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Automotive Industry

5th Annual Quest for Excellence: Automotive Industries' annual supplier survey ranks the best-of-the-best in the industry

Automotive Industries, July, 2002 by Andrew Cummins

Once again, Automotive Industries has undertaken the task of determining which OEM suppliers are really the best of the best. The ballots are in and our readers have spoken, the industry has determined this year's winners.

Excellence is the foundation on which all supplier companies are built. This is a tough industry and to measure up to the stiff competition, suppliers must not only keep their eye on the immediate road ahead, they also must keep their long-term mission clear and be prepared to react at a moment's notice to customers' wants and desires.

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Utilizing the extensive subscriber list of Automotive Industries magazine as a database, we contacted over 12,000 readers who specialize in each of the functional categories. We asked these readers to rank suppliers on the critical issues of quality, price, delivery, service/response and innovation. A total of 30 different questionnaires were mailed, each representing a different category of automotive supplier. Respondents were asked to rate suppliers on each of the five criteria on a scale of one to five -- one representing poor and five representing outstanding. In addition, respondents were asked if they were currently using the supplier or if they had used them in the past.

Our rating system is clearly defined for the respondents. A score of five means the supplier was an outstanding performer and significantly exceeds the respondent's standards for acceptable performance. A score of four indicates the supplier is above average and exceeds the standards of acceptable performance. Three is average and means the supplier simply meets the standards for acceptable performance. Two is below average, indicating that the supplier falls below the standard for acceptable performance. And a score of one, or poor, means the supplier significantly falls below the standard of acceptable performance.

Respondents also were given a clear definition for each of the five judging categories. We asked if the supplier consistently meets its quality standards; if it meets targeted pricing requirements; if it has consistent, dependable delivery of materials and services; if it responds quickly and effectively to customer requests and if it suggests innovative concepts and solutions.

Automotive Industries clearly recognizes the outstanding job suppliers do in creating high-quality, value-added products for their OEM customers. As one respondent states: "In today's business, quality is a given. Without it, you're not even in the game." As suppliers are asked by OEMs to assume greater responsibility for reliability and durability, the highest quality standards in engineering, product development, and manufacturing are an absolute necessity.

Pricing is a factor of lean manufacturing practices, supply chain management, inventory control and corporate management control of costs. This is an area of intense competition and more often than not can be an overriding factor in the product procurement process. To be a player in the tier system, suppliers must have their price structures honed to the last penny. This means they must thoroughly understand total-cost principles, acceptable profit margins, and competitive pricing nuances.

On-time delivery is expected and it runs on a pass/fail system. On time you pass. Late you fail. There isn't a supplier today who has not run the risk of shutting down a customer's assembly line due to delivery problems. OEMs will not tolerate failure in the delivery process because it costs them money. Top suppliers do not miss delivery deadlines -- that's why they call them dead-lines.

Customer service and responsiveness are critical issues in the supplier/OEM relationship. Does a supplier offer a level of service beyond the norm? Is the supplier responsive to the needs and even whims of the buyer? Communications are key to good customer service. Top suppliers keep the lines of communication open and react to a customer's need immediately.

Innovation is the watchword of product development. It is through innovation that a supplier sets itself apart from the rest. Innovation is what creates value, justifies price, and creates excitement in a product. Innovation is what the supplier has to sell.

The results of this survey are not the opinion of Automotive Industries or any of its staff. We asked our readers to make the selections based on their own experiences with the individual supplier companies. It is interesting to note that the award recipients vary from year to year. This indicates that the supplier industry is fluid and constantly in motion. Some are getting better, others are maintaining a consistent level of performance; and others are not making the grade from year to year.

Suppliers who consistently rank high in the five areas of quality, price, delivery/response, and innovation deserve to rank among the best of the best and receive the coveted "Quest for Excellence" award. Automotive Industries is proud to honor the following companies with this prestigious award, and congratulates them on their continuous quest to be the best in the industry.

Automotive Industry

5th Annual Quest for Excellence: Automotive Industries' annual supplier survey ranks the best-of-the-best in the industry

Automotive Industries, July, 2002 by Andrew Cummins

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