In the German automobile industry, 40 percent of employees work for supplier companies, and studies indicate that these suppliers account for 70 percent of an automobile's added value and are responsible for 60 percent of innovations. How is this possible?
According to the 2012 MBtech Trend Monitor, rising price and localization pressures and the globalization of German automobile supply are leading to significant changes. "More and more suppliers are moving from simply supplying parts to becoming system suppliers, including development," explained the consulting firm, which is partly owned by Daimler.
Rising demand for complete systems transforms transmission and fluid engineering suppliers into strategic partners for OEMs. By ordering not just parts, but highly complex construction units, OEMs lower their payroll costs for assembly and simplify their procurement. These system suppliers also relieve their customers of costs related to development and construction, project management, logistics and testing, value analysis, product lifecycle and spare parts management. Even venture capital investment is already a common occurrence.
The Industrial Supply trade show at HANNOVER MESSE is the presentation platform for suppliers of construction units and systems in transmission and fluid engineering. The SystemPartner theme park in particular brings together system supplier expertise from throughout the product lifecycle. The theme park partner is the Dutch industry association NEVAT, with 250 supplier company members.
Today's interactions between suppliers and manufacturers are also on display in the "WeP – Value-Adding Partner ContiTech" theme park. ContiTech and select supplier partners present elastomer products and systems for automotive and industry applications, and demonstrate how customers' requirements can be met using networked collaboration.