Purchasing articles from July 2007

Purchasing archives from July 2007

Alltel slashes costs with Strategic Sourcing.(management of ALLTEL Corp.)(Company overview)
July 14, 2007... By James Carbone Strategic purchasing and centralization have resulted in more than $1 billion in material cost savings for Alltel. Alltel Wireless has come a long way in strategic sourcing in a short period of time. In just a few...

Tell us your real costs.(ArvinMeritor Inc.)(Brief article)
July 14, 2007... By Staff Among possible solutions: Fire the suppliers; end the "clean-sheet" program; exempt them from the program; get their cost data from other sources. See www.purchasing.com for solution. Automotive supplier Arvin Meritor has...

Legal Sea Foods brings fresh perspective to supply chain.(management of restaurant industry)
July 14, 2007... By Wayne Forrest Restaurant chain provides best practice supply chain example. How easy life would be for Jeffrey Lipson, if only he had a crystal ball. Then the director of purchasing for Boston-based restaurant chain Legal Sea...

Citric acid prices to rise as increased demand tightens supply.(Statistical table)
July 14, 2007... By Gordon Graff Citric acid prices are on the upswing while supplies are gradually tightening, note producers and buyers of the chemical. These trends, they say, are likely to continue into 2008, spurred by rising raw materials and energy...

Business Intelligence.
July 14, 2007... By Staff 34% Buyers predicting organic chem price hikes this quarter Source: www.purchasingdata.com WHAT IT MEANS: That's a significant drop from the previous month which saw 48% of buyers polled expecting price hikes for...

Bulk packaging suppliers focused on efficiency and environment.
July 14, 2007... By William Atkinson For years, bulk packaging manufacturers focused their attention simply on designing and selling functional products for a well-defined customer base. But buyers today are looking to their bulk packaging suppliers to...

Pricing News.(Dow Chemical Co.)(Cabot Corp.)(Degussa's Goldschmidt Chemical Corp.)(Brief article)
July 14, 2007... By Staff Dow Chemical issues rash of price hikes Dow Chemical in June issued a rash of price increases for North American buyers. Among them: acrylic acid and esters up 3-5¢/lb; vinyl acrylic emulsion products up 3¢/lb;...

Ethanol supply glut in second half could depend on logistics capacity.
July 14, 2007... By Staff Is an ethanol supply glut coming in the second half of 2007? Some analysts are predicting that a rash of new ethanol production plants coming online in late 2007 will increase production enough to produce a major surplus....

Hyperion Plans New U.S. Oil Refinery.(Hyperion Resources)(Brief article)
July 14, 2007... By Staff Plans for the first new oil refinery in the U.S. in more than 20 years are underway and it's not who you think it might be. Hyperion Resources plans to build an $8 billion oil refinery in the Midwest which will refine crude from...

DRAM prices will stabilize.(Dynamic random access memory)
July 14, 2007... By James Carbone The buyer's market for DRAMs will continue throughout the rest of the year although the steep price plunge that occurred during the last six months is over, according to analysts, suppliers and buyers. Prices for...

Business Intelligence.
July 14, 2007... By James Carbone 41% Electronics purchasers who say business is improving Source: www.purchasingdata.com WHAT IT MEANS: Despite rising demand there will be few component shortages as suppliers have added capacity. 56%...

Minimal growth forecast for chip investment.
July 14, 2007... By James Carbone After increasing 18% in 2006, total semiconductor industry capital spending will rise only 1% in 2007 according to researcher IC Insights. Samsung will invest the most with $6.7 billion in capital expenditure (capex)...

Expect stable leadtimes, pricing for integrated passive devices.
July 14, 2007... By Gina Roos Electronics buyers can expect steady prices and leadtimes for integrated passive devices (IPDs) despite increased manufacturing and materials costs. Manufacturing costs increased as raw materials prices rose, but...

SIA lowers 2007 chip forecast.(Semiconductor Industry Association)(Brief article)
July 14, 2007... By James Carbone Declining chip prices in the first half of the year will result in global semiconductor revenue growing just 1.8% in 2007 to $252 billion, the Semiconductor Industry Association (SIA) said. The association had earlier...

Electronics manufacturing grows in Eastern Europe.(Brief article)
July 14, 2007... By James Carbone Eastern Europe is emerging as a new global hub for the electronics manufacturing industry, according to a new report by researcher Frost & Sullivan. Manufacturing is growing in Eastern Europe because of lower labor costs,...

Chip market grows in China.(Brief article)
July 14, 2007... By James Carbone Semiconductor growth in China will accelerate despite uncertainties regarding the technology sector and the overall economy, according to researcher iSuppli Byron Wu, director and principal analyst, China Research, for...

Matsushita moves to 45nm.(Matsushita Electric Industrial Company Ltd.)(Brief article)
July 14, 2007... By James Carbone Matsushita electric industrial has started making semiconductors using 45-nanometer process technology. Matsushita currently makes both 45- and 65-nanometer chips at production facilities in its central Japan plant. It...

Prices.(Nickel-based batteries )(Statistical table)
July 14, 2007... By Staff Nickel-based batteries are expected to inflate (Buyers' 90-day price expectations) ----------------------------------------------------------- UP DOWN SAME INDEX...

Sheet Steel is Hibernating.(Brief article)
July 14, 2007... By Staff The sheet steel market saw continued weak demand from metalworking firms and service centers that still are holding large inventories. "Pricing is lower than anticipated and shipments are lower than expected," says Mike...

UBS: Copper Prices Peaked.(Brief article)
July 14, 2007... By Staff UBS metals analyst Robin Bhar told a recent conference he thinks copper prices have peaked for three reasons. First, investors are showing less interest this year; secondly demand is declining; and lastly, some reports show a...

Murata Boosts Power Supply.(Murata Manufacturing Company Ltd. bought C and D Technologies Inc.)(Brief article)
July 14, 2007... By Staff Japanese electronic components maker Murata Manufacturing Co. will buy C&D Technologies Inc.'s power electronics unit for $85 million to boost its power supply parts business. Murata said the C&D unit is an ideal pickup since...

Intel will Cut Prices 50%.(Brief article)
July 14, 2007... By Staff Intel will slash its prices even further in its ongoing market share battle with AMD. Intel will cut prices of its Core 2 Quad processor by 50% on July 22, according to an Intel document given to clients and reported on Bloomberg...

Producer Prices Up in May.(Brief article)
July 14, 2007... By Staff Energy prices rose 4.1% in May, the biggest gain in six months, and gasoline prices climbed 10.2%, their largest increase since November, pushing producer prices up by 0.9% in May, the Labor Department said. Excluding volatile...

LTL Rates to Drop Further.
July 14, 2007... By Staff In a recent note to clients, Bear Stearns analysts said less-than-truckload rates should drop in the second half. "The LTL market remains increasingly competitive, and we expect based on pricing in the first half, for pricing on...

Air Products Ups Prices.(Air Products and Chemicals Inc.)(Brief article)
July 14, 2007... By Staff Air Products is pushing price increases for its high-purity process chemicals by 4-12% effective July 1. The company's affiliated Air Products Polymers joint venture between Air Products and Chemicals and Wacker-Chemie will push a...

Natgas Goes into A Slide.(Brief article)
July 14, 2007... By Staff Attention buyers who hedge on energy: Natural gas futures for July delivery on the New York Mercantile Exchange traded last month at $7.35 per million British thermal units, their lowest settlement price since late April. Moderate...

Fluff Pulp Hike Tried.(Brief article)
July 14, 2007... By Staff Pulp producers are lobbying for higher prices this summer on the fluff grade used in disposable diapers, baby wipes and sanitary products. International Paper first attempted an increase, $30 in June to $850/metric ton, but...

Pulp Hike Endorsed.(Brief article)
July 14, 2007... By Staff North American softwood pulp prices didn't move in May or June but could increase by $20/metric ton in July or August because supply is tightening. Pulp and Paper Products Council says inventories are well under a month's worth of...

Hotel Rates May Ease in '08.(Brief article)
July 14, 2007... By Staff Hotel room rate hikes will ease next year, up an average of 5% instead of this year's 6%. Why? Many new hotels are being built, particularly in smaller cities where land is more affordable, says the Kiplinger Newsletter . However,...

Import Prices Up.(Brief article)
July 14, 2007... By Staff U.S. import prices rose 0.9% in May, the fourth straight month import prices have increased. Imported petroleum increased 2.7%, leading the index up higher than economists had predicted.

Timken Ups Heat-Treated Steel.(Brief article)
July 14, 2007... By Staff Timken plans to increase prices next January on steel products that have been double and triple thermal treated to provide optimum machinability. Affected bar products from the Canton, Ohio, steelmaker will increase by $50 per ton...

Supresta Pushing Plasticizer.(Brief article)
July 14, 2007... By Staff Supresta said it will raise prices on its Lindol line of plasticizers, Syn-O-Ad line of lubricant additives and Fyrquel line of special application fluids by 4-5% effective July 1. "The price increase is required to help offset...

Vinyl Resin Increases.(Hexion Specialty Chemicals)(Brief article)
July 14, 2007... By Staff Reichhold, hexion Specialty Chemicals and Interplastic Corp. all set 7Acents/lb price increases on vinyl ester resins sold in North America effective July 1. PolyOne raised its vinyl compound prices 3Acents/lb, citing increased...

U.S. Bankruptcies to Spike.(Brief article)
July 14, 2007... By Staff Now is the time to check in with those suppliers you think might be on the verge of bankruptcy. The Euler Hermes ACI Business Failures Index forecasts a 51% increase in U.S. business bankruptcies this year, after legislation...

Rohm & Haas Expands LCDS.(liquid crystal displays)(acquisition of Eastman Kodak Co.)(Brief article)
July 14, 2007... By Staff Chemicals maker Rohm & Haas Co. has completed its acquisition of Eastman Kodak Co.'s Light Management Films division, which produces films that improve the brightness and efficiency of liquid crystal displays.

Malaysian Output Seen Down.(Brief article)
July 14, 2007... By Staff The current forecast from the Malaysian American Electronics Industry group says U.S. electronics firms will increase their production from Malaysian plants by only 7% in 2007 to $22.8 billion, a figure lower than the 10.5% growth...

Non-Res Building Continues.(non-residential building)(Brief article)
July 14, 2007... By Staff The supply of cement, concrete and medium-size structural beams is getting tighter. The non-residential construction sectors in Canada and the U.S. are poised for several years of growth, says analyst Claude Proulx at BMO Capital...

Power Surge is Possible.(Brief article)
July 14, 2007... By Staff There will be strong demand for electricity for cooling this summer in the nation's most populous regions, the Energy Information Administration forecasts. Reason: National Oceanic and Atmospheric Administration expects...

Celanese Outage Continues.(Brief article)
July 14, 2007... By Staff Celanese hopes to restart its 1.2 million metric ton/year Clear Lake, Texas, acetic acid plant by mid-July. Initial attempts failed and forced the Dallas-based company to extend its force majeure on acetic acid, acetic anhydride,...

China Cuts Export Rebates.(Brief article)
July 14, 2007... By Staff China said it will reduce export rebates on 2,831 products to curb the country's record trade surplus, ease friction with other countries and spur industries to use less energy. China has cut export rebates three times this year....

Storm Hits Coal Supply.(Brief article)
July 14, 2007... By Staff A Major Storm in Australia shut down the world's biggest port for exports of thermal coal shipments in mid-June. With the port of Newcastle shut down, mining giants BHP Billiton, Xstrata and Rio Tinto's Coal and Allied Industries...

Copper Supply Disrupted...(Xstrata PLC)(Brief article)
July 14, 2007... By Staff Copper producer Xstrata said in mid-June that a strike will disrupt its Montreal operations, which accounted for 2% of world copper supply last year. Xstrata declared force majeure June 15, but Edward Meir, an analyst at Man...

...But Congo Makes More.(investment of Phelps Dodge Corp.)(Brief article)
July 14, 2007... By Staff A recent report from the International Monetary Fund says Democratic Republic of Congo's copper and cobalt production is expected to rise rapidly with an increase of private investment in its mining sector following free...

Samsung Boosts U. S. Chips.(Samsung Electronics Company Ltd.)(Brief article)
July 14, 2007... By Staff Attention NAND buyers: More capacity is on the way. Samsung Electronics Co. said it would invest $3.5 billion in its 10-year-old U.S. chip plant in Texas by 2008 to produce flash memory chips. It was the first time the company has...

Toshiba to Double NAND.(Brief article)
July 14, 2007... By Staff Toshiba said it will more than double its monthly output of NAND flash memory chips in the next year, since the company can only meet 60-70% of its current demand for NAND. Toshiba, which has slightly less than one-third of the...

Nuhorizons Teams with SIMO.(contracts of Nu Horizons Electronics Corp. and Silicon Motion Technology)(Brief article)
July 14, 2007... By Staff Nu horizons electronics and Silicon Motion Technology (SIMO) signed a North American distribution deal for Nu Horizons' distribution of SIMO's low-power embedded graphics controllers and high-performance controllers for MLC & SLC...

Chemicals Leadtimes Shrink.(Purchasingdata.com)(Brief article)
July 14, 2007... By Staff Chemical leadtimes for all 20 chemicals tracked by Purchasingdata.com shortened in June, indicating supply is loosening. Several buyers in the most recent survey noted that specialty chemicals were harder to source in June. Recent...

Put the umbrellas away-the sky is not falling.(management of supply chains)
July 14, 2007... By David Hannon Supply chain professionals say the state of global logistics infrastructure is adequate and the "perfect storm" is a long way off. Traffic congestion on the roads. Delayed shipments at the ports. Shrinking ocean...

Kimball's procurement moves from tactical to strategic.
July 14, 2007... By David Hannon Office furniture maker overhauls processes to emphasize "creative cost savings" ideas. Bob Price, director of global sourcing, expected to uncover some savings opportunities when he invited a group of 50 key suppliers...

Leadtime Report.(Statistical table)
July 14, 2007... By Staff Slowest Deliveries (leadtimes in weeks) ------------------------------------ 1 Titanium bars 19.6 2 Titanium-based superalloys 18.7 3 LDPE 18.2 4 LLDPE ...

RFID still brings more questions than answers for inbound logistics.
July 14, 2007... By David Hannon Despite its clear value proposition and much talked about benefits, radio frequency identification (RFID) has not yet impacted the inbound manufacturing supply chain as it has other areas. There are pilots underway and...

Business Intelligence.
July 14, 2007... By Staff 21.7M Number of containers handled by the port of Shanghai in 2006 Source: Shanghai International Port Group WHAT IT MEANS: That's a 20% increase over 2005, showing the unprecedented growth of port facilities in...

Nickel buyers investigate material substitutes.
July 14, 2007... By Tom Stundza With nickel prices in a multimonth bull trend, buyers are looking for ways to switch to lower-cost alternatives. The status quo of stainless steel purchasing is about to change as prices for traditional sheet mill...

Metals buyers prefer contracts, indexes more than ever.(forecasts and trends of metal industries)
July 14, 2007... By Tom Stundza Spot-market purchasing of commodity metal products has fallen out of favor during this pricing super-cycle period, according to a survey of metals buyers. In a recent Purchasing survey, only 36% of those surveyed are buying...

North American demand is sliding for flat-rolled, extrusions.
July 14, 2007... By Staff Aluminum demand in the U.S. and Canada (shipments by domestic producers plus imports) totaled an estimated 8.354 billion lbs through the first four months of 2007, off 3.2% from a year ago, according to the Aluminum Association....

Novelis supplies sheet for Buick crossovers.(Brief article)
July 14, 2007... By Staff Novelis has been selected by General Motors to supply aluminum sheet for the hood of the 2008 Enclave, Buick's first luxury crossover sports utility vehicle. Aluminum sheet for the Enclave-as well as the hood of GM's Acadia...

Chinese consumption growth drives the world market.
July 14, 2007... By Staff Chinese aluminum consumption continues to "stand out" against the rest of the world with the Asian country still driving industry fundamentals, says a report by Norwegian supplier Norsk Hydro. Noting expectations for even...

Bandits get bolder as bullion's price climbs.(Brief article)
July 14, 2007... By Staff With the price of gold more than doubling in the past five years, Japan has witnessed a string of increasingly daring gold heists. In the wee hours of a recent June morning, bandits skulked off with a solid gold bath tub belonging...

Electronics demand is supporting metal's growth.(Brief article)
July 14, 2007... By Staff The world has no substitute material for pricey indium and demand will continue to grow despite spot prices at or above $550/kilogram (for 99.99% pure ingot) due to rising global consumption for electronics products, according to...

AT&T to use copper, fiber for new Web services.(Brief article)
July 14, 2007... By Staff AT&T has no plans to change its plan to use copper lines in addition to fiber as it expands its U-Verse network for an advanced Web, video and phone service. Ernie Carey, vice president of AT&T's Advanced Network Technologies,...

Arcelor Mittal chief stresses quality of supply; dismisses steel futures.(opinion of Lakshmi Mittal)
July 14, 2007... By Staff Lakshmi Mittal, president and CEO of Arcelor Mittal, says further consolidation within the steel industry is the way to control price volatility. Addressing a conference sponsored by World Steel Dynamics and American Metal...

Alcan in deal to supply Airbus.(Brief article)
July 14, 2007... By Staff Alcan of Montreal has announced a new long-term agreement to supply Airbus with "a variety of high-performance aluminum products" for the European manufacturer's airliners. The Montreal-based aluminum producer's deal covers a...

Peru has caught the eye of global mining companies.(Peru Copper Corp.)(Brief article)
July 14, 2007... By Staff Beijing-based Aluminum Corp. of China made a friendly $790 million offer for the Toromocho deposit, owned by Canada's Peru Copper Corp. Additionally, Anglo American of London and a consortium led by Zijin Mining Group of China's...

Report says mining industry in good shape, led by copper.(Financial report)(Brief article)
July 14, 2007... By Staff A new report says the mining industry's net profits increased 64% last year. Moreover, the report by Price Waterhouse Coopers says the industry's profits were 1,423% higher than its 2002 results. The leading revenue generator:...

Business Intelligence.
July 14, 2007... By Staff $840 4Q cut plate price Source: www.purchasingdata.com WHAT IT MEANS : Spot prices around $800/ton may not last. Plate makers are optimistic about second-half demand from expanded repair of highway bridges,...

No end for competition, volatile prices for nonferrous products.(Brief article)
July 14, 2007... By Staff The global economy keeps chugging ahead and, with it, so does demand for nickel, copper, iron ore, bauxite, and other metals. Although financial market speculation drives some of the day-to-day volatility in metal prices, the...

Chinese demand could trigger a shortage.(Brief article)
July 14, 2007... By Staff World crude steel production increased by almost 9 % to 1.2-billion tons so global iron ore production grew by 12% in 2006 to 1.5-billion metric tons, according to the United Nations Conference on Trade and Development (UNCTAD) in...

Essar expands in North America.(Brief article)
July 14, 2007... By Staff Essar Global, the owner of India's third-biggest steelmaker, plans to spend about $6 billion to boost production more than fivefold by 2012-and a lot of that will happen in North America. Output will rise to as much as 25...

Steel futures are possible.(London Metal Exchange Ltd.)(Brief article)
July 14, 2007... By Staff Futures contracts have been used as hedges against price/supply volatility in the nonferrous and precious metals markets for more than a century. Futures are traded on exchanges that are anonymous public auctions with prices on...

High prices driving domestic substitution of the red metal.(usage of copper products)
July 14, 2007... By Staff High copper cathode prices have inspired a process of materials substitution that may be largely irreversible and are driving technological innovation to other materials, according to Christoph Geyer, general manager of KME...

Copper marriage is working.(Freeport-McMoRan Copper and Gold Inc. purchased Phelps Dodge Corp.)(Brief article)
July 14, 2007... By Staff Freeport-McMoRan Copper & Gold Inc.'s $26.4 billion purchase of Phelps Dodge Corp. is turning out better than expected. The value of the Phoenix-based company, now the largest publicly traded copper producer, is surging. That's...

Miners are plunging into risky new terrain.(Phelps Dodge Corp.)(Brief article)
July 14, 2007... By Staff During much of the current worldwide commodity boom, mining companies focused large parts of their operations on countries with low political risk and reliable infrastructure, such as the U.S., Canada, Chile and Australia. But...

Alcan may be in search of a white knight.(Alcoa Inc. and Alcan Inc.)(Brief article)
July 14, 2007... By Staff Canadian aluminum producer Alcan has opened its books to mega-miners Rio Tinto and BHP Billiton in an attempt to fend off a $27 billion offer from American rival Alcoa, according to newspaper reports in The Sydney Morning Herald...

China sets limit on exports to 10% of output; U.S. mills skeptical.
July 14, 2007... By Staff China has set the ceiling for steel exports at 10% of the country's output, according to a report in the Economic Observer weekly newspaper in Beijing. Projections from government agencies say exports should be about the same as...

Purchasing's relationships with suppliers help manage growth.(planning of O'Reilly Auto Parts)
July 14, 2007... By Nancy Hitchcock By partnering with MRO suppliers, purchasing can help lower inventory levels, streamline processes-and better manage the company's sales growth. Such is the case at O'Reilly Auto Parts in Springfield, Mo. The $2...

Business Intelligence.
July 14, 2007... By Susan Avery $26B 2006 Federal spending with p-cards Source: U. S. General Services Administration WHAT IT MEANS: Based on this figure from 2006, the Federal government has one of the largest purchasing card programs in the...

MRO Briefs.(maintenance, repair and operations )(Brief article)
July 14, 2007... By Staff The General Services Administration has selected four purchasing card providers for its new GSA SmartPay 2 service contracts: Citibank, GE Capital Financial, JPMorgan Chase and U.S. Bancorp. Owens Corning presented its 2006...

ISM Indirect-MRO Group plans 10th annual conference.
July 14, 2007... By Staff Purchasing professionals with responsibility for buying indirect and MRO goods and services top the agenda of the 10th Annual Indirect-MRO Group conference on Sept. 24-25 at the Wyndham Hotel (Magnificent Mile) in Chicago. The...

Corporate risk management begins with purchasing.(analysis of risk management)
July 14, 2007... By Paul Teague, Editor in Chief If the subject wasn't so serious, the following true story of faulty commodity forecasting and lack of supply chain risk management would almost be funny: An airline company, which shall remain nameless,...

Paper price concern has buyers shifting their strategies.
July 14, 2007... By Maria Varmazis Buyers are very concerned about paper prices as raw materials prices and freight rates combine with geopolitical tensions to create a very volatile market. According to a recent Purchasing survey of office products...

Eric Tritch, Commodity Manager, Graco.(Interview)(Brief article)
July 14, 2007... By David Hannon "The real value we bring to the supply chain is making suppliers as strong and valuable to us as we are to them." For a full interview with Eric Tritch go to purchasing.com/career . PLAYER: Eric Tritch, commodity...

Best practices in risk management.(management of Companhia Vale do Rio Doce S.A.)(Company overview)
July 14, 2007... By Paul E. Teague It's the domino theory: Supply risks can topple not only product-delivery schedules but also revenue, market position, brand image and stock value. Here's how some leading companies keep the dominoes from falling. ...

How to negotiate a higher salary.
July 14, 2007... By Susan Avery Asking your manager for a raise is just like any other negotiation: Be sure to do your homework first. The most important advice for anyone asking for a raise: Know your value. This is especially true for purchasing...

Supplier relationships prove invaluable to purchasing at UNICCO Service Co.(Unicco Service Co.)
July 14, 2007... By Staff Purchasing professionals at Fortune 500 companies like to say they are working to get suppliers involved in their operations. And, for many, that's so. But it's also something that purchasing pros at companies that don't make the...