General Motors is giving TradeXchange, its online purchasing Web, the ability to look deeper into the supply chain.
GM and Commerce One Inc., its partner in TradeXchange, said they will add supply chain management software from i2 Technologies Inc. of Dallas to the purchasing hub.
In the second quarter of this year, suppliers who use TradeXchange will be able to use some of the forecasting, logistics and order-processing analysis offered by i2 Technologies. Fees were not announced.
For example, a purchasing manager at an automaker can go into TradeXchange to buy a gasket and can handle the process electronically. Using i2 software, that purchasing manager can then check to see if the gasket supplier can deliver the gasket on a promised date.
GM said it will move its annual global purchasing activity, which currently amounts to $87 billion, to TradeXchange within the next couple of years. Chairman Jack Smith said last week that GM expects to conduct about $50 billion in transactions on TradeXchange this year.
The purchasing site will be used to buy maintenance and repair supplies as well as production parts, GM said.
To better manage production purchasing on the Web, GM and Commerce One needed forecasting and capacity planning capability, said Jeffrey Bodenstab, vice president of worldwide marketing for i2 Technologies' automotive and industrial unit. The i2 technology also will help GM improve the supply chain performance of lower-tier suppliers, he added.
Harold Kutner, GM's group vice president of worldwide purchasing, said TradeXchange will create a stronger and leaner supply chain for GM. All participants will benefit, he said.
Said Kutner: 'The goal with GM TradeXchange is not to move the costs around the supply chain but to reduce the costs of all of our suppliers.'