Sony Cuts Off Majority of Suppliers
According to MarketWatch, Sony is planning to trim down it’s supplier roster by over 50%. This seems in line with most corporate restructuring. It wouldn’t be surprising to see suppliers buying other suppliers out. If you lose a client like Sony, that is a challenging void to fill.
“Sony Corp. plans to cut ties with more than half of its parts and materials suppliers by the end of 2010, aiming to save at least 500 billion yen in procurement costs in the current fiscal year, according to a Nikkei report Wednesday. Sony’s roster of suppliers will shrink from about 2,500 to 1,200, the report said, with Sony expecting its procurement costs to fall to around 2 trillion yen ($21.2 billion) in the year ending March 2010, down from about 2.5 trillion yen a year currently.”
– MarketWatch Inc.