GM wouldn t have to help dealers cover the cost of their inventory as it sat on their lots. GM might also have more loyal customers if they didn t feel they had to compromise and accept the black leather interior, rather than the beige, because that was all the dealer had available. Last summer, DaimlerChrysler launched a Web-based initiative that links all aspects of its vehicle design, production, and marketing operations. The project, called FastCar, will provide tighter communication among external partners and every internal department. In the old system, one part of a process had to be finished before the next group would take it up.
Suppliers knowledge about, say, a new car design often lagged months behind reality.
DaimlerChrysler s use of the Internet to extend its supply chain to suppliers of parts, glass, and metal has speeded up the introduction of new models. The efforts have reduced the time it takes to design and produce a new car from about five years to a little more than two. Pharmaceutical companies have been slower than other industries when it comes to buying and selling online, partly because of strict regulatory guidelines. Still, Bristol-Myers Squibb has found ways to use Web technology to connect to its suppliers and integrate its supply chain. The company also created Web links to improve connections between manufacturing and sales.