Case Study Automotive Updated March 20, 2025 4 min read By GPSI Team

Enhancing Supplier Performance in the Automotive Industry

Facing past-due spare-parts deliveries across its supply base, a major automotive player turned to GPSI — whose Supplier Performance Improvement Program cut past-due orders by 85% across six suppliers, with full elimination in some cases.

Automotive manufacturing and spare-parts supply chain

85% Reduction in past-due
spare-parts orders

Client Automotive OEM

A major player in the automotive sector seeking solutions to enhance supplier performance across its spare-parts demand streams.

Industry

Automotive

Engagement

Supplier Performance Improvement (Supplier PI)

Scope

6 suppliers · Levels 1–4

Methods

6 Sigma · Lean · DMAIC

Key Takeaways

85% overall reduction in past-due spare-parts orders across six suppliers.
100% elimination of past-due deliveries in some cases.
Underperforming suppliers were turned into top-rated performers.
GPSI’s Supplier PI deployed four customized service tiers (Levels 1–4).
Root causes tackled with 6 Sigma, Lean and DMAIC for lasting, measurable gains.
Success paved the way to extend Supplier PI into final-assembly OEM demand streams.

Scope of WorkWhat was the 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.

DEFINITION

Supplier Performance Improvement Program (Supplier PI): GPSI’s structured, adaptable program for lifting supplier performance. It features four service tiers (Levels 1–4) customized to each supplier’s operations, involves the customer’s directors in decision-making, and fosters collaboration between supplier and customer teams.

ActivitiesWhat did GPSI do?

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.

The ApproachHow does the Supplier PI work?

Identify key issues

Pinpoint the obstacles behind past-due deliveries — discontinued lines, commercial constraints.

Find root causes

Apply 6 Sigma, Lean and DMAIC; challenge current value stream maps.

Execute fixes

Streamline workflows and oversee fix and improvement activities to completion.

Sustain the gains

Track with Progress Managing Dashboards; embed continuous improvement.

6 Sigma

Data-driven reduction of defects and variation in delivery performance.

Lean

Eliminating waste and streamlining workflows across the value stream.

DMAIC

Define, Measure, Analyze, Improve, Control — structured problem-solving.

Dashboards

Progress Managing Dashboards surface real-time performance metrics.

ResultsWhat results did GPSI deliver?

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.

85%

Overall reduction in past-due orders

Suppliers improved

100%

Past-due elimination, in some cases

Supplier PI service tiers (Levels 1–4)

These initiatives turned poor-performing suppliers into top-rated performers — and paved the way to extend Supplier PI into final-assembly OEM demand streams. — Outcome of the GPSI Supplier PI engagement

AS9100NSF-ISR Certified

GPSI delivers supplier performance and operations improvement under AS9100-certified quality management, backed by 6 Sigma, Lean and DMAIC practitioners.

Frequently asked questions

What is GPSI’s Supplier Performance Improvement Program (Supplier PI)?

Supplier PI is GPSI’s structured, adaptable program for improving supplier performance. It features four service tiers (Levels 1 through 4) customized to the complexities of each supplier’s operations, involves the customer’s directors in decision-making, and fosters collaboration between supplier and customer teams.

What results did GPSI achieve in this case study?

GPSI delivered an 85% overall reduction in past-due spare-parts orders across six suppliers, with 100% elimination of past-due deliveries in some cases. Progress Managing Dashboards showed substantial improvements in supplier performance metrics.

What methodologies did GPSI use?

GPSI leveraged 6 Sigma and lean methodologies along with DMAIC and proven problem-solving processes to investigate root causes, challenge value stream maps, and oversee fix and improvement activities that yield tangible, quantitative results.

How many service tiers does Supplier PI have?

Supplier PI has four service tiers — Levels 1 through 4 — each customized to address the diverse complexities within a supplier’s operations.

What challenges did the project face?

GPSI navigated unique obstacles including discontinued production lines and commercial constraints, swiftly identifying the key issues before applying its improvement methodologies.

How does Supplier PI involve the customer?

Supplier PI involves the customer’s directors in decision-making and fosters collaboration between supplier and customer teams, focusing on root causes to ensure lasting gains and a culture of continuous improvement.

Which industry does this case study cover?

This is an automotive industry case study, focused on improving spare-parts supplier performance and on-time order fulfillment for a major player in the automotive sector.

Turn underperforming suppliers into top performers

GPSI’s Supplier Performance Improvement Program cuts past-due deliveries, lifts on-time fulfillment, and builds lasting supplier–customer collaboration. Let’s find a time to connect.

Contact GPSI Canada toll free: 866-980-1387 · US: 316-263-1288 · UK: 44 121 295 6504