It's one thing to put materials like staplers out for bid. It'sanother to toss out a long-standing power-train supplier for a cheaperbid only to spend time making sure that power train is up to snuff.That is a process that Prouty describes as "commoditizingrelationships" with suppliers - a mistake he says American OEMs have ahistory of making.

Instead, Covisint, if used correctly, has the potential to accomplishthe opposite by building closer relationships with suppliers,according to Prouty. Companies can simply use the exchangeinfrastructure to execute deals more efficiently. Will GM do this? "Itremains to be seen how they're going to use it," says John Waraniak,who handles Covisint for Johnson Controls, an $18 billion automotivesupplier based in Milwaukee. "You want to reduce the cost andcomplexity but complement the relationship."

GM SupplyPower. This customizable, secure Web portal providessuppliers with relevant GM news, guidelines and specifications, andcontact information. SupplyPower covers a lot of ground, includingmaterials, manufacturing, logistics, purchasing and finance, and ithelps reduce the personnel and time required to exchange informationwith suppliers.