Implementing IATF 16949

Suppliers to the automotive sector have a new quality standard to comply with.  In less than 45 weeks, TS16949 will expire and every automotive supplier will need to conduct a transition audit that addresses both the IATF 16949 and ISO 9001:2015 standards.

Cost Savings Best Practices

Manufacturing executives consistently cite “adding value to the company’s bottom line” as a top priority for purchasing.  We highlighted how purchasing can contribute bottom line value by aiding in new business pursuit in an earlier Purchasing Insights; in this issue, we address the topic of cost savings.

Partners in New Business Pursuit

Our 2017 survey of manufacturing company C-suite executives reinforced that purchasing needs to add more value to the bottom line (repeating a key finding of the 2016 survey).  New insights from our 2017 survey and conversations with executives point towards supporting new business pursuit as a C-suite priority for purchasing. 

Optimizing Acquisitions

Acquisitions provide companies with the opportunity, if executed well, to accelerate growth and create value in their business.  However, poorly executed acquisitions that are overvalued or not integrated well can have negative impacts up to and including loss of your investment.

Over-Achieving the Material Cost Savings Plan in 2017

A 2013 IBM study found that companies with high performing purchasing organizations achieve 22% higher margins.  This figure is especially significant for manufacturer’s whose material as a percentage of sales most often falls between 50 and 70%. But what sets the high performing purchasing organizations apart and enables the margin improvement? 

The Migration of Manufacturing to Mexico

There is a common mistaken belief that Lemmings hurl themselves off of cliffs in an act of mass suicide to control their population.  Actually, the Lemmings are participating in a mass migration.  The fortunate land in the water and complete their migration; the unfortunate land on the rocks below. Similar to Lemmings, manufacturers have participated…

Preparing for a change in U.S. light vehicle sales

The domestic automotive industry has been on a tear since bottoming out during the great recession.  Volumes have exceeded the previous peak, and there are plenty of indicators that a growing economy will continue to drive vehicle purchases.  But there are plenty of reasons why growth will stall, ranging from weaknesses in global demand to…