GM out to drive all suppliers online

8 May 2002
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09 May 2002 | David Arminas

The world's biggest car maker is to have all its suppliers conduct their business proposals electronically through Covisint, the sector's major online trading exchange, starting in November.

Stephan Adam, General Motors' (GM) regional deployment manager responsible for integrating all Covisint tools throughout the company in Europe, said the move was the first step for the car maker towards more electronic collaborative design and engineering.

"Covisint is central to electronic collaboration for GM and we'll be using it for all requests for quotes (RFQs)," he said.

"We'll be using Covisint's new Quote Manager software, to be launched this month, to do our RFQs 100 per cent electronically, including all drawings.

"Last year we put $80 billion of GM's business through Covisint, and we'll put at least that much through it this year."

Adam called Covisint "GM's most strategic purchasing tool" and said the company would increasingly move into collaborative design and engineering.

Lars Olrik, managing director Europe for Covisint, said the exchange's future lay in collaborative engineering processes, not only reductions in purchasing costs.

"The role of Covisint is to create standards of communications and processes that allow manufacturing costs to be reduced," he said.

SMmay2002

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