IMIG Czech: supplier development management in the English OEM AUTOMOTIVE INDUSTRY on behalf of traditional German sports car manufacturer
Supplier development is about creating and establishing new capacities or skills among suppliers. By developing suppliers, companies can generate competitive advantages. This can manifest itself in a new product for sale, new streamlined processes, or the implementation of a new standard.
Suppliers are therefore an enormous and often untapped pool for innovation, continuous improvement, and cost reduction. Activating this potential can have a tremendous impact on the bottom line.
However, suppliers often hesitate to tie resources to a single buyer. They fear that their intellectual property will be abused and their cost models exposed, leaving them excluded from future negotiations. In short, suppliers do not trust their buyers. This also applies to consult programs initiated by the client. This lack of confidence can undermine the success of supplier development programs.
On the one hand, the IMIG Group's supplier development project makes use of the supplier's full potential, while also consolidating the trust between the customer and its supplier.
The goal of the project: "SUPPLIER DEVELOPMENT - Improve, Organize and Streamline Sourcing Activities" was for the customer, an traditional German sports car manufacurer, and the supplier of the English OEM Automotive Industry to obtain a common understanding of the current situation, recommended measures for improvement measures, and the impact on KPIs and goals. The supplier should also understand the procurement process from the customer perspective.
Process and results
The supplier development process identified organizational, procedural, and methodological problems as well as potentials for employee performance. It ensured that the process as defined allows the supplier to achieve the expected production volume with the required flexibility while delivering the necessary quality. Professional consultants helped the supplier accelerate work processes so that the lead time for standard procedures could be shortened.
The analysis of the overall situation revealed where the real bottlenecks lie.
Fig. 1: Supplier development analysis report
For this purpose, the following components were systematically analyzed:
- information management
- communication system
- materials management
- customer communication
- production process
- process deviation control system
- improvement methodology
- repair system
The success factors for this project include:
- the supplier system by improving the in-house collection of data from suppliers
- the performance gap analysis by remedying deficiencies in product quality, delivery time, costs, technology
- improvement of the overall development of supplier performance levels and expected production output through the targeted use of Kata coaching
Managing Director I IMIG Czech
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