The challenges
Our client, an automotive harness manufacturer, faced several challenges impacting their bottom line:
- Complex approval processes: lengthy and intricate approval processes between the client (Tier 1) and the original equipment manufacturer (OEM) hindered efficiency.
- Frequent design changes: product evolutions and new developments resulted in constant changes to harness designs, increasing complexity.
- Limited portfolio transparency: project-based supplier contracts limited visibility into the complete parts portfolio and overall spend.
- Inconsistent pricing and terms: disparate pricing and payment terms across multiple plants added further complexity.
The approach
We implemented a multi-faceted strategy to streamline the client’s parts portfolio and unlock significant cost savings:
- Centralized Data platform: we established a comprehensive database that integrated Bills of Materials (BOMs) for each harness, providing a clear view of the entire portfolio.
- Collaborative analysis: through in-depth analysis of OEM releases with the client’s engineering team, we identified opportunities for optimization.
- Deep technical expertise: our team’s advanced understanding of sleeves and tubes enabled the identification of viable alternatives within the existing portfolio.
- Data-Driven optimization: we leveraged a specialized tool to pinpoint portfolio segments with the highest cost-savings potential.
- Strategic supplier management: we conducted targeted supplier auctions for defined portfolio packages, further maximizing value.
The impacts
- 15% variant reduction in sleeves and tubes portfolio
- 9% Cost Savings Potential
