Posted: July 22nd, 2015 | Author: | Filed under: Introducing ProPurchaser | No Comments »

This blog contains information and ideas to help you prepare for negotiations with suppliers. Watch this video to learn more about ProPurchaser’s CORE PRACTICES:

 

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Are Green Supply-Chains More Expensive?

Posted: July 27th, 2016 | Author: | Filed under: Gem, Greening the Supply Chain | Tags: , , | No Comments »

SurveyThis is the second article discussing the results of our ongoing survey examining what Supply-Chain professionals in North America are thinking and (more importantly) doing about greening their supply-chains.

The first article, How important is a Green Supply-Chain in North America?, focused on the perceived importance of a green supply-chain, homing in on senior management’s expectations, as well as our own attitudes towards suppliers with green credentials.

The survey asked how strongly participants agreed or disagreed with the following statements:
Read the rest of Are Green Supply-Chains More Expensive? » » »


Made in the USA: A Case for Reshoring

Posted: July 17th, 2016 | Author: | Filed under: Gem, Labor | Tags: , , | No Comments »

Reshoring USA

Reshoring Gives Economic Hope to Manufacturers

Offshore outsourcing has become one of the hot button political issues of the day. Especially in light of the U.S. economic downturn, there is a desperate need for more jobs for American workers, while at the same time companies are looking for ways to save money to keep themselves afloat. But now it looks as though reshoring might be an idea that makes sense for both sides, making reshoring a trend that just might stick.

The OffShore Outsourcing Controversy

Off-shoring in the manufacturing, customer service, and tech industries has been happening for some time now and opponents feel there are far more negatives than positives to offshore outsourcing (delays, hidden costs, quality control), while others see nothing but an effective strategy for keeping costs down.

Read the rest of Made in the USA: A Case for Reshoring » » »


STEEL INDUSTRY MID-YEAR REVIEW: Can the Party Continue?

Posted: July 16th, 2016 | Author: | Filed under: China, Cold-rolled coil, Cold-rolled Steel Sheet, Construction Materials, Korea, Metals, Negotiating with Suppliers, NEGOTIATOR'S TAKE, ProPurchaser Insight, Stainless Steel, Steel, US Dollar, USA | Tags: , , , , , | No Comments »

 

A PROPURCHASER INSIGHT:  Here’s why Steel prices are up so much over the last 6 months – from author Mike O’Hara | Steel Industry Mid-Year Review: Can the Party Continue?

 

07.11.16 – Steel industry mid-year review

In the last couple of years, the US steel industry has been plagued by cheap imports from countries like China and Korea. Last year, US steel prices fell to levels that weren’t seen during the height of the 2008–2009 financial crisis. Steel and some steel-making raw materials had the dubious distinction of breaching 2009 lows.  Notably, other industrial metals like copper and aluminum managed to hold on to their 2009 lows despite all of the sell-offs in the commodity space.

 

Read the rest of this ProPurchaser sourced article, HERE.

 

SOURCE: Market Realist

AUTHOR: Mark O’Hara | View Mark’s profile at LINKEDIN

 


RUBBER PRICES ON SLOW RISE

Posted: July 14th, 2016 | Author: | Filed under: Asian Markets, Negotiating with Suppliers, NEGOTIATOR'S TAKE, Rubber, Shanghai Futures Exchange, Singapore SICOM Exchange, Southeast Asia, Tokyo Commodity Exchange, US Dollar, Yuan | Tags: , , , , , , , | No Comments »

 

NEGOTIATOR’S TAKE: Despite recent rise, Rubber prices are still near 6-month lows.

 

07.13.16 – Reuters

Benchmark Tokyo rubber futures bounced back on Monday, snapping a four-day losing streak and recovering from a near five-month low hit last week, as a softer yen, higher Tokyo stock market and recovery in Shanghai futures prompted short-covering.  The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 3.1 yen, or 2.1 percent, higher at 150.3 yen ($1.47) per kg.

 

The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, touched 145.9 yen last Friday, the lowest since February 12 amid worries over excess supply and weak demand in top consumer China.  The most-active rubber contract on the Shanghai Futures Exchange for September delivery rose 55 yuan to finish at 10,880 yuan ($1,626.72) per tonne.

 

The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 126.0 US cents per kg, down 0.5 cent.

SOURCE: Reuters


CORN HEADS BACK TO BEAR MARKET AS U.S. RAINS SPARK REVERSAL

Posted: July 8th, 2016 | Author: | Filed under: Agricultural, Corn, Economic Indicators, Negotiating with Suppliers, NEGOTIATOR'S TAKE, Soybaens, US Dollar, USA, What's Happening in Our Profession | Tags: , , , , , , , , , , | No Comments »

 

NEGOTIATOR’S TAKE: Falling Corn costs mean lower prices throughout the food chain

 

07.05.16 – Back to bear market and entering bull territory

Corn futures are heading back to a bear market less than a month after entering bull territory as U.S. rains ease crop concerns and boost yield potential. November soybeans had the biggest-ever drop for the contract.  The southern third of the Midwest received extensive rains in the past four days, and northern areas are expected to get precipitation through Thursday, maintaining adequate soil moisture for crops, according to Joel Widenor, vice president at Commodity Weather Group LLC. In June, concerns over dry, hot weather had pushed soybeans to a fourth straight monthly gain and corn into a bull market.

 

“Rain this weekend provided timely relief,” Joe Camp, a risk management specialist at Bloomington, Illinois-based AgriVisor LLC, said in a telephone interview. “It is increasingly likely we will produce good crops.  Demand will need to improve on this break to stabilize prices.”

. . . . Read the rest of this ProPurchaser sourced article, HERE.

 

SOURCE: Bloomberg

ARTICLE AUTHORS: Megan Durisin & Jeff Wilson | Follow Megan on TWITTER

 


WORST WHEAT PRICES IN A DECADE

Posted: July 8th, 2016 | Author: | Filed under: Australia, Commodities, Corn, Economic Indicators, Global glut, La Nina, Negotiating with Suppliers, NEGOTIATOR'S TAKE, US Dollar, USA, Wheat | Tags: , , , , , , , , , | No Comments »

 

NEGOTIATOR’S TAKE: Wheat prices (like Corn) are falling rapidly adding more downward pressure to food prices.

 

07.06.16 – In free fall

Wheat prices are in free fall, hitting the lowest levels on international futures exchanges in a decade.  The September wheat contract on the Chicago Board of Trade (CBOT) sat at US430 cents a bushel on Monday night, the lowest level for a second closest contract for more than 10 years.  Following a negative United States Department of Agriculture (USDA) report last Thursday wheat prices fell about $A17.70 a tonne up until Monday.

 

The slump, which is based on higher than expected stocks and better than expected international wheat production, has seen more than US100c/bu fall from the September contract since the early June rally, which peaked on June 9.  This equates to a close to $A50/t fall in prices.  Currency and basis has shielded the Australian market from some of the fall, but ASX NSW wheat futures for January delivery were down at $254/t on Monday, while cash markets for new crop have fallen by about $30/t in the same period.  Ideal conditions in virtually all key major wheat producing nations have seen the International Grains Council stack on an extra 7 million tonnes of production in its latest 2016 crop estimate for a total global crop of 729mt, pushing out world wheat surplus.

 

French rains and La Nina

Wet weather in France during the harvest period has raised some quality concerns, but the market barely flinched upon digesting this news in its push down.  There was no corn-inspired relief following the USDA report, which flagged higher than expected corn acreages along with solid yields forecast.  The market has been wary of a potential La Nina weather event developing during corn’s critical development periods of July and August and delivering hot and dry conditions in the US, but at present crops are in good condition.

 

NAB agribusiness analyst Phin Ziebell said it was difficult to find significant upside for wheat prices in US dollar terms given the forecast for strong global supply.  CBA agriculture analyst Tobin Gorey said critical Black Sea producing nations were sitting pretty.  “The Black Sea region has entered its harvest period and a solid growing season means bumper crops are expected,” he said.

 

 

The “Watch and See” approach

Mingenew grower Jared Heitman is taking a “watch and see” approach as the wheat price hits a decade low.  Growing predominantly noodle wheats at Arena Farm, south of Mingenew, Mr Heitman said they had taken a good position at the start of June, nominating to forward sell 1t/hectare of this year’s crop at $310/t.  “The prices are low due to the massive amounts of grain in the world,” he said. “However, it’s still early days and there is plenty of time for the price to turn around.  August tends to be a better month as this generally gives you the average price over the year.”

SOURCE: Farm Weekly (Australia)

ARTICLE AUTHOR: Gregor Heard | Follow Gregor on TWITTER

 

 


Use Peer Pressure to Drive Down Costs

Posted: July 7th, 2016 | Author: | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: , , | No Comments »

Drive down costsDriving down costs by ‘coaxing’ voluntary behavior change. Anyone who survived the social pressure cooker of high school knows about the power of peer pressure.

For purchasing professionals trying to drive down cost, the good news is that peer pressure can have the same impact in corporate corridors as it did in the blackboard jungle.

from The Power of Peer Pressure in Propurchaser’s Negotiating Nuggets.


NATURAL GAS RISES AS POWER-SECTOR DEMAND HOLDS STRONG

Posted: June 28th, 2016 | Author: | Filed under: Energy, Energy, Labor, Labour Costs, Natural Gas, Negotiating with Suppliers, NEGOTIATOR'S TAKE, Supplier's costs, USA, Wall Street Journal | Tags: , , , , , , | No Comments »

 

NEGOTIATOR’S TAKE: Natural Gas rising but still at near historical lows.

 

06.27.16 – 5th winning season in the last 7 years

Natural gas prices rose Monday, pushing back toward the 10-month highs set last week as power-sector demand keeps supporting the market.  It’s the fifth winning session in the last seven, and pushes gas toward its fifth straight week of gains. Front-month prices are up 38% since the June contract expired at just $1.963/mmBtu on May 26.

Natural-gas futures for July delivery settled up 5.4 cents, or 2%, to $2.716 a million British thermal units on the New York Mercantile Exchange.  More trading has moved to the August contract, with July expiring at Tuesday’s settlement and options expiring at Monday’s settlement.  August futures settled up 4.7 cents, or 1.7%, to $2.741/mmBtu.

July’s contract hasn’t traded below $2/mmBtu since early March, and summer prices are often higher because of increasing demand for gas-fired power to run air conditioners.  That has spurred much of the rally, along with slight declines in production and a record-low number of working rigs that has some traders expecting larger production declines on the way.

 

More power generators convinced to burn coal

Demand has kept rising in recent weeks, confounding some who expected the rally would lead power plants to buy other fuels instead.  As hotter weather has increased power demand, average daily gas consumption has climbed to more than 65 billion cubic feet a day in June, up about 1.6% from May, according to Platts Analytics, a forecasting and analytics unit of S&P Global Platts.

The higher natural-gas prices have convinced more power generators to burn coal, but hotter weather and other trends keep pushing gas consumption higher, too, analysts said.  The amount of both wind and hydropower is declining, causing power generators to burn more of both coal and gas to match high demand for air conditioning during an exceptionally warm June, according to Genscape.

 

Nuclear power increasingly a factor

Nuclear power has also increasingly become a factor, analysts said. Its output is down 1.6 gigawatts a day from a year ago, the equivalent of about 300 million cubic feet a day of gas, according to Schneider Electric SA.  That has helped raise gas demand by about 1.8 bcf a day in the power sector alone and 2.5 bcf a day total from a year ago, according to Platts Analytics.

“Demand has been above general expectations,” said Daniel Holder, Schneider Electric’s commodity analyst in Louisville, Ky. He noted that even after the rally prices are lower than what they were a year ago and 83% off their all-time high from 2005.  “Compared to history, these are still really very low prices” for power generators.

 

SOURCE: Wall Street Journal

AUTHOR: Timothy Puko | Write to Timothy Puko at: tim.puko@wsj.com

 


Negotiate knowing what you SHOULD be paying

Posted: June 27th, 2016 | Author: | Filed under: Gem, What's Happening in Our Profession | Tags: , | 1 Comment »

Negotiate

In a Perfect World

Imagine the negotiating edge you would have if you knew—and could demonstrate—what you SHOULD be paying for the products you buy, especially when suppliers come to you with sad tales about price increases they just can’t hold off any longer because of global commodity price rises.

This is not wishful thinking.

Read the rest of Negotiate knowing what you SHOULD be paying » » »


NATURAL GAS PRICES ARE NEARING A 9-MONTH HIGH: WHAT’S NEXT?

Posted: June 24th, 2016 | Author: | Filed under: Uncategorized | No Comments »

 

NEGOTIATOR’S TAKE: If you buy Natural Gas, plastics, or industrial chemicals, this analysis of the future direction of gas prices is an important read.

 

06.10.16 – Weekly natural gas suppliers

Market intelligence company PointLogic reported that natural gas supplies fell slightly to 79.2 Bcf (billion cubic feet) per day from 79.6 Bcf per day for the week ending June 8, 2016, from 79.6 Bcf per day in the previous week. Natural gas supplies fell by 0.5% week-over-week and by 0.9% year-over-year. Net imports from Canada came in at 6.1 Bcf per day for the week ending June 8, 2016—compared to the previous week.

 

EIA’s monthly natural gas production figures

The latest monthly figures from the EIA (U.S. Energy Information Administration) reported that the US produced 79.1 Bcf per day of natural gas in March 2016. US natural gas production peaked at 80.1 Bcf in February 2016. The decline in natural gas production in March 2016 was due to the decline in production in Texas and the Marcellus Shale regions. Production also declined due to lower natural gas prices.

 

EIA’s natural gas production forecast 

Shale regions will lead to a rise in US natural gas production in 2016 and 2017. The EIA released its STEO (Short-Term Energy Outlook) report on June 7, 2016. It reported that US natural gas production could average ~79.6 Bcf per day in 2016 and ~81.3 Bcf per day in 2017, respectively. The forecast is the same as May’s STEO report. New pipelines coming online in the Marcellus and Utica Shale regions will lead to a rise in US natural gas production in 2016 and 2017. The rise in demand from Mexico will also lead to the rise in natural gas production.

Read the rest of this Propurchaser sourced article, HERE.


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