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AIAG Clarifies Relation to Autochain Online

30 September 1998

AIAG Issues Clarification on Autochain Online(TM) Program

    SOUTHFIELD, Mich., Sept. 30 --  The Automotive Industry
Action Group (AIAG) would like to clarify earlier reports about the AutoChain
Online(TM) program -- an electronic data interchange (EDI) performance
tracking database introduced at the AUTO-TECH 98 Conference & Exposition
earlier this month.
    "Let there be no mistake about this: The AutoChain Online(TM) program is
an AIAG project, and it is being offered by the organization to help the
auto industry manage and measure the progress of EDI implementation throughout
the automotive supply chain," said Richard T. Simmons, AIAG executive
director.  "Harbinger Corporation designed and was ultimately contracted by
the AIAG to manage the database, but the AutoChain Online(TM) program is an
AIAG initiative and exists because of a need identified by AIAG's member
companies."
    AIAG's AutoChain Online(TM) database will support suppliers trying
to meet the Big Three automaker requirements for increased EDI use -- as
outlined in a letter sent in 1996 by the automakers to their tier one and sub-
tier suppliers.  In the letter, the Big Three requested suppliers pursue
electronic commerce technologies to improve business processes, reduce cycle
time, lower inventories, increase on-time shipments and cut costs.
    The AutoChain Online(TM) database offers many benefits to the auto
industry including: centralization of industry EDI information; elimination of
redundant OEM and supplier surveys; increased visibility of EDI usage and
implementation; better, faster and more accurate communication of information;
and the establishment of a foundation for new supply chain initiatives.
    Driven by the results of AIAG's Manufacturing Assembly Pilot (MAP) study
-- which improved the material and information flow within a four-tier
seat assembly chain -- the AIAG identified the need for a single, efficient
process for measuring and monitoring EDI performance.  (The MAP study
identified that widespread use of common EDI business practices could save
the North American automotive industry as much as $1 billion annually or an
average of $71 per car).
    Based on this need, the AIAG conducted an AutoChain Online(TM) pilot using
a Harbinger-designed database.  In this pilot, participants -- including
Chrysler Corp., General Motors Corp., Ford Motor Co., Johnson Controls, Inc.,
ITT Automotive, Dana Corp., Textron Automotive and 19 tier-two and tier-three
suppliers -- had access to the secure database to enter data and monitor the
status of only their own supply chains.
    Based on the pilot's success, the AIAG board of directors approved the
organization's contract with Harbinger to maintain the database.
    According to Simmons, Chrysler and Ford have encouraged their suppliers to
participate in this initiative, which is expected to speed the implementation
of cost- and time-saving electronic data interchange practices throughout the
North America automotive industry.
    Founded in 1982, the AIAG is a not-for-profit trade association of over
1,400 automotive and truck manufacturers and their suppliers.  Originally
recognized for its efforts to standardize electronic data interchange and bar
code standards to assist tier one suppliers, the AIAG's mission has expanded
to cover all levels of the automotive supply chain as well as to include
numerous programs and initiatives aimed at improving its members' productivity
and quality.
    More information about the AIAG and its initiatives can be found at its
website at http://www.aiag.org.
    AutoChain Online is a trademark of the Automotive Industry Action Group
(AIAG), Southfield, Mich.