Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 21.06.2005
Length: 25 pages
Data source: Published sources
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Abstract
The automobile industry played a key role in the mass production, automation, lean manufacturing, and innovation of technology. The key role holds equally true for the important collaboration between original equipment manufacturers (OEM''s) and their suppliers, and more specifically OEM''s outsourcing to suppliers. In 2004, this outsourcing trend reached an all-time high, when content from suppliers accounted already for more than 60% of the manufacturing cost per vehicle and this number was estimated to further increase up to 75% within the next five years. This industry note critically shows trends and repercussions for OEM''s as well as for suppliers.
About
Abstract
The automobile industry played a key role in the mass production, automation, lean manufacturing, and innovation of technology. The key role holds equally true for the important collaboration between original equipment manufacturers (OEM''s) and their suppliers, and more specifically OEM''s outsourcing to suppliers. In 2004, this outsourcing trend reached an all-time high, when content from suppliers accounted already for more than 60% of the manufacturing cost per vehicle and this number was estimated to further increase up to 75% within the next five years. This industry note critically shows trends and repercussions for OEM''s as well as for suppliers.