Structurally transform the Supply Chain of an automotive supplier
Build a performing team and introduce best practices in terms of innovation to leverage car parts manufacturer’s operations to the best market standards.
01
Problematic
Outsourcing operations to low labor cost countries in Eastern Europe is seldom backed with rebuilding and reengineering of the Supply Chain. Suppliers position is not reworked, transfer time is increasing and cycles are complexified with low support in terms of Supply Chain expertise locally. Supply Chain is often becoming the weak link of the operations and a cost center impacting global optimization of the industrial network.
02
“Drawing on their operational and consulting expertise, our teams quickly built and implemented a plan to improve the site’s performance.”
Process
As a first step, we completed a flash diagnosis of the current situation, together with measures of potential stakes in terms of cost and service level. This work helped to prioritize actions on the reachability and the stake scale. The action plan was built with a path and shared locally with the team. It was necessary to launch preservation actions immediately due to the critical situation regarding Premium Freights. To reach immediate savings, the local team was reinforced with an Interim Manager. As a second step, we supported the car parts manufacturer, to rebuild a performing Supply Chain, by hiring personnel with the right profiles, as well as training, and bringing standard management tools to the local Supply Chain team.
6
million euros premium freights per month
150
people for the plant Supply Chain
<90%
OTIF at the beginning of the mission
Result
03
Result
The project, launched with a local team, allowed to reduce premium freights from ½ million euros to less than 100 k€/month. The support of an interim manager helped restore quickly the standard processes in terms of customer management, plant production planning/scheduling and rebuild, in strong link with purchasing, supplier management. Routines for team management were reinstalled to coordinate Supply Chain operations in the plant. Then, a thorough transformation of the supply Chain was launched introducing innovating tools and technics for operation management (demand driven management) and rebuilding a Supply Chain team at the right level of the plant needs.