Purchasing articles from September 2008

Purchasing archives from September 2008

Resin supplier gets tough.(Brief article)
September 11, 2008... Staff Purchasing's smartest negotiators move from conflict to collaboration fast. Match your wits against these pros. Guess their strategy. Then, read what they really did at purchasing.com/negotiations . Among possibilities: Accept...

HP looks beyond price discounts.
September 11, 2008... By Susan Avery It takes more than leverage to sustain competitive advantage for a company like HP. So global procurement is taking a new strategic approach to a $16.5 billion indirect and services spend that's winning big. It is focusing...

Chemical buyers use product and process metrics to evaluate suppliers.
September 11, 2008... By Alan Earls In a total cost supply chain model, suppliers should be more than low-cost parts providers. Earlier this year, representatives from Viking Plastics stood up to accept the 2008 Pinnacle Above & Beyond Award from tier one...

Glycerin market in 2008 is a tale of two grades: Crude vs. refined.
September 11, 2008... By Gordon Graff Prices of crude and refined glycerin often move along parallel tracks, but this year they have headed off in radically different directions. A robust domestic demand for refined glycerin, coupled with limited domestic...

Business Intelligence.
September 11, 2008... By Staff 84.7 Organic chemicals price index reading in August Source: www.purchasingdata.com WHAT IT MEANS: Chemical buyers say prices have never been higher, as 73% of buyers polled reported increases for organics in August...

Ethanol capacity plans find their way back to the drawing boards.(Brief article)
September 11, 2008... By Staff It's been a roller coast ride for ethanol in the U.S. the past couple years. After getting a major boost in interest and investment during the early phase of the oil price boom, investment in ethanol plunged and several producers...

Audit your independent distributor.
September 11, 2008... By James Carbone Many semiconductor industry analysts say that cutbacks in capital expenditures by semiconductor suppliers and the trend of outsourcing chip production to foundries will result in tighter supply and higher semiconductor...

5 Tips for better reverse auctions.
September 11, 2008... By James Carbone Reverse auctions can reduce price and total cost for electronics components-but only if you do them right. Here's the guidance to follow. Like their peers in other industries, electronics buyers use reverse auctions...

Suppliers explore ways to reduce costs.
September 11, 2008... By Gina Roos Leading connector manufacturers are trying to combat rising metals costs by turning to alternative materials. Rising costs for metals, resins and transportation are proving to be a thorn in the side for connector buyers...

Production cuts mean fewer price declines for liquid crystal displays.
September 11, 2008... By James Carbone Buyers can expect prices for liquid crystal display (LCD) panels to drop modestly through the rest of the year as suppliers scale back production in an effort to stop price declines. Suppliers are cutting back on...

U.S. calls for duty dispute panel.(Brief article)
September 11, 2008... By James Carbone A U. S. trade representative has requested that the World Trade Organization (WTO) establish a dispute settlement panel to review whether the European Union (EU) has failed to provide duty-free treatment for...

Business Intelligence.
September 11, 2008... By James Carbone 42% Electronics buyers who say passive component prices will rise this quarter Source: www.purchasingdata.com WHAT IT MEANS: Buyers expect higher raw materials costs will result in higher prices for...

Electronics Briefs.(Plexus Corp. closing its electronics manufacturing services)(Intel Corp. introducing microprocessors named Core i7)(Brief article)
September 11, 2008... By James Carbone Plexus to close EMS facility Electronics manufacturing services provider Plexus says it will close its 65,000 sq. ft. manufacturing facility in Ayer, Mass. by March 2009. "We anticipate that this closure will...

SIA reports 5.4% increase in chip sales in the first half of 2008.(Semiconductor Industry Association)(Financial report)(Brief article)
September 11, 2008... By James Carbone Global sales of semiconductors for the first half of 2008 grew to $127.5 billion, an increase of 5.4% over the first half of 2007, according to the Semiconductor Industry Association (SIA) in San Jose, Calif. June...

Molex CEO to keynote NEDA Executive Conference.(National Electronic Distributors Association)(Brief article)(Conference notes)
September 11, 2008... By James Carbone The National Electronic Distributors Association (NEDA) will hold its annual Executive Conference Nov. 2-4 in Chicago. The challenges that distributors face and the strategies they need to address those challenges will be...

High materials costs mean stable prices for switches.
September 11, 2008... By James Carbone It's not uncommon for switch prices to fall 2-3% each year, but prices will likely be stable for the next six months because of high raw materials costs. The good new for buyers is prices won't increase despite the higher...

Demand for contract manufacturing to slow.
September 11, 2008... By James Carbone While the growth rate of the global contract manufacturing market will slow down, total revenue will still rise from $305.5 billion in 2007 to $432.3 billion in 2012, according to a new report by researcher iSuppli in El...

Distribution Briefs.
September 11, 2008... By James Carbone Nu Horizons, Micrel ink UK deal Nu Horizons Electronics Corp. says it has expanded its distribution agreement with Micrel to the United Kingdom. Nu Horizons in Melville, N.Y. already distributes Micrel products in...

Processor shipments rise; revenue falls.
September 11, 2008... By James Carbone Continued price competition resulted in second quarter microprocessor revenue falling 4.4% from the first quarter although a record number of microprocessors shipped. While the second quarter is typically the slowest...

Prices.
September 11, 2008... Staff Price expectations remain at record-highs in many areas (National, 90-day price expecta- tions) -------------------------------------------- UP DOWN SAME INDEX Paper ...

...Leading Opec to Cut Output.(Brief article)
September 11, 2008... Staff Looking further ahead, the Centre for Global Energy Studies sees the OPEC cartel cutting output by 300,000 barrels/day next year in an effort to keep oil prices at least above $100/barrel. "We expect OPEC to act to defend a price...

Commodity Bubble Isn't Over.(Brief article)
September 11, 2008... Staff The seven-year commodity-price bull run may take a short breather, according to analysts at Tiberius Asset Management. The Zug, Switzerland-based investment house, says that early-July slippage in price "portends the start of a bear...

Gold Bugs Less Bullish.(Brief article)
September 11, 2008... Staff Precious metals analysts at Goldman Sachs in New York have reduced the gold price forecast to $827/troy ounce. In a note to clients, the brokerage says the revised forecast is based on a more positive outlook for the U.S. dollar....

Moly Averages $30/lb.(Brief article)
September 11, 2008... Staff Producers expect molybdenum prices to stay in excess of $30/lb in 2008 because demand has strengthened in the face of seven-month world crude steel production that has increased 6.1% (to 815 million metric tons) over the first six...

Ore Squeezes Chinese Mills.(Brief article)
September 11, 2008... Staff Sky-high iron ore prices are combining with lower steel prices to put the pinch on some Chinese steelmakers' margins, according to a report from Dahlman Rose & Co. So, the New York investment bank says Chinese iron ore imports may...

Economy + Supply.
September 11, 2008... Staff Buying plans slow on continued commodity co- sts (National, buying plans, 30 days) -------------------------------------------- UP DOWN SAME INDEX Energy 23% 23% 54% 49.7...

Housing Starts Down.(Brief article)
September 11, 2008... Staff The reports of weak housing starts in July at a seasonally adjusted annual rate of 937,000 haven't made economists very bullish. Reason: The market's troubles are at the heart of U.S. economic worries and credit-market anxiety tied...

IMF: No World Recession.(Brief article)
September 11, 2008... Staff International Monetary Fund, which considers growth of 3 % or less in the world's gross domestic product to be a recession, adjusted its forecast in July for global economic growth to 4.1% in 2008, down from 4.9% in 2007. IMF sees...

Panels: Slow U.S. Growth.(Brief article)
September 11, 2008... Staff Economists polled in August by Thomson Reuters news service believe the U.S. economy will skirt recession but gross domestic product (GDP) growth will be a mere 1.2% this year, rising to 2% in 2009. A different view comes from Blue...

USS/USW Ink Labor Pact.(four-year contract between the United Steelworkers of America and U.S. Steel)(Brief article)
September 11, 2008... Staff A tentative four-year contract between the United Steelworkers of America and U.S. Steel will mean "significant" wage and benefit increases for the roughly 16,000 workers at the Pittsburgh company's iron ore mining, steelmaking and...

Steel Increase Withdrawn.(steel mills withdrawing September sheet-price )(Brief article)
September 11, 2008... Staff Most major-tonnage steel mills have withdrawn their September sheet-price increases and second-tier mills have taken prices even lower. Buyers report that benchmark hot-rolled sheet stayed around $1,060/net ton this summer. Attempts...

Metalworking Still Shaky.(Brief article)
September 11, 2008... Staff As summer vacations end, North American metalworking companies usually have higher expectations for improved orders, shipments and general economic conditions-but not this year. Metals processing companies anticipate weak business to...

Truck Ranks Thinned.(impact of bankruptcy on trucking industry)(Brief article)
September 11, 2008... Staff Bankruptcies have taken about 88,000 trucks off the road in the first half of the year because of high fuel costs, weak demand and tight credit, Avondale Partners has estimated that number is 4.5% of trucking industry capacity.

Mittal Buys Iron Mine.(Arcelormittal acquiring London Mining South America )(Brief article)
September 11, 2008... Staff Arcelormittal is buying a big Brazilian iron ore producer for $764 million. The purchase of London Mining South America increases the world's largest steelmaker's control over its main raw material at a time when iron is becoming...

Commodities Stay Strong.(Marius Kloppers CEO of BHP Billiton forecasting about commodities)(Brief article)
September 11, 2008... Staff China's demand for infrastructure development will continue to drive global demand for commodities and raw materials, forecasts Marius Kloppers, CEO of mining giant BHP Billiton, in an August press conference. "The long-term growth...

Nickel Equilibrium Hinted.(Brief article)
September 11, 2008... Staff Nickel supply may match demand this year, eliminating any surplus, suggests metals researcher Vanessa Davidson at CRU. She believes 55,000 to 60,000 metric tons of nickel output is being lost this year because of labor disputes and...

YRC Expands In China.(Brief article)
September 11, 2008... Staff U.S. trucking giant YRC Logistics, parent of Yellow and Roadway, has plunked down $44.7 million to gain a controlling 65% stake in China's fourth-largest trucking firm Shanghai Jiayu Logistics Co. YRC plans to acquire the remaining...

Chips: U.S., Eu at Odds.(Brief article)
September 11, 2008... Staff Semiconductor Industry Association supports the U.S. Office of Trade Representative's call for a dispute settlement panel to review whether the European Union has failed to provide duty-free treatment for high-technology products....

Intel Unveils Processor.(Brief article)
September 11, 2008... Staff Intel's next-generation microprocessors will be called Core i7 when it goes into production in the fourth quarter. The processors will feature Intel's hyper-threading technology and are capable of handling eight software "threads" on...

TV Firms to Outsource More.(Brief article)
September 11, 2008... Staff Buyers at computer and communications original equipment manufacturing firms may find their companies competing for manufacturing capacity with Asian television makers. Asian television OEMs will outsource more production over the...

It Spending to Jump 8%.(Brief article)
September 11, 2008... Staff Worldwide information technology purchasing will exceed $3.4 trillion in 2008, an increase of 8% from 2007 spending, according to researcher Gartner. Broken down by segments, software spending will grow 10%, IT services will rise...

New High for Potash.(Brief article)
September 11, 2008... Staff A canadian labor strike and a Russian potash mine at risk of closing sent potash prices to a new high in August. According to Purchasingdata.com , the caustic potash price hit 38Acents/lb in August, more than double its year-ago...

Box Demand has Slipped.(Brief article)
September 11, 2008... Staff Purchases of corrugated boxes remain sluggish this year with Fibre Box Association data showing seven-month shipments down 1.8%. Corrugated box shipments of 33.195 billion square feet were up 0.9% in July but down 3.6% on an...

Mexican Border Stays Open.(Brief article)
September 11, 2008... Staff The controversial cross-border trucking pilot program that allows Mexican trucks into the U.S. has been extended for two years by the U.S. Department of Transportation's Federal Motor Carrier Safety Administration, which says there...

Producer Prices Up.(Brief article)
September 11, 2008... Staff Producer prices increased by a bigger-than-expected 1.2% in July, the Labor Department reports. The wholesale prices were pushed higher by rising energy costs, which jumped by 3.1% in July following a 6% gain in June. Consumer prices...

Nand Prices Collapsing.(Brief article)
September 11, 2008... Staff The average sales price of NAND flash memory will fall 60% in 2008, rather than the 56% projected earlier, because of the economic slowdown and intense competition, according to a revised forecast from researcher iSuppli. In...

Costs are Boosting Passives.(Brief article)
September 11, 2008... Staff Buyers are starting to see the effect of higher material costs on prices for passive components. Thirty-six percent of buyers polled in August by Purchasingdata.com say prices already have risen and 42% say they will increase over...

Tin Supply Limited.(Brief article)
September 11, 2008... Staff Indonesia, the world's largest tin exporter, plans to cap production to extend mine life and sustain a rally in prices. Tin sold on the London Metal Exchange (LME) was selling for an average $9.30/lb through August, as compared with...

Natgas may be Down.(Brief article)
September 11, 2008... Staff Goldman Sachs Group cut its U.S. natural gas price forecast for the Northern Hemisphere winter by 23% because of higher-than-expected output and lower demand from power plants. "The strong U.S. natural gas supply growth suggests that...

Further Oil Price Slide Seen...(Brief article)
September 11, 2008... Staff The Centre for Global Energy Studies in London expects oil prices to continue to fall until early next year, although at a much more gradual rate than the recent plummet that saw more than a $30/barrel drop in only three weeks. In...

P&G takes personal approach to global indirect purchasing.(Company overview)
September 11, 2008... By Susan Avery Customer service is the secret to success at buying MRO, IT and professional services. The indirect buy is fraught with challenges. It's complex, diverse and fragmented. It touches nearly everyone in an organization. ...

Port problems could stall growth.
September 11, 2008... By David Hannon The U.S. supply chain is at a crossroads on its journey to economic recovery. In one direction is a dirt road mined with the potholes of an outdated and under-funded national logistics infrastructure that could slow the...

Business Intelligence.
September 11, 2008... By David Hannon 4% Decline in 2008 container traffic at large U.S. ports Source: National Retail Foundation WHAT IT MEANS: The slowing U.S. economy is giving some of the most overcongested ports a bit of a breather. June...

Move to Green causes port distress.(Brief article)
September 11, 2008... By David Hannon One trend shippers should monitor is the ongoing debate over an environmental program that issues restrictions on what trucks can access the ports of LA and Long Beach. Under its Clean Truck Program, the Port of Los Angeles...

U.S. demand slips, prices rise Buyers ask why.
September 11, 2008... By Tom Stundza Reduced purchasing is a fact of life because of the weak growth in the U.S. Yet, aluminum prices remain elevated because of high global demand and high material and production costs. This year's North American market for...

For the second year, industrial firms aren't buying extruded shapes.
September 11, 2008... By Tom Stundza Reduced purchasing from the North American construction, motor vehicle and certain machinery industries reduced aluminum extrusion consumption by 14% in 2007 and looks to cause another 6% buying slide this year. The outlook...

Alcoa names top 10 suppliers.
September 11, 2008... By Tom Stundza Alcoa's Materials Management business has named its top 10 scrap processors for 2008 chosen from required criteria of quality, volume and performance. The winners are: American Iron and Metal of Montreal, Quebec; David...

Business Intelligence.
September 11, 2008... By Tom Stundza 4.2% Growth in Mexican steel output Source: Mexican Chamber of Iron and Steel WHAT IT MEANS: After rising 7.3% in 2007, steel production in Mexico is expected to grow to 18.3 million metric tons this year...

Metals Chips.
September 11, 2008... By Tom Stundza The Severstal acquisition of Esmark has resulted in the Esmark Steel Services Group of distributors and service centers to be renamed the Northern Steel Group . Also, steelmaker Wheeling-Pittsburgh Steel Corp. in Wheeling,...

Copper, aluminum prices will stay elevated through 2009.(Survey)
September 11, 2008... By Tom Stundza Slower world economic growth and decelerating purchasing by metals users will cast a shadow over copper and aluminum demand through 2009 but possible supply disruptions will continue to support high prices, suggest surveys...

ArcelorMittal to build Mexico mill, buy U.S. coke plant.(Brief article)
September 11, 2008... By Tom Stundza ArcelorMittal, the world's largest steelmaker, will build a $600 million steel mill in Mexico and buy a coking coal plant in the U.S. The company still is investigating sites for a mill to turn out 550,000 tons/year of...

Alcoa die-casting process gets innovation award from Nissan.(Brief article)
September 11, 2008... By Tom Stundza Alcoa has received a Global Innovation Award from Nissan Motor for its proprietary vacuum die casting process and new, advanced alloys used on the GT-R high-performance sports sedan. The award was presented at the Nissan...

Sheet steel prices have peaked; analysts see price declines ahead.
September 11, 2008... By Tom Stundza The summer seasonal demand weakness for steel, particularly for carbon flat-rolled mill products, was more intense than had been expected by most analysts and that has caused domestic sheet steel prices to soften slightly....

Metals industry merger deals have droppedin value.(Brief article)
September 11, 2008... By Tom Stundza The number of metals industry mergers and acquisition remained steady in the first half of 2008, but overall value declined because attractive takeover targets have became scarcer due to consolidation, says a study by...

Molybdenum transaction prices expected to rise 10% this year.
September 11, 2008... By Tom Stundza Producers expect molybdenum prices to stay above $30/lb in 2008 because demand for the metal, which is used to strengthen steel, has strengthened in the face of six-month world crude steel production that has increased 5.7%...

P&G is king of collaboration.(Procter and Gamble Co.)(Company overview)
September 11, 2008... By Paul Teague For building close and productive relationships internally and with suppliers, and for delivering savings of $1 billion-plus annually, P&G wins the Purchasing Medal of Professional Excellence. If only William Procter and...

Business Intelligence.
September 11, 2008... By Susan Avery 2.7% June's rise in sales of power transmission products Source: www.pdta.org WHAT IT MEANS: U.S. distributors report demand for power transmission products is up compared to the previous month. 3.7% ...

New tools that manage inventory have hand in controlling demand.
September 11, 2008... By Susan Avery For many purchasing professionals, managing demand, or consumption, of maintenance, repair and operations (MRO) items is a next step on the road to becoming more strategic. These purchasers have consolidated the supply...

Congratulations to P&G.
September 11, 2008... By Paul Teague, Editor in Chief Alexander Norris was a shrewd businessman and an early advocate of leveraging a supply base. He was also a dad who wanted his daughters to have a good life. So, as the story goes, he convinced the men who...

Shoplet gives buyers alternative source for office products.
September 11, 2008... By Maria Varmazis As the pool of major brick-and-mortar office suppliers keeps shrinking due to consolidation, there's a growing cadre of web-based office products suppliers that aim to give buyers more product options and leverage with...

Business Intelligence.
September 11, 2008... By Maria Varmazis 8 Awards for Canon products Source: Buyer's Laboratory WHAT IT MEANS: Seven of Canon's multi-function products received high marks as a "pick" for high performance, and Canon's proprietary workflow software...

Xerox releases new drag-and-drop disc duplicator.(Brief article)
September 11, 2008... By Maria Varmazis Office equipment manufacturer Xerox announced a new addition to its line of products-eight models of a DVD/CD disc duplicator, which allows users to make copies of discs up to 15 separate times without needing to use a...

Lawson releases new digital signature software.(Brief article)
September 11, 2008... By Maria Varmazis In an addition to its line of workflow solution software, St. Paul, Minn.-based Lawson has released CoSign, a software package that allows users to digitally sign secure documents to keep them protected and confidential....

HP releases new laptop for business travelers.(Brief article)
September 11, 2008... By Maria Varmazis Palo Alto, Calif.-based Hewlett Packard announced the launch of three EliteBook models, which the computer manufacturer says are its lightest and smallest laptops to date. All three EliteBook models sport optical drives,...

Software as a service gain acceptance in past 18 months.
September 11, 2008... By Maria Varmazis Software-as-a-service products are rocketing in popularity with software buyers across market segments, especially in mid-market companies looking for software with flexible customization options and a subscription-based...

The next step in procure-to-pay.
September 11, 2008... By Maria Varmazis It's not enough for payment systems to do the basics. Buyers want more capabilities and broader interoperability. A few years ago, the big push in procure-to-pay technology was getting paper under control. Software...

NBTA 2008 showcases an opportunity for travel procurement to make a difference.(National Business Travel Association)
September 11, 2008... By Susan Avery Rising costs of corporate travel services and economic uncertainty enticed more travel buyers than ever before to the 40th Annual National Business Travel Association (NBTA) International Convention & Exposition in Los...

Bell Canada fast-tracks move to procurement transformation.
September 11, 2008... By William Atkinson The transformation of a procurement organization at a small company with a manageable spend should take several years. But how long would it take to transform the procurement practices at an $18 billion 130-year-old...

Business Intelligence.
September 11, 2008... By Staff 41.9 August business conditions index Source: www.purchasingdata.com WHAT IT MEANS: Despite signs to the contrary, buyers in Purchasingdata.com's survey said business conditions were at an all-time low thanks to low...

Chrysler CPO wants "fierce" collaboration with automaker's supply base.(John Campi, chief procurement officer)
September 11, 2008... By Tom Stundza John Campi, Chrysler's chief procurement officer for global sourcing, isn't happy with the cost of raw materials these days but told a recent auto industry conference that the Michigan automaker will do what it can to manage...

American Express fosters creative thinking in development of supply chain tools.
September 11, 2008... By William Atkinson Over the last few years, American Express Corporate Services in Hebron, Conn. has had a significant push to encourage innovation and change within the organization as a whole. The challenge, though, has been to find a...

JDA software to buy i2 Technologies.(Brief article)
September 11, 2008... By Staff In the early days of supply chain software, two of the biggest players to emerge from a sea of startups were Manugistics and i2 Technologies. As of last month, it appears both will be owned by JDA Software. JDA announced it...

Toyota considers exporting trucks from the U.S.
September 11, 2008... By Staff As demand for trucks and SUVs declines in the U.S., an official at Toyota Motor Engineering & Manufacturing North America said the automaker is considering exporting some of the trucks and SUVs it makes at its current U.S. truck...