Manufacturing Industry
Study: E-trade to benefit auto suppliers.(Brief Article)
Plastics News, June, 2000 by NEWS, Ralph Kisiel AUTOMOTIVE
DETROIT -- When DaimlerChrysler AG, Ford Motor Co. and General Motors Corp. announced their joint online trade exchange in February, many suppliers feared that it would be a high-tech tool for squeezing margins. More than three months later, many unanswered questions surround the online exchange, now known as Covisint.
But a new study suggests that automakers and suppliers stand to win by using it and other electronic marketplaces. The technology will provide suppliers with marginal annual pretax improvements in profit over the next five years, according to the study, called "B2B E-commerce in the Automotive Industry -- A Virtual Reality Check." Roland Berger Strategy Consultants and Deutsche Bank Alex. Brown conducted the study earlier this year. It was...
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