Exploring the Benefits of Collaborative OEM/Tier 1 Supplier Partnerships
Henry Ford found monumental success with vertical integration when he developed the assembly line strategy for mass car production in the early 1900s. In the early days of the automotive industry, manufacturers invested heavily in the development of their own manufacturing processes, technologies, equipment, and parts.
This approach made sense when vehicle portfolios were narrow and volumes were high. However, in today’s highly specialized marketplace with wider consumer preferences, lower volumes, and global supply chains, automakers are looking for collaborative partnerships with Tier 1 suppliers that spur the research, development, and delivery of innovative parts and technology.