Auto suppliers must improve planning, forum says
By Staff -- Purchasing, 1/14/1999 2:00:00 AM
The global economic crisis is creating new challenges for automotive suppliers, and many need to improve their planning process to avoid future financial problems, according to participants in a recent forum of auto suppliers and manufacturers.
The "integrated strategic planning assessment" forum, conducted by consulting firm Arthur Andersen, surveys leading automotive suppliers and vehicle producers on critical success factors facing the automotive supply chain. Three key conclusions can be drawn from the forum, according to Arthur Andersen:
* Automotive suppliers recognize that strategic planning is key to being prepared for a downturn in the automotive market.
* Suppliers need to improve their planning capabilities to better address the current market environment and uncertain future.
* Suppliers recognize the importance of implementing plans throughout their organizations.
The forum also unveiled that, although corporate goals and strategies often are developed, in some cases they are not effectively implemented in day-to-day operations of a supplier's business.
Another finding from the forum: Suppliers have to take the initiative in developing strategies, not rely on their OEM customers. "In the past, suppliers tended to rely on OEMs to provide their strategic direction," says Randy Miller, automotive business consulting partner at Arthur Andersen. "Our forum indicates suppliers recognize that they control their own destiny. They also recognize that effective strategic plans and implementation of those plans are the key to their success."
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