The quality of relationships between global carmakers and their suppliers has marginally deteriorated in 2016, continuing a negative streak which started in 2014, according to IHS Markit’s SuRe index study. IHS Markit’s study is based on a unique global survey allows suppliers to rate 34 carmakers on a variety of matters, ranging from technology sourcing to profit-impacting factors as well as quality management and intellectual property protection matters.
The SuRe (Supplier Relationship) index is a key-performance indicator of the quality of relations between OEMs and their respective supply bases. It gives a quantitative measure to the qualitative assessment expressed by suppliers in the annual OEM-supplier survey conducted by IHS Markit.
The overall rating is given on a 0 to 1,000 scale. A SuRe score higher than 650 is considered somewhat satisfactory. Any result above 700 represents an outstanding achievement, suggesting a sensible management of the relationship with suppliers and a strong commitment by the carmaker to ensure a fair treatment of suppliers. This would ultimately result in an increase in the attractiveness of bidding and winning supply contracts with certain OEMs.
The SuRe index itself is not an attractiveness or popularity measure as only the “Outlook” concept allows suppliers also not in business with an OEM to rate that OEMs’ attractiveness as a customer. However in this category we also include two questions regarding the effective opportunity for the supplier to get new or increased business from the OEM and the OEM’s openness in accepting new suppliers in the respondent’s component area, both of which partially mitigate the attractiveness bias typically linked to premium OEMs.
Divergent supplier management approaches emerge in 2016 as overall quality of relations deteriorates
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2016 SuRe Index Ranking – Top 10 Carmakers
Pursuit of Excellence
SuRe by Region
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