CASE STUDY

Enhancing Supplier Performance
in the Automotive Industry

Industry: Automotive

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.

85%

Reduction in past due spare parts backlog across 6 suppliers.

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Author

Dave Wardle

By David Wardle,
Vice President, Operations

David has been at GPSI since its inception in 2006. He is responsible for the development and execution of Operational Strategies. Prior to joining GPSI, David held several Senior Leadership roles at Boeing Toronto Limited/McDonnell Douglas Canada and accumulated over thirty years of Aerospace Management experience. David is Lean Manufacturing Certified, has earned diplomas in Human Resources Management and Aircraft Maintenance Engineering and is a graduate of the Boeing Leadership Centre.