Scope of Work
In the competitive automotive industry, optimizing supplier performance is pivotal for operational success and meeting customer needs. Global Partners Solutions Inc. (GPSI) took on the challenge of reducing supplier past due deliveries while building a great working relationship among a customer and its selected suppliers.
Activities
GPSI’s journey commenced when a major player in the automotive sector sought solutions to enhance supplier performance on its spare part demand streams. GPSI proposed deploying its Supplier Performance Improvement Program (Supplier PI) Levels 1 through 4, aimed at eliminating or majorly reducing past due deliveries, elevating on time order fulfillment to excellence standards and securing on time delivery of future needs.
Facing unique obstacles such as discontinued production lines and commercial constraints, GPSI swiftly identified key issues. Leveraging 6 Sigma and lean methodologies, DMAIC, effective problem-solving and proven knowhow processes that yield tangible quantitative results, GPSI worked with both supplier and customer to streamline workflows, investigated and identified root causes, challenged current value stream maps, proposed and oversaw the execution and completion of fix and improvement activities. These initiatives turned poor performing suppliers into top rated performers and paved the way for extending GPSIs Supplier PI into final assembly OEM demand streams.
By embracing a structured approach, GPSI introduced the Supplier PI, this adaptable program features four service tiers customized to address the diverse complexities within each supplier’s operations. GPSI’s Supplier PI Involves the customer’s directors in decision-making and fosters collaboration between supplier and customer teams. This holistic approach focuses on tackling root causes, ensuring lasting gains, and promoting a culture of continuous improvement.
Results
GPSI’s Supplier Performance Improvement Program achieved remarkable results, including an 85% overall reduction in past due spare parts orders across six suppliers and in some cases 100% elimination of past due deliveries. Progress Managing Dashboards highlighted substantial enhancements in suppliers’ performance metrics. These achievements not only impressed the client’s leadership with their effectiveness, strategic value add and return on investment but also sparked a culture of learning and excitement within the customer and supplier teams. This success story showcases the significant impact of strategic supplier management.
