Leadership   Supply Chain   Lean Processes   Negotiations  

  

 

Easy Solutions to Improve Supply Performance

  • Tip #1 Lock in low costs now  (See Purchasing magazines Price Index Below)

Purchasing Magazine says "Price action heats up in energy, transportation, organic chemicals."  Costs are rising due to oil cost increases.    Hedge now.

  • Tip #2 Consistently poor quality is usually the results of too tight a design specifications or inability of the supplier to control their process.  There are three options:

  1. Change the design specification

  2. Change suppliers

  3. Develop supplier by helping them control their process

 

  • Tip #3 Improving a supplier relationship can lead to improved quality.

Who is more likely to provide better quality parts?  A supplier with which you have good relationship or one you don't?

Answer:  Quality is manufactured into a product.  So, what does the relationship have to do with anything?  Well consider this... only a good relationship with  a key supplier will allow you to affect improvements to their process.  Call and we would be glad to tell you our success stories.

                        

Producer Prices

 

Producers start to pass along oil-related cost increases

(diffusion indexes*)

 

Nov-02

Dec-02

Jan-03

Energy

73.9

66.3

74.9

Transportation services

69.9

67.9

64.4

Organic chemicals

57.7

58.5

62.7

Inorganic chemicals

54.8

58.9

58.2

Molded plastics

57.4

53.3

58.0

Copper & brass

58.3

51.2

55.3

Paper

59.4

58.1

55.0

Plastic resins

59.3

55.3

55.0

Fabricated metals

55.3

52.0

54.9

Corrugated

63.2

56.0

54.3

Steel

61.2

51.8

53.1

Aluminum

53.8

47.2

52.5

Tooling

55.1

50.0

52.0

Semiconductors

49.1

52.8

48.8

Passive electronics

47.2

47.2

46.3

Industrial machinery

48.3

44.0

44.6

Computers

30.5

30.0

30.3