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Introduction of a Performance Management System

At a listed automotive supplier


Company Details

  • Manufacturer of high-value vehicle superstructures for log hauling, heavy hauling, airfield and public service vehicles
  • 350 staff, 2 locations, ca. € 90 M in sales

Situation and Challenge​

  • Extreme seller‘s market, suppliers working to capacity, purchasing team in part inexperienced
  • Long delivery periods, poor supplier reliability
  • Acute risk of materials shortages
  • Critical supply chain with high internal order situation

Objective and Tasks

  • Stabilizing and securing supply procurement
  • Prevention of extreme materials supply gaps and shortages
  • Coaching purchasing/procurement team and supporting purchasing managers

Measures and Approach

  • Close monitoring of critical suppliers, weekly prioritization, creating a network of 2nd source suppliers
  • Establishing risk management, identifying and evaluating dependencies, introducing management by relevant-areas-of-activity
  • Agreeing on clear targets with purchasers, coaching, leadership by close monitoring, frequent consultations

Results and Achievements

  • Quick relaxation of supply situation (reduction missing parts / critical suppliers)
  • Improved performance of purchasers, improvement of purchasers internal as well as external status
  • Reduction in trouble shooting