Referenscase automotive | onTrack management AB

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Här finner ni några fördjupade referenscase som väl beskriver hur onTrack management fungerar i verkligheten - vårt sätt att skapa vinnarna i ligan av lönsamma, uthålliga och växande företag.

Vi står till ert förfogande vad avser goda referenscase från samtliga branscher där vi applicerat vår kunskap och vår lean management filosofi.

Vi kommer också att förse er med direkta kundreferenser på ledningnivå.

Automotive global sourcing and supplier development

A number of successful cases preceded the ones described here for the same customer.

Global sourcing
One high value and high complexity commodity areas was addressed as there was an urgent need to improve cost in this area of the car. The technology drive within the area is fast and therefore a limited renewal rate of content and subsequent action from purchasing will have cost increase effects, i.e. old technology will cost more than new technology in many areas.

The first step was to help out the team to define a product structure in preparing the a global sourcing task. The area has mutliple variants and the similarity and commonality among these variants were not defined. Once the structure was defined, potential sourcing candidates were defined and audited. The quoting process started, detailed and split up bids were collected for all reference products. These were analyzed in depth with the team.

The result was a cost potential of -30%, equivalent of 900 MSEK, if the portfolio would be spread among a limited number of suppliers. First result after the 1st negotiation round was a direct price reduction of 10%, equivalent of 300 MSEK with existing suppliers. The residual potential had a high probability of implementation.

The task revealed numerous opportunities and also hidden waste in terms of product structure not well defined for efficient purchasing. This is typical for commodities with a large number of part numbers involved and also for high complexity commodities. This is an interesting opportunity area besides "black box" and "OEM" purchasing within most industry sectors.

Supplier development
The customer had no success and no cost improvement with current supplier of a high complexity and high value system in all car platforms. This situation was not satisfactory after 5 years with increasing cost and limited improvements. OnTrack was appointed to run a supplier development task with a customer supplier team.

The first step was to perform a detailed cost analysis of design, sourcing and manufacturing cost. A reference calculus was set up for a major volume system. All parts of cost were then analyzed in teams with focus on cost structure, cost drivers and improvement opportunities. The key to task success was knowledge and methgods and the principle of teams target, to reduce cost, not only supplier price.

The task was a true success and a cost improvement of -10 M€ was the result of a 3 month project, equivalent to less 9% of price. The customer was satisfied and so was the supplier as the result was not subject to a true simplfied price pressure activity, on the contrary it was actually reducing true cost enabling substantial price reductions.