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Supply Chains and Covisint

Covisint revolutionizes the automotive supply chain by creating an electronic marketplace where buyers and sellers, including major players like GM, Ford, and Chrysler, can collaborate seamlessly. With features such as simplified procurement, reduced costs, and shortened cycle times, Covisint enhances workflow and communication for both buyers and suppliers. By drastically decreasing invoice transaction costs and shortening new product development cycles, Covisint stands at the forefront of innovation in the $500 billion auto parts procurement market, streamlining processes and fostering collaboration.

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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

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