DETROIT - Tier 1 suppliers are more focused on integrating their internal systems than on improving collaboration with automakers and their supply chains.
That's one of the preliminary findings in a study that will be completed in April by the University of Michigan’s Office for the Study of Automotive Transportation, Oracle Corp. and the Original Equipment Suppliers Association.
The study, which includes surveys and interviews with supplier executives, looks at three areas: internal integration, external collaboration with automakers and external collaboration with their own supply chain.
Tier 1 suppliers have placed internal integration and external collaboration high on their list of priorities, said Bruce Belzowski, senior research associate at the Office for the Study of Automotive Transportation. Suppliers ranked improving internal integration and external collaboration third when asked about what initiatives they value the most. That tied with improving quality. Reducing cost was first. Reducing time was second.
The study found that internal integration is more advanced than external collaboration.
Belzowski said: "Everyone seems to be focused on cleaning up their internal house before rolling out those processes up and downstream."