Supply Chain Improvement and Cost-cutting

Supply Chain Improvement and Cost-cutting

Supply Chain Improvement : A leading North American automotive manufacturer

 

ISSUE

A major economic downturn resulted in the need for significant cost-cutting in their vehicle production and parts procurement. Part suppliers performed inconsistently, and the procurement process resulted in ongoing disparities in performance.

 

RESULT

  • Conducted rigorous production efficiency review of 110 parts suppliers to identify production and operations leaders and shortlist the suppliers
  • Instituted a shared parts procurement strategy across vehicle lines for greater economies of scale and better pricing for thousands of parts
  • Launched the first online bid process for OEM parts manufacturers
  • These actions directly saved the manufacturer $20 MM on a $200 MM spend.
Operations Improvement Through Lean Principles and Growth Strategy

Operations Improvement Through Lean Principles and Growth Strategy

Lean Process Improvement & Strategy Development: A global leader in environmental testing services

 

ISSUE

Put a strategic planning infrastructure in place to improve operating performance and get management and ownership to share the same performance objectives.  Develop a lean-inspired strategic planning and performance system with clear targets and accountabilities.

 

RESULT

  • The firm’s opportunistic management style caused planning difficulties and inconsistent expectations between owners and management
  • Developed a business model that included objectives, targets and expectations, to allow management focus within the owners’ growth objectives
  • Created a systematic product development and operational improvement culture utilizing lean management characteristics
  • Developed a deeper financial stake for management to align their interest with the success of the company.
  • Created a symbiotic relationship between management and owners through shared improved operational metrics and growth objectives