Chrysler Hones Metals Procurement Strategy Using Web

Compiled ByDeborah Austin The Chrysler Group of DaimlerChrysler has tapped Web-enabled commodities management for its aluminum procurement strategy -- transacting about 70 million pounds of metal through the Commodities Management Exchange Inc. (CMXchange) auction platform during the past year to save on direct material costs through pricing, supply-chain efficiencies and new-supplier qualification. Chrysler's raw materials procurement group worked with certified minority business enterprise CMXchange, Northfield, Ill. - a commodity management services company and neutral Internet marketplace for the base metals industry -- for market knowledge, supplier development support, materials evaluation help, tracking/monitoring of Chrysler's in-house aluminum scrap toll and conversion sourcing options. Recently CMXchange finished an aluminum procurement study for the Chrysler Group and now is developing an implementation plan for process improvement recommendations.