Westboro, MA August 27, 2001 Healy Hudson, a global provider of supplier relationship management (SRM) software, has announced its alliance with business consulting and systems integration firm Syncata to provide supplier relationship management solutions to automobile makers and their suppliers.
The benefits of Internet-based SRM are best illustrated among automakers and their suppliers because of their steep purchasing volumes and complex supply chain structures. GM, for example, spends over $80 billion annually, while its 30,000 suppliers spend over $500 billion. It is estimated, meanwhile, that even 2 percent savings in purchasing costs would translate into a $1.6 billion profit increase each for Ford and GM.
While the auto industry has given rise to a number of public exchanges to reduce costs for commodities, executives from Healy Hudson and Syncata believe the alliance between their two companies will address the needs of companies that are looking to establish more sophisticated, secure private exchanges to improve procurement and SRM for their more strategic purchases. The automotive industry is currently in the midst of brutal cost cutting being pushed on all suppliers across the supply chain, said Rakesh Batra, Syncata's supply chain practice area leader. To better manage costs, organizations need to improve supplier relationship management capabilities beyond primitive and heavy-handed price-cutting demands. The Syncata/Healy Hudson solutions will deliver sustainable cost reductions by enabling continuously improving supplier management capabilities that significantly reduce the total cost of sourcing complex goods and services.
According to Healy Hudson U.S. President Tom Swanson, Healy Hudson will benefit enormously from Syncata's expansive U.S. market knowledge and leading integration expertise. Our combined industry knowledge, moreover, will enable us to deliver proven solutions that will minimize the risk that our automotive customers face when making critical SRM decisions.