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Robert Bosch Corporation Plan Helps Control Costs

1 May 2000

Robert Bosch Corporation Plan Helps Control Costs

    FARMINGTON HILLS, Mich., April 28 As a part of global
activities emphasizing innovation, product quality and customer satisfaction,
Robert Bosch Corporation has implemented a plan to help control costs and
strengthen relationships with key suppliers in the automotive industry.  These
activities, which will be coordinated with global purchasing activities, will
help Bosch become a more competitive and successful supplier to the automotive
industry.
    "We see some great opportunities for Bosch and our suppliers with this
program," said Claus Wich, director, Corporate Purchasing North America,
Robert Bosch Corporation.  "Through our supply chain management activities we
are continuing to strengthen our position with both our customers and our
suppliers.
    "In addition to helping Bosch reduce costs on some commodity items, this
plan means we will be working closer with our best suppliers to help make us
all more successful.  These activities are important to the overall strength
of our supply chain and will mean that, with the help of our suppliers, we
will be able to increase the value we provide to our customers."
    One key aspect of the Bosch plan will be using commodity teams and cross-
functional teams to identify and improve the elements in the supply chain
which are underperforming.
    Another important step for Bosch is the inclusion of purchasing associates
in the engineering development organization.  This stronger relationship will
allow Bosch purchasing to include key suppliers earlier in the design and
development phase of new products.  The company expects significant cost
advantages as this process continues to grow as well as improved opportunities
for its suppliers.
    Bosch designs and produces precision automotive components and systems
sold to vehicle and powertrain manufacturers worldwide.  These include systems
and components for gasoline and diesel injection, airbag components, ABS and
conventional brake systems, as well as small motors, electrical and electronic
equipment.
    Robert Bosch Corporation is the wholly owned U.S. subsidiary of Robert
Bosch GmbH, headquartered in Stuttgart, Germany.