US: Delphi to cut suppliers

摘要

DELPHI plans to slash 2,850 suppliers from its purchasing network to reduce it to a smaller group of 750 core vendors, reported Automotive News. Delphi is reportedly adopting this strategy in order to get improve technology and lower prices. The company intends to dump unprofitable products, hence the decision to eliminate suppliers who produced components for those products. "Companies that are not core suppliers will continue to produce components for Delphi until current contracts expire. But they are not allowed to bid on new business," said Dave Nelson, Delphi's purchasing chief.