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:

 

View more videos at ProPurchaser.com or start reading the blog:

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.


CORN PRICES TUMBLE AS SUPPLY OUTLOOK IMPROVES

Posted: June 22nd, 2016 | Author: | Filed under: Agricultural, Best practices, Brazil, Corn, Negotiating with Suppliers, NEGOTIATOR'S TAKE, Supplier's costs, US Dollar, USA | Tags: , , , , , , , , , , | No Comments »

 

NEGOTIATOR’S TAKE: Falling Corn prices will exert downward pressure on most of the food chain.

 

06.21.16 – Supply outlook improves in the U.S. and Brazil

Corn futures in Chicago fell by the most in three years and prices slumped in Sao Paulo state as the supply outlook improves in the U.S. and Brazil, the world’s top exporters.

 

U.S. rains through June 26 are seen aiding about half the crop in the Midwest, and the growing area is unlikely to encounter severe heat through mid-July, according to Joel Widenor, director of agricultural services at Commodity Weather Group LLC in Bethesda, Maryland. In Brazil, harvesting of the country’s winter crop is picking up pace and helping to ease a supply squeeze.

 

“The weather patterns are taking out some of the heat, and we’re also adding a little bit of moisture” in the U.S., Ryan Kelbrants, a market analyst at CHS Hedging LLC in Inver Grove Heights, Minnesota, said in a telephone interview.  “Our crop scouts are reporting excellent conditions.”

Read the rest of this ProPurchaser sourced article, HERE.

 

SOURCE: Bloomberg

ARTICLE AUTHORS: Megan Durisin | Follow Megan on TWITTER

& Tatiana Freitas

 


How important is a Green Supply-Chain in North America?

Posted: June 17th, 2016 | Author: | Filed under: CSR in purchasing, Gem, Greening the Supply Chain | Tags: , | No Comments »

Green supply-chainWe certainly hear a lot about the importance of reducing the amount of carbon our species is releasing into the atmosphere. But we don’t hear much about what this really means to our profession: in other words, how important is a ‘green’ Supply-Chain in North America?

To answer this question we recently sent out a 14-question survey to hundreds of Supply-Chain professionals. The results are in and you may find them interesting.

Three Key Findings.

Read the rest of How important is a Green Supply-Chain in North America? » » »


Benchmark Your Organization’s Purchasing Effectiveness

Posted: June 7th, 2016 | Author: | Filed under: Gem, What's Happening in Our Profession | Tags: , | 1 Comment »

Purchasing survey

Dear Colleague

Back in 2003, we created a simple, on-line survey to help Purchasing Professionals gauge their organization’s overall purchasing effectiveness.

The goals were to first measure attitudes and practices, and then offer concrete suggestions for making improvements. The initiative was successful: almost 3,000 people participated.

One of our readers had a great idea – why not re-do the survey? We could compare new results to the original numbers and see if there’s been a shift in attitudes and practices, over the past 7 years.

These 7 areas are covered and answers range between strongly agree and strongly disagree.

Read the rest of Benchmark Your Organization’s Purchasing Effectiveness » » »


WHEN WAREHOUSING GOES GREEN

Posted: May 28th, 2016 | Author: | Filed under: Best practices, CSR in purchasing, Energy, Greening the Supply Chain, Labour Costs, ProPurchaser GREEN WATCH, What's Happening in Our Profession | Tags: , , , , , | No Comments »

 

A ProPurchaser GREENWATCH: More time spent on-site in the warehouse reduces a carbon footprint and helps the bottom line.

 

 

Green buildingWhen considering the greening of any supply chain it is easy to ignore the impact of warehousing and distribution centres.  Transport miles are often shown to potential consumers, but what about the environmental cost of storage?

Understandably, the main focus in distribution centres is often the streamlining of the distribution process. THIS VIDEO of the Ocado Distribution Centre makes an optimization geek very excited. But it is not difficult – and not necessarily expensive – to improve the green credentials of your warehousing.

Read the rest of WHEN WAREHOUSING GOES GREEN » » »


TOKYO RUBBER ENDS UP, AFTER HITTING 2.5 MONTH LOW

Posted: May 26th, 2016 | Author: | Filed under: Asian Markets, Japan, Negotiating with Suppliers, NEGOTIATOR'S TAKE, Rubber, Shanghai Futures Exchange, SICOM, Supplier's costs, Tokyo Commodity Exchange TOCOM, US Dollar, USA, Yen | Tags: , , , , , , , | No Comments »

 

NEGOTIATOR’S TAKE:  Rubber is down 20% over the last 4 weeks: time to renegotiate tires and other rubber-based products.

 

05.25.16 – Tokyo

Benchmark Tokyo rubber futures ended higher on Friday, erasing earlier losses on the back of a weaker yen against the dollar, but posted a drop of 5.8 percent for the week.  Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, declined for a fourth straight week, and have fallen 20.5 percent from a near nine-month high of above 205 yen on April 27 amid worries about waning demand in the world’s top consumer China, brokers said.

 

The Tokyo Commodity Exchange rubber contract for October delivery finished 1.3 yen higher at 163.1 yen per kg, after falling more than 2 percent to 158 yen earlier, the lowest since March 2.

 

“TOCOM and Shanghai have fallen on each other’s declines recently,” said a source with a Tokyo-based broker. “With the decline in Shanghai futures continuing, rubber futures may come under further pressure next week.” The US dollar edged higher to around 110.12 yen in the afternoon as investors awaken to the risk of a hike in US interest rates as early as next month.

 

The most-active rubber contract on the Shanghai futures exchange for September delivery fell 155 yuan to finish at 10,860 yuan per tonne. The front-month rubber contract on Singapore’s SICOM exchange for June delivery last traded at 128 US cents per kg, down 1.5 cents.

 

SOURCE: Reuters

 


WELCOME CHEAP CHINESE STEEL, DUMP TARRIFS

Posted: May 24th, 2016 | Author: | Filed under: Asian Markets, China, Cold-rolled Steel Sheet, Economic Barometer, Economic Indicators, Negotiating with Suppliers, NEGOTIATOR'S TAKE, ProPurchaser Insight, Stainless Steel, Steel, Supplier's costs, US Dollar, USA, What's Happening in Our Profession, Yuan | Tags: , , , , , , | No Comments »

 

PROPURCHASER INSIGHT:  If you’re not happy with today’s Steel prices, you might want to read this article….nothing is simple. Read the full article HERE.

 

05.22.16 by Boston Globe Columnist Jeff Jacoby

China produces more than 820 million tons of steel per year, of which about 100 million tons are exported and sold at a discount overseas.  Only about 3 percent of those exports go to the United States, but American steel producers bristle at the competition.  So in keeping with the time-honored practice of the US steel industry — “the backbone of American manufacturing,” as it proudly calls itself — domestic producers are rising to the challenge.

Are they doing so by making their operations more efficient?  By improving the quality of the steel they sell?  By cutting their prices to maintain market share in the face of a tough competitor?

Not exactly.  They’re getting the federal government to punish American consumers.

“The United States on Tuesday said it would impose duties of more than 500 percent on Chinese cold-rolled flat steel, widely used for car body panels, appliances, and in construction,” reported Reuters. “The Commerce Department said the new duties effectively increase more than five-fold the import prices on Chinese-made . . . steel products.”

American steel producers complain that their counterparts in China are dumping cheap steel on the US market, benefiting from Chinese tax subsidies to undercut other companies’ prices.  Because of these “unfairly traded imports,” lament Thomas Gibson and Chuck Schmitt of the American Iron and Steel Institute, some US steel mills have had to be shuttered, and 12,000 steel-making jobs were lost during the past year.

It is always painful when workers are laid off and once-thriving facilities have to be closed.  But the steel industry is far from unique.  The US economy creates and destroys millions of jobs every year.  No industry is exempt from the upheaval, retrenchment, or losses caused by changes in technology, trade, and consumer demand.  The digital revolution has decimated once-formidable companies and careers in fields as different as journalism, photography, tax accountancy, and recorded music. Would anyone argue that the government should have suppressed the Internet in order to preserve the employment and production patterns of the 1980s?  Should the Commerce Department have imposed taxes of 500 percent on e-mail services and word-processing software to preserve the viability of typewriters and stenographers?

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

 

AUTHOR: Jeff Jacoby | Follow Jeff on TWITTER

SOURCE: The Boston Globe

 


Don’t Sweat the Details – It’s the Direction that Counts

Posted: May 18th, 2016 | Author: | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: , , , | 1 Comment »

DirectionYears ago, while working for Green Giant, I phoned our steel can sales rep to ask for a 4% reduction. We had information suggesting steel prices had fallen 8%.
He certainly wasn’t very happy and, as expected, argued against any decrease.

“Are you saying you’re still purchasing steel at the same price as before?” I asked. “That would be surprising.”

“Um… no, of course not”, he said, “but look – let me get back to you.”

To learn more, follow the Negotiating Nugget on Propurchaser.


COPPER PRICES POST STEEP WEEKLY LOSS ON STRONGER GREENBACK

Posted: May 16th, 2016 | Author: | Filed under: Asian Markets, China, Copper, Economic Indicators, Negotiating with Suppliers, NEGOTIATOR'S TAKE, US Dollar, USA, Yuan | Tags: , , , , , , , , | No Comments »

 

NEGOTIATOR’S TAKE: Falling Copper costs means opportunities to negotiate lower prices for electric motors, wiring, and plumbing components.

 

05.13.16 – Copper loses 3.7% of its value

COMEX Copper futures ended Friday’s session nearly unchanged at $2.074 per lb., but over the week, the commodity lost 3.7% of its value as a climbing greenback and new economic malaise in China dented demand for the metal.

The US dollar has been on an upward trajectory so far in May, and this has put all dollar-denominated commodities under pressure.  When the US dollar ascends, it makes copper relatively more expensive for would-be international buyers.  The US dollar has garnered support from some positive economic data, which supported that the world’s largest economy is on the right track.  The latest data included the largest monthly retail sales increase in a year (April), while April consumer sentiment was the best since last June.

 

New loans issued in China a contributor

The metal’s downside was given further impetus from some disappointing economic data from top consumer China. The latest data showed a sharp decline in new loans issued last month.  In April, the People’s Bank of China issued 55.6 billion yuan worth of loans, well below the 900 billion yuan economists were expecting and a sharp decrease from the prior month when 1.37 trillion yuan of new loans were issued.  There is a whole batch of Chinese economic data due in the coming days including fixed asset investment data, industrial production, and retail sales all due.  Copper could see a great deal of action on Monday when trading resumes.

On the London Metal Exchange, Friday in itself was a better day for the commodity with copper futures rebounding after touching a 2-1/2 month low.  LME copper ended Friday’s session fractionally higher at $4,627.50 per ton after touching $4,594 per ton, its lowest price point since February 25. LME copper has already declined 8% in May.

 

SOURCE: Economic Calendar.com

AUTHOR: Donald Levit

 


CHINA COMMODITIES SELLOFF DEEPENS AS STEEL POSTS WORST WEEK SINCE 2009

Posted: May 11th, 2016 | Author: | Filed under: Agricultural, Asian Markets, China, Chinese commodities, Coking Coal, Commodities, Cotton, Dalian Commodity Exchange, Eggs, Iron ore, Negotiating with Suppliers, NEGOTIATOR'S TAKE, Shanghai Composite Index, Soybaens, Steel, Yuan | Tags: , , , , , , , , , , , , | No Comments »

 

NEGOTIATOR’S TAKE: Sharp fall in Chinese metals likely means lower prices globally.

 

May 2016 – Shanghai – Commodity slide spills over into stocks

Chinese commodities prices spiraled lower on Friday, with steel futures suffering their worst week since 2009, as more money flowed out of markets whose surge two weeks ago unnerved global investors and forced regulators to step in to restore calm.

 

Indicating how authorities may now be alarmed after a collapse in volumes and prices, the Dalian Commodity Exchange on Friday said it will cut some trading fees on contracts such as iron ore and coking coal.  The commodities slide spilled over into stocks, with the Shanghai Composite Index ending down 2.8 percent, its worst day since February, as commodity producers fell.  Commodities linked to China’s steel sector, which led the mid-April rally, were the hardest hit on Friday, on worries that demand in the world’s biggest steel consumer could soon wane. The selloff spread to agricultural products including soybeans, eggs and cotton.

 

Prices pulled below mid-April levels

Some traders were concerned that China’s interest rate easing cycle could be over even as optimism about prospects for the world’s No.2 economy faded.  The retreat pulled prices of many of the commodities below levels in mid-April, when a buying frenzy, pinned on retail investors, bloated volumes and drew comparison with the boom-and-bust cycle in China’s stock markets last year.

“It’s panic now and capital is flowing out of commodities markets amid a cautious outlook on the economy,” said a trader at a fund in Shanghai. . . . Read the rest of this ProPurchaser sourced article, HERE.

 

SOURCE: Hellenic Shipping News Worldwide | Reuters

ARTICLE AUTHOR/REPORTING: Pete Sweeney (Shanghai)

EDITOR: Ed Davies


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