Purchasing articles from June 2009

Purchasing archives from June 2009

BASF procurement gets deep into R&D.
June 18, 2009... By Alan Earls Early Procurement Involvement program helps drive R&D efforts. With 97,000 employees and products ranging from plastics and performance polymers to agricultural products and fine chemicals, Germany's BASF is one of the...

Business Intelligence.
June 18, 2009... Staff 2¢/lb Ti02 price increase from DuPont Source: DuPont Titanium Technologies WHAT IT MEANS: According to DuPont after a "difficult period" titanium dioxide inventories and production rates are stabilizing. With a...

Recession brings rubber prices down, but buyers stay on the sidelines.
June 18, 2009... By Gordon Graff The huge slump in the automotive and tire markets has cooled off demand for natural and synthetic rubber, causing prices for both to tumble dramatically since last year. While natural rubber prices have rebounded a bit...

Ethanol supply chain continues to morph.(Brief article)
June 18, 2009... By David Hannon It only took Agstar Financial Services a bit more than a month to find a buyer for the Michigan ethanol plant it bought from bankrupt ethanol producer VeraSun last spring. According to a statement, Chicago-based newcomer...

Rochester Electronics finds success in discontinued parts even during downturns.
June 18, 2009... Staff In some ways, the economic downturn is good news for Rochester Electronics of Newburyport, Mass. Rochester is an authorized distributor for many semiconductors that have gone end of life. Rochester signs agreements with the...

Get ready for REACH and RoHS 2.(Restriction of Hazardous Substances law)
June 18, 2009... By Jim Carbone Europe's Restriction of Hazardous Substances law was just the beginning of a wave of environmental laws and regulations impacting the electronics supply chain. Electronics buyers may not yet need a degree in...

Standard logic prices may rise in third quarter despite downturn.
June 18, 2009... By James Carbone The global standard logic market will decline by about 19% this year because of the global economic downturn, but buyers should not expect any steep price drops. In fact, modest standard logic price increases are possible...

Business Intelligence.
June 18, 2009... By James Carbone 26% Buyers who say business is up compared to last month Source: www.purchasingdata.com WHAT IT MEANS: Business remains slow although some industry analysts are forecasting the beginning of the recovery in...

Growth to return for core silicon chips.(Brief article)
June 18, 2009... By James Carbone The global core silicon market appears to have bottomed out and will grow in the third and fourth quarters, according to researcher iSuppli. The core silicon market includes application-specific integrated circuits...

Expect longer ceramic capacitor leadtimes as demand picks up.
June 18, 2009... By James Carbone Buyers need to keep a close watch on leadtimes for multilayer ceramic capacitors (MLCC) as manufacturers have cut back on production capacity because of weaker demand. If demand picks up in the second half, leadtimes for...

DRAM prices plunge in first quarter.(Brief article)
June 18, 2009... By James Carbone First quarter DRAM revenue fell 22.3% from the fourth quarter due to a 25% decline in the contract price for 1Gb DDR2 DRAMs according to researcher DRAMeXchange. Revenue of own-brand DRAM manufacturers fell from $4...

Prices for transistors, analog chips to stabilize as demand rises.(Brief article)
June 18, 2009... By James Carbone Buyers can expect stable prices for transistors and analog semiconductors in the second half as demand picks up, according to researcher iSuppli. Prices had been declining since the fourth quarter of last year. The...

Buyers report some selective commodity price increases (National, recent price trend).(Brief article)
June 18, 2009... Staff UP DOWN SAME INDEX Copper & brass 40% 27% 33% 56.5 Passive electronics 16% 10% 74% 53.0 Semiconductors 14% 15% 71% 49.0 Tooling 22% 27% 51% 47.6 Energy...

Posco Gets Price Cut.(Brief article)
June 18, 2009... Staff South Korean steel giant Posco has agreed with Anglo-Australian miner Rio Tinto on a 33% reduction in the price of iron ore fines to $58.20/metric ton and a 44% cut in the price of lump iron ore to $68.88/metric ton. This adds...

Natgas Prices Down.(Brief article)
June 18, 2009... Staff Natural gas prices may slide deeper this year than estimated originally because of a growing glut of supply. The Henry Hub natural gas spot price is projected to average $4.06 per thousand cubic feet (mcf) in 2009, down from an...

Zinc Prices Up.(Brief article)
June 18, 2009... Staff Adam Rowley of Macquarie Bank says it now appears that the pickup in zinc prices this year from 50Ao in January to May's month-to-date 68Ao has been due to investment purchasing of futures, what he terms "the building of long...

Titanium Dioxide Prices Up.(Brief article)
June 18, 2009... Staff Titanium dioxide producers are pushing price increases, saying demand is creeping back up. Last month, Kronos Worldwide issued a 4¢/lb increase for its titanium dioxide price effectively July 1. And both Tronox and DuPont...

Some buyers getting more optimistic (Buyers' 30-day buying plans).(Brief article)
June 18, 2009... Staff UP DOWN SAME INDEX Organic chemicals 25% 29% 46% 48.2 Passive electronics 23% 29% 48% 46.6 Inorganic chemicals 23% 29% 48% 46.6 Paper 17% 31% 52% 43.2...

Dow Rolls in Rohm.(Brief article)
June 18, 2009... Staff With its acquisition of Rohm & Haas complete, Dow Chemical has reorganized its coatings-related assets into a new business unit called Dow Coatings Materials, which will operate 13 dedicated R&D labs and application centers around...

Silicon Shipments Dip.(Brief article)
June 18, 2009... Staff Worldwide silicon wafer area shipments fell sharply in the first quarter from the fourth quarter of 2008, according to trade association SEMI. Total silicon wafer area shipments were down 34% from the last quarter. First quarter...

Construction Spending Up.(Brief article)
June 18, 2009... Staff The commerce department reported that construction spending in the U.S. increased slightly in March, its largest jump in nearly six months. Construction spending increased 0.3% in March, surprising economists surveyed by Thomson...

Manufacturing Perks Up.(Brief article)
June 18, 2009... Staff Signs that the manufacturing economy is improving: Durable goods orders were up in April Purchasingdata.com 's business conditions index and ISM's PMI approaching growth level ISM's new orders index heads into growth ...

Aluminum Cutback Seen.(Aleris)(Brief article)
June 18, 2009... Staff World aluminum production is likely to decline for the first time in 15 years as much as 5%, suggests research firm Roskill Information Services of London. In the U.S., Aleris plans to idle its Coldwater, Mich., plant as well as...

Container Rates Down.(Brief article)
June 18, 2009... Staff Just how low are ocean freight container rates? According to Drewry Shipping Consultants' Container Rate Benchmark, average spot rates for a 40-foot container from Hong Kong to Los Angeles fell to a new low in May of $949, down by...

Semi Capex Down for Now.(Brief article)
June 18, 2009... Staff Capital spending by semiconductor firms will drop 39% in 2009 to $26.6 billion after dipping 28% in 2008. But, beginning in 2010 semiconductor capital spending will increase for three straight years, says researcher IC Insights. ...

Potash Up 76% in A Year.(Brief article)
June 18, 2009... Staff A sharp recovery in potash demand for delivery to fertilizer firms in the U.S. and Brazil in the second half already have boosted world quarterly average prices to $750/net ton. A year ago, potash cost $425/ton because of soft global...

LCD Prices Up.(Brief article)
June 18, 2009... Staff Average prices for large-sized liquid crystal displays (LCDs) are increasing because of stronger-than-expected demand for notebook computers and LCD-televisions, according to researcher iSuppli. As of May virtually all large-sized...

Gas Rally Will Soon End.(Brief article)
June 18, 2009... Staff Gasoline prices entered June around $2.50/gallon but analysts predict they will drop soon because demand is very weak. Crude oil prices would need to reach $100/barrel in order for gas prices to climb back to $3/gallon, and the...

Truckload Rates to Drop.(Brief article)
June 18, 2009... Staff According to a recent survey of shippers from Wolfe Research, truckload rates will drop 2.7% this year due to continuing overcapacity in the truckload market, after steep spot truckload rate declines in the first-quarter. Wolfe's...

Stainless All Over the Map.(Brief article)
June 18, 2009... Staff Stainless steel prices are rising by 10% in Europe, dropping a sharp 19% in Asia and sliding steeply in North America (see chart above). Type 304 sheet cost $1.05/lb in May, down from its $2.21 peak in June 2008. Industry analysts...

Nand Prices Dip.(Brief article)
June 18, 2009... Staff Prices for NAND flash memory remained mostly flat in May although contract prices for the 32 Gb (4Gbx8) multi-level cell NAND flash chip declined 2-6% depending on the supplier agreement, according to researcher DRAMeXchange. The...

Oil Price Forecast to Rise.
June 18, 2009... Staff 2009 2010 Jefferies and Co. $55 $65 BNP Paribas $52 $75 JP Morgan $55.63 $67.50 Energy Dept. $51.70 $57.75

Business Intelligence.(Brief article)
June 18, 2009... By David Hannon 6% Decline in truck crossings at the U.S. and Canadian borders in 2008 Source: Bureau of Transportation Statistics WHAT IT MEANS: The biggest declines came on the Northern border, where crossings into the U.S....

New logistics strategy, partner cuts costs for midmarket manufacturer.(Skirts Plus)
June 18, 2009... By David Hannon For any company, moving its entire manufacturing operation to a factory on the other side of the world presents a host of challenges. There are concerns of quality, oversight and cost. And as Tim Link can attest to, perhaps...

Capacity, carriers continue to disappear in freight slump.(Brief article)
June 18, 2009... By David Hannon According to a quarterly report from market analyst Donald Broughton at Avondale Partners, 480 trucking companies in the U.S. went out of business in the first quarter of this year. That's roughly 1% of the capacity exiting...

Consolidation looms in WMS market.(warehouse management systems )(Brief article)
June 18, 2009... By David Hannon Recessions tend to drive market consolidation, as the lean revenues thin out the herd in nearly all markets. And the warehouse management systems (WMS) market is no exception, say market analysts at ARC Advisory Group. ...

Supply base seizes up.
June 18, 2009... By Tom Stundza Reduced number of parts makers will alter the face of supply and probably alter the operating systems of the survivors. Users of metal parts went into a buying funk last summer when the manufacturing recession bloomed....

Federal stimulus program falls short of boosting plate, beams demand.
June 18, 2009... By Tom Stundza The money trickling down from the federal stimulus package into infrastructure projects won't be enough to lift demand for plate and structural steels as much as previously expected by some market watchers. That's the word...

Business Intelligence.(Brief article)
June 18, 2009... By Tom Stundza 7% Drop in global aluminum demand Source: Alumina WHAT IT MEANS: John Bevan, CEO of Alcoa subsidiary Alumina of Australia forecasts a 7% contraction in world aluminum demand this year, led by declines in...

Business Intelligence.(Brief article)
June 18, 2009... By Susan Avery 12% MRO buyers who expect lighting prices to rise Source: www.purchasingdata.com WHAT IT MEANS: While the majority of respondents to Purchasing's monthly survey are not planning for increases this month, some...

Buyer interest in outsourcing MRO picks up steam in down economy.
June 18, 2009... By Susan Avery Results of Purchasing's annual reader survey on distributor performance shows purchasing professionals are taking a more strategic approach to MRO, consolidating the spend with fewer distributors and looking to the suppliers...

MRO Briefs.(Brief article)
June 18, 2009... By Susan Avery Motion Industries has acquired General Tool and Supply , a regional industrial supplies distributor in Portland, Ore., and its subsidiary Industrial Tool and Supply in Tucson, Ariz. Bill Derville, president of General Tool...

The art and science of negotiations.
June 18, 2009... By Paul Teague, Editor in Chief For all the different industries they work in and all the different categories they source, one thing that all purchasing professionals have in common is that they spend time in negotiations. In fact,...

The fine art of negotiations black belt negotiators.
June 18, 2009... By David Hannon Buyers: Be prepared! When it comes to preparing for an important negotiation, the goal is clear and the goal is simple: No surprises. Purchasing professionals want to know what they can expect, when they can expect it...

News flash: Suppliers prepare too.
June 18, 2009... By Paul Teague Just like buyers, suppliers collect information in preparing for negotiations, also. And just like buyers, they are ready to use it. Here's a look at some of the tactics used by the people on the other side of the table. ...

Business Intelligence.
June 18, 2009... Staff 25% Increase in energy efficiency of Energy Star office products Source Energy Star WHAT IT MEANS: Office energy costs can be reduced by purchasing office equipment that meets this federal guideline. 66% ...

Environmentally friendly office products help reduce costs.
June 18, 2009... By Jim Carbone Buyers can expect to purchase more office products that are energy efficient, use less paper and are made from recycled materials. Such Green products may be good for the environment, but they are also good for a company's...

Regus Group counts on supplier relationship for efficiency.(Brief article)
June 18, 2009... By Susan Avery As procurement director for Regus Group Americas in Dallas, Jeffrey Lipes manages relationships with suppliers of services which the provider of furnished and equipped offices offers its clients, who range from entrepreneurs...

Awards programs lift supplier performance to new heights.(Company overview)
June 18, 2009... Staff Implementing a supplier awards program can bring benefits long after the hand shakes and photo ops are past. When properly designed, implemented and pushed out, a supplier awards program can serve as an extension of a company's...

Purchasing takes the wheel to control fleet costs.
June 18, 2009... By Susan Avery Fleet management services is a big--and complex--spend. As more buyers become involved in managing it, they're finding cost savings don't come quickly, but their influence can have long-term positive impact. No spend...

New opportunities open up for buyers negotiating rates with hotels for 2010.
June 18, 2009... By Susan Avery If travel buyers have not done so already, they may want to consider reopening negotiations with hotels for rates travelers will pay for the remainder of 2009. Due to the economy, more companies are traveling smarter, room...

Monitoring supplier health key to automotive parts maker.(Takata Corp.)
June 18, 2009... By William Atkinson While it has always been important for procurement executives to remain vigilant about monitoring the financial health and viability of key suppliers, it is obviously critical in the current economic times. And perhaps...

Business Intelligence.
June 18, 2009... Staff 9% Buyers increasing sourcing outside North America Source: www.purchasingdata.com WHAT IT MEANS: A year ago, 21% of buyers were increasing their offshore sourcing. In the recession buyers are sourcing less product and...

NABE survey shows recession is abating.(National Association of Business Economics )(Survey)(Brief article)
June 18, 2009... Staff The latest monthly survey from the National Association of Business Economics shows that key economic indicators are still declining in the U.S. but many are declining much less rapidly than earlier this year. "NABE's April 2009...

How to merge P-card programs for long-term success.
June 18, 2009... By William Atkinson When two companies merge and begin the long, complex and arduous process of combining and synthesizing departments, policies, and procedures, a lot of pride can come to the forefront. Human nature is such that the...

ISM 2009: Best Practices abound.(International Supply Management Conference )(Conference news)
June 18, 2009... Staff The 94th International Supply Management Conference held last month in Charlotte, N.C. had a clear emphasis on best practices and practical advice for buyers dealing with the current economy. And that theme was kicked off with the...

Credit markets continue to loosen.(Brief article)
June 18, 2009... Staff The National Association of Credit Management's Credit Managers Index rose for the fourth straight month in May, indicating that credit conditions in the U.S. continue to loosen. In its May report, NACM reported that the...

Report: U.S. highway system in need of more funding.(Brief article)
June 18, 2009... Staff A newly released report from the American Association of State Highway and Transportation Officials found that only half of the nation's major roads are in good condition, and in some major urban centers, more than 60% of roads are...