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Interior-Cooling Automotive Supplier for OEM Client

From April to August 2019 AMBE worked for an OEM Car Maker with an Interior- Cooling Automotive Supplier to develop and implement a plan to eliminate back log orders and expedited shipments, increase production output and improve planning and communication.

The Challenge

Supplier was in a continuous backlog situation, while the OEM client was ramping up production of a new model car and had not yet reached maximum.

To help our client we worked with the supplier to improve and eliminate:
I. Back log parts: Continuously over 500 parts when project initiated and only 2 days coverage
II. Premium freight: Daily expedited trucks direct to OEM instead use of regular OEM JIT trucks
III. ASN issues: Bypassing regular quality, packing and shipping procedures caused deviations and SCAR reports
IV. Hampering communication on the daily production and shipments’ status as well as the root causes and planned action
V. Unclarity on the root cause: No clear information from the supplier on real capacity and staffing problems
VI. Fear of the OEM client that the ongoing crisis might affect the quality of the products
VII. Escalation by the OEM: Supplier was on the highest escalation step, involving need to inform the auditing body and a stop on new business

AMBE helped to quickly identity and visualize the main issues, bridge the communication gap and coach the supplier into improved performance.

The Solution

Map the actual processes on the factory floor, generate data to analyze performance, work with the people to understand and solve the issues.

  • Daily AM and PM info to executive levels of both OEM and supplier
  • Daily and weekly conference call cadence
  • Take custody of supplier production and shipment reporting
  • Visualize daily performance, issues and bottlenecks
  • Separate performance and capacity issues and actions required
  • Support supplier with weekly presentation of progress on action plan
  • Catalyze OEM-Supplier cooperation to understand changing requirements and deviations on CUMs quantities
  • Catalyze fast-track approval of OEM for use of additional equipment
  • Solve ASN issues together with OEM and the supplier
  • Analyze and improve supplier capacity planning and reporting

The Result

Communication

Before

Non-existent communication by the supplier to the OEM

After

Supplier showing weekly a full deck with indicators, analysis on root causes, planned actions and progress together with sincere and open communication on all levels
Escalation

Before

Highest Escalation Level. Uncertainty that supplier can perform at maximum rate

After

Supplier de-escalated to medium level Demonstrated full capacity during detailed run at rate testing
Back log and shortage of components

Before

Continuous backlogs of over 500 parts and low, 2 days coverage of product in the pipeline

After

Zero backlog and 10 days on hand of all parts
Costs

Before

120,000 USD annual premium freight costs

After

Zero premium freight, Use of only milk runs
With more than 100 team members in the US and response teams available globally, we are an award winning ISO 9001:2015, dual-certified W/MBE diverse supplier that brings expertise you can count on and outcomes you can measure.
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