Automotive Sector Driving a High Performance Supply Chain
This global automotive manufacturer was suffering with part quality, supply issues and lack of visibility of capacity within the supply chain; issues that were causing stoppages in the build programme and poor warranty performance. This negatively affected profitability, the customer experience and customer retention.The root cause of these issues stemmed from a lack of control over the supply-base and suppliers not conforming to approved processes and methods. The OEM also wanted to embark on a new, challenging build programme to support their growth target. In order to de-risk the OEM’s supply chain and prevent costly line stoppages, the OEM needed to make sure that its suppliers would be able to deliver the increased volumes at the required quality standard. Supporting a major OEM to de-risk and drive high levels of performance
HowWe Helped
We created a 9 step assessment to rapidly assess the current compliance of supplier processes and provide a detailed report and suite of KPIs. Our Consultants conducted assessments across 75 key suppliers that were affecting the manufacturer’s supply chain and worked with the output from the assessments to develop a 90-day improvement plan with each supplier that would be closely monitored. 95% of the assessed suppliers were found to be noncompliant.Where necessary immediate containment was put in place to protect the manufacturer from substandard parts. Each 90 day plan involved intervention activities to return the supplier parts performance back to required quality standards.Additional insights from each assessment highlighted the supplier’s operational capability and capacity to handle increases in volume.
The Results
• All non-compliant suppliers returned to a compliant status within 12 months
• Over 150 issues, with potential to impact production were identified and resolved before risks materialised – preventing significant cost to the manufacturer
• The client now has a repeatable assessment process to continue to improve supplier performance and to develop supplier insights.
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