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Tier One Auto Supplier

NEEDS-BASED RESULTS

 

Tier One Auto Supplier

SITUATION

Tier one auto supplier needed help driving demand visibility and supply chain planning, operational performance improvement and reliability, and sourcing performance.

DRIVER GOAL

  • Reduce plant inventories by 5%.
  • Reduce Distribution Center labor costs by 5% as a percent of sales.

RESULT

  • Reduced plant inventories by 9%.
  • Reduced Distribution Center labor cost by 5% as a percent of sales.
case study image, CS-154 large

Case Study

Optimize Supply Chain & Reduce Inventory

Issue

A tier one supplier in the auto industry, with eleven manufacturing facilities, engaged The Highland Group to help drive demand visibility and supply chain planning, operational performance improvement and reliability, and sourcing performance and reliability.

Highland Approach

The Highland Group performed an analysis of the operation to determine and target the causes of missed and late shipments to customers, which had resulted in costly inventory levels and distribution and a complete lack of quality control standards. The co-team utilized a variety of tailored performance improvement techniques to optimize the operation and create and ensure quality standards, and then implemented structured management systems to monitor/control the supply chain, production and order delivery.

Actions Taken

  • Developed and implemented a supply chain System For Managing for monitoring orders and inventories.
  • Implemented revised safety stock rules, narrowed shipping windows/transit times and increased order frequencies.
  • Developed and implemented eleven, plant-specific Systems For Managing orders and production.
  • Developed and initiated “Competitive Supplier” programs for lead time reduction.
  • Reengineered Distribution Center processes and reestablished quality control practices.
  • Developed and implemented a demand-driven Distribution Center staffing model.

Reduced plant inventories by

9%

while developing and implementing 11, plant-specific Systems For Managing orders and production

Related Information

subject matter-based

Senior Consultant

Supply Chain

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Project Leader

Oil & Gas

North America

Tom is a senior project leader with over 25 years of international management consulting experience in the oil and gas, utilities, manufacturing, financial services, telecommunications, media and aerospace industries. He has served Fortune 500 and Global 2000 companies in 15 countries across North America, EMEA and Asia.