A family-owned TIER 1 automotive supplier had set itself the goal of improving its operating result both in the short term and sustainably. The company had suffered a drop in sales and therefore wanted to avoid additional costs and open up new business areas.
As an expert with experience in the automotive industry, the interim manager was tasked with increasing the efficiency of purchasing in particular. The project was made more difficult by the fact that 2 of a total of 5 purchasing employees had resigned shortly before the start of the project and taken their remaining leave.
Quotation process streamlined and accelerated
The interim manager approached the assignment by working operationally on the ongoing new projects. Together with Development and Sales, he compiled inquiry documents and obtained part prices and tool costs from potential suppliers. He procured development samples, ordered tools and tracked purchased parts that had already been ordered and were in the start-up phase. This gave him a detailed impression of the work processes. He then streamlined the quotation process and massively accelerated it.
Supplier structure and purchasing volumes analyzed and optimized
In parallel, the interim manager analyzed the supplier structure and their purchasing volumes. He worked out potential savings and got to the bottom of additional costs for partial deliveries, special trips and manual reworking. He invited problem suppliers to a meeting, reminded them to comply with contracts and renegotiated prices. As a result, the performance of the series suppliers improved noticeably. Late or partial deliveries were a thing of the past.
OEM customer grants approval for high-turnover component
The interim manager organized several expert meetings for a particularly difficult plastic injection moulded part that had been in the PPAP approval process for months. He initiated audits, translated the findings into effective action plans and monitored their implementation (tool changes, pre-production). He also inspected series tools in the process of completion and clarified open questions together with the responsible development department. The quality and output of the plastic injection molded part were noticeably improved. The OEM customer finally gave the long-awaited approval.
Purchasing manager relieved and new employees trained
The interim manager was able to noticeably relieve the burden on the purchasing manager. He also provided support in the selection of applicants for the vacant positions in Purchasing. He trained two new employees.
The interim manager implemented several proposals developed as part of the ongoing CIP and strategy workshops with effective results. By insourcing a formerly critical purchased part, the interim manager opened up a new and very profitable business area.
A monthly supplier evaluation initiated by the interim manager provides reliable information about suppliers whose performance is declining and who need to be reminded by strategic purchasing and, in the worst case, replaced.
