Based to the whole value of a vehicle,suppliers in the automotive industry now has a value share of 70% or more. The competitiveness of a company is dependent on the competitiveness on its suppliers. 

This increases the importance of procurement in the company. The procurement must ensure that all supplier’s long term requirements in terms of cost, quality and delivery performance can be met.  If there are current problems with quality or delivery there is an urgent need for action. The company can manufacture the product itself, changing supplier or develop the supplier. The described dependence by the supplier and its technical know makes a change unlikely, so that companies focus on supplier development, and prefer a long-term relationships with their suppliers. Supplier development is one of the procurement instruments available to ensure competitiveness of both companies. 

There are various means of selecting supplier development: 

  1. Successful companies use a preventive, strategic development of suppliers to a competitive advantage. Studies have shown that it is the strategic oriented programs are most successful in the long term.
  2. Companies can build up new suppliers, z. B. especially because of a monopolic situation of the current supplier or as part of a Global sourcing strategy, if for example supplier’s Low-cost locations have to be qualified to meet standards of the Western automotive industry.
  3. We offer a systematic training of suppliers in the methods and components of lean production, which many companies already  have done successfully. Now they are working on the supply chain transfer, in addition to other projects. Areas such as quality management, controlling, logistics, purchasing or development have to be investigated and defined measures resolved. So could be the waste of resources minimized, both on supplier’s site and at the interface to your company, to secure a common long-term competitiveness.