Delphi Delco Electronics Systems
Global Best Practice Sharing & Knowledge Management
Industry & Competitive Analysis
Overall Performance and Trends
The Auto Parts industry includes original equipment parts manufacturers (OEM) aftermarket parts manufacturers and tire producers For an industry faced with layoffs plant idlings and downward price pressures Auto Parts industry still maintained a fair topline growth rate during last their years (see table and graph below and Exhibit 1) However their profits are hurting across the manufacturing chain (Exhibit 1 cont) The major reasons are a decline in vehicle production and the constant costcutting strategy of bigthree automakers These problems let some supplier to file for bankruptcy or be shaken out of business
Leaders Performance in 3 Yr
57
4804
8984
ROE ()
1009
308
477
Net income growth ()
57
76
483
Sales growth ()
Average
Low
High
3yr
The most important trends are concentrated on consolidation and globalization Intensified competition is pushing a massive industry consolidation Not only OEMs are reducing their Tie 1 suppliers but also these first Tie suppliers are cutting their own suppliers Bigger firms would have ability to provide module〞 instead of single parts and also could spend more on research and engineering After a decade of cost cutting pressed by automakers suppliers have a little room to maneuver in domestic market Instead they are expanding to international markets They hope this diversified market portfolio would have them survive under soft US economy
EBusiness in Auto Parts Industry
As far as ecommerce is concerned Tier 1 firms will heavily invest in electronic business and will expect a lot in return Outsourcing intense competition and modular systems have all contributed to major auto parts suppliers using Web based collaborative
technology or even emanufacturing systems They hope that ebusiness would provide benefit over a very wide range of activities Hence coordination will be strengthened across multiple tiers of suppliers So the ecommerce will continue to be prevalent on the
OEM and Tier one level As a result a lot of OEMTie1 companies will require not only their selves but also their suppliers to become ebusiness capable cross a wide range of business processes But the barriers of implementing ebusiness capability have not a common understanding yet Table 1 exhibited the Ebusiness application in Auto Parts Industry in a general level The Application Rate〞 in this table refers to how many companies in Auto Parts Industry have already implemented a certain Ebusiness applications
To date the webbased systems are the major ecommerce technologies used in this industry These tools cover three major areas manufacturing procurement collaborative and engineering demand planning or Inventory management Table 2 is the detailed breakdown of Current Ebusiness application in Auto Parts Industry
Among these traditional competitors of Delphi most of them put ignorant effects on both the strategic tactical and the operational level of Ebusiness Although Covisint an online auction company built by big 3 only has around 50 registered companies of the auto industry＇s 30000 suppliers The majority of those members are primary or ``tier 1＇＇ suppliers As the rival companies of Delphi Aana Corp FederalMogul Corp and ArivnMeritor Inc presented as Ebusiness pursuers For example Dana has already implemented a wellbuilt ebusiness program which included eSource package from i2 technologies and eProcurement buyer software from Ariba Inc This system effectively helps Dana manage inventory direct purchasing and FreeMarkets auction Another auto parts supplier Federal Mogul has signed a contract with Blue 292 to implement a Blue 292 Webbased environment The company will deliver its EHS Management System via the Internet to Federal Mogul＇s 150 worldwide facilities ArvinMeritor had launched its ecategory system providing a new online product literature ordering process for its customers making it the first major drive train component manufacture to offer this convenience It’s really hard to judge which one has most advantaged ecommerce system However Dana Corp seems to be in the front line in term of appliance of sound ecommerce model
Overall as the controversy relationships between OEMs and auto parts suppliers grow ever more complex along with more interaction between different tiers Ebusiness is thought as a right direction and will provide new strategies and tools for auto parts
suppliers On the same taken Ebusiness is also becoming a hot spot to compete for In a foreseeable future the direction of Ebusiness in Auto Parts Industry should be the continued system integration of supply chain customer interface and information management
Ebusiness System Intergration
Global Business Process Optimization through the online exchange of supply chain and product development information
Seamless customer interface across marketing sales and customer service
Realtime management of information teams and business processes
文档香网(httpswwwxiangdangnet)户传
《香当网》用户分享的内容，不代表《香当网》观点或立场，请自行判断内容的真实性和可靠性！
该内容是文档的文本内容，更好的格式请下载文档
Delphi Delco Electronics Systems
Global Best Practice Sharing & Knowledge Management
Industry & Competitive Analysis
Overall Performance and Trends
The Auto Parts industry includes original equipment parts manufacturers (OEM) aftermarket parts manufacturers and tire producers For an industry faced with layoffs plant idlings and downward price pressures Auto Parts industry still maintained a fair topline growth rate during last their years (see table and graph below and Exhibit 1) However their profits are hurting across the manufacturing chain (Exhibit 1 cont) The major reasons are a decline in vehicle production and the constant costcutting strategy of bigthree automakers These problems let some supplier to file for bankruptcy or be shaken out of business
Leaders Performance in 3 Yr
57
4804
8984
ROE ()
1009
308
477
Net income growth ()
57
76
483
Sales growth ()
Average
Low
High
3yr
The most important trends are concentrated on consolidation and globalization Intensified competition is pushing a massive industry consolidation Not only OEMs are reducing their Tie 1 suppliers but also these first Tie suppliers are cutting their own suppliers Bigger firms would have ability to provide module〞 instead of single parts and also could spend more on research and engineering After a decade of cost cutting pressed by automakers suppliers have a little room to maneuver in domestic market Instead they are expanding to international markets They hope this diversified market portfolio would have them survive under soft US economy
EBusiness in Auto Parts Industry
As far as ecommerce is concerned Tier 1 firms will heavily invest in electronic business and will expect a lot in return Outsourcing intense competition and modular systems have all contributed to major auto parts suppliers using Web based collaborative
technology or even emanufacturing systems They hope that ebusiness would provide benefit over a very wide range of activities Hence coordination will be strengthened across multiple tiers of suppliers So the ecommerce will continue to be prevalent on the
OEM and Tier one level As a result a lot of OEMTie1 companies will require not only their selves but also their suppliers to become ebusiness capable cross a wide range of business processes But the barriers of implementing ebusiness capability have not a common understanding yet Table 1 exhibited the Ebusiness application in Auto Parts Industry in a general level The Application Rate〞 in this table refers to how many companies in Auto Parts Industry have already implemented a certain Ebusiness applications
To date the webbased systems are the major ecommerce technologies used in this industry These tools cover three major areas manufacturing procurement collaborative and engineering demand planning or Inventory management Table 2 is the detailed breakdown of Current Ebusiness application in Auto Parts Industry
Among these traditional competitors of Delphi most of them put ignorant effects on both the strategic tactical and the operational level of Ebusiness Although Covisint an online auction company built by big 3 only has around 50 registered companies of the auto industry＇s 30000 suppliers The majority of those members are primary or ``tier 1＇＇ suppliers As the rival companies of Delphi Aana Corp FederalMogul Corp and ArivnMeritor Inc presented as Ebusiness pursuers For example Dana has already implemented a wellbuilt ebusiness program which included eSource package from i2 technologies and eProcurement buyer software from Ariba Inc This system effectively helps Dana manage inventory direct purchasing and FreeMarkets auction Another auto parts supplier Federal Mogul has signed a contract with Blue 292 to implement a Blue 292 Webbased environment The company will deliver its EHS Management System via the Internet to Federal Mogul＇s 150 worldwide facilities ArvinMeritor had launched its ecategory system providing a new online product literature ordering process for its customers making it the first major drive train component manufacture to offer this convenience It’s really hard to judge which one has most advantaged ecommerce system However Dana Corp seems to be in the front line in term of appliance of sound ecommerce model
Overall as the controversy relationships between OEMs and auto parts suppliers grow ever more complex along with more interaction between different tiers Ebusiness is thought as a right direction and will provide new strategies and tools for auto parts
suppliers On the same taken Ebusiness is also becoming a hot spot to compete for In a foreseeable future the direction of Ebusiness in Auto Parts Industry should be the continued system integration of supply chain customer interface and information management
Ebusiness System Intergration
Global Business Process Optimization through the online exchange of supply chain and product development information
Seamless customer interface across marketing sales and customer service
Realtime management of information teams and business processes
文档香网(httpswwwxiangdangnet)户传
《香当网》用户分享的内容，不代表《香当网》观点或立场，请自行判断内容的真实性和可靠性！
该内容是文档的文本内容，更好的格式请下载文档
