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Friday, September 19, 2008

Accenture as Detroit parts supplier

So we hear Chrysler suing Accenture for failure to deliver on $900 million in promised savings from a low-cost country sourcing initiative. We know Accenture more as a IT outsourcer and not anywhere near a supply chain strategist. Is there something called vendor due diligence or is it all about Detroit firms losing their minds over perpetually falling fortunes? According to the article, "Chrysler paid at least $7.7 million to Accenture for help buying parts in low-cost countries such as China and India. Chrysler thought doing so would save $900 million. Instead, Chrysler saw virtually no savings, court documents say."

Does anyone know what else Accenture is into? Fixing perils of globalization? Saving a crestfallen financial world up next?
Indian IT outsourcing vendors better watch out - might as well get into these new `horizontals' ;-)

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