Supply Excellence

Even Honda’s Steel Contracts Are Not Sacred

November 13th, 2008 · 1 Comment · automotive sector, contract management, sourcing, supplier management, supply management, supply market dynamics, supply risk

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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Is Renegotiating During a Recession Ethical?

October 30th, 2008 · 1 Comment · automotive sector, best practices, contract management, supplier management, supply management, supply risk

A member of the Buyer & Supplier Contracts Group on LinkedIn recently posted a very interesting question to the community:
In this Volatile market scenario is it ethical to renegotiate the existing contracts? Is this the only way to survive in the business?
In the current economic and credit climate, I’m sure a lot of companies are [...]

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Risky Business in India?

September 25th, 2008 · No Comments · LCCS and trade, automotive sector, outsourcing, sourcing, supply management, supply risk

In case you missed the story (and that’s a forgivable offense since you’re likely watching the response of your supply chain, company and 401k to the financial situation this week), sixty-three formers employees of an Indian auto-parts manufacturer are under arrest for murder after beating their former CEO to death Tuesday. The workers were set [...]

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Calculating Transportation Costs in Central & Eastern Europe

September 9th, 2008 · 1 Comment · LCCS and trade, automotive sector, best practices, enviro/social sustainability, events, oil/energy, skills rectruitment and development, sourcing, supply management

As my recent post discussed, the key to successfully utilizing Central & Eastern Europe (CEE) as a low-cost sourcing region is finding the “sweet spot” - the location where costs, distance to market and capacity all add up to provide the optimum sourcing opportunity. Clearly, there are lots of moving parts and variables in this [...]

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Tata Motors: Leveraging their Suppliers for Innovation

August 25th, 2008 · 2 Comments · LCCS and trade, automotive sector, best practices, costing, sourcing, supply management

Although I linked to the new Category Chatter podcasts last week, I really wanted to dive into the Tata Motors story (mp3) with Ravi Kumaraswami and Jason Busch a bit further. The process by which Tata shifted from a commercial vehicle manufacturer that was hemorrhaging money to a low price consumer car-maker that showcases how [...]

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