Sole sourcing saves millions for York International
By Staff -- Purchasing, 11/18/1999
In December of 1998 York International added Ryerson Tull to its list of sole suppliers.York, a global supplier of heating, ventilating, air conditioning, and refrigeration equipment chose Ryerson Tull as their sole distributor and processor--or "tier-one supplier," in York terminology--of metals. York says it reserves the title of "tier-one supplier" for companies it feels support York's global and strategic objectives.
"Our purchasing philosophy involves strategic alliances with suppliers who lead their industry in quality, technology, and service," says Mike Ryder, director of supply chain management for York International. "Ryerson Tull has demonstrated that leadership. It also has the broad product line and expertise to handle all of our needs and the geographic presence to support all our plants in North America."
Bill Frame, general manager of marketing for Ryerson Tull, says that tier-one designation has allowed the company to devote significant resources toward helping York achieve cost savings and productivity objectives.
To help meet these goals, the metals distributor has assigned personnel to work with the productivity improvement teams at each of York's plants. "We have hired an application engineer and assigned on-site account managers to work exclusively on York business," says Frame.
Ryder says, "Ryerson Tull's application engineer will be traveling to our plants to assist these teams with material specification, product design, and workflow issues. He will also be providing us with progress reports on each team's efforts."
Ryder says that with the help of Ryerson Tull and eleven other "tier-one" suppliers, York International will save more than $90 million during 1999. "At the same time we expect to reduce the number of our suppliers by 30%," says Ryder.
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