Afternoon Coffee: Tata Steel Seeks 10% Discount from Suppliers, China Exports Decline in October

Tata Steel is asking suppliers for an immediate 10% discount on prices. In the letter to suppliers, the steel producer also described its long-term intention of having a 30% reduction on all purchases.

Exports from China were down in October, marking the fourth consecutive month of declines as demand for goods from the country continues to fall.

Shipping container company Neptune Orient Lines Ltd. (NOL) is in talks withAP Moeller - Maersk A/S as well as CMA CGM on a possible acquisition. NOL has been seeking a buyer for months and said acquisition talks are in “preliminary” states.

The Port of Los Angeles plans to install photovoltaic solar power systems onsite. The port entered into an agreement with Hecate Energy Harborside to build the solar power projects on 12 sites on port property.

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  1. Bill Kohnen:

    The 10% immediate reduction letter is a really old school trick that in the history of business never has delivered sustainable savings. Such a desperate act also suggests that the Purchasing organzization has no credibility within Tata not the skills needed.

    Certainly many business’s go through cycles of expansion and cost control however, even a purchasing department with average skills should be able to respond with a combination of quick supply and demand adjustments.

    Then again perhaps this generation Jose Ignacio Lopez will arise to transform Tata.

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