2002: Covisint used extensively for bidding
Covisint (2002) describes a high‑ level of activity on the
exchange. Taking the example of DaimlerChrysler AG,
512 online bidding events were processed through
Covisint over a twelve‑ month period from 2001 to 2002.
In total, this amounted to €10 billion. In May 2001,
DaimlerChrysler staged the largest online bidding event
ever, with an order volume of €3.5 billion in just four
days. In total, 43% of the total value of the parts for
a future Chrysler model series was negotiated online,
with over 50 online bidding events in the third quarter
of 2001 alone. As well as savings in material purchas‑
ing prices, DaimlerChrysler succeeded in reducing
throughput times in purchasing by approximately 80%,
thus saving on process costs. According to Dr Rüdiger
Grube, Deputy Member of the Board of Management
responsible for corporate development,
the economic effects achieved with e‑Procurement
in the first year of implementation have already cov‑
ered the costs of previous investment in e‑Business
and hold great potential for the future, too. Therefore,
we will continue to pursue our e‑Business activities to
the fullest extent in 2002 as well.
With the online catalogue system ‘eShop’ which was
part of the Covisint service at that time, DaimlerChrysler
would be able to reduce process costs by 50% after the
completion of the blanket roll‑ out, which will give approx‑
imately 15,000 users the possibility of ordering several
million articles. By the end of 2002 about 1,500 busi‑
ness partners would be connected to the electronic
document exchange system ‘eDocs’, which would
enable them to process approximately 500,000 docu‑
ment transmissions per year. Initial results using the
‘FastCar’ program for networking change management
in automotive development at Chrysler show cuts in
communication processes by 60– 90%. In 2001, over
600 managers connected to the system developed over
300 product improvement suggestions online with the
‘New Product Change Management’ used in the devel‑
opment department of Mercedes‑ Benz.
‘e‑Business activities are already closely intertwined
from development through procurement, logistics, sales
and marketing. To a great extent, they are already a part
of everyday business,’ says Olaf Koch, Vice President
of Corporate e‑Business. Dr Grube: ‘We’re a good deal
closer to our goal of making DaimlerChrysler the first
automotive company to be networked throughout the
entire value chain.’
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