Posted: March 30th, 2015 | Author: Rod Sherkin | Filed under: Energy, Gem, Natural Gas | Tags: energy, fracturing, horizontal drilling, natural gas, usa | No Comments »
The story of U.S. natural gas gets referenced a lot but you may not know whats going on. Here are 15 charts that tell the story of the U.S. natural gas market which has been completely changed by the rise of horizontal drilling and hydraulic fracturing.
In the past few years, new technologies and cheaper costs allowed producers to access gas trapped in parts of the U.S. previously considered unreachable.
Read the rest of The U.S. Natural Gas Story in 15 Charts » » »
Posted: March 25th, 2015 | Author: Rod Sherkin | Filed under: Best practices, Gem | Tags: best practice | 1 Comment »
Purchasers know how hard it can be to convince our superiors & peers that we are doing a good job.
We struggle with Suppliers all the time, arguing, calculating, cajoling, pushing back to get the lowest possible all-in costs – and still we sometimes go over budget!
Does this mean we are doing a poor job? Probably not!
via The Marketplace and the Five-Hundred Pound Gorilla on Propurchaser.
Posted: March 20th, 2015 | Author: Pascal Blanc | Filed under: Best practices, Gem, Negotiating with Suppliers | Tags: negotiation, rfp, supplier, supplier negotiation, tradeshow | No Comments »
Dear Purchasing Professional,
We usually don’t get to speak with you directly when we respond to an RFP. But if we could, this is what we’d say.
We’d like you to know that to get the best value when buying custom tradeshow exhibits you need to take a slightly different purchasing approach. These products require creative thinking (like advertising), and work best when uniquely crafted to fit your company’s needs.
Read the rest of A Supplier’s Advice for Purchasing Custom Tradeshow Exhibits & Environments » » »
Posted: March 15th, 2015 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers | Tags: negotiation | No Comments »
Suppliers often use wage increases to justify nudging up prices each year, usually 1 or 2%. And it’s hard to argue: – seems reasonable, and it’s less than inflation.
But wages aren’t the real issue – labor costs are.
And the reality is that the average cost of a ‘unit of labor‘ is about the same today as it was 5 years ago.
Read the rest of Use labor productivity to drive down purchase costs » » »
Posted: March 10th, 2015 | Author: Tom Bowers | Filed under: CSR in purchasing, Gem | Tags: corporate social responsibility, CSR | No Comments »
Commodity production in many parts of the world causes huge problems for local communities. Extractive industries located in areas with poor environmental protection and enforcement can be particularly damaging.
For example this contentious aluminum refinery in Niyamgiri, India: The battle for Niyamgiri
Should purchasers have a role in influencing supply chains by avoiding companies with dubious social and environmental ethics? Would this be interfering with domestic governance and development, or does CSR (corporate social responsibility) pave the way for this type of decision? Are purchasers in a position to obtain and evaluate the information needed to make those decisions?
Posted: March 5th, 2015 | Author: Tom Bowers | Filed under: CSR in purchasing, Gem, Greening the Supply Chain | Tags: CSR, green purchasing, sustainability | No Comments »
The benefits of avoiding extraction and primary processing are usually significant, even when collection, transport and reprocessing of recycled material is taken into account.
An increasing range of recycled products are coming onto the market, such as glass, steel, aluminium, plastics and paper. Usually calculating the carbon benefit is reasonably straightforward. As the final products must perform to similar standards (whether from virgin or recycled materials) in order to compete in the market place, the carbon footprint during their ‘use phase’ will also be very similar.
Read the rest of The Carbon Benefits of Recycled Materials » » »
Posted: March 2nd, 2015 | Author: Pascal Blanc | Filed under: Commodities, Metals, Steel, USA | Tags: steel glut, steel price USA, steel usa | No Comments »
US flat-rolled steel prices crept down last week as mills continued to battle for market share against a backdrop of increasingly aggressive import offerings. Domestic steelmakers in the U.S. slashed prices in February to cope with a flood of imports juiced by the strong dollar, a move that will pressure their profit margins and reduce costs for buyers of steel, including auto makers.
Imports rose 33% in January compared with the year before, according to figures released Wednesday by the American Iron and Steel Institute, reaching 3.85 million tons, compared with 2.9 million tons a year earlier. The jump in imports comes as oil and gas drillers cancel orders for steel pipe, underscoring the resilience of overall U.S. demand compared with other markets.
Read the rest of US steel prices still trending down » » »
Posted: February 28th, 2015 | Author: Pascal Blanc | Filed under: Gem, Labor, What's Happening in Our Profession | Tags: labor, labor cost, reshoring, reshoring usa, us labor | 1 Comment »
After making the case for reshoring in a previous article, PwC identified 7 key factors influencing potential US manufacturing resurgence. Obviously, labor cost is one of those factors but not the only one.
“Industrial manufacturers may increasingly rethink their U.S. strategies, including the merits of continuing to separate production and R&D and producing abroad and importing back to U.S. buyers. Depending on the industry, there may be considerable benefits to establishing regionalized supply chains and R&D facilities in the U.S.,” said Bob McCutcheon, PwC’s U.S. Industrial Products leader.
Read the rest of 7 key factors for US reshoring » » »
Posted: February 23rd, 2015 | Author: Tom Bowers | Filed under: Best practices, Economic Indicators, Gem | Tags: greendex | No Comments »
If your business is expanding into new or facing competition in existing markets, can you benefit from enhancing your green credentials to meet consumer preferences?
Greening your supply chain could provide a competitive edge in markets where consumers are increasing concerned with environmental issues and making spending decisons based on those concerns.
Find what you can learn from the Greendex Survey.
Posted: February 18th, 2015 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: buyers, negotiation, negotiation tactics, steel, supplier | No Comments »
Stan Hankowski, a seasoned Buyer with a major American retailer tells an intriguing story that shows how Purchasers can help themselves by helping their suppliers.
He went to market last year to buy steel racking. He expected higher prices because he’d been tracking steel costs and knew they had gone up sharply.
via Negotiating Nugget on Propurchaser.