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SupplySolution Provides Considerations and Recommendations In Selecting and Implementing Automotive Supply Chain Technologies

SupplySolution Provides Considerations and Recommendations In Selecting and Implementing Automotive Supply Chain Technologies

            Automotive supplier e-readiness evaluated in new study
                 'E-readiness of the Automotive Supply Chain'

    TRAVERSE CITY, Mich., Aug. 6 SupplySolution, the leading
provider of supply chain execution applications for manufacturing,
distribution, exchange and supplier organizations, today will unveil a series
of considerations and recommendations aimed at automotive trading partners,
intending to educate them to the benefits that e-business solutions hold for
the supplier base.  This information will be released in conjunction with
initial results of a research report announced today by the Environmental
Research Institute of Michigan, the Center for Automotive Research, and
SupplySolution.  The initial findings of the report indicate that 77% of Tier-
1 suppliers anticipate consolidation of their supplier base over the next
year, and the most important factor in their selection or continuation of
supplier organizations, is the supplier's ability to conduct e-business.
    "Automotive suppliers at every level of the supply chain can no longer
afford to take a 'wait and see' attitude, if they want to compete and survive
in the new economy," said SupplySolution senior vice president of sales and
business development Don Woerner.  "However, we have found an unfortunate lack
of resources and information in helping the supplier base in making
intelligent planning and implementation decisions.  In conjunction with the
release of this study's preliminary findings, we felt it important to present
recommendations that suppliers can immediately consider and evaluate in
developing or continuing their e-business strategy."
    Entitled, "E-readiness of the Automotive Supply Chain - Just How Wired is
the Supplier Sector?," the study was initiated in January 2001 by the Center
for Automotive Research and SupplySolution.   The initial survey results
overwhelmingly spoke to the need of automotive suppliers to have an executed
e-business supply chain strategy in the next two to three years.  The
preliminary results of the research project were announced today at a workshop
held at the 2001 Automotive Management Briefing Seminars in Traverse City,
Mich.  As a part of the workshop, Woerner will present the series of
considerations and recommendations, detailed below, to the audience consisting
of automotive OEMs, as well as suppliers from all tier levels.
    SupplySolution has seen wide adoption of its hosted supply chain execution
technologies at all levels of the automotive supply chain, and is now
currently serving over 1,100 companies with its application set and technology
infrastructure.
    "Our vision has been to provide leading technology solutions that deliver
unprecedented levels of value to every partner in the supply chain," continued
Woerner.  "We are able to provide leadership to the industry, with the goal
that all can gain from technology."
    SupplySolution offers the following considerations and recommendations to
automotive trading partners in selecting and implementing e-business
strategies:

    Preparation
    *  Begin by assessing the company's strategy, as e-business is highly
       effective in driving financial, growth-related and additional corporate
       goals.
    *  Identify priority areas to address within operations.  Inventory
       management and cash retention are often the strongest areas to begin
       concentration.
    *  Conduct an internal audit to assess readiness, and answer the question
       "can I get there with my current level of readiness?"

    Technology selection
    *  Ask your customers what they are using.
    *  Ask the technology company you are considering for a list of reference
       customers.
    *  Be wary of biased resources from consultants.
    *  Understand the benefits of a hosted application model.

    Technology implementation
    *  Work with your solution provider to develop an execution plan.
    *  Within the execution plan, determine milestones.
    *  Conduct a monthly review with your solution provider and executive
       management team at regular intervals.

    Additionally, SupplySolution suggests that technology purchasers take a
good look 'under the hood' to avoid hidden costs of training and
implementation, as well as upgrades for tailoring a solution to an
organization, stand-alone isolationist solutions, and the tendency toward
self-created solutions.
    The full research report, with accompanying recommendations, will be
available the week of August 27, 2001.

    About CAR and ERIM
    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.

    About SupplySolution
    SupplySolution is a leading supply-chain execution company, delivering
value to manufacturers, distributors, exchanges and suppliers through the
implementation of collaborative supply chain applications, including the i-
Supply Service, i-GetIt and the SupplySolution Global Infrastructure.  Today,
i-Supply is one of the most widely used real-time, direct-material fulfillment
applications in the automotive industry, in operation at over 1,100
organizations.  In March 2001, SupplySolution signed an exclusive provider
agreement with Covisint, providing automotive users availability to i-
Supply(TM), co-branded as Covisint Fulfillment(TM), and all related
infrastructure technologies, through the Covisint exchange.
    The company's technology headquarters are located in Santa Barbara,
California, and its sales and service headquarters are located in Southfield,
Michigan.

    i-Supply(TM) Service is a trademark of SupplySolution, Inc.

               
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