Wednesday, May 27, 2009

Trend #3: Increasing Revenue through Products with Higher Added Value

OEMs are pushing more responsibility down to their supply base, and successful suppliers will be the ones who can integrate the automakers’ needs into value-added modules and systems, going beyond straight components. Additionally, OEMs will rely more than ever on their suppliers as sources of innovation. Those that generate new products and add a greater intrinsic value to the OEM’s assembly process and/or the end user’s preferences will have a significant competitive advantage.

This need for demonstrating higher added value also will require suppliers to become involved in product development earlier in the vehicle design cycle. Suppliers, as a result of greater collaboration, may well find themselves leading more design and engineering and driving more innovation.

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