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 Now the Time to Lock in Steel Prices?

November 7th, 2008 · 1 Comment · LCCS and trade, automotive sector, best practices, sourcing, supplier management, supply management, supply risk

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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Increasing Liquidity Without Soaking Suppliers

November 6th, 2008 · 3 Comments · supply management

Clearly in this business economy cash is not only King, it’s pocket Kings with the flop on the way (for you WSOP fans!). To protect their businesses and ensure sufficient cash flow in this tight credit environment, organizations are doing everything they can to hold on to the cash they have and free up even [...]

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“Hero Culture” is no way to manage risk

November 5th, 2008 · No Comments · best practices, sourcing, supply management, supply 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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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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