Interoperability costs in the US automotive supply chain

Smita B. Brunnermeier, Sheila A. Martin

Supply Chain Management An International Journal · 2002 · 81 citations · 4 references

Concepts

TL;DR

Concurrent design and engineering are essential for the competitiveness of the US automotive industry, yet product data exchange barriers hinder these processes and similar challenges affect other data‑intensive supply chains such as shipbuilding and aerospace. The study evaluates methods to alleviate interoperability problems and assesses emerging technologies and formats as promising solutions that could yield significant industry savings. Imperfect interoperability costs the US automotive industry roughly $1 billion annually and delays new model introductions by at least two months, while emerging technologies and formats could provide significant savings.

Abstract

Concurrent design and engineering in the supply chain are vital to the growing competitiveness of the US automotive industry. However, these innovative design and development processes are hampered if product data cannot be exchanged seamlessly across the supply chain. This paper estimates that imperfect interoperability costs the US automotive industry about $1 billion per year and delays the introduction of new models by at least two months. It also evaluates different methods for alleviating interoperability problems and concludes that emerging technologies and formats offer promising solutions that may lead to significant savings for the industry. Benefits from alleviating interoperability problems can also be realized in other product data exchange‐intensive supply chains like shipbuilding and aerospace.

References

4