informa
/
News

Covisint Handles 100 Million Supply Transactions Monthly

Procurement on the auto-industry exchange has reached the level of an entire auto company's monthly purchasing activity.
The automotive industry exchange Covisint LLC is handling 100 million supply-chain procurement transactions per month between 2,000 suppliers and the leading automakers that founded the exchange, according to data released Monday. The number of transactions, and the number of suppliers participating in them, is exceeding expectations, analysts say.

SupplySolution Inc., Covisint's primary supply-chain software vendor, says the materials being handled over Covisint range from nuts and bolts to complex engineered parts such as braking systems, steering and suspension systems, electronics, occupant-safety systems, and engine components. A Covisint spokesman confirmed SupplySolution's figures.

The volume of transactions being processed via Covisint is impressive, says Kevin Prouty, AMR Research automotive analyst. "A hundred million transactions a month is roughly the equivalent of an entire auto company's monthly procurement," Prouty says. Even more impressive is the number of suppliers using Covisint, he says, because suppliers initially had been reluctant to sign on to the exchange, fearing they'd be pitted against one another in a bidding war. Prouty says automakers and suppliers are primarily using the browser-based SupplySolution software, called Covisint Fulfillment, in an inventory-management system in which automakers inform suppliers in real time of parts that are used, letting suppliers automatically maintain the stock of those parts at predetermined levels.