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©RAM – stock.adobe.com
©RAM – stock.adobe.comIntroduction of a Performance Management System
At a listed automotive supplier
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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
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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
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Objective and Tasks
- Stabilizing and securing supply procurement
- Prevention of extreme materials supply gaps and shortages
- Coaching purchasing/procurement team and supporting purchasing managers
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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
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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