Purchasing articles from November 2006

Purchasing archives from November 2006

Value-add is a must from chemical distributors.
November 2, 2006... By Maria Varmazis Chemical buyers look for help from their distributors to manage volatile prices. Buyers are pretty happy with their chemical distributors--if only prices would just stay put, buyers would be on cloud nine....

Volatile markets are the norm.
November 2, 2006... By Tom Stundza Unexpected plant shutdowns have been tighening key supplies, and boosting prices. The nine-month chemicals marketplace has been marked by volatility in supply and purchasing that has been slightly lower than expected....

Demand remains strong, but pricing is unsure.
November 2, 2006... By Wayne Forrest While raw materials costs may create short-term cost impacts, buyers of adhesives and sealants can take comfort in prospects that recent price hikes are expected to wane as well. How adhesive and sealant prices react...

Acetone prices drop in the wake of mounting inventories.(acetone tags are forecast over the next two years)
November 2, 2006... By Gordon Graff Acetone prices have been dropping through much of the past year, and an oversupply may lead to further price erosion in the months ahead. But no dramatic swings of acetone tags are forecast over the next two years. ...

Business Intelligence.(Survey)(Brief article)
November 2, 2006... By Staff 48% Buyers reporting price increases for plastic resins in October survey Source: www.purchasindata.com WHAT IT MEANS: This is a 10% decrease from the September survey, indicating fewer buyers are seeing price hikes...

Chemical briefs.(UNIVAR and Odyssey Logistics & Technology Corp. in deal)(Westlake Chemical Corp. to acquire Eastman Chemical Co.'s polyethylene unit)(ExxonMobil Chemical Co. to supply butyl polymers to West Pharmaceutical Services Inc.)(Brief article)
November 2, 2006... By Staff Chemical distributor Univar has outsourced its inbound bulk logistics processes to Odyssey Logistics and Technology Corp. Univar created a cross-functional inbound transportation team to review internal and external options....

EU ruling could cost chemical industry.(European Union. European Parliament)(Brief article)
November 2, 2006... By David Hannon A proposed law in the European Union Parliament could dramatically increase costs for chemical producers worldwide and create snafus for chemical buyers. The REACH (registration, evaluation and authorisation of...

Top CPOs.(Garry Berryman appointed as chief procurement officer at Deere & Co.)(Paul Box appointed at Federal Signal Corp.)(Christie Breves appointed at Alcoa Inc.)
November 2, 2006... By Staff The title CPO--chief procurement officer--is taking hold in corporations, reflecting the increasing influence purchasing has on attainment of corporate objectives. Here's our list of the top CPOs--the purchasing executives with...

How to survive in a global economy.
November 2, 2006... By Gregg Brandyberry Pick up any newspaper, listen to the nightly news, the talk shows or gather around the water cooler...everyone has an opinion about outsourcing, offshoring, immigration, India, China and a host of other hot topics...

E-sourcing finds its place.(Survey)
November 2, 2006... By David Hannon Survey finds online buying tools steadily gain adoption. Purchasing's annual Benchmark E-Sourcing Survey showed the percentage of spend going through e-sourcing tools almost doubled in the past year from 16% in 2005 to...

Economists unsure how low energy prices will go.(Pew Research Center reported that energy prices )
November 2, 2006... By Tom Stundza Only 37% of the buyers polled seeprice inflation ahead. Economists generally agree, but see stability--not reductions--ahead. This past spring, 80% of the buyers polled by Purchasing and a majority of the public surveyed...

UNCLE SAM PROBES SRAMS.(Cypress Semiconductor Corp., Samsung Semiconductor Inc. and Mitsubishi Semiconductor America Inc. under investigation for static random access memory chips)(Brief article)
November 2, 2006... By Staff Department of justice's antitrust division has opened an investigation into price-fixing among makers of static random access memory (SRAM) chips. Companies under investigation include Mitsubishi, Cypress Semiconductor and...

FORECAST: SOFTER ROD.(Brief article)
November 2, 2006... By Staff Steel wire rod prices have averaged around $560/ton for the past four months but may slide in the near term, says analyst Sal Tharani at Goldman, Sachs & Co. "We have reduced price assumptions due to lower sales volume in...

CHINESE FABRIC MAY JUMP.(Brief article)
November 2, 2006... By Staff Prices for some upholstery fabric from China could increase from 2% to 10% through December, according to sister publication Furniture Today. The probable increases are based on three main factors--the recent reduction in...

OFFICE FURNITURE TO RISE.(Herman Miller Inc.)(Brief article)
November 2, 2006... By Staff Office furniture maker Herman Miller plans to raise the prices of its commercial products next February by an average of 5%. The price adjustment, which will vary by product line, is in response to the rising cost of raw...

DIESEL OUTLOOK CUT.(Energy Information Administration)(Brief article)
November 2, 2006... By Staff With crude oil prices down 25% since mid-July, fourth-quarter average prices for diesel fuel are likely to be lower than last winter. The Energy Information Administration now projects that the retail diesel price will average...

WEAK LUMBER CONTINUES.(Brief article)
November 2, 2006... By Staff Lumber is "the great leading indicator for the housing collapse," and has been entrenched in a downtrend since August 2004, says Dale Doelling of MarketWatch.com. It's trading at $260 per thousand board feet. "There doesn't seem...

CARRIERS CUT FUEL FEES.(Air France S.A.)(Deutsche Lufthansa AG)(Virgin Atlantic Airways Ltd.)(Brief article)
November 2, 2006... By Staff European-based airlines Virgin Atlantic, Air France, Lufthansa and KLM have cut their fuel surcharges on long-haul flights because of cooler oil prices. "With lower oil prices, we can now pass some of the small savings we are...

IMPORT PRICES SLIDE.(Brief article)
November 2, 2006... By Staff U.S. import price Index fell 2.1% in September. The Bureau of Labor Statistics says the decline, the first in six months, was driven by a 10.3% drop in petroleum prices. Export prices decreased 0.5% in September, the first decline...

NATGAS HEDGES STUDIED.(Amaranth Advisors L.L.C. to be investigated for its reports by Federal Energy Regulatory Commission)(Brief article)
November 2, 2006... By Staff A group of major natural gas users has asked the Federal Energy Regulatory Commission to investigate whether Amaranth Advisors manipulated prices earlier this year. Amaranth, a hedge fund, lost $6 billion in September when massive...

ELECTRICITY MAY EXPLODE.(Brief article)
November 2, 2006... By Staff The last of electricity-rate protections in 23 states and the District of Columbia will expire soon. That's why federal agencies warn in a draft report to Congress that prices of electricity set by the market may show increases in...

PROPANE STAYS AT $2/GAL.(Energy Information Administration)(Brief article)
November 2, 2006... By Staff Retail propane prices (averaging $2.02/gallon through October) will average $2.10 for all of 2006 and $2 in 2007, forecasts the Energy Information Administration. But, the forecast may be too bullish since U.S. inventories of...

COPPER SPIKE TO CONTINUE.(Companhia Vale do Rio Doce S.A.)(Brief article)
November 2, 2006... By Staff Brazilian miner CVRD expects copper prices--which have risen 90% this year--will stay high for the next two years, according to Jose Lancaster, executive director for nonferrous, during a "CVRD Day" webcast at the New York Stock...

BIG RIGS WILL COST MORE.(environmental rules)(Brief article)
November 2, 2006... By Staff Big rigs are headed for a steep sales descent next year, partly because a pending federal emissions rule adds about $10,000 per truck. Analysts see sales dropping about one-third from record levels of 340,000 trucks in 2006, a...

ACETONE WEAKENS.(Brief article)
November 2, 2006... By Staff After averaging 50Ao/lb for the previous four months, acetone slipped to 49Ao in October. An oversupplied acetone market has trumped producers' calls for higher prices (around 55Ao) to offset feedstock benzene costs--even though...

Buyers believe equipment expansions will boost tooling costs.(Statistical table)(Brief article)
November 2, 2006... By Staff UP DOWN SAME INDEX Paper 43% 10% 47% 66.9 Copper & brass 50% 20% 30% 64.8 Corrugated 39% 11% 50% 63.7 Aluminum 40% 18% 42% 61.2...

ECONOMY IS RESILIENT.(Brief article)
November 2, 2006... By Staff The housing market is sputtering, but falling gasoline prices are leaving Americans with more money to spend; ergo, inflation has become less of a threat in recent weeks. So, while the latest Beige Book report from the Federal...

NUCLEAR PLANTS PLANNED.(Department of Energy )(Areva)(Brief article)
November 2, 2006... By Staff The department of energy has awarded $8 million in grants for engineering studies to develop a pre-conceptual design for future nuclear plants. Designs for the next generation nuclear plant program are to be completed during...

CHEMICAL BILL NEARS VOTE.(European Union. European Parliament)(Brief article)
November 2, 2006... By Staff After three years of debate, final details of the REACH proposal on environmental issues for the chemicals industry will be hammered out in negotiations between the European Union's parliament and individual EU governments before...

TRADE DEFICIT EXPANDS.(Brief article)
November 2, 2006... By Staff U.S. trade deficit widened to an all-time high of $69.9 billion in August from strong imports from China and the steep cost of imported oil. The latest audited trade report also reveals sharp expansion in imports of industrial...

PAPERBOARD CAPACITY CUT.
November 2, 2006... By Staff Caraustar Industries has closed its 16,000 ton/year paperboard mill in Sinking Spring, Pa., to improve capacity utilization within its supply system. With paperboard packaging this year not achieving the 2% forecast growth, supply...

SAWMILLS CUT OUTPUT.(Brief article)
November 2, 2006... By Staff Falling prices for building materials has caused Potlatch, Abitibi-Consolidated, Domtar and Weyerhaeuser to cut sawmill production. The price of lumber has been on a lengthy slide as the U.S. housing market has entered a downturn....

INDUSTRY IS MODERATE.(business conditions index)(Brief article)
November 2, 2006... By Staff The composite index of Manufacturers Alliance/MAPI shows 64 for September, as compared with a high 2006 reading of 71 in June. Purchasingdata.com's business conditions index for October of 57.0 compares with 2006 high of 68.1 in...

CHIP BUYING IS ROBUST.(Lam Research Corp.)(Brief article)
November 2, 2006... By Staff "Bookings are expected to remain strong," especially for DRAM and NAND flash memory chips, in the fourth quarter, says CEO Steve Newberry of Lam Research Corp. in Fremont, Calif., one of the world's top suppliers of equipment used...

BAYER SHUTS MDI UNIT.(Bayer AG's methylene diphenyl isocyanate unit to shut down)(Brief article)
November 2, 2006... By Staff Bayer will close its methylene diphenyl isocyanate (MDI) facility in New Martinsville, W. Va. by next June. "The economies of scale are changing in the MDI marketplace, and Bayer is consolidating production to several world-scale...

WESTLAKE EXPANDS PE.(Westlake Chemical Corp. to acquire Eastman Chemical Co.)(Brief article)
November 2, 2006... By Staff Westlake Chemical is spending $255 million to buy Eastman Chemical's ethylene pipeline and polyethylene and Epolene-brand polymer businesses. When the deal is complete, Houston-based Westlake's total polyethylene capacity will be...

CONSUMER INDEXES IMPROVE.(Brief article)
November 2, 2006... By Staff University of Michigan's monthly study finds that consumer confidence has risen to its highest level in a year, helped mostly by falling gasoline prices. The university's consumer sentiment index of 92.3 in October improved from...

MORE BATTERIES RECALLED.
November 2, 2006... By Staff Japanese electronics makers Sharp and Fujitsu are recalling laptop lithium-ion batteries made by Sony, adding to an already massive global recall of the batteries that are at risk of overheating and setting portable personal...

MOTOR HOMES ARE STALLED.(Brief article)
November 2, 2006... By Staff Consumer demand for motor homes has declined in recent months, reports San Francisco investment research firm StarMine. "Negative economic factors, including rising interest rates, record fuel prices and declining consumer...

AT&T EXPANSION DELAYED.(Federal Communications Commission)(BellSouth Corp. acquisition)(Brief article)
November 2, 2006... By Staff Justice regulators have given unconditional approval to AT&T's buyout of BellSouth, setting the stage for creation of a coast-to-coast behemoth that would be the largest U.S. provider of telephone, wireless and broadband Internet...

What's in short supply?
November 2, 2006... By Staff Buyers in Purchasing's monthly survey report problems sourcing: Motors and pumps Copper-nickel tubing Magnesium hydroxide Heavy structural beams Naphthalene-based products Acrylic sheet

Energy, materials inflation is in the cards for the fourth quarter.(Statistical table)(Brief article)
November 2, 2006... By Staff (Buyers' near-term buying plans) UP DOWN SAME INDEX Energy 32% 12% 56% 60.2 Transportation 31% 19% 50% 56.5 Passive electronics ...

Petrochems lengthen.(petrochemicals demand and expansion of supply)(Brief article)
November 2, 2006... By Staff Petrochemical product leadtimes extended in October for 15 chemicals, 13 resins and four plastic and rubber parts. Of the 39 products tracked here, deliveries of only six tightened and one was flat with the previous month's...

Hallmark gains better visibility into global supply chain.
November 2, 2006... By David Hannon Buying from China is nothing new for greeting card and gift maker Hallmark. But tracking the increasing number of container shipments from China to the U.S. has become more difficult and more important in recent years. To...

Business intelligence.(increased transportation rates )(Brief article)
November 2, 2006... By Staff 58% Buyers reporting increased transportation rates in October Source: www.purchasingdata.com WHAT IT MEANS: The percentage is a slight uptick from the September survey, but both are a welcome drop from the August...

UPS dimensional weight billing will have big impact on costs.
November 2, 2006... By Staff Small parcel shippers will see a dramatic shift in pricing structures in 2007, as UPS institutes its dimensional weight pricing policies for oversized packages on January 1 and other players in the market consider similar moves....

Carriers respond to surcharge proposal.(Board of Surface Transportation)(Burlington Northern Santa Fe Corp.)(Union Pacific Railroad Co.)(Brief article)
November 2, 2006... By Staff Rail carriers have voiced their concern over the Surface Transportation Board's proposed ruling on railroad's "double dipping" in fuel surcharges. In August, the STB said it wanted railroads to calculate surcharges based on a fuel...

Supplier relationships provide lift in an unstable market.(Michael Hull)(Carolyn Janke)(Trimlok)
November 2, 2006... By Paul Teague Effective buying means sticking with the fundamentals: accurate forecasts, market intelligence and a good sense of timing. Suppliers are critical partners in each of those areas. When dealing with a volatile commodity...

Cyclical spot-market pricing peak has come and gone.(prices of industrial steel scrap)
November 2, 2006... By Tom Stundza After a hectic second quarter, purchasing and pricing in the domestic steel scrap market ended the third quarter on a relatively quiet note. Spot sales prices are back where they were in the first quarter and probably won't...

Business Intelligence.(Restriction of Hazardous Substances)(Brief article)
November 2, 2006... By Staff $20 Top-end forecast for '07 spot silver Source: Various market sources WHAT IT MEANS: Analysts at the recent Silver Summit in Idaho foresee silver's per-ounce price between $15 and $20 in 2007. That's up from...

Metals Chips.(Nucor Corp. to open a steel mill in Memphis, Tennesse.)(Denman and Davis has installed an upgraded 12-ft Oliver-brand saw.)(Crucible Service Centers to double tool steel products distribution center.)
November 2, 2006... By Staff Nucor will open a $230 million steel mill in Memphis, Tenn. that will start production in the first quarter of 2008. The Charlotte, N.C.-based company plans to produce high-quality carbon and alloy rounds and round-cornered...

Demand growth of 5% next year will be pushed by emerging markets.(International Iron and Steel Institute)
November 2, 2006... By Staff Apparent steel consumption in such major global markets as the European Union, North America and Japan may be relatively flat next year but emerging and developing markets should continue their strong growth, according to...

World production forecast revised upward; Demand strong despite raw material costs.(International Stainless Steel Forum)(Brief article)
November 2, 2006... By Staff The International Stainless Steel Forum has revised its forecast upward for world crude stainless steel production in 2006 to 27.8 million metric tons. With demand in the first half year stronger than forecast earlier and...

Plenty of lead means lower prices.(Restriction of Hazardous Substances)(Brief article)
November 2, 2006... By Staff International lead zinc Study Group projects that U.S. demand for lead will fall by 3% in 2007 due to the replacement by tin in solder to meet stringent global RoHS (Restriction of Hazardous Substances) rules on electronic...

Grainger opens branch in China and makes progress on expansion.(market expansion program)(maintenance, repair and operations products)
November 2, 2006... By Susan Avery Finding, buying and managing maintenance products is a worldwide problem, says James T. Ryan, president of Grainger. "Our long-term intent is to find ways to solve this problem in different geographies around the world." ...

Business Intelligence.
November 2, 2006... By Staff 12.8 Lift truck leadtimes (in weeks) Source: www.purchasingdata.com WHAT IT MEANS: After falling for two months, deliveries are starting to slow again. If buyers plan to place orders for trucks, they may want to do...

MRO buyers: Look for distributors that step up to the plate.
November 2, 2006... By Staff "Don't underestimate the value of a good distributor," says Bill Moore, vice president of sales development and channel management for SKF Service Division, a global supplier of rolling bearings and seals. More than one third of...

MRO Briefs.(Ruston Industrial)(Brief article)
November 2, 2006... By Staff Rexel has completed two new acquisitions in the U.S. and Canada, strengthening its local position in targeted regions of North America. The announcement follows Rexel's recent acquisition of GE Supply, which doubled the company's...

It"s still the suppliers.(Susan Avery)
November 2, 2006... By Paul Teague, Editor in Chief The more things change, the more they remain the same. Sound illogical? On one level, yes. But on another level, that seemingly paradoxical phrase describes the importance of paying attention to the...

Partners in cost management.
November 2, 2006... By Susan Avery Purchasing at PPG consolidates the MRO buy, selects the right strategy for the situation, and collaborates with suppliers to impact the bottom line. Working closely with MRO suppliers impacts the bottom line in more...

Pcards soar to new heights.(Purchasing cards)
November 2, 2006... By Maria Varmazis Large ticket spending and procure-to-pay automation drive Pcard use at CompUSA and PNC Bank. With a little help, H.B. Staton, manager of accounting administration at Dallas-based CompUSA, got his suppliers to accept...

Wal-Mart goes green BIG TIME.(Company overview)
November 2, 2006... By Tom Stundza In a move that could have a ripple effect on the packaging industry, the retail giant plans to reduce shipping container and product wrapping costs by 5% by 2013. That could save $14 billion, and spur packaging changes...

Rick Jacobs, vice president supply chain, Eaton Corp.(Bachelor of science in mechanical engineering)(Brief article)
November 2, 2006... Interview by Paul Teague Player: Rick Jacobs, vice president of supply chain, Eaton Corp. Background: Bachelor of science in mechanical engineering, master of science in industrial management, graduate of Harvard Business marketing...

Products.
November 2, 2006... By Staff Pipe cleaner Staff The caldwell group says its patented new concrete Pipe Pick helps clean precast concrete pipe. The Pipe Pick design allows removal of the lifter from above the pipe, keeping workers out of the mud, and...

Purchasing is a differentiator at this small EMS provider.(electronics manufacturing services)(NPI Services)
November 2, 2006... By Staff Anyone looking for a good example of how purchasing can drive business success should look to NPI Services, Costa Mesa, Calif. At that electronics manufacturing services (EMS) provider, the skill of its buyers has become one of...

Key factors for success in China.
November 2, 2006... By Tom Keenan One often overlooked factor in successful sourcing in China is improving the understanding between buyers and suppliers. Common problems in bicultural business relationships include differing business rhythms, lack of mutual...

Frontier leverages change management in supplier relationships.(mean time between unscheduled removal)
November 2, 2006... By William Atkinson Andrew Skaff thinks change is an overused term in all industries. "However, it is important to realize that the world is becoming more dynamic at an exponential rate," points out the director of material management for...

Business Intelligence.
November 2, 2006... By Staff 16% Buyers reporting improved supplier deliveries in October Source: www.purchasingdata.com WHAT IT MEANS: That's an increase from the month before when only 10% of buyers saw on-time performance improving. Producer...

Supplier diversity spending update.(Brief article)
November 2, 2006... By Staff According to the National Minority Supplier Development Council (NMSDC), minority businesses represent 15% of all businesses in the U.S., but only 3% of gross receipts and 4% of corporate purchases. However, things are changing....

Darden has the keys to success in supplier diversity.(Darden Restaurants )
November 2, 2006... By Staff Looking for a company to benchmark against for supplier diversity growth? Look no further than Darden Restaurants of Orlando, Fla. The parent company of Red Lobster, Olive Garden, Bahama Breeze, and Smokey Bones has quadrupled its...

Contract compliance, spend visibility top priorities for CPOs.(chief procurement officers)(supplier relationship management systems)(Brief article)
November 2, 2006... By Staff A recent survey of global chief procurement officers found the most significant business driver for 2007 is compliance to contracts and improved visibility of spend with suppliers. The survey was conducted by Capgemini, asking...

Johnson Controls gives awards.(Brief article)
November 2, 2006... By Staff Tier one automotive supplier Johnson Controls recently recognized its 32 top-performing automotive suppliers at a celebration event held recently at the company's technical center in Holland, Michigan. Thirty-four awards were...

Morgan Stanley banker suggests the *supercycle* isn"t quite over.(Wiktor Bielski )
November 2, 2006... By Tom Stundza The "commodities supercycle" that has boosted market prices to record and near-record highs isn't over, suggests analyst Wiktor Bielski at the Morgan Stanley private bank in New York, who believes prices may rise again next...

Purchasing execs on the move...(North American Energy Partners Inc.)(Bob Jordan )(Bob Crosslin )(Chris Hayman )(Brief article)
November 2, 2006... By Staff Southwest Airlines recently named Bob Jordan as its executive vice president of strategy, procurement. In the role, Jordan is responsible for Southwest's technology, purchasing, facilities, fuel management, and airport security...

Russian merger plan will create new king of the hill in aluminum market.(RusAl)
November 2, 2006... By Tom Stundza Some time in 2007, there will be a new Russian alumina and aluminum giant that will be known as RusAl and will be bigger than the current leaders of the pack, Alcoa of the U.S. and Alcan of Canada. Formally, the company will...

Software news.(Apexon Inc. released SPM 2.5 Supply Performance Management suite.)(SciQuest Inc. has struck a partnership with Huron Consulting Group to provide a procurement excellence programat educational institutions.)(Razorsight Corp. released its Automated Invoice Management solution.)
November 2, 2006... By Staff Supply management software provider Apexon released SPM 2.5, the latest version of the company's on-demand Supply Performance Management suite. Apexon SPM 2.5 automates and streamlines direct materials supply management, including...

CSCMP broadens out.(Council of Supply Chain Management Professionals)
November 2, 2006... By David Hannon "The supply chains of today have been built on cheap oil." Those were the thoughts of Larry Lapide, research director at MIT's Center for Transportation and Logistics during one of the keynote sessions at this year's...

HP study says remanufactured printer cartridges unreliable.
November 2, 2006... By Maria Varmazis Beware remanufactured printer cartridges, says Hewlett-Packard's Scott Canonico, manager of environmental policy and strategy at the Silicon Valley company. Their failure rates can negate short-term savings from their...

Tanker rates will fall, container rates climb in 2007.
November 2, 2006... By Staff Oil tanker rates are expected to plummet in late 2006, as reduced oil production by OPEC creates excess capacity among tanker operators. According to a recent Bloomberg survey of market analysts, shipowners were earning $80,300 a...

RoHS poll stirs debate.(European Union's Restriction on the Use of Hazardous Substances )
November 2, 2006... By Staff RoHS a bad idea for U. S. Regarding your poll on the value of the European Union's Restriction on the Use of Hazardous Substances (RoHS) regulations, following the EU in this regulatory implementation would be ill-advised and...

Top suppliers get awards, business.
November 16, 2006... By Tom Stundza Purchasing 's latest survey finds that purchasing groups are seeing the benefits in rewarding the most cooperative suppliers. Manufacturing companies have found that cooperative business relationships with suppliers have...

Lower prices, stable leadtimes ahead for tantalum capacitors.
November 16, 2006... By Gina Roos Tantalum capacitor prices will decline slightly and leadtimes will remain relatively stable for the remainder of the year as more capacity comes online to meet rising demand. Leadtimes range from four to 10 weeks for standard...

Business Intelligence.(Brief article)
November 16, 2006... By Staff 45% Electronics buyers who report business was up from last month Source: www.purchasingdata.com WHAT IT MEANS: Demand remains strong for equipment which could mean tighter component supply for the rest of the year....

Electronic Briefs.(Brief article)
November 16, 2006... By Staff Digi-Key signs global deal Staff Digi-Key Corp. has signed a global distribution agreement with Comchip Technology Corp., an SMD diode manufacturer. Comchip designs and manufactures switching, Schottky and Zener...