Purchasing articles from February 2004

Purchasing archives from February 2004

Forward demand indicator 90-day.(Purchasingdata.coms's)
February 5, 2004... The unexpected speed of manufacturing's recovery has industrial buyers scrambling to keep production lines supplied. [up arrow] 5.8 [GRAPHIC OMITTED] Manufacturing rally gathers strength Up Down...

As expected, shipping firms have raised freight rates 4% to 7%.(tip sheet: key metrics and supply alert)
February 5, 2004... * As expected, shipping firms have raised freight rates 4% to 7% to offset higher costs from the first major change in truckers' hours in 60 years. New federal safety rules reduce the amount of time drivers and trucks can be on the road to 10...

Tech purchasing is back.(tip sheet: key metrics and supply alert)
February 5, 2004... * Tech purchasing is back. Businesses increased spending for technology in fourth quarter 2003, according to Armonk, New York-based IBM, the world's largest computer company. John Joyce, IBM's chief financial officer, now describes 2004 as "the...

U.S. metalworking indicator hits four-year high.(tip sheet: key metrics and supply alert)
February 5, 2004... * U.S. metalworking indicator hits four-year high. PURCHASING'S January Business Survey puts the Business Activity Index for metals-consuming companies at 70.5 (50 represents the threshold between expansion from contraction). The Forward Demand...

Get better at logistics.(tip sheet: key metrics and supply alert)
February 5, 2004... * Get better at logistics. PURCHASING'S new book, Improving the Logistics Buy, provides strategic insight and detailed case studies from the largest and most advanced shippers across all shipping modes. Chapters focus on such topics as...

Plan on higher prices for psuedo, synchronous and asynchronous SRAM.(tip sheet: key metrics and supply alert)
February 5, 2004... * Plan on higher prices for pseudo, synchronous and asynchronous SRAM (static random access memory) chips through third quarter 2004. SRAM tags averaged $2.30 in the fourth quarter of 2003, and will increase to the $2.50-$2.60 range by the...

Spot pricing for 42-lb unbleached kraft linerboard.(tip sheet: key metrics and supply alert)
February 5, 2004... * Spot pricing for 42-lb unbleached kraft linerboard in the U.S. East and Midwest dropped again in January to a low of $330-340/ton--compared to $420 one year earlier. Still, with the corrugated box business improving, North American...

90-day energy price expectations.(Purchasingdata.com's)
February 5, 2004... (Diffusion index, less than 50- falling, more than 50 = rising) [up arrow] 12.4 [GRAPHIC OMITTED] Frigid January temperatures across much of the U.S. have set energy price expectations back on an upward path. Price...

Four large North American newsprint producers.(Prices: factors affecting product cost)
February 5, 2004... * Four large North American newsprint producers have announced $50/metric ton price increases for standard 30-lb product. If the market accepts the hike, the spot newsprint price will be $580. It hasn't been that high since August 2001.

In a deal that signals iron ore prices may be higher.(Prices: factors affecting product cost)
February 5, 2004... * In a deal that signals iron ore prices may be higher than some had expected this year, the world's biggest iron ore exporter (CVRD of Brazil) and the world's biggest steelmaker (Arcelor of Europe) have agreed to an 18.6% price hike for 2004....

End-use buyers are opposing stainless steelmakers.(Prices: factors affecting product cost)
February 5, 2004... * End-use buyers are opposing stainless steelmakers' attempts to recoup production costs by raising mill product prices 6%. U.S. stainless steel demand from commercial and industrial sectors remains weak. Also, recovery in military spending and...

Gold recently passed $400/oz.(Prices: factors affecting product cost)
February 5, 2004... * Gold recently passed $400/oz (a seven-year high) as fears of terrorism, inflation, the sagging dollar, and bulging U.S. deficits have given investors reason to flock to gold. The supply outlook, meantime, is set to support high gold prices....

Nickel's 2003 price peaked at $7.70/lb in December.(Prices: factors affecting product cost)
February 5, 2004... * Nickel's 2003 price peaked at $7.70/lb in December, but its dramatic 20% collapse in January has unsettled the market, prompting predictions that volatile trading will continue throughout 2004. In the present price environment, analysts say...

Antimony has been selling close to $1.20/lb in the U.S.(Prices: factors affecting product cost)
February 5, 2004... * Antimony has been selling close to $1.20/lb in the U.S., according to traders, who predict it will rise further in the next few months because demand is strengthening. Antimony metal is used to make bearings, storage batteries, cable...

Spot uranium prices rose from an average $8/lb.(Prices: factors affecting product cost)
February 5, 2004... * Spot uranium prices rose from an average $8/lb in 2002 to $11.50 in 2003 due to a renaissance in the world nuclear power industry. Analysts at Canaccord Capital see the spot average at $15/lb in 2004 and $16 in 2005. Forty-three reactors are...

Leadtime index, all commodities.(Purchasingdata.com's)
February 5, 2004... [down arrow] 39.0 [GRAPHIC OMITTED] Tracking the economy LATEST PREVIOUS YEAR % CHG VS. INDICATOR PERIOD PERIOD PERIOD AGO YEAR AGO Industrial production...

Purchasing's business activity index for manufacturing jumped another two points to 68.0 in January.(Economy: how supply managers see business)
February 5, 2004... * PURCHASING's Business Activity Index for manufacturing jumped another two points to 68.0 in January. The proportion of industrial buyers planning to increase orders for raw materials and component parts over the coming 90-days soared to 69%....

Consensus GDP growth forecast for 2004 now stands at +4.6%.(Economy: how supply managers see business)
February 5, 2004... * Consensus GDP growth forecast for 2004 now stands at +4.6%, according to Blue Chip Economic Indicators. That's a 0.7-point gain since October and--if realized--would be the highest annual economic growth rate recorded in 19 years. "At the...

There's plenty in the current economic climate to support short-term price increases.(Economy: how supply managers see business)
February 5, 2004... * There's plenty in the current economic climate to support short-term price increases for industrial commodities, but the overall inflation outlook for the U.S. remains largely unchanged. Latest consensus forecast places growth in the Consumer...

Sourcing offshore is going to get more expensive in 2004.(Economy: how supply managers see business)
February 5, 2004... * Sourcing offshore is going to get more expensive in 2004 as the dollar continues to weaken against other major industrial currencies like the euro and yen. Recent prediction from Global insight has the dollar dropping as much as 10% against...

Capital spending indicators continue to rise.(Economy: how supply managers see business)
February 5, 2004... * Capital spending indicators continue to rise. January Industry Survey from the National Association of Business Economists finds 36% of firms planning to increase capital expenditures in 2004, a doubling from April of 2003. PURCHASING's...

Price panelists wanted.(Economy: how supply managers see business)
February 5, 2004... * Price panelists wanted. To find out if you're eligible to participate in PURCHASING'S Transaction Price Survey, e-mail a list of commodities you buy in volume quantities to amillenporter@reedbusiness.com. Incentive: Free access to a monthly...

30-day steel buying plans.(Purchasingdata.com's)
February 5, 2004... [up arrow] 4.5 [GRAPHIC OMITTED] Reports from the field say that much of this buying activity is being driven by service center restocking ahead of surcharges. Forward demand, 30-days COMMODITY ...

U.S. chipmaker Intel and Japanese mobile communications giant NTT DoCoMo.(Supply: what's happening in markets)
February 5, 2004... * U.S. chipmaker Intel and Japanese mobile communications giant NTT DoCoMo will develop next-generation semiconductors for mobile phones. The companies will start with third generation (3G) chips for cell phones capable of such multiple tasks...

Sales of microprocessors are improving in North America and Europe.(Supply: what's happening in markets)
February 5, 2004... * Sales of microprocessors are improving in North America and Europe, but major suppliers remain cautious in the outlook for the early part of 2004. Motley Fool.com analyst Dave Mock says chipmakers are "reserving any significant optimism" for...

The focus on homeland security generated $100 billion in sales.(Supply: what's happening in markets)
February 5, 2004... * The focus on homeland security generated $100 billion in sales for corporate security and safety service products in 2003. Consulting firm Richard K. Miller & Associates finds physical security and detection technology products available from...

The market for firewalls will expand 25% over the next two years.(Supply: what's happening in markets)
February 5, 2004... * The market for firewalls will expand 25% over the next two years to nearly $2.5 billion in worldwide sales by 2005. Firewalls are software that keep out unwanted computer intruders, and are a mainstay of computer network security at large and...

Researchers from four big universities and other outfits will use a $7.5 million grant.(Supply: what's happening in markets)
February 5, 2004... * Researchers from four big universities and other outfits will use a $7.5 million grant from the National Science Foundation to reevaluate how the Internet works and improve its speed and potential. Darpa, the Pentagon agency that created the...

U.S. sales of abrasive products will reach $5.8 billion in 2004.(Supply: what's happening in markets)
February 5, 2004... * U.S. sales of abrasive products will reach $5.8 billion in 2004, suggests a Freedonia Group report. Volume gains will be modest, but sales growth will shift toward higher-priced value-added materials in the coated abrasives segment. The...

Welcome to the new logistics!(web highlights)
February 5, 2004... As more manufacturing and supply moves overseas, supply chains today get more and more complicated and it's the logistics team that sorts it all out. PURCHASING'S new book, Improving the Logistics Buy, provides strategic insight and detailed...

The Wal-Mart effect.(inside purchasing)
February 5, 2004... "The Wal-Mart Effect" is a major and permanent change in how companies buy products. It will trigger significant restructuring in the production and distribution of products. Those sobering comments were ringing in the halls of the recent...

Rapid rally strains supply, but troubles are likely to be short lived.(Manufacturing)
February 5, 2004... The view from manufacturing buyers participating in PURCHASING's monthly Business Survey is that product demand continues to ramp up--in many cases very quickly. While plenty of buyers say their company's end-markets are improving rather...

Steel mills bombard buyers with cost-driven surcharges.(Commodities)
February 5, 2004... U.S. steel firms are trying to boost base prices for mill products by more than 40%. At the same time, they're trying to get buyers to pay for increased costs of energy, freight and such raw materials as scrap, coke and iron ore. News releases...

Will suppliers seek e-auction revenge?(Online Debate)
February 5, 2004... Economists are now saying the economy in 2004 could post its strongest growth rate in some 19 years. If that happens, some foresee a reckoning for companies that have made big use of reverse auctions to pound down suppliers' profit margins over...

Strike! Purchasing move leads to potential strike in Nissan's U.K. operations.(buylines)
February 5, 2004... Purchasing staffers at a U.K. Nissan plant have voted to strike after the company failed to consult with members of the Amicus Trade Union over relocation of the plant's 70person purchasing department. Nissan U.K. plans to move its purchasing...

The trick to good PC buying: consider total lifecycle cost.(IT Procurement)
February 5, 2004... Thirty-two percent of respondents to a new survey by Forrester Research say they will increase spending on IT goods and services in 2004. Nineteen percent say they will reduce such purchasing. The researchers project that spending on computer...

Omnexus goes under.(E-Brief)
February 5, 2004... The shareholders of Omnexus in December voted to discontinue funding the plastics industry-trading marketplace. SpecialChem, a plastics industry business development firm, acquired the Omnexus name and content platform. Omnexus COO Michael...

Ariba boosts services with FreeMarkets and Alliente buys.(Consolidation)
February 5, 2004... The purchasing technology consolidation trend continued as two of the most prominent names in procurement software announced plans to merge. Enterprise spend management software provider Ariba (Sunnyvale, Calif.) on January 23 unveiled plans to...

Masco Corp.(Kudos)
February 5, 2004... Masco Corp. has named recipients of its MASTAR (Masco Supplier Team Award Recognition) 2003 Program: Akzo Nobel Coatings, Blum, Chevron Phillips Chemical, Crown Lift Trucks, Hermes Abrasives, Moore Wallace, Packaging Corporation of America,...

Constellation Energy Group.(Kudos)
February 5, 2004... Constellation Energy Group has awarded its first Outstanding Supplier Award to the Raleigh, N.C. operations of Flowserve Flow Control. The award recognizes the Raleigh operation's overall level of support and particularly its outstanding...

Temple-Inland Inc.(Who's News)
February 5, 2004... Terry Sueltman has been appointed vice president of supply chain at Temple-Inland Inc., a manufacturer of corrugated packaging and building products in Austin, Texas. At Temple-Inland, Sueltman, 57, will be responsible for all supply chain...

Harris Corp.(Who's News)
February 5, 2004... Harris Corp. has appointed Leon Shivamber to the newly created position of corporate vice president for supply chain management and operations. Shivamber, 43, is set to work with company leadership to develop and implement new procurement and...

The new delivery terms.(murray's law)
February 5, 2004... Shared Imaging (SI) is a U.S. corporation that purchased a magnetic resonance imaging system (MRI) from Neuromed, a German corporation. The MRI was undamaged when it was loaded on a vessel for shipment to Calumet City, Ill. When it arrived at...

Purchasing execs want breadth and depth.(Hiring Purchasing Pros)
February 5, 2004... Trying to land a top post in strategic sourcing? PURCHASING'S interviews with top-level purchasing execs find equal emphasis on commodity expertise, sourcing-process expertise, and exposure to/background in other professional functions. ...

Agile Software.(Version *.*: latest sourcing software releases)
February 5, 2004... Agile Software, in use at such companies as Harris Corp., has announced Agile 9, a unified release for managing enterprise product record across the product lifecycle. Agile 9 supports product lifecycle business process, technology platform,...

Xporta.(Version *.*: latest sourcing software releases)
February 5, 2004... Xporta, in use at such companies as Ingersoll-Rand. Motorola, and Levolor, has rolled out XPORTA Global Sourcing 3.0, enabling companies to quickly calculate their total cost of ownership for cross-border purchases. www.xporta.com

Epicor Software.(Version *.*: latest sourcing software releases)
February 5, 2004... Epicor Software, Irvine, Calif., has announced release of Epicor eProcurement 7.3, a complete purchasing management solution aimed at midmarket companies. www.epicor.com

Vertex.(Version *.*: latest sourcing software releases)
February 5, 2004... Vertex, Berwyn, Pa., has a new online service that enables companies to access taxability rules and rates specific to equipment and vehicle leasing. www.vertexinc.com

What's hot.(metals)
February 5, 2004... Titanium mill products are marketed to highly cyclical and mature aerospace markets. Recently, while reviewing the credit worthiness of titanium producers, analysts at Standard & Poor's Rating Services revised their outlook on the titanium...

Cathode juggernaut pressures brass and wire mill products.(Copper & Brass)
February 5, 2004... For several months now, almost 60% of copper and brass buyers polled by Purchasingdata.com have projected future-buying trends as flat. However, more than 40% are fretting that market prices will continue to rise faster than the rate of demand...

Nonferrous products look tight and costly in 2004: fundamentals paint a positive economic picture, but buyers are cautioned to watch for "extreme price volatility.".(metals price outlook)
February 5, 2004... After seven years of decline, Purchasingdata.com's Nonferrous Price Index rebounded 22% in 2003. The index closed 2003 at 109 (1/ '94=100), the highest level since 110.9 in December 1997. Base metals showed quite a bit of price action in 2003:...

Sourcing steel ain't easy! Mini-mills keep battling integrated firms for more of your business.(understanding markets)
February 5, 2004... Although stronger producers have acquired failed domestic steel mills in the past two years, the market mavens believe restructuring isn't over for weak players in the integrated sector. In fact, there's a growing impression among analysts that...

Professional profile.
February 5, 2004... John R. Maclean Title: Vice President, Corporate Purchasing, AMR Corp., Dallas/Ft. Worth Airport, Texas Background: MacLean has a B.S. in Business Administration from Boston University. After graduation, he worked for Ford Motor...

Lockheed Martin: Negotiators Inc.: centralized organization moves into its fourth year of analyzing and leveraging the systems integrator's massive spend.(the oem buy)
February 5, 2004... Four years ago Lockheed Martin decided that it was time to make some major changes to its largely decentralized organization. The $26.6 billion defense contractor had grown and changed through a series of acquisitions and divestitures and the...

Dashboard leads global procurement to success: six metrics help National Instruments cut costs 12.5%.(technology and strategy)
February 5, 2004... On the desktops of global and regional commodity managers at National Instruments each week appears a dashboard of newly updated metrics that charts the procurement operation's progress toward its goals in six areas. The display is color coded...

Forget dog & pony shows: the best supplier conferences emphasize peer-to-peer networking, benchmarking, and two-way communications between buyer and supplier personnel.(supplier communication)
February 5, 2004... Supplier conferences are nothing new. They've been around in one form or another for over 25 years. During the so-called Japanese Invasion of the early 1980s, though, they gained widespread prominence, as companies began to realize that they...

What's hot.(mro/distribution news)
February 5, 2004... Don't forget to take advantage of PURCHASING magazine's new online educational opportunity, MRO Symposium--whether you're looking for a low-cost training session for your indirect buying team or you need to update your CPM certification. For...

Purchasing teams up with suppliers for savings ideas.(Value Add)
February 5, 2004... Last month, PURCHASING magazine's MRO/Distribution News page looked at ways purchasing operations can affect their companies bottom lines by measuring and documenting value-added savings. This month's MRO/Distribution News story shows how one...

What's hot.(logistics)
February 5, 2004... The shortage of ocean shipping capacity has not gone unnoticed to the Chinese shipping industry. In late 2003, a Chinese shipbuilding company broke ground on what it says will be the world's biggest shipyard, capable of producing cruise ships...

Shippers get strategic in comparing performance.(Evaluating Service vs. Cost)
February 5, 2004... The increased emphasis on cost cutting in the past two years has affected the way transportation and logistics is bought and managed by manufacturers today. Where once service was king, today cost control is the mandate coming down from the...

Canada recently announced the creation of a new Department of Public Safety.
February 5, 2004... Canada recently announced the creation of a new Department of Public Safety and Emergency Preparedness, mirroring the U.S. Department of Homeland Security. It includes emergency preparedness, crisis management, national security, corrections,...

The Department of Homeland Security recently announced.
February 5, 2004... The Department of Homeland Security recently announced $179 million dollars in Port Security Grants to provide resources for security planning and projects to improve security at seaports. The grants will buy new patrol boats, surveillance...

In an effort to expand its retail visibility, shipping giant FedEx Corp.
February 5, 2004... In an effort to expand its retail visibility, shipping giant FedEx Corp. agreed to buy copy center operator Kinko's from private equity firm Clayton, Dubilier & Rice for $2.4 billion in cash. Kinko's operates about 1,200 stores worldwide and...

Emery Worldwide Airlines was recently ordered to pay.
February 5, 2004... Emery Worldwide Airlines was recently ordered to pay a $6 million fine for flying hazardous materials on its airplanes without properly notifying pilots. Emery was placed on three years' probation, during which it must comply with efforts to...

Freight rate outlook.(Purchasing Magazine Exclusive)
February 5, 2004... [GRAPHIC OMITTED] Demand for transportation sees dramatic increase (transportation buying trends, 30-day outlook, percent of buyers reporting) Same 57% Up 40% Prices to continue steep spike in first quarter...

Become world class in supply management.
February 5, 2004... Never before have purchasing professionals had so much control and influence over corporate spending. Never before have their jobs been fraught with so much change, risk, or so many technology options. PURCHASING'S Global Procurement...

Mature industry continues to roll out tech advances.(Motors)
February 5, 2004... Although motors have been around since the 1830s, there are still advancements being made that make it worthwhile for buyers to investigate new products and improvements to existing products that may be better able to meet their needs. For...

Check out value-added services from OEMs.(Bearings)
February 5, 2004... What's new in bearings is the way manufacturers and distributors are going to market. The emphasis these days is on quality, cost savings, and value added, although a lot of customers don't fully realize the implications of these benefits....

Key supplier web-site locator.
February 5, 2004... For more information on listing your internet address in Purchasing's KEY SUPPLIER WEB-SITE LOCATOR Contact Nicole Pizzi Phone 800-955-5757 E-mail: npizzi@reedbusiness.com Master Bond Inc. www.masterbond.com Master...

There's trouble brewing in steel bars.(leadtime report)
February 5, 2004... For the 12 months ending January 2004, leadtimes for hot-rolled steel bars averaged some 20% longer than year earlier. Most of the tightening has occurred over the last six months as the percentage of bar buyers reporting off-the-shelf...

Pump flow slows.(leadtime report)
February 5, 2004... November and December of 2003 saw a marked lengthening in average leadtimes for pumps as a 5% pickup in new-order bookings over 2002 really accelerated after Labor Day. The fast manufacturing recovery prompted a round of equipment maintenance...

Acetic acid leads double.(leadtime report)
February 5, 2004... Leadtimes for acetic acid are now running roughly double their year-ago levels. In fact, leads have been on a gradual stretching trend for some three years as demand has been growing at a 3% annual rate while global production capacity has been...

Biggest gains (12-month rate of change).(Leadtime report)
February 5, 2004... Biggest gains (12-month rate of change) 1 Seals & gaskets 50.9% 2 Acetic acid 48.9% 3 Heavy structurals 48.4% 4 Acetal 46.2% 5 Polyols ...

Biggest drops (12-month rate of change).(Leadtime report)
February 5, 2004... Biggest drops (12-month rate of change) 1 Hot-dipped galvanized -18.1% 2 Electrogalvanized -16.7% 3 Aluminum sheet & strip -14.4% 4 CR sheet & strip -10.6% 5 Other coated...

LDPE looks dicey.(leadtime report)
February 5, 2004... The stretching trend for polyethylene (PE) leadtimes peaked a few months back, but national average delivery times have certainly not returned to the lows seen in 2000-2001, nor are they likely to now that the economy is showing signs of...

Aluminum sheet & strip supply stays loose.(leadtime report)
February 5, 2004... There's been a lot of talk about supply tightness in non-ferrous metals, but, so far, the trouble with aluminum is pretty much confined to ingot on the global stage. Domestic demand for flat-rolled remained weak through end-2003, especially...

Containerboard hike will be a tough sell.(leadtime report)
February 5, 2004... Fed chairman Greenspan says measuring economic strength is as simple as tracking box sales. Unfortunately, boxes didn't have a stellar sales year in 2003. Annual sales of linerboard and corrugating medium were stuck at 36 million tons, and,...

Beware trend shift in flat-rolled.(leadtime report)
February 5, 2004... Technically, the U.S. market for flat-rolled steel is classified as loosening. Leadtimes for the latest 12 months are still below their corresponding year-earlier averages, but that's not difficult in view of last year's tariff-induced supply...

Business keeps getting better.(Tip sheet: key metrics and supply alert)(electronics-consuming companies' statistics )(Brief Article)(Illustration)
February 19, 2004... Business keeps getting better Electronics-consuming companies Up Down Same Business Activity Index 55% 12% 33% Forward Demand Index, all commodities (90 days) 78% 7% 15%...

Keep a watchful eye on 32x8 double data rate.(Tip sheet: key metrics and supply alert)(Brief Article)
February 19, 2004... * Keep a watchful eye on 32x8 double data rate (DDR) DRAM tags. The spot market price increased from $3.50 to more than $4.00 in January due to constrained supply, according to independent distributor Fusion. Some DRAM manufacturers have cut...

Expect good deals on laptop personal computers.(Tip sheet: key metrics and supply alert)(Brief Article)
February 19, 2004... * Expect good deals on laptop personal computers this summer, when there will be plentiful supply of flat-panel liquid crystal displays. A tight supply situation for large-sized LCD panels has kept prices elevated this quarter. But, market...

The West is helping China become an auto manufacturing powerhouse.(Tip sheet: key metrics and supply alert)(Brief Article)
February 19, 2004... * The West is helping China become an auto manufacturing powerhouse. Output is rising 25% per year at Chinese auto parts and assembly plants, and not by relying on inexpensive labor. Global automakers have invested more than $4 billion in...

Almost 90% of U.S. industrial companies outsource.(Tip sheet: key metrics and supply alert)(Brief Article)
February 19, 2004... * Almost 90% of U.S. industrial companies outsource at least one activity, says Cutting Edge Information, which believes the global outsourcing market now exceeds $350 billion. Driving the market are costs savings, says the...

Business travelers are pushing lodging usage rates.(Tip sheet: key metrics and supply alert)(Brief Article)
February 19, 2004... * Business travelers are pushing lodging usage rates and prices upward, says Jack Corgel of the Hospitality Research Group, with full service hotel-room demand jumping 6.3% and average room rates increasing 4.9%. "A late 2003 upswing in...