Auto action group pushes collaboration initiative

ALAN PEAT
FOLLOWING A recent cluster conference on global competitiveness, the Automotive Industry Development Centre (AIDC) is looking at establishing an action group to consider industry collaboration in reducing the logistical load on component suppliers. This, according to AIDC MD Dr Paulo Fernandes, is for the country’s good. With the size of the SA automotive industry, most component manufacturers have to deal with a multitude of assemblers – resulting in duplication of effort at supplier level. The AIDC conference stressed that supplier development was the key to success – and its intent was to put suppliers on this path. “It is thus important for the original equipment manufacturers (OEMs),” said Fernandes, “even though they are in a competitive environment, to collaborate in reducing the logistical load on the suppliers.” The level of OEM involvement declines down the supplier chain, according to Fayaz Sacoor, AIDC cluster programme director, and this lack of involvement has a direct correlation on the performance of these smaller suppliers in the quality/cost/delivery (QCD) stakes. The essence of the cluster was to address these issues, he said, to put the lower level suppliers on to the path to bigger things, and aim for the achievement of prerequisites such as ISO:TS16949:2002.