The challenges
Develop roadmap to reduce engine parts supply base by 50% by transferring parts to existing suppliers
- Client embarking on a new four-pillar initiative to drive comprehensive top- and bottom-line improvements towards achieving market leadership
- Amount of time spent on supplier management overtaking strategic sourcing activities
The approach
- Develop list of preferred suppliers from tailored supplier performance assessment
- Verify part technical viability and assess strategic compatibility (based on ramp-up capabilities, business relationships, costs)
- Develop roadmap for phased supply base consolidation
- Evaluate potential savings and expected transition timeline
The impacts
- 116 suppliers prioritized from initial 195 suppliers mapped
- $4M savings estimated over 3-year transition
- +$3M savings year-over-year thereafter
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