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Building Strong Partnerships One Project at a Time

Starting in 2018, this leading global supplier of hydraulic components to major international OEMs has tasked IMIG to work with problem suppliers to improve reliability and reduce operating costs!

For manufacturers of components or systems that source parts from outside the company, it is critical to everyone’s success that these key items arrive on time and meet all quality expectations.  Unfortunately, it is sometimes the case that critical parts suppliers are unable to meet these expectations, causing production interruptions, costly ‘fixes’ and damaged relationships.

 

IMIG Works in Partnership with OEMs to Save Supplier relationships!

 In this particular case, a very well-known manufacturer of hydraulic power units was having difficulties with a number of critical component suppliers. Ongoing problems included insufficient production quantities, repetitive quality issues, and unreliable delivery schedules. This resulted in higher operating costs and missed delivery commitments to customers. In another instance, an otherwise reliable supplier was unable to ramp up capacity to meet growing demand, resulting in a significant lost opportunity for the OEM.

 

Working Hand-In-Hand with the OEM leads to speedy supplier turn-around results!

Within a very short period, IMIG, working closely with the OEM, can initiate an effective program to address supplier issues. This process normally starts by visiting the supplier’s facility and working together with the supplier to assess operations and identify specific areas for improvement. The on-site assessment normally results in developing a targeted ‘recovery plan’ and presenting a comprehensive report on IMIG’s findings to both the OEM and the supplier. This first phase of the project normally takes 5-8 days to complete.

The next phase in this project would be for all parties to review the results of the on-site assessment, agree to an ‘action plan’ based on the assessment results and to set up a ‘task force’ to implement the action plan. In most cases, the immediate goal for this task force is to eliminate as fast as possible the issues causing poor quality or insufficient deliveries. Think of a fire department putting out a fire!

For this particular OEM, IMIG was called to the first fire late in 2018 and was able to put out the fire within 5 weeks of hearing the first alarm bell.

 

Early Success leads to increased commitments from the OEM!

Since then, IMIG has been called in again and again to address problems with numerous suppliers (8 successful projects and counting) and has expanded activities to include current issues with multi-level supply chains.

IMIG has also been asked to work with suppliers to not only address ‘Immediate’ or ‘crisis’ situations, but also take the next step and develop and implement long term improvement programs to ensure that problems do not reoccur, and that ongoing and valuable supplier partnerships can continue to benefit both parties as demand grows into the future.

 

OEM partnership with IMIG continues to grow!

As a next step in the ongoing OEM & IMIG partnership, this OEM has just tasked IMIG to work with another two targeted suppliers. At the same time, this OEM and IMIG are working directly together to solidify the partnership through a long term, formal ‘frame’ agreement, allowing IMIG to respond quickly and cost effectively to any newly identified issues. Part of this expanded relationship includes IMIG working not only with ‘problem’ suppliers but also takes a proactive step toward working with suppliers in good standing to ensure they are in a position to react positively to growing demand and changing customer requirements.

 

IMIG Assessment Tools bring Visibility and Focus to Organizational Goals!

One of the foundational tools used by IMIG during the assessment phase of a supplier development program is shown below. This tool provides an overall view of organizational strengths and weaknesses and highlights those areas where immediate improvement is necessary.

 

Picture 1: Assessment criteria for the holistic recording of the actual situation

 

For this particular supplier, the initial assessment indicated a number of ‘Red Light’ areas, highlighting where immediate action was required.

Working hand-in-hand with the supplier, IMIG was able to develop and implement an improvement program, turning those ‘Red Lights’ into ‘Green Lights’ within 8 weeks of the project start date!

 

Picture 2: Evaluated assessment categories before and after project deployment

 

 

Michael Cossentine
Senior Business Development Consultant I IMIG USA 

For further information please contact us either by mail: marketing@imig.com or by phone: +49 7152 / 928 460.

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