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Coronavirus

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Surprised to see you of all people make that comment Brian. You work in an industry where wheeling and dealing starts at the OEM and trickles down to the tier 500's. Never mind the fact that our industry is heavily, heavily reliant on delivery meeting specific due dates or we begin to shutdown entire plants.

Standard term is nonsense, there is always room for compromise. If they were the only game in town then you can tighten the screws, but there are different suppliers on the table and the goal should be to use them as leverage against each other.

Typically the issues arise when you have people on your side who won't budge on price to offset the delivery terms, payment terms or what other terms you want to fathom. I can't count the number of times I've seen companies screw themselves because they can't see past the decimal point and down the road they are standing there watching everyone else reap the benefit of a mutually good deal.
 
Like every other developed country we should have bought the ISSO manufacturing technology and built it at home.
 
Evoex said:
By the way, wife came home yesterday and confirmed the province is over reporting on vaccines administered by about 50%.

Tax dollars at work..sigh
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There was a press release about that. Someone got confused with doses vs people and they over reported the number of people that had received two shots by 100%. The total number of shots in arms was correct.
 
6qDoOGa.jpg
 
you guys are sic :LOL:
 
Evoex said:
Surprised to see you of all people make that comment Brian. You work in an industry where wheeling and dealing starts at the OEM and trickles down to the tier 500's. Never mind the fact that our industry is heavily, heavily reliant on delivery meeting specific due dates or we begin to shutdown entire plants.

Standard term is nonsense, there is always room for compromise. If they were the only game in town then you can tighten the screws, but there are different suppliers on the table and the goal should be to use them as leverage against each other.

Typically the issues arise when you have people on your side who won't budge on price to offset the delivery terms, payment terms or what other terms you want to fathom. I can't count the number of times I've seen companies screw themselves because they can't see past the decimal point and down the road they are standing there watching everyone else reap the benefit of a mutually good deal.
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Also i wanted to speak on supply and demand aka capacity.

Frequently a supplier of mine will come back to the table and says hey, you know what, the forecast is higher then what was planned when we made these agreements, we're gonna need extra tooling to meet all this demand on time. Do you know what we do? We negotiate and buy them more damn tooling. Not delivering on time to a customer is simply not an option, period. full stop.

So i'd love to know the real story here, because im not buying the idea that no one at the OEMs didn't see this coming.
 
Evoex said:
Also i wanted to speak on supply and demand aka capacity.

Frequently a supplier of mine will come back to the table and says hey, you know what, the forecast is higher then what was planned when we made these agreements, we're gonna need extra tooling to meet all this demand on time. Do you know what we do? We negotiate and buy them more damn tooling. Not delivering on time to a customer is simply not an option, period. full stop.

So i'd love to know the real story here, because im not buying the idea that no one at the OEMs didn't see this coming.
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These are the things they are using...but bigger...and lots and lots of them.

bionet.com

Custom Production Bioreactors & Fermenters - Bionet

bionet.com bionet.com

Not saying that manufacturing them isn’t straightforward but my guess is that there’s a short supply of the things right now, add in transport issues too.

Remember, we haven’t had to manufacture a vaccine this new, this fast for this large a population before. All of this is new.
 
Evoex said:
Frequently a supplier of mine will come back to the table and says hey, you know what, the forecast is higher then what was planned when we made these agreements, we're gonna need extra tooling to meet all this demand on time. Do you know what we do? We negotiate and buy them more damn tooling. Not delivering on time to a customer is simply not an option, period. full stop.
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With all due respect, buying a new or used stamping press and having a new die made or whatever to be able to increase production of a widget (for one example) is probably a lot different than scaling up a plant that makes complicated chemicals that are injected into peoples bodies.

The results of screwing up that process are drastically different, as well.
 
PrivatePilot said:
With all due respect, buying a new or used stamping press and having a new die made or whatever to be able to increase production of a widget (for one example) is probably a lot different than scaling up a plant that makes complicated chemicals that are injected into peoples bodies.

The results of screwing up that process are drastically different, as well.
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maybe you`re right, @jc100 too.

my statement still stands, i'd love to know the real story because i still don't fathom how no one predicted this issue.
 
Evoex said:
maybe you`re right, @jc100 too.

my statement still stands, i'd love to know the real story because i still don't fathom how no one predicted this issue.
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Your points are valid...there’s literally people who’s only job it is to evaluate and procure capacity for the manufacture of the vaccines for the companies. They are in a ****** position though. Whatever they forecast is going to be a best guess most of the time plus as the vaccines were developed no one knew what the efficacy would be like. Do you buy millions of dollars worth of plant capacity before you know if it will work?
 
jc100 said:
Your points are valid...there’s literally people who’s only job it is to evaluate and procure capacity for the manufacture of the vaccines for the companies. They are in a ****** position though. Whatever they forecast is going to be a best guess most of the time plus as the vaccines were developed no one knew what the efficacy would be like. Do you buy millions of dollars worth of plant capacity before you know if it will work?
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yeah that's where you take some risk.

One of my customers gives the most **** forecast on the face of the plant (they take more parts then forecasted on a regular basis for 3 years +). Another thinks we are Canadian tire, so I get drop in orders due in a few days out of nowhere. The only answer is to carry more inventory. Now I realize i can make this decision comfortably because I have a usage history to rely on.

But unless you suspect for some reason that people would not want your product, last i checked the population of the planet with rampant covid infections is quite large. Even if you scale down your expectation on the piece of a pie, once the buy orders start flying in, like..helloooooooooooo.
 
Personally I think that the lowered deliveries are more political in nature than they are letting on.

Biden would get **** on from every angle if US citizens are losing out on vaccines to Canadians.

same goes for EU leaders if they let their own citizens suffer while others get more vaccines than their own people.

Canadians would do the same. Imagine the backlash if we didn’t get our people vaccinated and then sent vaccines to other countries.

the companies are in tough positions. Honour the contracts fully (whatever they may say) or piss off the people and politicians in their own back yard.

Rock and a hard place.
 
9.3m vaccinations in Israel so far. Money talks.
Less than 1m in Canada. We're f'd.
 
Wingboy said:
9.3m vaccinations in Israel so far. Money talks.
Less than 1m in Canada. We're f'd.
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That number is suspiciously close to or greater than the countries entire population :unsure:
 
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