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To: Lizzie Tudor who wrote (107776)8/31/2000 10:55:40 PM
From: Sarmad Y. Hermiz  Read Replies (1) | Respond to of 164684
 
>> Forrester and others have done studies that show logistics costs amount on average to 30% cogs,

I have an investment in a company Federal Mogul (FMO). The stock is at 10, down from a high of 70 a year ago. Revenue is at record levels (over $6B), and profits are OK, but less than analysts had expected. Anyway, that was just disclosure.

I wonder about the applicability of supply chain management to a business like that. The company operates in 300 locations in 30 countries and is trying to digest big acquisitions. I am trying to figure out potentially how much cost it can remove by adopting an internet strategy for linking with suppliers (which FMO has announced they are doing). Is this what supply chain management professionals work on ? Has this concept been used in the auto parts manufacturing industry.

I hope Jon does not think this discussion is off topic.