SupplySolution and Center for Automotive Research Launch Research Study to Identify Automotive Supplier e-Readiness

    Findings to shed light on extent to which North American automotive
      suppliers are technically equipped for e-business applications

    SOUTHFIELD, Mich., March 1 SupplySolution, Inc., the
leading provider of supply chain execution solutions for manufacturing and
distributing organizations, and the Center for Automotive Research, today
announced the launch of a research study to gauge the level of Internet-
readiness among automotive supplier and manufacturing organizations.   In
particular, the study aims to identify data representing Tier-2 supplier
technology capabilities, which to date have been largely unidentified.
    "One of the most exciting and possibly promising stories of business use
of the Internet has been the emergence of e-commerce initiatives in the
automotive industry," said Dr. David E. Cole, Director, Center for Automotive
Research.  "The question of whether the automotive supplier industry is ready,
or will be ready anytime soon, for the full implementation of automotive e-
business is an open and strategic question.  Very few objective estimates of
the technical readiness for e-business of the industry exist."
    Forrester Research estimates that 68 percent of supplier revenues in North
America will pass through the Internet by 2004.  Another major study of
supplier e-business has recently estimated the potential annual cost savings
from the use of e-business in the worldwide automotive supply chain at $174
billion by 2005.  Savings and other benefits from automotive e-business are
expected in the areas of sales marketing, engineering, materials procurement,
inventory, and logistics/transportation.
    The study is headed by Dr. Sean McAlinden, Director of Economics and
Business Group for CAR.  "It is clear that the full participation of companies
located in the enormous automotive supplier sector is necessary for the
benefits of automotive e-business to be realized," said McAlinden.
"Currently, coverage and qualitative issues such as bandwidth, server
capacities, the level of organization, facility, and staff involvement (or
connectiveness) appear to be unknown."
    "Based on the far-reaching projections placed on technology within the
automotive supplier industry, there couldn't be a better time to clearly
identify the current landscape," said SupplySolution CEO and President Chris
Moritz.  "It is critical that OEMs, suppliers and e-business providers
understand the level to which technology is currently integrated into supplier
processes in order to make well-informed, cost-effective decisions on current
and future IT investments."
    Preliminary results from the research project will be announced in June
2001.  Additionally, a panel will be devoted to the topic at the 2001
University of Michigan Management Briefings, to be held August 6-10 in
Traverse City, Mich.
    The Center for Automotive Research (CAR) was created in October 2000 at
the Environmental Research Institute of Michigan (ERIM).  Its purpose is to
conduct research in significant issues related to the future direction of the
global automotive industry and organize and conduct forums of value to the
automotive community.
    SupplySolution is the only supply chain execution company currently
delivering value to manufacturers, distributors and suppliers.   The company's
i-Supply Service is the most widely used real-time direct material fulfillment
application in the automotive industry, with over 700 manufacturing
organizations as current subscribers.  Within eight weeks, i-Supply is capable
of driving significant cost savings and process improvements within supply
chains, including: 30-70% reduction in inventory, 50-90% reduction in premium
freight costs and 40-80% reduction in administrative tasks.  SupplySolution
has technology headquarters located in Santa Barbara, Calif. and sales and
service headquarters located in Southfield, Mich.  For more information, visit
http://www.supplysolution.com .