level. Do they need to be the absolute lowest cost? No. Navistar is realizing global sourcing does have risks, from a currency standpoint, going through customs, amongst other issues that present themselves.”
• “Quality is a must. Even a small issue with porosity or sand left inside a casting…can take out an entire engine.”
Company: Navistar Inc., Warrenville, Ill. Navistar Inc. is a global leader in diesel engine and truck
production. The company reported $11.6 billion in revenues for 2009, with a goal of $12.2-12.5 billion for 2010. Navistar employs 15,100, operates manufacturing facilities in fi ve countries and is ranked 202 on the Fortune 500. The company purchases more than 1,000 active casting
parts on the engine side. Casting sizes range from less than 1 lb. to 762 lbs. Navistar buys about 60,000 tons of gray iron castings per year and just short of 20,000 aluminum tons. The company says it continually looks at its total spend to ensure it has the right business with the right suppliers.
Spokesperson: Wayne Rygel, Purchasing Director
• “We are going to have spikes in demand. The supplier that can be fl exible and still be cost effective and support Navistar will have an advantage.”
• “Anyone that can come to us with new materials, the abil- ity to make complex castings, work with Navistar to put us in a competitive position, and design parts to help us exceed our customers’ expectations, that’s exactly what we are looking for.”
• “We’re interested in working together with our suppliers so they’re making the profi t they need and Navistar is getting a good price.”
• “The best of the best suppliers treat us as the most im- portant customer they have, even if we may not be.” • “[Casting suppliers] need to be competitive on a cost
• “[The metalcaster should] work together with our engi- neers to see what might be changing in the market or in our engine. Is there a component that might be tweaked to give us an advantage?”
• “[Metalcasters should] be a strategic supplier that offers innovative technologies, someone that gives us a sustain- able cost advantage. [They should] bring us something that gives us a head start on the competition.”
“Navistar is realizing global sourcing has risks, but you still need to be competitive on price.”
—Wayne Rygel, Purchasing Director
Company: Robert Bosch Tool Corp. Robert Bosch Tool Corp. is the North American brand of
the largest power tool and accessory manufacturer in the world, the Bosch Group. The entire group reports 38.2 billion Euros in annual sales and currently has 270,687 employees. The group has 177 manufacturing sites in Europe, 64 sites in Asia, Australia, Africa and 52 sites in the Americas. Through the Robert Bosch Tool Corp., Bosch provides
North American customers with a complete line of corded and cordless power tools and accessories. The tools and ac- cessories include a variety of mostly small nonferrous castings.
Spokesperson: Edward Vinarcik, Global Quality Manager, Measuring Tools Division
• “We [make] ‘toys,’ ‘tools’ and ‘instruments.’ The expecta- tion among each is very different. We need to have a balance when it comes to price, delivery and quality. When we are making a toy, we will not have anywhere near the quality specifi cations of an instrument.”
Navistar purchases 80,000 tons of castings for engines. MARCH/APRIL 2011
• “We don’t make every tool we sell. For ‘buyout’ tools, we are looking for full service, design, assembly.”
METAL CASTING DESIGN AND PURCHASING 33
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