Archive for the 'Sourcing' Category

What’s Your Bailout Plan? Indirect Spend is a Good Start (Part 1)

It’s impossible to avoid the headlines - nearly every industry from automotive to consumer goods is facing an increasingly difficult economic environment that shows no signs of improving anytime soon. Widespread commodity price increases, the credit crisis, and the global economic slowdown have combined to put a squeeze on both the top and bottom […]

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DHL’s Domestic US Pullout Shakes Up Parcel Market

This week, DHL announced that as of January 30, 2009, they are halting US domestic service and focusing on “what we do better than anyone else - international shipping”. The move allows them to cut US costs by 80%, although with half of their top customers and global shipping volume based in or routed through […]

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Even Honda’s Steel Contracts Are Not Sacred

There is no doubt that volatility in the steel market has shifted the balance of power in recent years. Granted the recent drops in steel price will change the dynamics between buyers and suppliers yet again, as mills struggle to maintain their profit margins. But during the recent price run up, mills set the precedent […]

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With Drop-off in Deal Activity, Private Equity Seeks Cost Savings

Bloomberg recently reported that Private Equity (PE) deals have fallen 70% in the first 10 months of this year, confirming what many in the industry have known for quite some time: economic conditions have put a near halt on deal flow and will continue to do so for the foreseeable future. At The Deal’s M&A […]

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EU Opposes Further Turmoil in Steel, Iron-Ore Markets

More than 10 months after Rio Tinto CEO Tom Albanese denounced a bid from mining giant BHP Billiton as “dead in the water,” the takeover bid remains on the table, despite mounting pressure against the proposal. A merger between mining company BHP Bil…

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Does the Struggling Economy Put Sustainability on Hold?

The struggling world economy has some wondering if we - consumers and businesses alike - have raised expectations in the area of sustainability higher than we can afford. It’s a fair question since past environmental movements have stalled when the economy turned sluggish, as it did in the early 1990s.
Starbucks CEO Howard Schultz wrote an […]

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Will a TNT Acquisition make UPS or FedEx Truly Global?

TNT has been the center of rumors that both UPS and FedEx may be interested in acquiring the company. While all companies involved deny these rumors, similar rumors surfaced between Exel and UPS right before Deutsche Post World Net bought Exel to form DHL Exel Supply Chain.
If the rumors prove to be true and TNT […]

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Is Now the Time to Lock in Steel Prices?

I recently wrote about the dollar gaining strength and the plummeting price of steel. It’s a welcome change after years of hearing a broken record on direct materials…higher prices…higher prices…higher prices…
Naturally, when purchasing power goes up and prices go down, buyers want to act on the opportunity, and many ask “is now is the time […]

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“Hero Culture” is no way to manage risk

The credit crisis is the supply chain risk getting most of the attention these days. But in the recent online Town Hall forum, IACCM President & CEO Tim Cummins, pointed out another risky behavior that many companies engage in. Tim said a “hero culture”, where saving the company from disaster in the nick of time, […]

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Remembering One of Ariba’s Finest

It is with a heavy heart that I tell you we lost a friend and colleague suddenly last week. Justin Falgione, a father, husband and friend, passed on Wednesday. The Pittsburgh Post-Gazette obituary and guest book are here.
Over 9 years with FreeMarkets and Ariba, Justin earned the love and respect of his colleagues and customers. […]

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