Supplier component cost optimization in automotive
Objective & context
Building an action plan for an international supplier and a car manufacturer in order to reduce the total delivery cost of Steering systems (42M€ of Turn Over).
2 high runner systems studied – electronic and hydraulic.
Short/mid-term action plans have been defined in 7 weeks with regards to:
Engineering: standardization of electrical cables and screws, replacement of raw material, reduction of right/left steering system parts diversity.
Packaging tier 1 and tier 2: stock reduction at car plant by optimizing logistic shipment parameters, tier 2 lighter packaging use, full truck image implementation at supplier, returnable packaging deployment.
Process: relocation of intermediate assembly line to join the main line, spare parts standardization.
Quality: elimination of 100% control operation at the end of the assembly line.
Added value & customer benefits
Estimated saving at 1,46 M€.