Procurement and Supply plans to do similar mappings for all of its components. Total Cost of Ownership is another recent initiative. Suppliers are assessed on cost drivers for materials, overhead, warranty, and assembly for savings opportunities. Future sourcing decisions are based on supplier measurables such as cost, quality, delivery, and technology. Suppliers that are high on all criteria are rewarded.
Corrective action is taken when weaknesses have been identified.
Eighty-one percent of all DCX suppliers rated DCX as best in communication practices. The company wants to develop a capacity data-base in which a supplier's current capacity can be assessed for bottlenecks to figure out where best to source components. DCX has joined with Ford and General Motors to create a new company to carry out on-line auctions with suppliers. DCX's assessment of opportunities is that the greatest return from supply-chain optimization will be in the product creation process, especially as it relates to quality and cycle time reduction. All suppliers are assessed on electronic capability.