What is the Carbon Footprint All About?

Sustainable development, carbon footprint, global warming, cap and trade, Kyoto, green this, green that. Who hasn’t seen, read and heard article after news report after blog, talking about how we are wrecking the environment and that things need to change. Is it really that big a deal?
Well, let’s think about what has been happening;

• Glaciers and polar ice caps have been retreating at an alarming rate and scientists are predicting that the arctic ice cap will melt by 2020 (if not earlier)
• Sea levels have risen between 4 and 10 inches since 1990 as a result of the melting polar ice caps
• We’re seeing Increasingly violent storms. 35 years ago, 1 in 6 tropical storms were considered to be major storms, in recent years, 1 in 3 are major storms.
• Increasing floods and droughts
• Scientists are constantly reporting on impact on wildlife due to global warming from polar bear problems in northern communities to changing bird migration patterns.
• Scientists are now (mostly) in agreement that global warming is happening and that there is a significant need to do something now.

People and governments are starting to listen. Many governments are setting targets for greenhouse gas reductions. People are looking for information to help them make better decisions when buying. Want to know More.....

Price are Down!

Titanium demand collapse will depress prices through 2010
TITANIUM demand has collapsed this year and the market price for benchmark aerospace ingot is almost 70% off its peak and probably at its cyclical bottom. And, according to news reports from the International Titanium Association's recent annual conference, there's little indication of a major upturn in purchasing or pricing anytime soon.
Read more.........

Molybdenum prices are sliding backwards
Spot prices dip due to uncertain demand trend from steelmakers
Although U.S. steelmaking is close to 60% of capacity, market prices for molybdenum, a key alloying smelting metal, has slipped to an average $14.55/lb this month (from $16.18 in July) and could be selling by a dollar or more cheaper next month. Read more......


Aluminum prices are being depressed by excess supply

World aluminum prices have slipped to an average 83¢/lb this month, bringing the annual average down to 70¢ (from $1.17 in 2008) as demand remains soft and global stocks are at record highs of 5.8 million metric tons

Ferrovanadium prices are slipping

The alloying metal was selling as low as $7.40/lb in April because of a serious overhang of inventory and collapsed demand from specialty steelmakers. Prices inched back up from May to August in line with reduced stockpiles caused by expanded exports and slow and gradual improvement in purchases by the domestic steel companies. Read more......

So KRAFT is planning a Cleanup?

First they make an offer on Cadbury's now they decide to have a clean up. Of what? Their supplier base. Read more about it as found in Supply Excellence.

Supplier Relationship Management (SRM) - a strategic approach

Most manufacturers agree SRM is important – but do not understand what it really is?
Many see it as a mechanism for monitoring and improving suppliers' performance. This contrasts with the broader definition of SRM as 'a discipline of working collaboratively with those suppliers that are vital to the success of your organization, to maximise the potential value of those relationships.

This misconception may explain why many believe SRM only starts once a contract is signed. It should, however, be used at every stage of the procurement process.
Key suppliers critical to your business should be as important as your customer. Your success demends very much on him

Before you even identify a materials need, good relations with a strategic suppliers could help by bringing innovative ideas to you. These could result in efficiency or real cash savings, product improvements or faster times to market

For example General Motors has just announced plans to split cost savings evenly with vendors that submit successful ideas on cutting the cost of car parts.

Get your existing suppliers involved as part of a cross-functional team. “
Explore how your suppliers supply chains works, especially if you’re attempting something new. Failing to do this could make things unnecessarily difficult for the supplier and potentially add in cost for your company.

Experts advise purchasers consider approaching negotiations with strategic suppliers with one eye on the implementation stage. If you pressure vendors hard for a price cut and make tough, changing demands one day then begin working with them the next, they will not be quick to forget how you treated them.

If you come out of a negotiation being aggressive, with you beating them up one day and beginning to work with them the next it’s counter-intuitive.

Finally, implement your deal and continue to work with key suppliers, forever looking for ideas and innovation that lead to improvements for you both. Remember it is a Win Win solution we want. Have mutual respect for each other

Is Supply Chain Risk Analysis a Waste of Time?

I hear that the China needs to maintain economic growth of 8% to stem widespread social unrest. Unrest! Yes! Listen to this:

When the state-owned Tonghua Iron & Steel was sold to a private group recently, 30,000 staff rioted in protest believing that the sale would lead to significant job losses.

The protests and subsequent riots led to the death of the steel factory's manager, Chen Goujun, who was beaten and later died in hospital. This is bad enough, but it comes on top of much more serious riots betwen Uighurs and Han Chinese over the labour problems at a Guandong province factory which led to more than 200 deaths. (See: http://www.ft.com/cms/s/0/16c24528-7a46-11de-b86f-00144feabdc0.html)

So what has this to do with supply risk?

A pharmaceutical CPO said that he saw detailed risk assessment as a waste of scarce resources. He would much rather spend the time and effort on putting in place back up plans. His reasoning? That the only certainty is that a supplier somewhere will go to the wall - which particular one isn't the important issue.

The important issue is to ensure that the company has back up plans and strategies in place. On the one hand, a consumer goods company had compiled a detailed risk assessment on every single one of its suppliers, including potential risk and alternative suppliers.

It stoked a huge amount of debate, and has proved to be one of the most popular threads on the Procurement Leaders Blog.

Now if you are dealing with a Chinese (or any other for that matter) supplier and you did not worry about what was happening with and all of a sudden your order is late. What are you going to do? The choice is yours? Do you keep abreast of what is happening WHERE YOUR MAIN SUPPLIERS ARE? You should, this is part of your risk.