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Journal cover: Supply Chain Management: An International Journal

Supply Chain Management: An International Journal

ISSN: 1359-8546

Online from: 1996

Subject Area: Operations and Logistics Management

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Interoperability costs in the US automotive supply chain


Document Information:
Title:Interoperability costs in the US automotive supply chain
Author(s):Smita B. Brunnermeier, (Smita B. Brunnermeier is an Economist at the Research Triangle Institute, Center for Economics Research, Research Triangle Park, North Carolina, USA and a Lecturer in the Department of Economics at Princeton University, Princeton, New Jersey, USA.), Sheila A. Martin, (Sheila A. Martin is an Executive Policy Advisor at the Governor’s Executive Policy Office, Olympia, Washington, USA.)
Citation:Smita B. Brunnermeier, Sheila A. Martin, (2002) "Interoperability costs in the US automotive supply chain", Supply Chain Management: An International Journal, Vol. 7 Iss: 2, pp.71 - 82
Keywords:Costs, Design, Motor industry, Supply chain
Article type:Case study
DOI:10.1108/13598540210425821 (Permanent URL)
Publisher:MCB UP Ltd
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.



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