Purchasing articles from September 2006

Purchasing archives from September 2006

Slight price upticks, thanks to usual suspects.(impact chemicals for the electronics industry)
September 7, 2006... By Maria Varmazis Natural and industrial gas prices continue to impact chemicals for the electronics industry. Predictions of skyrocketing growth in the electronic chemicals market from a few years ago haven't happened exactly as some...

Chemcentral takes global view with both buyers and suppliers.( Top 100 chemicals distributors list published )
September 7, 2006... By Susan Avery This story is part of an series in which Purchasing takes a closer look at the companies on its Top 100 chemicals distributors list published each May. Coming off a strong year in 2005 when sales increased by 15%...

Business Intelligence.(Rail shipments report)(Brief article)
September 7, 2006... By Staff 2.1% Decline in chemical rail shipments through Aug. 5 WHAT IT MEANS: Rail shipments are often a good indicator of the supply and demand within the chemical industry. Despite a sharp weekly spike in the first week of...

Sulfuric acid prices continue to decline as demand dries up.(replacement for groundwater-polluting methyl tertiary-butyl ether )
September 7, 2006... By Tom Stundza Tight supplies and robust demand combined to drive up sulfuric acid transaction prices in 2004 to a cyclical peak of 85¢/lb in the spring of 2005. Since then, domestic production and net imports of the key industrial...

Gulf Coast chemical supply continues to rebound in 2006.(American Chemistry Council)(Brief article)
September 7, 2006... By Staff According to the American Chemistry Council's report on chemical production for the first half of 2006, chemical production in the Gulf Coast region of the U.S. has increased during eight of the past nine months following the 2005...

Alaska oilfield closure has buyers more concerned about energy prices.
September 7, 2006... By Staff The news that British Petroleum (BP) was shutting down its oil field in Prudhoe Bay, Alaska for repairs ratcheted up buyers' concerns about fuel and energy prices yet another level. BP later unveiled a plan where it would only...

Evolution, innovation are constants.(International Business Machines Corp.)
September 7, 2006... By John Paterson in today's business environment, global sourcing has many definitions. It is often defined as buying from low-cost offshore suppliers. However, it also means pairing buyers and suppliers in countries where your customers...

On-demand promises to hook savings.
September 7, 2006... By Maria Varmazis On-demand software and technology is more than just software on someone else's servers-it's a delivery method that supporters say improves ROI. Just as on-demand technology has changed the way viewers watch movies at...

Communication key in product development.
September 7, 2006... By Paul E. Teague Change is constant in manufacturing, and purchasing has to keep suppliers informed of new product requirements. PLM helps. If product development were a circus, purchasing departments, suppliers and engineers would be...

MATERIALS PPI IS UP.(data shows prices for intermediate materials)(Brief article)
September 7, 2006... By Staff Producer price index data shows prices for intermediate materials, the goods many manufacturing buyers purchase, to be 9% higher through July than a year ago. The July rate of price increase among core intermediate goods (6.6%)...

DELL LEADS PCS DOWN.(Dell Inc reduces personal computers prices)(Brief article)
September 7, 2006... By Staff Dell, the world's largest personal computer maker, reduced prices of desktop and laptop models to boost market share in the second quarter. The new 'aggressive pricing' program is needed because of a slowing commercial market,...

RUBBER BOUNCES UP.(rubber prices and demand)(Brief article)
September 7, 2006... By Staff Rubber prices, already at 20-year highs, will stay firm in the long term as global demand outstrips supply and oil prices boost the cost of alternatives, the Malaysian industry says in a report. Natural rubber prices have risen...

NO SLIDE FOR ZINC.(zinc metal supply and demand tightens its price)(Brief article)
September 7, 2006... By Staff Pricey zinc is penalizing buyers at companies that produce products from as small as plumbing fittings to as large as heavy equipment. World zinc prices averaged $1.42/lb through July but rose to $1.46 in mid-August. Zinc metal, a...

ETHYLENE PRICE FLAT.(ethylene prices to rise)(Brief article)
September 7, 2006... By Staff Producers want September spot ethylene prices to rise by 8Acents/lb but deals already done averaged the same 50Acents as August transactions. In effect, the market continues to reject ethylene producers' claims of strong global...

TIRE TAGS INFLATE.(Compagnie Generale des Etablissement Michelin)(Brief article)
September 7, 2006... By Staff Michelin is boosting prices for its name brand, BF Goodrich and Uniroyal tires sold to auto makers. Analysts say this is the first time in memory that a tire maker has publicized pricing intentions for original equipment...

GROUP SEES $3 COPPER.(copper prices and rates)(Brief article)
September 7, 2006... By Staff The 2006 copper price forecast by Prudential Equity Group has been increased to $3/lb from $2.50 by analyst John Tumazos. Overall 'commodity prices will continue to rise' in the second half, he says. Other analysts also see demand...

SOFTER STEEL SEEN.(prices)(Brief article)
September 7, 2006... By Staff Weaker north American steel prices should be expected in coming quarters, says David Gagliano of Credit Suisse First Boston. 'The most recent crude steel production figures continue to point to risks of further increases in U.S....

PRECIOUS METALS RISE.(rise of silver and gold prices)(Brief article)
September 7, 2006... By Staff Silver and gold have reemerged as hedges against paper money in the face of rising U.S. inflation. That's why prices have risen. Silver has averaged in excess of $11/oz so far this year, almost $4 higher than the 2005 average,...

RESIN PRICES UNCLEAR.(polypropylene prices slips)(Brief article)
September 7, 2006... By Staff Buyers are battling suppliers over prices of polypropylene resins. The market price for homopolymer-grade material fell 4Acents in July. Producers then proposed a 4Acents recovery for August and later announced a 5Acents increase...

$85 CRUDE IS FORECAST.(prices)(Brief article)
September 7, 2006... By Staff Several analysts now are forecasting higher prices for energy through 2007, stating that new power plants, refineries and natural gas pipelines won't come online until 2008 at the earliest. Energy Information Administration...

What's in short supply?
September 7, 2006... By Staff Buyers in Purchasing 's monthly survey report problems sourcing: Wide-diameter steel pipe OCTG (oil country tubular goods) Aluminum tubing Steel plate, I-beams Asphalt, concrete Copper wire and cable...

FORD HAS A BETTER IDEA.
September 7, 2006... By Staff Ford Motor Co., under pressure to accelerate restructuring after reporting a $254 million loss in the second quarter, is looking to close more plants and cut North American salary costs by as much as 30%. The automaker is revising...

ALUMINUM TIGHTENS.(aliminium supply to tighten)(Brief article)
September 7, 2006... By Staff Aluminum supply may tighten in the fourth quarter if a contrarian maven is right. Demand has been somewhat flat so far this year, but analyst Kuni Chen at Banc of America Securities sees full-year demand growth of 3%-4% vs. supply...

NiMH BATTERIES SHORT.(gasoline-electric hybrid cars)(Brief article)
September 7, 2006... By Staff Rapid growth of gasoline-electric hybrid cars has strained the ability of four major global battery makers to meet demand. NiMH (nickel-metal hydride) batteries are designed for specific hybrid models and can't be bought off the...

ANTI-MERCURY FUNDED.(foreign car makers )(Brief article)
September 7, 2006... By Staff Environmental officials have brokered a pact with the steel, scrap and auto industries to remove 4 million mercury-containing light switches from 1.2 million older vehicles before they are scrapped over the next three years. U.S....

MORE NICKEL COMING.(nickel supplies by more than 24,000 metric tons )(Brief article)
September 7, 2006... By Staff Three major expansions -in Canada, Botswana and South Africa-should increase annual nickel supplies by more than 24,000 metric tons over the next three years-and allay current global supply concerns. The mart has been so tight...

CASTLE BUYS TRANSTAR.(A.M. Castle and Co., Transtar Metals Inc.)(Brief article)
September 7, 2006... By Staff Transtar Metals of Torrance, Calif., a service center chain that specializes in aerospace metals, is being absorbed by A.M. Castle & Co. of Franklin Park, Ill., the 17th largest metals processing distributor. Transtar had annual...

RETAIL SALES INCREASED.(Commerce Department reports)(Brief article)
September 7, 2006... By Staff U.S. consumers spent heartily in July on goods ranging from cars to electronics as sales at retail stores rose by 1.4%. Commerce Department reports in mid-August that the overall economy still had some spark at the start of summer...

ALCAN TO BOOST KITIMAT.(increase of global primary aluminum production)(Brief article)
September 7, 2006... By Staff Alcan will increase its global primary aluminum production by more than 4%/year through a $1.8-billion modernization of its smelter at Kitimat, British Columbia. The modernization would boost the smelter's annual production by...

SLOWER GDP FORESEEN.(Index of Leading Indicators)(Brief article)
September 7, 2006... By Staff Buyers may have less to do this autumn after all. Economists polled by the Blue Chip Economic Indicators newsletter see gross domestic product (GDP) growing at a 2.7% annual rate in the second half, as compared with 4% in the...

PRODUCT STOCKPILES RISE.(Commerce Department report)(Brief article)
September 7, 2006... By Staff Business inventories in June rose a greater-than-expected 0.8%, says a Commerce Department report in mid-August. Rising inventories can either be a signal of business confidence in future demand or the result of a decline in sales...

HUNTSMAN REOPENS.(Huntsman Corp.)(Brief article)
September 7, 2006... By Staff Huntsman plans to spend $110 million to repair and restart the company's Port Arthur, Texas, petrochemicals manufacturing facility that was damaged in a fire in April. Peter R. Huntsman, president, expects the facility to restart...

GM SLOWS SUV OUTPUT.(General Motors Corp.'s sport-utility vehicles )(Brief article)
September 7, 2006... By Staff General Motors will slow production of large sport-utility vehicles during the second half to cope with rising inventories, says Rick Wagoner, chief executive. He admits that consumers have shown less interest in fuel-thirsty SUVs...

CPO SUMMIT RETURNS.
September 7, 2006... By Staff Want to collect examples of Best in Class supply management practices? Then attend the 2nd Annual Chief Procurement Officer's Summit sponsored by Purchasing and the Aberdeen Group on Nov. 16-17 at the Westin Waterfront Hotel in...

Buyers plan to pay higher freight-delivery charges.(Statistical table)
September 7, 2006... By Staff Buyers plan to pay higher freight-delivery charges (Buyers 90-day price expectations) -------------------------------------------- UP DOWN SAME INDEX Transportation 86% 2% 12% 91.7...

Leadtime Report.(Statistical table)(Brief article)
September 7, 2006... By Staff It must be the silly summer season. Why else would the longest leadtimes be recorded in Purchasing's monthly survey for certain specialty chemicals, polymers and precious metals that seasonally aren't purchased in volume? ...

Lift truck deliveries flatten.(exports of material handling equipment )(Brief article)
September 7, 2006... By Staff U.S. manufacturers of material handling equipment are having another solid year in 2006, with gains both domestically and in exports, supporting a 13.5% increase in shipments and leadtimes averaging 12 weeks for delivery....

Sulfuric acid is easier to get.( domestic production and net imports of the key industrial raw material)(Brief article)
September 7, 2006... By Staff Buyers haven't put sulfuric acid on the list of hard-to-get materials for quite some time. That's because the sulfuric boom appears to be over with domestic production and net imports of the key industrial raw material well ahead...

Copper wire is extending.(prices of copper (metal))(Brief article)
September 7, 2006... By Staff Buyers are reporting that copper wire deliveries are erratic; yet, data shows volatile deliveries expanding toward 9 weeks from 5 weeks at the end of last year. Fifteen feet of coiled cable contains 3.5 pounds of copper wiring so...

Pioneer Electronics creates competition for LTL bids.(less-than-truckload)
September 7, 2006... By William Atkinson As part of its strategic sourcing initiatives, Pioneer Electronics USA of Long Beach, Calif. is always looking for ways to consolidate spend across its North American companies in order to achieve cost savings. With...

Business Intelligence.(Energy Information Administration)(Brief article)
September 7, 2006... By Staff 14% 1Q increase in RFID reader shipments Source: ABI Research WHAT IT MEANS: The global market for RFID readers and reader modules grew to more than 35,500 unit shipments in 2005 and the 14% uptick in 1Q shipments...

Rail fuel surcharges get reviewed.(Brief article)
September 7, 2006... By Staff Rail shippers got some good news in August when the Surface Transportation Board (STB) moved to monitor fuel surcharges from rail carriers more closely. Among the proposals from STB to regulate rail fuel surcharges are: ...

LTL market continues to support high rates.(Less-than-truckload carriers)(Arkansas Best Corp company sales and earnings)(Yellow Roadway Corp comapany sales and earnings)(Old Dominion company sales and earnings)(Brief article)
September 7, 2006... By Staff Arkansas Best saw an 11.8% increase in second-quarter revenue on a 6.4% tonnage increase. Robert A. Davidson, Arkansas Best president and CEO, said, 'Our balance of growth and disciplined yield management resulted in an...

Stainless steel sheet buy goes under the microscope at UTC.(United Technologies Corp.)
September 7, 2006... By Tom Stundza Escalating steel prices seen as a reason to reduce the supply base and seek out substitute materials. Value analysis was initiated in late 2005 for the half-dozen metalworking companies under the United Technologies...

Cross-divisional teamwork nets big savings.(United Technologies Corp.)
September 7, 2006... By Paul E. Teague UTC's aerospace divisions work together to come up with common specs and tolerances so they can leverage spending with their shared supply base. The result: about $250 million in savings-and deeper relationships with...

Supply management is core of success at UTC.(United Technologies Corp.)
September 7, 2006... By Susan Avery Purchasing presents its Medal of Professional Excellence for 2006 to United Technologies Corp. for developing and sustaining a supply management culture throughout a successful, growing, yet decentralized global company....

Suppliers join the design huddle.
September 7, 2006... By James Carbone Teamwork is very important in the supply chain at United Technologies Corp., especially when one of the company's divisions is about to design a new jet engine, an air-conditioning system or a new high-tech elevator. ...

UTC supply management alumni branch out.(United Technologies corp.)
September 7, 2006... By David Hannon A number of former UTC supply chain professionals are now leading procurement and supply organizations at other companies. Perhaps the factor that says the most about United Technologies' supply management organization...

IBT listens to MRO purchasersto keep competition at bay.(maintenance repair and operations)
September 7, 2006... By Susan Avery As big, national distributors continue to grow-and reap rewards derived from MRO buyers consolidating their purchases with fewer suppliers-smaller, regional players need a game plan if they wish not only to survive, but to...

Business Intelligence.
September 7, 2006... By Staff 7.2 Weeks of leadtime for motor controls Source: www.purchasingdata.com WHAT IT MEANS: A look at recent data shows deliveries are starting to slow. MRO buyers need to keep this in mind when placing orders. ...

Indirect materials buyers to meet in Chicago.(Wyndham Chicago Hotel)(Brief article)
September 7, 2006... By Staff Spend analysis. Strategic sourcing. E-procurement. Purchasing cards. Vendor-managed inventory. These are just a few of the topics on the agenda of the Ninth Annual Indirect-MRO conference to be held Oct. 2-3 at the Wyndham Chicago...

MRO Briefs.(Certified Purchasing Card Professional)(Brief article)
September 7, 2006... Staff Most recent data from the Power Transmission Distributors Association show U.S. distributors' year-to-date sales of power transmission/motion control products rising 10.8% as compared to sales for January through May 2005. Sales...

Supply management masters.
September 7, 2006... Paul Teague, Editor in Chief If there is anyone left out there who thinks it isn't important to work closely with suppliers, they should consider the example of United Technologies Corp. (UTC). Led by a highly motivated group of purchasing...

Kevin Kilcoyne, manager of logistics, Welch"s.(Welch Foods Inc.)(Interview)
September 7, 2006... Interview by David Hannon Player: Kevin Kilcoyne, manager of logistics, Welch's, Concord, Mass. Background: Kilcoyne started out in inventory control in retail and worked closely with purchasing. He started at Welch's 10 years ago as...

Purchasing powers push toonline processes at Polaris.
September 7, 2006... By Susan Avery At Polaris Industries, purchasing now has online access to data in the company's cost reduction program called STAR (Strategies Toward Annual Reduction). To be sure, both purchasing and engineering have been using STAR...

RoHS is a challenge and an opportunity for EMS firm.(electronics manufacturing services)(Restriction of Hazardous Substances)(FlexOne)
September 7, 2006... James Carbone Key products: medical diagnostic products, control systems for oil pipe lines, GPS systems, various defense systems assemblies For FlexOne Technologies, a small but growing electronics manufacturing services (EMS)...

Purchasing can be a profit center.
September 7, 2006... By Tom Keenan It's that time of the year again for budget battles. As leader of the purchasing department you go to bat for your department looking for more resources and people. You are shocked when you are asked to cut your department's...

McDonald"s applies SRM strategy to global technology buy.(supplier relationship management)
September 7, 2006... By Wayne Forrest A successful supplier relationship management (SRM) strategy requires dedicated supplier managers, effective processes to create standardized best practices, and tools to track and evaluate the results. The success of an...

Business Intelligence.(General Motors)(Brief article)
September 7, 2006... By Staff 69% Firms lacking visibility to cost of external goods and services Source: Aberdeen Group WHAT IT MEANS: Currently 83% of domestic and 86% of international invoices are still received in paper format. Visibility of...

Report shows sourcing apps, on-demand model growing most.
September 7, 2006... By Staff Growth for sourcing software and technologies outpaced procurement applications in 2005, according to AMR Research's Procurement and Sourcing Applications Report, but both saw slightly less revenue growth than 2004. Sourcing...

Purchasing execs on the move...
September 7, 2006... By Staff Magline recently named Bill McFaun as its global supply chain director, responsible for domestic and international logistics and supply chain management. McFaun's duties at Magline include planning, forecasting, customer order...

Centralizing contract management leverages Cameron"s temp labor spend.
September 7, 2006... By William Atkinson Centralizing contracts across business units provides benefits in services spend areas just as well as it does materials. Case in point: Houston-based Cameron (formerly Cooper Cameron), a $2.1 billion company with...

Plastics additive prices on the rise despite abundant supply.(plastics additives demand and price raise)(Brief article)
September 7, 2006... By Gordon Graff After several years of stagnation, plastics additives prices are on the rise again, with price increases of 5-10% hitting buyers hard in the past year. Supplies have rallied from the severe, but temporary, tightness late in...

Hilton's supply chain ready for anything heading into hurricane season.(Hilton Hotels Corp.)
September 7, 2006... By William Atkinson Like all large corporations, Hilton Hotels Corp. of Beverly Hills, Calif., has disaster plans in place. But, after the 2005 hurricane season, Hilton's supply chain organization has stepped up its disaster preparedness...

Engineering sees value of purchasing involvement in the design process.
September 7, 2006... By Susan Avery Purchasing must be involved in grassroots efforts at companies to work more closely with suppliers during the design process, say engineering managers who sat on a panel discussing 'achieving cost goals across the supply...

CSCMP hosts global sourcing conference.
September 7, 2006... By Staff The Council of Supply Chain Management Professionals (CSCMP) will host Procurement & Global Sourcing 2006 in conjunction with its annual conference in San Antonio, Texas, October 15-18. New this year, Procurement & Global Sourcing...

Procurement migrating to on-demand.(Brief article)
September 7, 2006... By Staff A recent report from the Aberdeen Group found that 59% of procurement professionals polled plan to migrate to software as a service in procurement and sourcing in the near future. The primary reasons for the move include a faster...

Supplier diversity pays off.(Hackett Group)(Brief article)
September 7, 2006... By Staff procurement organizations that focus heavily on supplier diversity don't sacrifice procurement savings to do so. Those are the findings of a recent Hackett Group report that showed the typical company today spends 8% with diverse...

Ford has a better idea.(Company overview)
September 7, 2006... By Tom Stundza Ford Motor Co.'s new Aligned Business Framework program aims to align buyers, suppliers, designers and assembly personnel on a single mission of sustainable profitability. Talk about ambitious! With the support of top...

India focus stirs interest.
September 7, 2006... By Staff Don't compare India with U.S. Regarding 'When doing business in India, take it slow' (Purchasing, July 13, 2006, p. 93), I agree that the state of affairs is not the same as in the U.S. or Europe, but it is also not as bad as...

Supply of plate, wide pipe tighter after BP"s Alaskan pipeline woes.(British Petroleum)
September 7, 2006... By Tom Stundza Steel plate buyers will see short supply tighten further for the rest of the year and leadtimes lengthen beyond the current 17 weeks, analysts suggest. And all because of the need to replace 133,000 feet of wide-diameter...

Buyers may be facing record-high prices this fall.
September 7, 2006... By Staff Elevated prices of nickel are aggravating buyers at stainless steel mills who have no alternative but to pay more and more while spot and futures prices continue to escalate. Nickel-based alloy surcharges have almost doubled since...

ThyssenKrupp plans U.S. carbon, stainless mill.(ThyssenKrupp AG to acquire Dofasco of Hamilton)(Brief article)
September 7, 2006... By Staff There may be a new steel mill in the southern U.S. early next decade. German steel producer ThyssenKrupp says it's considering building a $3 billion, 5 million ton/year facility to make carbon and stainless grades. Three potential...

Beijing fails to dampen Chinese industry's roaring expansion in smelting.(Industry overview)
September 7, 2006... By Staff A profit-oriented market economy in China is working against the government's plan to reduce aluminum capacity and cool an overheated metals sector that has abetted this year's 35% increase in world aluminum prices. Beijing...

Aviation activity has tightened supply, boosted prices fourfold.
September 7, 2006... By Staff While Boeing and Airbus battle to dominate the commercial aircraft market, both agree on one thing: Titanium has won out over competing metal aluminum because its expansion and chemical properties are more compatible with...

Quebec mine will be developed.(Falconbridge (Chile) S.A. to develop zinc mine in Quebec)(Brief article)
September 7, 2006... By Staff World zinc demand is outpacing supply for the third consecutive year. So, with zinc metal prices high, Falconbridge of Toronto has decided to develop the Perseverance zinc mine in northern Quebec. The mining firm plans to invest...

Wheeling-Pittsburgh plans to align operations with Brazil's CSN.
September 7, 2006... By Staff Wheeling-Pittsburgh Steel wants to merge its operations with the North American business of Brazilian steelmaker Companhia Siderurgica Nacional, more commonly known as CSN, to form a new steel producer. The move comes as the...

Metals Chips.
September 7, 2006... By Staff Metals service center giant Reliance Steel & Aluminum Co. of Los Angeles is buying the Yarde Metals stainless steel and aluminum service center company headquartered in Southington, Conn. Yarde has additional metals service...

Aleris goes private, expands products beyond flat-rolled.(Aleris International sells stock and debt for $3.3 billion to Texas Pacific Group)(Brief article)
September 7, 2006... By Staff Aluminum sheet maker Aleris International is selling outstanding stock and debt for $3.3 billion to Texas Pacific Group, a private investment firm that expects the takeover to be completed early in 2007. Aleris International in...

Boeing extends contract with Kaiser.(Boeing Co extending its deal with Kaiser Auminium Corp)(Brief article)
September 7, 2006... By Staff Boeing Commercial Airplanes has signed a new long-term contract with Kaiser Aluminum for aluminum sheet and light-gauge plate. The new supply contract extends an existing agreement, according to John Byrne, Boeing Global Partners...

Grupo Mexico to boost production at home, in Peru.(Grupo Industrial Minera Mexico S.A. de C.V. planning to raise its copper production)(Brief article)
September 7, 2006... By Staff Mexican mining company Grupo Mexico plans to raise its copper production through expansions at the Cananea mine in northwestern Mexico and the Tia Maria project in southern Peru. Southern Peru Copper, a subsidiary, will produce...

Business Intelligence.(Allegheny Technologies' expansion in titanium production)(mergers and aquisitions of Mittal steel)(statistics about aluminium sheet shipments)(Brief article)
September 7, 2006... By Staff 4.25 Million pounds of new titanium Source: Allegheny Technologies WHAT IT MEANS: Tight supply may be loosened by Allegheny's expansion of titanium sponge annual production capabilities in the first half of 2007....

NS Group to expand production.(NS Group Inc invest to expand its pipe and tube production)(Brief article)
September 7, 2006... By Staff A surge in drilling for crude oil and natural gas has prompted NS Group of Newport, Ky., to invest $98 million to expand its pipe and tube production by 20% within 18 months. Rene Robichaud, president, says NS Group has seen...

Timet material in motorcycle springs.(Yamaha Motor Corporation USA introduces motorcycles)(Brief article)
September 7, 2006... By Staff Yamaha has introduced the first titanium shock springs on production motorcycles. Four of the five models in the 2006 Yamaha YZ model motocross line are equipped with titanium-based rear suspension springs. The springs typically...