Key supplier Web-site locator.(Directory)
February 21, 2002... ABRASIVES AND BRUSHES PFERD INC. www.pferd.com Single source manufacturer for full line of quality finishing, cutting and surface conditioning tools including grinding and cutoff wheels, wire brushes, mounted points, belts, discs,...

No supply pressure yet. (Electronics Leadtimes).(Statistical Data Included)
February 21, 2002... Remember that uptick in electronics leadtimes last November? It looked like it might be a harbinger of tightening supplies. Well, forget about it. Apparently, there was some seasonal tightening before the holidays. PURCHASING'S current report...

Electronic connectors buyers' lever is weak demand. (Electronics Supply Insights).(costs, prices)(Brief Article)(Statistical Data Included)
February 21, 2002... Buyers of electronic connectors will have to work hard to find negotiation leverage, but the time for hard work is now. In the 12 months ending December 2001, the U.S. connectors industry (SIC 3678) increased its average product prices by 0.9%...