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 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