The Automotive Supply Chain Development Program will provide $20 million to 2012 -13 to assist the automotive components sector to enhance its capabilities and to better integrate into local and global supply chains. It will be a competitive grants based program. Funding will commence from 1 July 2009.
The Automotive Supply Chain Development Program will fund work aimed at enhancing the supply chain capabilities of automotive component manufacturers, producers and suppliers currently facing challenges from global competitive pressures, an inadequate capital base, a variable exchange rate and changes in consumer demand away from domestically manufactured vehicles.
The Automotive Supply Chain Development Program will be delivered in three elements running in parallel over the life of the Program:
- Element 1: Funding for a service provider to coordinate assistance for individual firms (across the automotive supply chain, including all tiers of component production and supporting businesses such as tooling and service providers) and implement collaborative strategies to enhance the industry’s competitive advantage. This Element will utilise 50% of the funding available under the Automotive Supply Chain Development Program.
- Element 2: Funding for domestic Motor Vehicle Producers (MVPs) to enhance the capabilities of component suppliers through a program of support and mentoring; and more effectively identify and secure emerging opportunities in international supply chains. This funding will be available on a competitive basis. In total, this Element will utilise 40% of the funding available under the Automotive Supply Chain Development Program.
- Element 3: Competitive grants of capped amounts for Tier 1 suppliers to undertake a program of support and mentoring to enhance the capabilities of their Tier 2 and Tier 3 component suppliers and assist them to more effectively identify and secure emerging opportunities. Individual grants will ordinarily range between $50,000 and $80,000, but there will be scope for the Assessment Panel to consider grants outside this range. This Element will utilise 10% of the funding available under the Automotive Supply Chain Development Program.
What activities will be supported?
Four key areas of improvement for suppliers in the supply chain have been identified:
- Company management structures and leadership;
- Manufacturing efficiencies and quality management;
- Integration into extended supply chains; and
- Global sourcing and marketing strategies.
Criteria
Applications for the Automotive Supply Chain Development Programwill be assessed against the following criteria:
- the capacity and capability of the applicant to undertake the proposal, including management capability;
- experience delivering similar proposals;
- evidence that the funding will enable activity in addition to what would otherwise have occurred;
- level of financial and in-kind contributions from applicants;
- quality of the Supplier Development Plan;
- the projected benefits relative to the funding sought; and
- other aspects of the proposal deemed relevant by the Panel.
Eligible Activities
Eligible activities are those activities undertaken by Tier 1 businesses that are aimed at improving a product or process of a Tier 2 or Tier 3 component supplier including:
- cost estimating;
- project management;
- quality control;
- production readiness;
- supply chain integration and management;
- financial management (including the design and installation of financial management systems);
- marketing;
- global sourcing strategies;
- operations management;
- strategic planning; and
- other activities determined by the Assessment Panel to directly contribute to the objectives of the program. (Where applicants seek funding for other activities, they should provide a precise explanation as to how the activity will do this).
The focus of Element 3 will be on “Tier 1″ suppliers developing the capabilities of their upstream suppliers. However, applications that include some training or other development activity for the benefit of the applicant company itself will be considered. Any ‘internal’ funding provided will not exceed 25% of the total project funding provided.
Applications close 5.00pm, Friday, 9 October 2009.