Philip J. Ringo, Chairman and CEO of RubberNetwork LLC, the Global Tire and Rubber Industry Consortium owned by nine of the largest global Tire and Rubber Industry companies, announced year-end results for the company.
RubberNetwork reported Sourcing savings for its nine Members of $105 Million in 2004 and a cumulative savings of over $230 Million since inception. The company also noted that during 2004 they have connected over 140 direct material Suppliers to RubberNetwork Members through RubberNetwork’s Supply Chain Supplier Network in Japan, Europe, and North America. These results underline the effectiveness and stability of the Tire and Rubber Industry Consortium since it began active operation in mid-2001.
“2004 Sourcing savings results for RubberNetwork Members were $105 Million, passing the $100 million mark for the first time. This was a 10% improvement over the previous year, and in total, Sourcing Savings for RubberNetwork’s nine Members are $230 Million since RubberNetwork began operations in mid 2001” Ringo said. The Company noted that the savings were in all regions served by RubberNetwork: Asia, Europe, Latin America, and North America. They represent Strategic Sourcing of a wide range of direct and indirect material, goods, and services, and were achieved through single-member events and multi-member collaborations. RubberNetwork’s sourcing of direct materials is conducted under the guidance of applicable anti-trust law.
John Garrison, COO of RubberNetwork, noted that “The second event of importance in 2004 was the significant increase in direct material Suppliers connected to RubberNetwork’s Supplier Network in Japan, Europe, and North America. Providing one point of contact to Tire and Rubber Industry direct material Suppliers benefits both our Members and the Supplier community. The potential for process savings, more efficient production, planning, and working capital reductions from improved inventory management is noteworthy.” RubberNetwork’s Supply Chain activity began as a pilot project in 2002 and was fully launched in Europe, Japan, and North America in 2003.
RubberNetwork also announces its intention to establish a fifth office, in Shanghai, by the end of the first quarter. The RubberNetwork Board of Directors confirmed this step at their December 9th Board Meeting in Singapore. “The decision to provide more support to our Members’ commercial activity in that region reflects the success of the RubberNetwork China Sourcing Council which started earlier in 2004” Ringo added.
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