RubberNetwork Announces 2004 Results
RubberNetwork LLC, a tyre and rubber industry consortium owned by nine of the largest global tyre and rubber industry companies, has announced its year-end results.
The company reported cumulative savings of over $230 million (£121 million) since its inception. The company also noted that during 2004 it connected over 140 direct material suppliers to RubberNetwork members through RubberNetwork’s supply chain supplier network in Japan, Europe, and North America.
“2004 sourcing savings results for RubberNetwork members were $105 million, passing the $100 million mark for the first time. This was a 10 per cent 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,” said chairman and CEO, Philip Ringo.
John Garrison, COO of RubberNetwork, added: “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 tyre 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.”
The company announced that it also intends to establish a fifth office, in Shanghai, by the end of the first quarter. The RubberNetwork board of directors confirmed this step at a meeting in Singapore in December. “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,” said Mr Ringo.