Technical Paper
Supplier Development Process; Bahia-Brazil
2007-11-28
2007-01-2687
The Brazil automotive industry is projected to reach 2.4 million units in 2007. I recent years some of the industry migrated to non traditional regions for productivity gains. With the OEMs geographical move, traditional Tier 1 suppliers followed OEMs to new locations, on the basis of a better result (Quality, Cost and Timing (delivery). Tier 1 suppliers relying on bringing parts and components from distant locations, may generate a difficult cost/logistics/results balance, and do not optimize quality levels and business results. This paper unveils a 2006 - 2009 initiative in Bahia. The State Government and the Federation of Industries joined efforts to install competitive Tier 2+ suppliers in the northeast of Brazil, with the support of the German Government agency GTZ to provide the proper technology.