“Unfortunately, over the past several months we, and the rest of the industry, have experienced unprecedented, non-negotiable price increases from virtually all of our key suppliers.” said Mitch Bode Sr. vice president of Fujifilm Sericol Americas. Mr. Bode added, “Most of our raw materials are petroleum-based, and the price of a barrel of crude oil has risen from $53.39 to $140.21 since our last price increase in November 2005. Up until now, productivity improvements in manufacturing and optimization of freight efficiencies have helped offset some of the raw material and transportation cost increases. However the size of these increases and the breadth of materials impacted can no longer be absorbed or offset by manufacturing or supply chain efficiencies.”
Terry Mitchell, director of marketing for Fujifilm Sericol North America, further commented, “Our systems of managing inventory and consolidating freight shipments has helped us reduce shipment frequency while maintaining high service levels to our customers. In these times of escalating raw material and transportation costs, we feel it is absolutely critical to reduce supply chain costs wherever possible to keep our customers competitive."