Operational Involvement Key to E-Business Success, Federal-Mogul Executive Affirms
4 December 2000
Operational Involvement Key to E-Business Success, Federal-Mogul Executive Affirms
SAN JOSE, Calif., Dec. 4 A growing number of automotive
executives are assuming electronic business responsibilities as their
companies strive to capture the Internet's potential for speed and efficiency.
But these new e-business functions will find it hard to succeed on their own,
according to the e-business leader of a major global automotive supplier.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000525/DETH025LOGO )
"E-business success starts with engaging the operational experts -- early
and often," said Kimberly Welch, vice president of e-business and
communications for Federal-Mogul Corp. , a $6-billion components
and systems supplier based in Southfield, Michigan.
"We have found that the best e-business approach is to team closely with
our operations people to identify the right processes -- in many cases new
processes -- where e-business solutions can be applied to maximize results,"
Welch said.
Welch gave a keynote speech on supply chain e-business Dec. 1 at
EyeForAuto USA, a conference on e-business automotive strategy in San Jose,
California, attended by about 200 industry leaders. In the past year,
Federal-Mogul has launched a variety of e-business initiatives for customers,
suppliers, shareowners and employees. These efforts earned Federal-Mogul the
highest ranking among motor vehicle suppliers in eWEEK magazine's recently
published FastTrack 500 list -- an annual ranking of top e-business
innovators.
Welch said e-business projects can become too broad, complex and time-
consuming if they are not tied to specific business objectives. She said the
two most vital questions to answer before launching any e-business initiative
are: 1) Will it make us more efficient? and 2) Will it make us more
effective?
"Businesses should not be afraid to start small, as true successes build
rapidly," she observed.
Engaging experts from many functions such as marketing, engineering and
manufacturing -- early in the process -- has helped Federal-Mogul launch e-
business initiatives that provide direct value, Welch noted. Federal-Mogul
recently introduced fmeconnect, an Internet service through which global
automotive replacement parts distributors can access a broad range of
information and perform business-to-business transactions with the company.
Another Federal-Mogul Web-based application, SupplyNet, allows the company's
high-volume suppliers to check their quality and delivery performance, submit
cost-saving suggestions, review purchasing policies and procedures, track
minority supplier purchases, and give and receive feedback online. Federal-
Mogul participates in online surplus asset auctions, and was among the first
major suppliers to join Covisint, the business-to-business automotive Internet
exchange.
Expanding on the success of SupplyNet, Federal-Mogul is applying e-
business solutions to other supply chain initiatives, Welch explained at
EyeForAuto USA. These include Web-enabling the purchase of non-production-
related goods and services, improving the efficiency of transportation and
logistics, and piloting Web-based visual "pull" systems that allow suppliers
to manage inventory and replenish materials.
The potential benefits of e-business for suppliers such as Federal-Mogul
-- which provides parts for most of the world's major auto manufacturers and
the global aftermarket -- are enormous, Welch concluded.
"Federal-Mogul has been around for more than 100 years," Welch said. "I
strongly believe e-business has the potential to revolutionize our business
more than any other development in the past century."
Headquartered in Southfield, Michigan, Federal-Mogul is an automotive
parts manufacturer providing innovative solutions and systems to global
customers in the automotive, light truck, heavy-duty, railroad, farm and
industrial markets. The company was founded in 1899. Visit the company's web
site at http://www.federal-mogul.com for more information. Federal-Mogul's
press releases are available by fax through Company News On-Call, call
800-758-5804, ext. 306225.