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.
o 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.
o 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.