Toyota Motor Corp. plans to pool resin purchasing among its group firms, according to a report in the Nikkei (7203.T) plans to consolidate purchases of resin materials among group firms to cut costs and strengthen its bargaining power, according to a report in the Nikkei business daily. Citing the Nikkei report, the Reuters wire service noted that Toyota "will bundle its purchase of polypropylene, which is used in bumpers and other vehicle components, beginning this fiscal year." The report says Toyota spends about $2.24 billion to buy 500,000 to 600,000 tons of resin a year. PP accounts for about 40 percent of the total. Other big OEMs handle resin purchasing, but it's not strategy that's been universally adopted. Are any blog readers aware of either drawbacks, or cases where centralized purchasing has worked out well?
Toyota consolidating resin purchases
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