New Car Technology To Result In Change In OEM/Supplier Relationships – Brief Article
Citing implications of burgeoning electronic and wireless networking technology in vehicles, Yazaki North America President and COO George R. Perry predicted major shifts in the relationships between automotive manufacturers and their suppliers.
Speaking at the University of Michigan Management Briefing Seminars in Traverse City, Perry said, “The earmarks of the most successful OEM/supplier relationships are trust, reliability and equitable sharing of risks and rewards. And, the ability to collaborate effectively amid increasingly complex OEM/supplier relationships will separate future winners and losers.”
“Consumers are having a revolutionary effect on the technology that goes into vehicles,” said Perry. “Vehicles today are becoming so much more than mere modes of transportation … they are vital nodes in our everyday, networked world.”
“As the possibilities and implications expand, network technology may well be changing the basis for competition in our industry,” he said. “The technology underpinning our networked world is a key enabler of the collaboration and relationship strategies that will make it possible for suppliers to deliver ever-greater functionality, quality and reliability, faster and cheaper,” Perry said.
Consumer familiarity with the latest info-tainment gadgets, from multi- media to cell phones to wireless Internet access, is driving demand for these technologies in vehicles. “In fact, much of the technology integral to the networked vehicle is available at Best Buy and Circuit City, he added.”
The unprecedented consumer pull on wireless connectivity and networking technologies is increasing pressure to shorten product development cycles. One of the ways that the industry can get products to market in less time, according to Perry, is “new kinds of OE-supplier and supplier-supplier associations, based on more intimate relationships.” “The leaders … will be the ones who concentrate on their core skills, apply best practices, continue to improve, build on intimate relationships, and, of course, leverage technology for strategic advantage, not simply tactical convenience.”
Yazaki Corp. is a global leader in the research and development of vehicle power and data solutions, as well as advanced electronic technologies for vehicle applications. Yazaki produces electrical distribution systems, fiber optics, advanced networking products, instrumentation, junction blocks, connector systems, and advanced electronics.
Worldwide, the company employs over 115,000 people in 31 countries, 1,700 of whom are based in the company’s North American headquarters and research center campus in Canton, Michigan.
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