Finding that purchasing outlays had increased in less than one year from 40% to 70% of the cost of goods sold, one European office-equipment manufacturer began to rely more heavily on American and Japanese suppliers, revise its materials planning system to reduce in-process inventories, and require its divisions to add people with electronics and foreign
language skills to their purchasing staffs. Through contracts that include long-term shipping charters and run to 1988 with suppliers in countries as distant as Brazil, the Japanese steel industry has secured an 18% cost advantage over its chief U.S. and European competitors.Hoechst (the German petrochemical giant) has established ties to Kuwait and DuPont recently acquired Conoco as part of their new acquisition strategies. This reflects a long-term approach to supply security that other chemical companies like Dow Chemical in the United States and BASF in Europe have used to good advantage