New Performance Audit Available To Auto Suppliers

Compiled ByJill Jusko The Center for Automotive Research (CAR) at Altarum has launched an audit service it says will help automotive suppliers identify the weak links in their revenue acquisition processes. The Ann Arbor, Mich.-based CAR, a non-profit research and innovation institution, says the audit is based on the results of a study it conducted in 2002 called "The RAM/CAR Survey: A Study of Suppliers' Profitability and Revenue Acquisition Management." Findings from the study show that nearly one-third of suppliers reported errors in pricing being submitted to OEMs; large suppliers spend more than $11 million annually to process new business requests for proposal but lose nearly 75% of them; and supplier engineers spend 30% of their time working on losing bids. Using its research database and financial impact model as a base, the Center for Automotive Research (CAR) at Altarum says the audit involves five steps: selection of the business unit to be audited; company specific data is supplied by the client; the Altarum/CAR staff review the data; the data are compared with the benchmark database; and the Altarum staff provide a report and briefing for the client. The cost is about $4,000 for most suppliers. For more details about the audit, call (734) 302-4600.