Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Plastics News China
  • Rubber & Plastics News
logo-pn-color
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • End Markets
    • FYI Charts
    • LSR World
    • Multimedia
    • NPE2021
    • K Show
    • ENGEL Sponsored Content
    • Special Reports
    • Top materials of injection molders
      Recycled PET use by product category
      US PET, flexible packaging desintations
      Global fluropolymers additives market: CAGR
    • Exhibitors back NPE cancellation: ‘We couldn't take that risk'
      NPE2021 canceled as in-person event
      NPE reviews its options as pandemic prompts exhibitor to exit
      Machine builders meet pressing needs for plastic in 2020
    • Sponsored By ENGEL Machinery
      Tailored maintenance for injection molding machines and robots
      Sponsored By ENGEL Machinery
      Improve maintenance efficiency with e-connect.monitor
      Sponsored By ENGEL Machinery
      Maximum precision for lowest shot weights
      Sponsored By ENGEL Machinery
      Even more cost effectiveness for small precision parts
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • What Keeps You Up At Night
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Polymer Points Live
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Videos
    • Galleries
    • Podcasts
    • CEO Issue
    • Best Places to Work
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
  • Opinion
    • The Plastics Blog
    • Kickstart
    • Heavy Metal
    • One Good Resin
    • BRICS and Plastics
    • All Things Data
    • Viewpoint
    • Perspective
    • Mailbag
    • Watching, and hoping, for progress in 2021
      COVID-19 stories dominate 2020 headlines
      Plastic Globes ask: Was there a lighter side in 2020?
      Compounders write a business survival story in 2020
    • Kickstart: Unilever calls for 'living wage' pay in supply base
      Kickstart: Electric cars, recycling and warm mittens
      Kickstart: Welcome to the VUCA economy
      Let's get social
    • Heavy Metal: Coronavirus edition, plus the work of working from home
      Don't put off succession planning
      What's a good gift for your cobot? Batteries?
      Here's some big ideas to mull over the holidays
    • Chase expands giving campaign in 2020
      McDivitt will showcase Ascend's COVID-19 work on CNBC's Mad Money
      Move over, Plastic Man: Here comes Plastic Woman
      Star in spotlight with West Virginia philanthropy award
    • There was no choice but canceling NPE still a big deal
      The business case for producer responsibility
      Think divided government stalls plastics legislation? Think again
      ACC, NAM eye economic priorities in Biden presidency
    • Just how big is thermoforming in North America?
      Changing names for compounders embracing corporate branding
      Diversity the key to outperforming the market
      A timeline of the industry's COVID response
    • There was no choice but canceling NPE still a big deal
      Watching, and hoping, for progress in 2021
      The business case for producer responsibility
      Compounders write a business survival story in 2020
    • Perspective: Plastics manufacturers — a surprising contribution to sustainability
      Plastics industry business owners: Listen to your future workforce
      Perspective: ‘Fake news' of a different sort?
      Perspective: Making products in the USA is good for the planet
    • Modernizing recycling infrastructure will benefit businesses as well as the environment
      Mailbag: Oil-plastics connection is overstated
      Mailbag: Plastics recycling not cost-effective
      Mailbag: Price increases hurting North American PE buyers
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
    • Maintenance can ensure efficient blender operation
      Dosing: Perfect for adding color
      Blending vs dosing: What you need to know
      Going low or high: Comparing volume
    • Colors and custom compounds
      In the laboratory: Compounding solutions
      Recycling content: Resins going ‘green’
      Compounding: Glass and other fillers
    • Dryer maintenance: Don’t err with air
      Dryers: Options for a shop’s process
      Dryer installation: Going central?
      Resins: Hygroscopic or non-hygroscopic
    • Electric injection molding presses: Efficiency is key
      Hydraulic injection molding machines
      Proper maintenance can prevent downtime
      Hybrid injection molding machines
    • Purging Hot runners: Open or closed methods
      Purging extrusion machinery
      Purging extrusion blow molding machines
      Purging: Chemical, abrasive and non-abrasive
    • Controls, special applications boost production, profitability
      Robot maintenance key for smooth operation
      High-speed robots: A rapid way to increase efficiency
      Robots: Every shape and size
    • Maintenance: Key for efficiency
      Shredders: Plastic in pieces
      Safety first for size reduction
      Granulators: The right fit
    • Structural foam molding: Flexibility for processors
      Video: Structural foam molding
    • Mold inventory: How many molds does a shop have?
      Molds: Innovation
      Mold changeover: Saving time and money
      How molds work
    • Labor: Apprenticeships may provide answer
      Internships: Solving the skills gap in-house
      College training, programs
      Lean Six Sigma: Transforming business operation
  • Events
    • Plastics News Events
    • Industry Events
    • Livestreams/Webinars
    • Ask the Expert
    • Polymer Points Live
    • Reifenhäuser Technologies Livestreams
    • 2020 Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
    • Polymer Points Live - February 2021
      Polymer Points Live - January 2021
      Polymer Points Live - December 2020
      Polymer Points Live - October 2020
    • Plastics in Healthcare 2020
    • Plastics News Executive Forum
    • Plastics in Automotive
    • Plastics News Caps & Closures
    • Plastics in Healthcare
    • Women Breaking the Mold Networking Forum
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Data Store
  • Directory
  • More+
    • Classifieds
    • Digital Edition
    • Newsletters
    • Sponsored Content
    • Processor of the Year submissions
    • White Papers
    • Sponsored By Mitsubishi
      Innovative new technology from Mitsubishi Engineering-Plastics Corporation helps reduce emission footprints
      Canon Virginia, Inc.
      Sponsored Content By Canon Virginia, Inc.
      Canon Virginia Inc. brings collaboration to the table
      Sponsored By CDS MACHINES
      Facing medical equipment shortages during COVID-19 outbreak?
      Sponsored Content By Canon Virginia, Inc.
      Transform your molding capabilities with the Canon Shuttle Mold System
    • Sponsored By Conexiom
      Use Sales Order Automation to free up time for CSRs to focus on customers, not manual entry
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
June 19, 2000 02:00 AM

Panelists: E-biz adds links to supply chain

AUTOMOTIVE NEWS REPORT
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    The dynamics of e-commerce are forcing automakers and suppliers to react quickly. Four executives from inside and outside the auto industry discussed e-commerce and its effect on the supply chain during a May 17 panel discussion at the Automotive News New Manufacturing Conference in Birmingham, Ala. Participants included:

    Paul Hebeler, automotive industry director, Oracle Corp. in Troy, Mich.;

    Keith Lawrence, vice president of procurement and supply, Mitsubishi Motor Manufacturing of America Inc. in Normal, Ill.;

    Greg Robey, managing director of global integrated solutions, Federal Express Corp. in Memphis, Tenn.;

    Bill Taylor, chief executive officer, Mercedes-Benz U.S. International Inc. in Vance, Ala.

    Edited excerpts follow:

    Q. Was there an e-commerce moment of conversion for you?

    Mitsubishi's Keith Lawrence: It goes back about two years ago, when one of the OEMs was talking about some information he had wanted to get down to the lowest levels of the supply chain. This particular automotive executive put out some information, and I believe he called six tiers down into his organization. He said, "Listen, this information has to do with a project. I want you to call me as soon as you get it." About six weeks later, he got the phone call from the Tier 6 supplier who says, "I got it." I was looking at that and thinking the Internet can help speed that up quite a bit.

    Q. Will the need to be e-competitive drive suppliers out of the automotive business, just as globalization and other challenges have?

    Lawrence: I don't think it will drive them out. I think it should enhance the relationship. At Mitsubishi, we're encouraging our supply base to be enabled, technologywise.

    Oracle's Paul Hebeler: The history of suppliers is that the day you stop moving forward is the day that is the beginning of the end.

    Federal Express' Greg Robey: It goes across all industries. I think it's fair to say that there are going to be some companies that don't keep up.

    Q. Is Mercedes as much a part of this new business as is the Chrysler side of DaimlerChrysler?

    Mercedes-Benz International's Bill Taylor: Yes, it will be. We are in a quiet time right now. The emphasis is being realized. And when we move from there, we'll define that when we get there. I think it's at a point in time right now where it's really not so tangible to give you a concrete answer.

    Q. Will Mitsubishi be part of the Covisint trade exchange?

    Lawrence: We're certainly interested in seeing how this develops. Our strategy is not going to change. It's just that we have certain things we want in mind. For example, we want more collaboration with suppliers. I think it does require certain stability in the supply base.

    Q. Will automaker and Tier 1 inventory decrease, while the inventory of unfinished goods at Tier 2s and lower tiers increase?

    Hebeler: It's not an inventory shift. The key here is to get rid of the inventory, because by the time the actual pull sequence comes from the assembly plant, the suppliers are already anticipating. If they don't know it's coming, then they have to keep things in inventory. But if they anticipate the signal coming, then they don't have to stock up on their finished inventory.

    Q. How important has worker training been for Fed-Ex's evolution into e-commerce?

    Robey: It's continuing to be a big issue, especially when it comes to managing information and communicating to our customers our capabilities. The electronic commerce environment really changes the business equation when it comes to logistics.

    Q. How can an automaker continue to be competent on its outsourced items?

    Taylor: You still have your hands around it, and you're still involved. It's a partnership that's sharing information. Johnson Controls [Inc.] is a good example. They make many seats, and bring their knowledge in making seats for us. It just brings more information to the table. We don't lose competency.

    Q. Will Federal Express and other logistics companies become more critical to auto suppliers because they can orchestrate the supply chain in an e-commerce world?

    Robey: Our customers are asking us to play a larger and larger role in their business every day. That's why we've had to evolve from selling solutions or point services to offering integrated solutions that provide not only the physical goods, but also that information flow, that complete commanding control and dominance. We're getting demands in every industry to do that.

    Q. What is the bottleneck when it comes to automakers speeding up order to delivery?

    Hebeler: The consumer research that we've done says that the consumers really don't care if you supply them with a five-day or 15-day car. What they really want is for the dealer to give them a date, and they want it to be perfect. You're just as bad off being early as you are being late. If you can predict accurately, people will come to you for that.

    Q. Do your customers in Europe really care whether you speed up the delivery of their M class by a few days?

    Taylor: Yes

    Q. Is it really the best time to be diverting your focus and your suppliers' focus to e-commerce technology rather than quality improvement?

    Lawrence: Let's envision that a traditional supplier gets a supplier rating sometime after the fact. This is in fact a snapshot of the past; it really has nothing to do with the future. Let's envision a different scenario where one of our workers on the line has a problem and walks over to the computer screen and a digital camera snaps a picture of this thing and it is instantly sent out to the suppliers' quality department to take a look at what's going on in the facility. So, if we're talking about quality, the whole thing still comes down to speed and communication and the ability to use the two. And I think quality can be enhanced.

    Q. Mercedes partners with suppliers early on to improve speed. How do you then ensure that suppliers are competitive, and how do you test the market price?

    Taylor: By bringing a supplier in at the development phase, it takes care of itself because of the transparency. It takes place right from the first day. And then it becomes a price issue, and we know the competition, we know the price points that we want to achieve is how we get there. And to me, that collective approach is a whole lot better than the other.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    logo-pn-color
    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber & Plastics News
    • Urethanes Technology
    • Plastics News China
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • What Keeps You Up At Night
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
        • Polymer Points Live
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • FYI Charts
        • Current FYI
      • LSR World
      • Multimedia
        • Videos
        • Galleries
        • Podcasts
      • NPE2021
      • K Show
      • ENGEL Sponsored Content
      • Special Reports
        • CEO Issue
        • Best Places to Work
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
    • Opinion
      • The Plastics Blog
      • Kickstart
      • Heavy Metal
      • One Good Resin
      • BRICS and Plastics
      • All Things Data
      • Viewpoint
      • Perspective
      • Mailbag
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Plastics in Automotive
        • Plastics News Caps & Closures
        • Plastics in Healthcare
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Livestreams/Webinars
      • Ask the Expert
      • Polymer Points Live
      • Reifenhäuser Technologies Livestreams
      • 2020 Caps & Closures Library
      • Plastics in Healthcare Library
      • Women Breaking the Mold Networking Forum Library
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Data Store
    • Directory
    • More+
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified
      • Digital Edition
      • Newsletters
      • Sponsored Content
      • Processor of the Year submissions
      • White Papers