BMW Group's Oxford plant was originally constructed to build all-steel bodies for the UK motor industry in the 1930's and was expanded to vehicle assembly in the 1980's. In the last few years a £230 million investment programme for the new Mini ranges has transformed the factory into an advanced state of the art car production centre.

Supply chain requirements at BMW are driven by the price expectations of car buyers, namely: annual price reductions - which means managing cost with sustainable margins.

'Base' supplier competences have become 'givens': Cost Performance (focus on year on year cost reductions and productivity improvements); Quality Performance (to specification, and repeatable); and Delivery Performance (on time, in full).

In addition to these base competences, BMW looks for partnership principles: Project Management (self-steering of major projects); Design & Development (helping to deliver solutions on behalf of the customer); Operational Management (appropriate structures and sound relationships).

Further, BMW looks increasingly for: Innovation, Technology and Know-How (harnessing supplier expertise); Capacity (matching and anticipating customer needs); Flexibility (responding to change and market fluctuations); and Environmental Protection.

The rewards for successful companies are: Business Continuity (long-term survival and sustainability); Long-Term Partnerships (based on trust and transparency); Repeat Business (including frame contracts and nomination for new projects); and Competitiveness across world markets.

The implications for local manufacturing businesses in the UK include the requirements to: Develop Competences in all the areas; Commit to Continuous Improvement;

Understand your Performance; Share the Benefits of Improved Performance; Invest in People and Skills.

There is now substantial evidence to show that businesses that take advice survive longer and are more profitable than those who don't. Help is available from Business Link, and the MAS.

www.supplier.bmw.de