While rising raw material costs push up steel prices, market watchers suggest buyers not make big purchasing commitments heading into 2017. “Steel buyers do not want to lock in for more than six months because prices should start coming down in the second quarter of 2017,” says John Anton, Director, Steel Analytics, Pricing & Purchasing, at IHS Markit. Read More
"Gary is a consummate professional with a proven track record of driving increased operational quality and cost structure improvements," says Joseph M. Gingo, Chairman, President and Chief Executive Officer. "He will play a critical role in restoring A. Schulman's operational and financial performance worldwide.” Miller will report to him. Read More
Since 2012, the peak year for oil prices, Crude Oil prices have fallen, and all chemicals users have enjoyed lower prices for Crude Oil derivatives. However, I believe this scenario will change in 2016 and 2017. In parallel fashion, Natural Gas prices have also fallen during same period, as shown in the graph below. This is important to note as both feedstocks drive price movements for chemicals. Read More
There could be enough evidence to demonstrate that for global organizations leveraging large volumes reduces purchase cost—in the 1980s. After 30 years of corporate purchasing strategies, suppliers are arguably in the same position as they were in the past; therefore, results might not be as good for buyers as they used to be. Reasons for this might include the occurrence of commodities and volatile input cost of suppliers, which has played a major role on influencing their pricing strategies; but there are other factors that play a role as well. Read More
What do suppliers think of Supplier Relationship Management? It became painfully apparent that the Sales contingent in the audience wasn’t buying into the purpose and value of SRM. “It doesn’t work.” “It’s not what the Purchasing people do.” The harshest remark - “It’s punitive.” Read More
Procurement: As part of your strategy to increase supplier involvement and collaboration in product improvement, cost reduction and continuous improvement activities, you should consider a Supplier Value Analysis program. This program is part of a long-term objective to establish and improve business relationships with suppliers built on trust and open sharing of information and ideas. Read More
Of course you need to trust your suppliers: their products, delivery, quality and service. Makes sense or why would you want to do business with them? But that trust should not extend to the data they provide to support price increases! It's like asking the proverbial fox to guard the henhouse. Read More
Researching suppliers' costs before renegotiating prices is standard practice in our profession. What isn't standard, however, are the data we use to support our arguments. The best data are reliably sourced cost trends, trends that relate directly to the raw materials suppliers actually buy. Read More
From a risk management perspective, procurement must not only coordinate with other enterprise stakeholders to collect and address a range of contractual compliance factors but also take responsibility for them in an actionable framework.
For most companies in asset-intensive industries, MRO inventories can represent millions of dollars in investment, the vast majority of which often sits unused year after year. This white paper will help shift this MRO mindset while illustrating the economic impact of the silo’ed viewpoint.
It is undeniable: smart procurement saves organizations money. But the question is: how much money? Does the average procurement professional with “high” skill levels save $10,000 (US) per year more than the average procurement professional with “low” skill levels? $100,000? A million dollars or mo…
Anecdotal evidence and some qualitative research suggests that "favored shippers" - companies for which carriers prefer to haul freight - obtain better pricing and service. But do they? In this paper, Iowa State University researchers explain: How they sought to understand the voice of U.S. truck…