Dana Corporation is developing its own e-commerce purchasing system in spite of attempts by major automakers to attract suppliers to their own Internet-based networks.
Dana has formed a partnership with US technology company Ariba to develop the system. It will be launched later this year to handle Dana's $8 billion annual purchasing business.
Dana said it believes its e-commerce network will be more flexible and more individually tailored than the manufacturer-initiated systems.
Dana wants to slash the number of suppliers it uses by half over the next four years.
Both Ford and General Motors have recently announced their own web-based purchasing operations - called AutoXchange and TradeXchange respectively.
Dana says its system developed with Ariba will be compatible with both manufacturers' web networks.
'Using our own technology as a base, Dana will explore the possibility of partnering with other automotive, heavy truck or aftermarket suppliers to create an independent services exchange for transactions,' said Joe Magliochetti, Dana's president and chief executive officer.
'The creation of an electronic business exchange could provide significant value to our common customers and suppliers through reduced transaction costs, aggregated purchasing, and value added services such as supplier design collaboration and logistics.
'We have identified aggressive goals over the next four years, including a 50 percent reduction in the number of suppliers, and $1 billion in cumulative savings in procurement cost and transaction expenses.'
Dana is the first major auto supplier to announce its own e-commerce purchasing initiative.