Winning in This Economy
of the OEMs are looking at the huge opportunities in Western Europe and
Asia for not only part sourcing for U.S. production, but also for new
consumers of their vehicles. Financial statements show that the Big
Three domestic companies are profitable overseas and losing money in
the United States. The desire for smaller and fuel-efficient cars has
long been the rule in these overseas marketplaces. Capitalizing on
these designs and efficiencies will lead to reduced engineering costs.
A "world car" - a concept from Ford in the `80s - will seemingly rise
again. Working to a global demand for products and adapting to this
global consumer is critical to future success for OEMs and Tier 1
The $2,500 car is not a pipe dream. While this
creation could never pass stringent U.S. safety and emissions
standards, the paradigm shift will occur as we adapt to a world market
and compete on a total cost basis with supply chain costs plus cost of
wages and materials from various world markets. Know your costs and
price your products and equipment to beat the total cost of the
alternative global solution. Compete with knowledge of the costs of
your global competitors. Are you studying the economics faced by your
customer? Have you engaged them in the dialogue? What is the total cost
calculation they are using? How can logistics be your differentiator?
to change. Accept change. Seek change. The future will be brightest for
those OEMs, tiers, and suppliers to the industry that build flexibility
into their business models.
Zielinski is vice president, business development for CEVA Logistics, a
supply chain management company with facilities in more than 100
countries. Visit the company's website at www.cevalogistics.com.
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