Opening Doors, Letting Light In
Elemica is proud to be featured on The Economist.com. Here is an excerpt from the article:
The Goodyear Tire and Rubber Company is one of the world’s largest tyre companies, with US$20bn in annual sales, a globally recognised brand and operating facilities on six continents. But it is fundamentally a manufacturing business, aiming to turn parts and materials into finished products. To stay ahead, its leaders are always looking for ways to cut costs and add new value for customers.
To do so, the company’s suppliers provide fresh ideas in order to solve long-standing problems, says Onno Maliepaard, chief procurement officer at Goodyear EMEA. Several years ago Mr Maliepaard was struggling with a “bullwhip effect” on his inventory management. This refers to unwieldy swings in inventory that occur in response to downstream changes in client demand, which was forcing his team to hold more stock and materials. However, excess inventory is a direct cost to the business as it ties up capital in unsold items.
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