About the project

Creating an exchange for optimizing the supply chain for Tier 1 suppliers of auto parts was an option that was considered as a business opportunity in the B2B discrete manufacturing industry. However, this option was ruled out after carefully analyzing the data that was collected on the auto industry.

Taking into account that Covisint will dominate the auto spare parts industry (GM, Ford, DaimlerChrysler, Renault and Nissan control have over 58% of the world auto manufacturing market), and other major players such as BMW, VW and Toyota will create their own marketplace, it seems that creating another marketplace in the auto spare parts industry have little chance of success.

Based on that our group had to look for a different business opportunity and we have identified one on the Technology side. To be able to communicate effectively with there clients, suppliers need to use collaborative supply chain management systems and integrate the systems with those of their clients. However, installing expensive solutions such as SAP or Oracle, can be very costly for most Tier 2 and Tier 3 suppliers as well as large number of Tier 1 suppliers.

In this context, our company will act as an ASP to make possible for those suppliers to use the supply chain management systems effectively at affordable prices. For an initial fee of $250,000 and monthly subscription fee of $10,000 , the supplier will have access to an integrated system which will include applications in the following areas:- 

  By outsourcing supply chain management systems, suppliers will not only preserve precious cash but will also cut overhead expenses by reducing order handling time.