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.