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Supply Chains and Covisint

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  1. Supply Chains and Covisint James Burns

  2. www.covisint.com • go out to the site • Was a supply chain demo • Was a new product development demo • Was a procurement demo

  3. Who runs/uses COVISINT? • GM • Ford • Chrysler • all auto suppliers • 2500 of them

  4. Covisint • A place where auto industry buyers and sellers can meet electronically • Supports full collaboration, communication, cooperation • Implemented as a web site on the Internet • Totally changes everything • about the way buyers interact with suppliers • about the way autos get designed, procured, built, distributed

  5. Advantages of COVISINT • simplified procurement • reduced costs • shortened cycle times • exchange of information across the enterprise (supply chain)

  6. Advantages to Buyer • Improved workflow • Access to extended supply base • Reduced purchase transaction cost • Reduced time to source the component • Decreased time to market

  7. Advantages to Seller • Access to more potential buyers • Improved and more timely communication • Single seller site • Reduced process costs • Advertising to a niche market

  8. Covisint--etymology • Collaboration • Vision • Integration

  9. Invoice Transaction • was $100 to $150 per invoice • ENTER COVISINT • now is $5 per invoice

  10. How large is the Auto Parts/Procurement Market? • $500 billion a year

  11. How much cost savings per car? • Depends on the car • low end: $1200/car • high end: $3500/car • that is OFF THE PURCHASE PRICE

  12. How much cycle time reduction? • For NEW PRODUCT DEVELOPMENT • was 42 months • Enter COVISINT • now is 12-18 months • less than half

  13. Purpose of Covisint • Create a virtual place where buyers and sellers can get together • and streamline processes • a standardized approach to using the Internet to bring efficiencies to the automotive supply chain

  14. This is just one example of how the Internet has affected the supply chain