Role of the Supply Base

It is recognised in the automotive industry that an OEMs supply base provides over 50% of the value-added of the final product. The performance of these suppliers is critical to the overall impact that a new product has when it is delivered to the market place and its reception by the consumer.

This increased responsibility and value that today exists in the supply chain consequently increases the influence the supply base has on the quality of the final product. Alignment between the OEMs measurement and comprehension of perceived quality with its supply chain is therefore a vital success factor in supply chain management. Having a common FVPA system expanded down through the supply chain will enable negative sources of customer impression to be identified. An example of this is shown below :

Supply chain

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