The week that was: 27 May 08 - 3 June 08
IBM has always prided itself on staying one step ahead of the competition, and they’ve managed to trump the opposition again by coming up with the imaginatively entitled Carbon Tradeoff Modeler. What does it do, Procurement Leaders hears you ask? Well, as IBM’s well-oiled PR machine spins into action, the innovation will, we’re reliably informed, enable organisations to analyse and manage the climate impact of their supply chains by allow them to better understand the implications of the decisions they make. At the current time we predict it could be something of a money-spinner.
Figure of the week – 40 – the percentage of companies that ranked environmental concerns as “very important” in a recent study by Forester Research.
Procurement Leaders has discovered that BMW is taking a no-nonsense approach to slashing its procurement costs. The company’s procurement chief Herber Diess has said that raw material price rises have added an additional 800m euros in costs – 700m euros of which have landed on BMW’s books. This, however, looks set to stop, as Deiss outlined in no uncertain terms. “We have partners that have managed to pass on to us 100% of raw material price rises, and a few have even managed to pass on 110%.” From now on, Deiss said that price rises would be shared three ways – between the second tier supplier, the first tier supplier and BMW. When the going gets tough, BMW, it seems, gets going.
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