Delphi mandates suppliers use Covisint

Delphi Automotive Systems Corp. is requiring its 5,000 global suppliers to join Covisint in order to do business with the Tier 1 supplier.

2001 Management Briefing Seminars index
Delphi is the first supplier to announce that it will launch a supplier portal on the Covisint exchange.

The portal, co-branded with Delphi and Covisint, will allow Delphi to communicate more quickly with its suppliers and collaborate more effectively on product development. It will be launched by the end of September.

Covisint LLC, conceived and developed last year by Ford Motor Co., General Motors and DaimlerChrysler, expects to launch additional supplier portals this year but would not reveal the companies with which it is negotiating.

By allowing Covisint to host the portal, Delphi avoids the cost of having to build its own Web-based portal and develop the necessary software.

"It just made sense to us to share the infrastructure," said Rick Radecki, Delphi's e-business director, during an interview at the Management Briefing Seminars. "There is a risk to being first; will Covisint be a viable exchange? But we feel it's the direction that the industry is going."

Delphi believes suppliers are going to use Covisint anyway, so why not make it possible for them to communicate with Delphi via Covisint, he said.

"This also supports our automotive customers who are using Covisint," Radecki said. In addition to the Big 3, Nissan, Renault and Peugeot are minority equity partners in the global exchange.

The Delphi supplier portal will begin with a simple link to company policies, guidelines and general information for suppliers. In the second phase, the portal will have a common global messaging service, followed by a new quality tool to replace and enhance Delphi's existing Global Quality Tracking System.

Delphi suppliers will have to join Covisint and then sign up for access to the Delphi portal. Suppliers will have to pay $33 per month for each person that needs access to the portal.

Delphi will continue to add other functions, probably in 90-day intervals, such as inventory visibility, collaborative work tools, a shipping database and electronic requests for quotes.

Delphi has been helping Covisint shape the co-branded supplier portals, Radecki said.

Before Covisint hired Kevin English as its CEO, Delphi had been in protracted negotiations with Covisint on terms for the supplier portal, Radecki said.

Said Radecki: "It got a lot simpler and quicker once Kevin English was named." 

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