Driving Efficiency And Cost Savings For An Automotive Parts Manufacturer

Our Client

  • An automotive parts manufacturer based in the USA, with a global presence spanning multiple continents.
  • They offer various parts and components, including engine parts, brakes, suspension, steering, electrical, and other accessories.
  • With over two decades of experience in the industry, the company has established a strong reputation for quality, reliability, and innovation in its products and services.

Problem Statement

The company faced several challenges in managing its procurement process, some of them were:
  • Difficulty in tracking and monitoring orders and shipments, spotting delays and bottlenecks, and managing inventory levels.
  • Heavy reliance on multiple suppliers and vendors, made it challenging for our client to track their performance, negotiate contracts, and manage relationships effectively.
  • Limited insights into their spending patterns made it difficult for them to identify cost-saving opportunities in the entire procurement process.
  • Manual forecasting process that relied on unstructured data, which resulted in inaccurate demand forecasts and inventory shortages.
  • Spending a lot of time on manual processes such as data entry, reporting, and analysis, which took away from their time to focus on strategic activities.
The operations generated a vast amount of data, which was collected manually, making it time-consuming and prone to errors. The data was not leveraged to its full potential in making informed decisions.

Our Solution

To address these challenges, we developed a procurement analytics dashboard that provided real-time visibility into the procurement operations and enabled the procurement team to make data-driven decisions.
  • Supplier performance metrics: We continuously analyzed the supplier performance metrics such as on-time delivery, quality, and cost, enabling the client to identify the bottlenecks in the supply chain.
  • Inventory management: The procurement analytics dashboard provided real-time visibility into inventory levels and allowed our client to identify potential shortages and excess inventory, enabling them to take corrective action.
  • Customizable reports: The dashboard allowed the client to create custom reports, enabling them to analyze the spend analytics by category, supplier, location, and other related parameters.
  • Automated forecasting: Our experts devised and incorporated machine learning algorithms to forecast demand and inventory levels, reducing the reliance on manual processes and improving forecast accuracy.
  • Automated reporting: Real-time automated reports on procurement performance metrics reduced huge amounts of time the procurement team was otherwise spent on manual reporting.
Overall, we encouraged the cross-functional collaboration of decision-making with real-time information.

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Business Impact

The procurement analytics dashboard had a significant impact on the client’s business, leading to many visible outcomes:
  • The dashboard enabled the procurement team to identify cost-saving opportunities and negotiate better contracts with suppliers, resulting in a 10% reduction in procurement costs.
  • The client was able to identify underperforming suppliers and take corrective action, leading to a 13% improvement in supplier on-time delivery.
  • Our solution enabled the client to identify excess inventory and take corrective action, leading to a 10% reduction in inventory carrying costs.
  • The automated forecasting based on our machine learning model led to a 12% improvement in forecast accuracy, reducing inventory shortages and improving customer satisfaction.
  • The real-time visual dashboards and reports led to a 16% reduction in time spent on manual reporting, allowing the procurement team to focus on strategic activities.
Overall, the procurement analytics reporting had a positive impact on the client’s bottom line, leading to an overall reduction in procurement costs and an increase in operational efficiency.

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