5.7-48.0489.84ROE(%)-100.9-30847.7Netincomegrowth(%)5.7-7.648.3Salesgrowth(%)AverageLowHigh3-yrDelphiDelcoElectronicsSystems:GlobalBestPracticeSharing&KnowledgeManagementIndustry&CompetitiveAnalysisOverallPerformanceandTrendsTheAutoPartsindustryincludesoriginalequipmentpartsmanufacturers(OEM),after-marketpartsmanufacturers,andtireproducers.Foranindustryfacedwithlayoffs,plantidlingsanddownwardpricepressures,AutoPartsindustrystillmaintainedafairtop-linegrowthrateduringlasttheiryears(seetableandgraphbelowandExhibit1).However,theirprofitsarehurtingacrossthemanufacturingchain(Exhibit1cont.).Themajorreasonsareadeclineinvehicleproductionandtheconstantcost-cuttingstrategyofbig-threeautomakers.Theseproblemsletsomesuppliertofileforbankruptcyorbeshakenoutofbusiness.Themostimportanttrendsareconcentratedonconsolidationandglobalization.Intensifiedcompetitionispushingamassiveindustryconsolidation.NotonlyOEMsarereducingtheirTie1suppliers,butalsothesefirstTiesuppliersarecuttingtheirownsuppliers.Biggerfirmswouldhaveabilitytoprovide“module”insteadofsingleparts,andalsocouldspendmoreonresearchandengineering.Afteradecadeofcostcuttingpressedbyautomakers,suppliershavealittleroomtomaneuverindomesticmarket.Instead,theyareexpandingtointernationalmarkets.TheyhopethisdiversifiedmarketportfoliowouldhavethemsurviveundersoftUSeconomy.E-BusinessinAutoPartsIndustryAsfarase-commerceisconcerned,Tier1firmswillheavilyinvestinelectronicbusiness,andwillexpectalotinreturn.Outsourcing,intensecompetitionandmodularsystemshaveallcontributedtomajorautopartssuppliersusingWebbasedcollaborativetechnologyorevene-manufacturingsystems.Theyhopethate-businesswouldprovidebenefitoveraverywiderangeofactivities.Hencecoordinationwillbestrengthenedacrossmultipletiersofsuppliers.Sothee-commercewillcontinuetobeprevalentonthePracticeandProjectsineCommerceVersion2.0KrannertGraduateSchoolofManagement,PurdueUniversityLeadersPerformancein3OEMandTieronelevel.Asaresult,alotofOEM/Tie1companieswillrequirenotonlytheirselvesbutalsotheirsupplierstobecomee-businesscapablecrossawiderangeofbusinessprocesses.Butthebarriersofimplementinge-businesscapabilityhavenotacommonunderstandingyet.Table1exhibitedtheE-businessapplicationinAutoPartsIndustryinagenerallevel.The“ApplicationRate”inthistablereferstohowmanycompaniesinAutoPartsIndustryhavealreadyimplementedacertainE-businessapplications.Todate,theweb-basedsystemsarethemajore-commercetechnologiesusedinthisindustry.Thesetoolscoverthreemajorareas:manufacturingprocurement,collaborativeandengineering,demandplanningorInventorymanagement.Table2isthedetailedbreakdownofCurrentE-businessapplicationinAutoPartsIndustry.PracticeandProjectsineCommerceVersion2.0KrannertGraduateSchoolofManagement,PurdueUniversityTable1:E-BusinessApplicationinAutoPartsIndustryApplicationRateFinishedgoodsinventoryCataloguepricingIntegrationbetweendatasenttosuppliersandtheirinternalsystemsLogistics/ordertrackingProductionplanningCADinteroperabilityorsimilarCADsystemsSpecificbusinessactivitiesComputertohumancommunication-automatedonyourendComputertocomputercommunication-automatedonbothendsGenericE-businesscapabilities49%29%28%23%18%15%15%14%Source:CenterforAutomotiveResearch,2001PracticeandProjectsineCommerceVersion2.0KrannertGraduateSchoolofManagement,PurdueUniversityTable2:E-businessApplicationAreasBreakdownProcurementofproduction...
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