Supply Chains and Covisint

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Supply Chains and Covisint

• James Burns

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www.covisint.com

• go out to the site
• Was a supply chain demo
• Was a new product development demo
• Was a procurement demo

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Who runs/uses COVISINT?

• GM
• Ford
• Chrysler
• all auto suppliers
• 2500 of them

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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

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Advantages of COVISINT

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

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Advantages to Buyer

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

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Advantages to Seller

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

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Covisint--etymology

• Collaboration
• Vision
• Integration

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Invoice Transaction

• was 100 to 150 per invoice
• ENTER COVISINT
• now is 5 per invoice

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How large is the Auto Parts/Procurement Market?

• 500 billion a year

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How much cost savings per car?

• Depends on the car
• low end 1200/car
• high end 3500/car
• that is OFF THE PURCHASE PRICE

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How much cycle time reduction?

• For NEW PRODUCT DEVELOPMENT
• was 42 months
• Enter COVISINT
• now is 12-18 months
• less than half

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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

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