Leading European Global Automobile Parts Supplier - Initiated with Pilot Project in largest Mexican Plant
Business Case
Summary
- Rapid 50% rise in Euro destroyed N.A. price competitiveness
- Need to reduce purchased parts costs and develop local suppliers (lacked internal
- Developed & demonstrated supplier assessment program
- Lead implementation at suppliers to N.A. plants
| Metric | Before | After | Total Savings |
|---|---|---|---|
| Purchasing cost | $99.8 M | $94.1 M (-$5.7 M) | Purchase Cost $7.9 MM |
| Related Internal Costs | (-$2.2 M) | Purchase Cost $7.9 MM | |
| Inventory cash-Suppliers | (-$3.0 M) | Inventory Reduction $6.0 MM | |
| Inventory cash-Internal | (-$3.0 M) | Total Cost Savings $13.9 MM |
- Transferred knowledge + process to continue on their own.
- Supported client in deploying to three other North American plants, and assisting in documentation and training to successfully deploy model and methodology for dramatic ROI from pilot project.