Supply Chains and Covisint James Burns

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

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

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

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

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

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

Covisint--etymology Collaboration Vision Integration

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

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

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

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

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

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